A new commercial broking venture, Vega Insurance Services, is targeting small brokers with £5m premium income for acquisition.
Managing director Bob Screen said that the company was in talks with up to three commercial brokers to buy their commercial portfolios.
"Over the next three months, we hope to sign and seal two to three deals. We hope Vega can generate £100m premium income within three years, which will come from acquisitions."
Vega is backed by the Primary Group and is a wholly-owned company within the group. Screen said there were still opportunities in the commercial broker market for new entrants, even with the plethora of networks on the horizon.
"We are a different option. There are gaps in the market for specialist operations. We are not the huge aggregate which tries the cookie cutter approach. We have flexibility, which the nationals don't have, and more accessibility than the regionals."
He said it was too early to discuss what specific areas the company would focus on. "I think there are still distinct opportunities from the brokers I have seen for liability and professional indemnity business."
All the "big five" insurers will act as carriers, but unlike Primary Broker Services, he said that Vega is not looking to underwrite individual risks. "We are part of the distribution chain and add value to the Primary Group that way. An open relationship with carriers is vital for Vega going forward, building on the arrangements that our brokers enjoy."
Screen was previously marketing and business director of Hill House Hammond, but approached Primary with the Vega business plan after being frustrated by the lack of scope at HHH.
He added: "I will walk away from inherently bad customers. We must look at every individual case."