A second director and up to 10 staff from Towergate Underwriting could be joining Gallagher International, Insurance Times understands.

Scott Banks, the managing director of Towergate Underwriting's homeowners unit is the second Towergate boss on London broker Gallagher's radar.

Insurance Times revealed last night that commercial underwriting managing director Simon Read was being tipped to be join its rapidly expanding managing general agency arm, Gallagher Underwriting.

Market sources said the senior duo could be joined by up to 10 staff from Towergate Underwriting. They are expected to lead a new UK e-commerce underwriting unit within Gallagher's underwriting operations.

Gallagher’s swoop on the Towergate staff will considerably beef up its two MGAs - Essex-based Woodbrook Underwriting, the MGA snapped up earlier this year, and OIM which was bought in 2008.

Both are led by Sian Fisher under the umberalla of a new division called Arthur J Gallagher International Underwriting Group.

Woodbrook will be used as a funnel for Gallagher to place retail business, especially now that it has acquired Heath Lambert for £97m.

Woodbrook writes around £50 in premium income, but that is sure to rise considerably with the addition of the Towergate staff.

Gallagher’s masterplan is to copy the Towergate model of having a strong broking and managing general agency arm (MGA).