Highway has launched a retail division in order to acquire UK brokers, improve its earning stream and smooth the impact of the underwriting cycle.
The motor insurer announced that Highway Retail will be led by former Budget and BDML director Paul Cosh. Cosh has been appointed managing director of the new division.
Highway said it had already identified its first targets for possible acquisitions, with completion of the fist deal expected in the summer of 2004.
The group's existing retail operation, motorcycle specialist Elite, is to become part of Highway Retail. Highway acquired a 75% stake in the business in the first quarter of 2003.
Highway Insurance chief executive Andrew Gibson, said: “Brokers are key to Highway's success. By developing our strategy to incorporate the acquisition of brokers we will be able to deliver a new profit stream that is not dependant on underwriting rates or equity markets. We expect Highway Retail to deliver significant earnings to the overall business.
“We intend to purchase brokers led by strong management who will want to join the Highway Retail team. The combined experience of these new operators will add to our overall skill base and form the foundations of our growth in this sector.”
Gibson added: “I firmly believe that well-run broking operations have a strong future. I want to see a broker marketplace with strong players who can compete against the direct writers.”
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