We are pleased that the High Court proceedings initiated in March 2015 between Arthur J Gallagher, David Ross and others have been settled enabling Towergate to focus its full attention on successfully growing its business.
As part of the settlement, Towergate has agreed to pay £4 million in August 2015 and £4 million in April 2016 for cessation of all litigation proceedings. As a result a prolonged period of uncertainty for the firm has been averted with Arthur J Gallagher agreeing to the early release of David Ross, who will join the firm on 1 November 2015 as Chief Executive Officer* and Adrian Brown on 14 September 2015. The parties will not be commenting any further on these matters.
Scott Egan, interim Chief Executive Officer, will leave Towergate on 14 September to become Group Chief Financial Officer of RSA Insurance Group Plc at which time Adrian Brown will take up the reins of Chief Executive Officer* for a six week period until David joins, when he will take up the position of Chief Operating Officer.
Over the past few months the Towergate leadership team has been strengthened by the arrival of Janice Deakin as Retail Broking Director and Mark Mugge as Chief Financial Officer and Sarah Dalgarno joins as Chief Risk Officer* on 4 September.
Commenting today, Chairman John Tiner said: “I am very pleased that a settlement has been agreed between a number of incoming executives and Gallagher, bringing much needed clarity to the management of the Towergate business. With all of these appointments alongside our existing leaders we will have an outstanding executive team, whom I am confident will lead the business to sustained success in the future. I am very grateful to Scott for everything he has achieved at Towergate over the last four years. He successfully steered the business through the financial restructuring, galvanised our people during a vulnerable period and oversaw some major changes to the business. His commitment to Towergate has been exemplary. We wish Scott all the best in the next phase of his career.”
* Subject to usual regulatory approvals
- John Tiner – Chairman: John Tiner CBE is an independent non-executive member of the Board of Credit Suisse Group, where he is also Chairman of the Audit Committee and a member of both the Risk Committee and the Chairman’s Governance Committee. For 25 years up to June 2001, he worked for accountants Arthur Andersen, in 1997 becoming head of their global financial services practice. There he led the team which produced the official report investigating the 1995 collapse of Barings Bank for the Bank of England’s Board of Banking Supervision. In June 2001, he joined the FSA to become managing director of the consumer, investment and insurance directorate. In September 2003, he was appointed Chief Executive of the FSA. In this role, he led the Tiner Review which reformed the regulation of both the life and general insurance industries and initiated and led a programme to improve consumers' understanding of personal finance.
- David Ross – Chief Executive Officer: David had a 25 year career at Arthur J Gallagher having started there as a trainee. He was appointed Managing Director of the North American Division in 1997 then CEO of Global Wholesale & Retail in 2003. In 2005 David was appointed CEO of the International Division where the company underwent a defining period of growth and expansion. An Insead Alumnus, David has spent his entire career on the front line of Broking and Intermediary work in the Insurance industry.
- Mark Mugge – Chief Financial Officer: Mark held various senior finance and audit positions at AmerUs Group Co, Grinnell Mutual Reinsurance Company and GuideOne insurance before joining Arthur J Gallagher in 2006 where he was Group Controller until 2010. He then served as the CFO of the international division at Arthur J Gallagher’s from 2011-2015. Mark earned his CPA at KPMG LLP and served in the United States Marine Corps.
- Janice Deakin – Retail Broking Director: Janice had a 13 year career at AVIVA, leading the broker business as intermediary and partnerships director from December 2009 until 2013 and prior to that, corporate sales director. Janice then served as the CEO of UK Retail for Arthur J Gallagher, leading a combined business of over 2,000 people, placing in excess of £1billion of gross written premiums on behalf of more than 200,000 commercial insurance customers. Janice’s appointment as Retail Broking Director at Towergate was announced in June 2015.
- Sarah Dalgarno - Chief Risk Officer: Sarah has more than 25 years’ industry experience and joins the Group from Arthur J Gallagher International, where she spent nine years, latterly as CRO, responsible for all regulatory, compliance risk management and governance matters of the UK regulated entities and international operations. Prior to Arthur J Gallagher, Sarah worked at the FSA for 6 years.
- Adrian Brown – Chief Operating Officer (Interim CEO until 1 November 2015): Adrian is a qualified management accountant with extensive industry expertise having spent 25 years at RSA. He was a main board director and CEO of the UK and Western Europe for 6 years. Previously he was UK COO and established, and led, the successful direct business MORE TH>N. More recently he was executive chairman of underwriting and distribution at Arthur J Gallagher.
Notes to editor
Launched in 1997 Towergate is the UK’s largest independently owned insurance intermediary, generating £3 billion of pro forma gross written premiums across its companies and employing c. 4,400 people across 100 UK offices. Towergate is an important distribution channel for a significant range of insurance products and a key strategic partner for the UK’s largest insurers. Towergate’s scale, customer insight and distribution relationships make it a unique business and a leader in the markets in which it operates. Its combination of distribution and underwriting gives it unparalleled consumer data and market insight.
Towergate reports in five core divisions:
- Insurance Brokers – Towergate Insurance Brokers distributes specialised personal lines and products, and more general products aimed at SMEs through around 80 broking offices located across the United Kingdom.
- Underwriting – Towergate’s underwriting division is the UK’s largest MGA, providing specialist insurance products for brokers, without taking the ultimate capital risk. The MGA has c. £660 million million GWP under management.
- Direct – Towergate Direct sells specialist Personal Lines and SME products primarily through telephony and digital distribution channels.
- Paymentshield – Paymentshield is the leading provider of insurance products to mortgage brokers.
- Network– Broker Network is the largest network for insurance brokers in the UK. The brand remains the leading proposition in the market in terms of size and breadth of service with c. 575 members.