Financial services adviser the Pointon Group has acquired Lloyd’s broker PYV Risk Management, a subsidiary of PYV Group.
Pointon Group chairman Geoffrey Pointon said the £3.25m acquisition was an attempt to revive the fortunes of the business.
But members of the Pointon Group pensions scheme have declared the move as an attempt to bail out PYV Group, which has lost £1.5m over the past two years.
PYV Risk Management specialises in professional indemnity (PI) insurance for IFAs, and controls around 25% of the market, according to the company.
It also has a modest solicitors’ PI book.
In 2006, despite slashing expenses by 8%, it suffered a fall in income of 13%, from £4.34m to £3.77m.
Pointon’s acquisition, however, was approved following an EGM by a margin of 842,947 proxy votes to 97,354.
The transaction was processed on 31 August.
Pointon owns over two thirds of its shares, as well as 65% of the share capital of PYV Group.
He blamed the difficulties on the soft market and a flooding of capacity.
He said: “The PI market is incredibly soft. Rates are 80% less than they were three years ago.
“Our target is to get back to the old rates.”
Pointon said he would be looking to develop accountants’ and surveyors’ PI, adding that sizeable resources were being directed to grow both books.
“We are weathering the storm. We expect the good times to return.”