The senior Towergate executive team are enjoying a cash windfall following the MGA's decision to issue £100m of preference shares, raising its equity to around £1bn.

A total of 35 management shareholders, including Towergate founder Peter Cullum, will enjoy a £100m pay-out, with a further £5m to be shared by 120 of the company's senior staff.

Chief executive Andy Homer, non-executive director Paul Dyer and sales and marketing director

Tony Proverbs will each receive between £5m and £6m.

The deal also means 2,000 mainly non-managerial employees will each receive a cheque for £1,000.

"We wanted to take some money off the table and reward a lot of people who have helped create the business," Cullum said.

Towergate issued the shares to US capital managers Och-Ziff and Reservoir Capital and the deal means £250m is now in the pot to finance further acquisitions.

The group has confirmed it is on the hunt for larger underwriting agencies and intermediaries.

The news comes as Towergate this month made its largest acquisition to date - Southport-based Paymentshield.

Insurance Times revealed (News, 5 October) how Towergate had approached the mortgage-related general insurance broker with a bid worth in the region of £200m.