Cullum lines up major acquisition
Towergate is set for a major acquisition and market sources say the target is Sterling Insurance. The sources said the company was in "advanced negotiations" with underwriter Sterling, which specialises in high net worth insurance.Towergate chief executive Tim Johnson denied the deal was on, but said Towergate was gearing up for a major acquisition. Executive chairman Peter Cullum added that it was looking at a "significant" deal with an underwriting agency, which would complete in the next two to three months. Cullum said that the deal would take Towergate into a line of business that it did not currently have a presence in. Johnson said recent acquisitions had seen the business enter the farming and hotels insurance markets, as well as the military motor market. He said that high net worth and classic cars were two areas still being targeted by the company.Chairman and majority owner of Sterling Nick Cooper was not available for comment when Insurance Times went to press.
Towergate's farming ambitionTowergate is aiming to become the market leader in intermediated farm insurance following its recent acquisition of agricultural and rural underwriting agency AIUA.Executive chairman Peter Cullum said the acquisition of AIUA, completed in July, has given Towergate a strong position in the farm market, which the company intended to build on. which insures much of the AIUA business.
