Rea outlines acquisition strategy in determination to double in size by 2012
CCV chief executive Michael Rea aims to become a top 10 broker within the next three years.
He wants to double the size of the acquisition vehicle, which currently lies in 21st place on Insurance Times’ top 50 list with £61m brokerage, by 2012.
CCV will also add to its 70-strong account team by recruiting another 30 to 40 staff in the next 12 months, he said.
Rea, who took over from Tim Johnson last month, set out his battle plan at CCV’s annual managing directors’ conference earlier this month.
“What we set out at conference last week, was our first three years: huge success, great growth trajectory. Where am I looking for 2012? I would like to see a business twice the size it is today, which would, in today’s money, put it as the tenth-largest broking business in the UK.”
Rea said he would focus mainly on brokers but wanted to buy more managing general agencies “because that is clearly an area where we want to build capability”.
“We’re not looking for distressed businesses, but good businesses with good management teams that have a good track record of delivering results. Not just good broking results but having insurers behind them who are supportive and making good money out of those brokers.”
Rea said that in the past six weeks he had visited most CCV sites across the UK.
Acquisition targets would be of a similar size to those already added to CCV, with up to £15m in gross written premium.
He said a team was “actively pursuing” opportunities with brokers. “We have a very healthy pipeline of opportunities, in terms of businesses where we are in an advanced stage, or where we are in due diligence stage.”
CCV was set up in 2006 by Towergate founder Peter Cullum. He remains the majority shareholder.