Management: Speculation is rife that Oval is gaining the attention of acquisition-hungry brokers including Marsh and Gallagher. Philip Hodson, Oval’s chief executive since 2003, is believed to be increasingly open to such a sector-transforming deal.
The logic for Hodson is clear: Oval is in the market capitalisation bracket of £200m-£400m and is struggling to move on. A deal would also placate rebel Oval shareholders sitting on about £20m in equity, who have been pushing for flotation at the earliest opportunity.
But neither can a merger with a smaller player be ruled out, and Giles is seen by some as a potential partner.
Strategy: Whether through a merger or by other means, significant growth is on the cards. Although the firm shrugged off less than glowing results in March – Oval International turned in a £1.1m profit in the year to 31 May 2010, down a third on £1.5m in the previous financial year – it said this was down to tough trading conditions. This is particularly the case in the shipping insurance market – the broker needs a new strategy to break into the top 10.
Expertise: Oval provides UK individuals and companies, including SMEs, with general liability insurance as well as cover for more complex risks.
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Hosted by comedian and actor Tom Allen, 34 Gold, 23 Silver and 22 Bronze awards were handed out across an amazing 34 categories recognising brilliance and innovation right across the breadth of UK general insurance.
