Turning an acquisition into extra business
Line of Business: Commercial Combined
Trade: Food Manufacturing
When a customer’s acquisition meant a head-on challenge for the new combined business, we were firmly in our broker’s corner.
When a snack foods manufacturer was looking to acquire another business, the restructuring posed a challenge: the other entity’s insurances were placed with another market, through a different broker. To win the new, larger, consolidated risk, the two brokers would have to compete head-to-head.
Our underwriter had been working closely with the broker and customer over the past three years, visiting their manufacturing site on several occasions, so we were familiar with their operations. We put our full support behind our broker, providing a pre-quote risk management visit to the new company, a risk management strategy for both locations, and a competitive quote across both businesses including a stability deal.
We also provided technical input into how the customer should best calculate the potential impact of business interruption across the two sites – a challenge due to the crossover of trading lines – to ensure adequacy of cover.
Backed by our support, established relationship and insight, the broker was able to successfully retain the existing case, worth £130K, and win the new case with an incremental premium of almost £50K.