What would be the best move for the Plymouth-based network?
Following its acquisition of the Broker Network in December, Towergate stated that its intentions would be to continue acquire more networks in an attempt to grow its newly created division.
The Broker Network could now soon be Joined by Westinsure, a network of 128 members and £234m premiums, which is believed to be close to sealing a deal with a potential suitor.
Towergate has been tipped as the most likely destination for Westinsure, which has a large membership in the South West, an area that other networks have struggled to break in to. It also has a small number of members in Scotland, a feature that could also make it attractive to Towergate, after recently declaring that it was keen to grow its presence North of the border.
Combined, the Broker Network and Westinsure - which could be described as more of an alliance of brokers compared to the traditional network structure - would bring with them large UK memberships, many of which are established brokers, and huge potential for distribution for any interested party.
A market source added: “I am sure it would fit with most networks and I would not be surprised if there were others interested as well.”
Westinsure managing director Denis Morgan will be sure to look at the transition of the Broker Network to Towergate, as question marks over the retention of members after a sale would again be raised.
AXA was believed to be in the running, but has now decided against making a bid. Cobra could also be another suitable home for Westinsure, but there are doubts over whether the two would have enough presence to attack the market together.
However, Cobra chief executive Steve Burrows has stated his desire to grow the network on many occasions, and has not ruled out buying another network.
