Margrett says insurers are excited about working with GRP
GRP chief executive Dave Margrett says there is ‘excitement’ from insurer partners about working with GRP.
Margrett, speaking after a strong set of results from GRP, was asked about insurer relations, especially after Aviva and GRP split permanently in a disagreement over commissions.
Margrett said: ”We are not just going to say ‘gives us more money’. We are saying we want you as a long-term partner before we make money.
“They have to get their return before we get richer rewards.”
Client outcome is also at the forefront of GRP’s mind, says Margrett. The consolidator is able to offer placement into niche markets due to its insurer partnerships.
”We want better product outcome,” he said. ”We have a product development group.”
He added that having recently met up with insurers, there was ‘excitement’ and they were ‘supportive’ over the relationships.
Margrett also stressed that as well as having a business with growing earnings, there is positive cashflow.
One way to achieve this goal is by ensuring that acquisitions can enjoy the benefits of scale, meaning they can use the GRP group’s HR, payroll, IT and other functions.
Another way is by structuring deals on earn-outs.
“Deals are on earn outs. If the money does not turn up, we do not pay up. But that is rare.”
Margrett stressed that net new business was up 4.4%.
”We got new business against Brexit and an economy being buffeted from all sides.”
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