Corporate news from Towergate and Direct Group

by Gill Montia

Story link: Corporate news from Towergate and Direct Group

Towergate Partnership recorded a 36% increase in profit in the first-half of 2007. Sales increased 30%, to £709 million of gross written premiums.

The partnership is Europe’s largest independently owned insurance intermediary and is an active consolidator, focusing on the acquisition of niche businesses.

Towergate operates from around 100 UK offices and whilst it plans to continue to grow through acquisitions, it will continue its commitment to organic growth through an emphasis on business development and client retention.

Other corporate news includes the management buyout of Direct Group, the provider of affinity services to the insurance sector.

The group, which specialises in policy administration and fulfilment, commission management, premium collection, claims handling and performance reporting, has been acquired for £40 million.

LDC, the private equity firm, has invested £21.3 million in the purchase, with the balance of equity being held by Direct Group’s management.

The firm currently covers the property, motor, life and casualty sectors, focusing in the main on property and protection insurance schemes.

The new owners have ambitious plans to expand and develop the business, continuing its evolution from a niche third party administrator, to work more broadly as an intermediary for both insurers as well as corporate and affinity distributors.