Top independant brokers rule the roost in 2003

Cornell Consulting has updated its list of the 250 commercial provincial brokers. The top 250 controlled at the end of 2003, £5bn of premium income compared with £3.7bn at the start of the year. This is an increase of over 35%. This reflects rating growth and acquisitions in the sector. To be in the top 250 in this sector a broker would need to have a general insurance commission/ fee income of above £1.1m. The retail market controlled by the independent sector is now over £10bn. It employs over 30,000 people and has a commission income of about £1.5bn. Its commercial premiums are now £8bn representing some 55% of the UK commercial market. The personal lines income is about £2.5bn which is about 16% of that market. 2003 was the most profitable ever for brokers with many producing pre tax profits above 25% of income.

During the year, only 14 brokers in the top 250 merged were acquired or joined a Network. This is down from 20 in 2002. Folgate who acquired 7 dominated this activity. The biggest single acquisition was Becketts by Country Mutual. These 2 brokers now handle in excess over £500m of premium. This is 5% of the sector and 50% of the top 10.

In 2000, when the study started, there were only 4 brokers over £40m, now there are 25 and 15 over £25m compared with 50 now.

There has been considerable activity