Partners reduce share ownership as employees gain greater stake
Tysers, the Lloyd’s and international insurance and reinsurance brokers, has secured its independence through a management buyout
The broker claimed the move wouldl "widen share ownership and position the company to make the most of the opportunities that lie ahead under a strong, committed and highly motivated management team".
Central to the transaction is the acquisition of Tyser & Co by Hawkes Bay Holdings, a newly formed holding company which will be controlled and owned by ongoing senior management and staff.
The transaction will transfer the ownership of Tysers, which up until now has been closely held, to the succeeding management and staff.
This will allow the company to continue to control its own destiny and enable the new management to take the group forward positively on its own terms, said Tysers.
The board of Hawkes Bay Holdings will comprise Christopher Spratt as chairman, Chris Elliott chief executive, Quintin Heaney as chief operating officer and Gary Andrews who leads the largest division in Tysers.
Bill Main, who joined the group as a non-executive director at the beginning of last year after a distinguished career, predominately in the Scottish insurance market, will continue in the same role.
Elliott said: “One of the areas which has most occupied our thoughts is that of wider equity distribution in Hawkes Bay Holdings Ltd. Historically, approximately 95% of the shares in Tyser & Co Ltd were held by five pre-incorporation partners of Tyser & Co. Going forward the former partners will retain 12.50%, members of the Hawkes Bay executive will hold 30% and the balance of 57.50% will be offered to senior staff and more widely through an Employee Benefit Trust. This has been created in order to offer a broader group of current and future staff the opportunity to become equity participants in the Group as well as giving us the ability to attract quality producers to enhance our growth prospects.
“Naturally, the best professional advice has been sought to ensure that we get our new management and ownership structure right. We believe this is a sound investment and will yield great benefits for the firm. I am also pleased to report that despite difficult trading conditions in a continuing soft market, we are ahead of our internal targets for the first half of the current year, and trading in the traditionally slow summer months has continued this trend.
“Tyser & Co Ltd and its board remain unchanged as the regulated insurance broking entity and will continue to handle our clients insurance and risk requirements. I am delighted on behalf of all participants that we have achieved a common understanding which has succeeded in putting the business onto a strong platform for future growth”.
