AJG to cease business with Towergate
Earlier this week, Arthur J Gallagher (AJG) sent a private memo to its staff telling them to avoid placing business with Towergate Underwriting.
Janice Deakin, UK retail chief executive officer at AJG, said: "I'm reluctant to comment on our competitors. However, having considered all the information in the public domain, we believe that the measures we have put in place are our best course of action. Whilst the future remains uncertain, we remain committed to protecting the best interest of clients."
The British Insurance Brokers’ Association (BIBA) has refused to comment.
Towergate Insurance recently announced that it was for sale and had appointed Evercore and Rothschild as joint advisers to support the evaluation of proposals the group has received.
Rating agencies Fitch and Moody's have both downgraded Towergate and placed the rating on negative watch.
The group’s income fell by 1 percent in the third quarter of 2014 to £328.5 million, compared with £332.5 million in the third quarter of 2013. Acquisition-led growth in direct (7 percent) and underwriting (6 percent) was offset by Insurance Brokers (-2 percent) and reduction in Paymentshield (-12 percent).
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