Lots of activity at Giles and Towergate this week, as two very different businesses appear to be emerging
Consolidators Towergate and Giles both entered 2012 heralding the start of new eras. Now things are starting to take shape.
At Giles, just days into Brendan McManus’s new reign as chief executive, the turnaround has begun.
Yesterday UK sales director John McLaren-Stewart’s exit was announced. He joined Giles two years ago when former chief executive Chris Giles (now chairman) was steering the ship.
Today, McManus confirmed the departure of managing director Sarah Lyons. She was number two to Chris Giles and highly rated by senior management, so her departure “to pursue other interests” may come as a surprise given her knowledge of the business.
Whatever the reasons, McManus has gaps to fill, but he’s unlikely to lose sleep over this. The former Willis UK chief executive is highly regarded in the market and will have a host of industry contacts jumping at the chance to join him at Giles. But who will join him as he begins to build his team still remains a mystery.
Organic v acquisitive
Giles’s agenda, which will focus mostly on organic growth, differs to that of rival Towergate, which is currently on the acquisition warpath. Today it announced three new regional broker acquisitions: Gill Knott Insurance, Lloyd Manley Associates and Airevalley Insurance Services. That’s seven so far this year, and at first glance they appear to be typical Towergate deals owing to their niche offerings and established schemes business.
The pipeline doesn’t end here, however. The consolidator still has a huge acquisition fund at its disposal and is putting in a lot of effort to make deals happen. There’s still a potential bid for Cobra in the offing too. By the end of the year, both Giles and Towergate could look like very different businesses.
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