Towergate steps up acquisition plans

Towergate has signalled its intent to buy more brokers by appointing Stephen Hinbest to lead its growth plans.

Towergate was handed around £90m for acquisitions when private equity giant Advent International bought a 45% stake in the business last month.

As head of acquisitions, Hinbest will manage Towergate's acquisition team and report directly to group chief executive Andy Homer.

The consolidator said there was an "increasing number of brokers in discussions with Towergate regarding possible sale" since the Advent deal. Towergate also refinanced its long-term debt arrangements.

Hinbest joined Towergate in 2006 as regional managing director for Towergate Underwriting. His most recent roles include head of product development and project management.

Chairman Peter Cullum said: "The acquisition market has been relatively slow in a landscape of great economic uncertainty, and brokers with recession-hit client bases.

"However, time stands still for nobody and there are many brokers keen to plan their exit or retirement, and Towergate’s track record and firepower makes us an obvious first port of call for a lot of them.

"We are seeing a raft of great opportunities from larger regional brokers right through to specialist niche portfolios.”

Hinbest added: “This an exciting time for acquisitions and Towergate has as good a pipeline as it ever has.

"A recent report showed that 28% of broker owners are over 60 and, as much as we all love insurance, not all wish to work indefinitely.”

Earlier this week, Towergate Underwriting boss Clive Nathan told Insurance Times it would be interested in buying a Lloyds syndicate or any other niche underwriting business.

The acquisition cash will also benefit sister-company CCV, which today completed its first deal in 2011.