Loss adjustor reduces dependence on property claims
Loss adjuster Davies Group has grown by a third following the acquisition of specialist liability loss adjuster Garwyn.
The acquisition, for an undisclosed sum, will help Davies to diversify further into non-property risks.
Before the acquisition roughly three-quarters of Davies’ turnover came from property claims, with the remaining quarter split across other claims including casualty and travel.
The combined company will have a 60:40 split and boosts Davies’ headcount from 450 to 600.
“We’re really focused on having a diversified strategy on liability. Garwyn helps us to get that balance so we can offer a wider range of services to our customers,” chief executive Dan Saulter told Insurance Times.
“There are some good opportunities to introduce some of our clients to Garwyn and vice versa.”
Garwyn’s chief operating officer Lesley Johnson will lead the enlarged Garwyn and Davies liability business and will report to Saulter.
Chief executive Artur Niemczewski, executive chairman Paul Woodley and finance director Ranvir Saggu are leaving the company.
Saulter has working on the deal since joining Davies in July.
“We’re pleased to have been successful. When you’re buying a business absolutely the first question is have you got the right cultural fit? We convinced oureslves through the summer that we did.”
Davies plans to keep the Garwyn brand. “Clients perceive it as strong, and it’s the same with Davies.
“Our priority is to prove to clients that we’re stronger together and to start growing the business organically,” Saulter added.
Garwyn’s turnover reduced from £12.5m to £11.2m last year. It moved from a £4.6m loss in 2011 to £154,000 pre-tax profit after reducing its wages bill by 36% to £6.3m and slashing headcount by 53 people to 164.
Davies reported turnover of £41.7m and a £3.3m pre-tax loss in the 16 months to 31 July 2012, the most recent figures available.