Property insurance specialist targets entrepreneurs to boost top-line growth
Barbon has refocused its acquisition strategy to target property brokers.
Barbon, a property specialist, is aiming to increase premium income to between £100m and £150m in the next three years.
Acquisitions director Steve Brindley had originally targeted both brokers with a wide commercial book as well as firms with a big property portfolio.
Barbon secured a multimillion-pound loan from insurers at the end of last year to help fund acquisitions. Barbon is wholly owned, through Caley Ltd, by HBOS, HSBC and Lloyds TSB.
“We looked at both commercial and property. The more we looked, it became very clear that the biggest advantages we bring are in the property sector,” Brindley said.
“Our biggest relationships are with the main property carriers. If we can bring expertise and relationships to other smaller property brokers, we can help increase margins.”
Brindley said Barbon’s start-up scheme for brokers was going well, and he had already bagged two entrepreneurs and hoped to have six by the end of the year.
Brindley said entrepreneurs were being offered the most attractive commission split in the market.
Broking consolidation was helping spawn a generation of entrepreneurs, he said.
“They are unhappy where they have ended up. They thought they might have had a career progression with a broker going to X,Y or Z, but they have now been stifled,” he added.