A deal between AXA and broker Layton Blackham to allow the insurer to take a minority ordinary shareholding in the broker has yet to be completed.
Layton Blackham chief executive and founder Chris ...
A deal between AXA and broker Layton Blackham to allow the insurer to take a minority ordinary shareholding in the broker has yet to be completed.
Layton Blackham chief executive and founder Chris Blackham told Insurance Times that AXA has historically provided the company with funds for prospective acquisitions in the form of preference shares.
"We have recently agreed terms on a deal whereby the entire preference shares convert to a minority ordinary shareholding, but the deal has not yet been completed.
"Myself and my directors have retained 100% of our ordinary shareholding during this period."
AXA commercial and intermediary lines director Mark Cliff confirmed the deal was close to completion, but "was awaiting the legal sign-off".
He also added that AXA's future investment is on an institutional basis and it will only be involved at a "strategic level and will have no involvement in the day to day running of the business."
In 2002 Layton Blackham produced a profit before tax and amortisation of £1.38m.
Blackham said that the broker "consequently has strong positive cashflow".
Blackham added that the "restructuring will leave us [Layton Blackham] profitable, virtually debt-free and independent so that we can continue to grow our premium base through a combination of new business sales, selective acquisition, franchises and our network proposition".
