Kevin Pallett and Geoff Crisp leave Towergate-owned underwriting agency.

Insurance Times' story from last month:
RSA cancels underwriting deal with Fusion
Exclusive analysis: Towergate under pressure

Kevin Pallett and Geoff Crisp, the bosses of Towergate-owned underwriting agency, Fusion Insurance Services, have left the company.

The news comes a month after Insurance Times revealed that RSA, one of Fusion's panel of four leading commercial insurers, had served notice on its binding agreements with the company.

In a statement Towergate said that Pallett and Crisp left behind a strong and experienced management team, which will report to chief executive of Towergate Underwriting, Clive Nathan.

Towergate executive chairman, Peter Cullum said that Fusion's capacity for the next three years was oversubscribed, and that he expected to confirm arrangements by the end of September.

In 2007, Fusion's turnover was over £90m GWP and is approaching £100m in 2008, Towergate said, with "particularly strong growth" in very small to medium enterprise, or VSME clients.

“We are now in advanced talks with our chosen shortlist of insurers ... I am pleased to say we are oversubscribed.

Peter Cullum

Cullum said: “Underwriting capacity through to the end of 2008 remains with our existing consortium members. Discussions with prospective insurers for future capacity have gone well.

"We are now in advanced talks with our chosen shortlist of insurers who are keen to participate as members of the underwriting consortium from Jan 1 2009. I am pleased to say that, at this stage, we are over-subscribed and I expect that we will be in a position to confirm our final consortium arrangements for 2009-2011 at the end of the third quarter.

“Fusion has reinforced its regional coverage and strong broker support, and benefitted from the close cooperation of our insurers, so we continue to have ambitious plans for them and it is business as usual for our brokers.

"We look forward to continuing to develop our extensive portfolio in what is undoubtedly a challenging marketplace”.

Towergate acquired Fusion in November 2005.