Sectornet buy will not prompt enforced system migration, says chief exec
Sectornet users will not be forced to migrate to the SSP system following the takeover of Sectornet last week.
Concerns had been raised by the users that they would automatically be transferred. But SSP chief executive David Rasche said: "Sectornet's customers think very highly of it and it is not our style to simply step in and change their existing platforms. Over time we will sit down with our customers and work out what is best for them."
Personal lines broking specialist SSP acquired Sectornet for a reputed £7m following over four months of talks. SSP would not confirm the figure.
It is also understood that Sirius was in talks with Sectornet, but decided against bidding for the company.
Sectornet provides commercial software systems to mainly large national and international brokers.
Rival software houses will be looking to take advantage of any uncertainty among Sectornet users.
Acturis chief executive Theo Duchen said: "There will be fears among customers of Sectornet that SSP is not a commercial lines specialist."
But Sectornet managing director John Lipscomb said: "It is a natural concern, but SSP is committed to retaining the product in its current form."
SSP revenues soar 32%
SSP reported revenue growth of 32% for the six months from March 2005. The figures include revenues from recently acquired Insure + Solutions (formerly I90).
Organic growth without the acquisition was 14%.
Chief executive David Rasche said:
"We were over target for the first half revenues and on target for half-year operating profit. All divisions and teams did well, with the intermediary division particularly strong.
"While we are seeing good growth in our corporate insurer and corporate broker business it is also very encouraging to see our medium size brokers doing well."