Nick Wright and Stewart Gardiner handed Towergate their notice this week
The two leaders of a highly profitable underwriting division of Towergate have resigned from the company for new roles at Arthur J Gallagher, Insurance Times has learned.
Fusion managing director Nick Wright resigned on Wednesday and underwriting director Stewart Gardiner followed yesterday .
It is understood they will be joining Gallagher’s managing general agent, which is headed by Mark Armitage.
Spokesmen for Towergate and Gallagher declined to comment.
Gallagher international chief executive David Ross has previously identified its underwriting business as “one of the most underdeveloped and highest potential areas we’ve got.”
In April it hired RSA UK and Western Europe chief executive Adrian Brown as executive chairman of underwriting and distribution to spearhead its expansion.
Brown will join Gallagher when RSA has appointed a replacement, which the insurer has said it expects to do by August.
At Fusion, Wright and Gardiner run one of Towergate’s most profitable businesses.
According to the 2012 accounts of Fusion Insurance Services, the most recent available, the MGA made earnings before interest, tax, depreciation and amortisation (EBITDA) of £7.2m on turnover of £19.8m, giving it a 36% profit margin.
In the same period, Towergate’s EBITDA was £157.6m, meaning Fusion roughly made 4.6% of the group’s profits.
A year ago rival broker Bluefin attempted to poach Wright and Gardiner to set up its MGA, but the duo stayed put at Towergate.
Fusion specialises in risk managed businesses and has offices in Bristol, Birmingham, Leeds, Glasgow, Lymington and London.
Fusion and its commercial property SME business were bought by Towergate from Lloyd’s insurer SVB in 2005.