It stands to reason that, much in the same way Rome was not built in a day, it takes a measured and restrained approach to create a sustainable insurance group able to weather whatever storms the wider market has to deliver. Indeed the chief executive of Seventeen Group Paul Anscombe (pictured) has carved a focus on steady, long-term growth into the very heart of the group’s proposition.
Other than a brief spell on the stock exchange when straight out of college, he’s always worked in insurance, Anscombe said, and moved into broking quite quickly, propelled by an interest in drawing out the entrepreneurial side of brokers. What holds his interest in working across the independent broking space is the spirit that drives these businesses, and the sense of purpose and direction that comes from being part of a team dedicated to growth.
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“It’s been important to me to feel that we’re building something that’s going to be around for a long time, certainly when after I eventually retire,” he said. “We’re building something that won’t just get swallowed up in the next trade sale and disappear into one of the global brokers, but actually can be an independent Lloyd’s broker for some time to come. And that’s what we talk about when we are bringing people into the group, about that passion around independence and the value in what we do as a profession.”
Seventeen Group has made industry headlines recently with a swathe of acquisitions, including Ipswich-based Ryan Insurance Group and Cornwall-based Christopher Rowe Limited. However, Anscombe noted that looking at the group’s development over the last two decades or so, it has been both slow and steady. A period of making acquisitions might be followed by five years without any, he said, and this has been deliberate. It allows Seventeen Group to get to know the people who have come on board, and to dedicate time and resources to their development.
“And if you look at the composition of our board, of our divisional directors, most of them have come to join the group through acquisitions and have moved up through the ranks,” he said. “And it makes sense to do that because… in our world, it’s all about trust and relationships. If you buy a business and you get it wrong then you’re going to lose staff - and if you lose staff, you lose clients, so you have to get to know people and build that trust so you can integrate them into the business.”
That trust-founded model is proving a hit for Seventeen Group, and Anscombe noted he is now being approached by more brokers and broking businesses looking to have a conversation. These people are passionate about their clients, their staff and their business, he said, and, as they reach a certain age and have to start making important life decisions around the future of their business, they are looking for a solution that offers longevity.
With regards to what he looks for in an acquisition, Anscombe highlighted that every business really is very different and that, while considerations in terms of specialism and regional reach are important, the overarching point of similarity hinges on a strong cultural fit. This is about being comfortable with the incoming team, he said, and the way that they’ve conducted business in the past, as well as having confidence that they will integrate well into Seventeen Group.
“We still see ourselves as a family-style firm with very open dialogue and a very transparent business model,” he said. “We tell all our staff about the numbers, and we give regular updates on how the business is progressing. So, that sort of culture of involvement is very important for us and if we were to get involved with a business that didn’t have that approach it could prove problematic.
“[…]Integrity and honesty are the [lynchpins of our culture] and are especially important when you’re talking to people about an acquisition. It’s a period of nervousness and concern for staff and the reality is that until you’ve got a relationship and earned the trust of staff you can’t really achieve change.”
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For Anscombe and his team, the first steps following an acquisition are to speak to the new team and openly discuss their experiences in building the group over the years and the values that they hold dear. This is aided by the fact that Seventeen Group’s team comes from an insurance broking background and knows what it means to be part of an insurance business. Doing acquisitions during COVID-19 wasn’t easy, he said, but it has been great to see them get over that initial line and he is looking forward to restrictions easing and things getting back to some kind of normality.
“We’ve already got some opportunities for the future,” he said. “But I think for most of this year, where we’re focusing is on integrating what we’ve got. We’ve also got some other investments with quite strong partnerships as well, and these partnerships have been very strong for us, as a source of new ideas and solutions for our business, while we in turn are helping those businesses. And some of them in due course may become acquisition possibilities because they know us and, if they do come to sell, there is a chance we’ll bring them fully into the group as well.”
All of this is underpinned by a core focus on organic growth. Acquisitions are great to accelerate growth, he said, but businesses have got to innovate as well and reliance solely on acquisition-led growth can deprive a business of the opportunity for innovation. It comes back to the piece about slow and steady growth, Anscombe noted, and, in that spirit, the group recently launched its German Lloyd’s broker to deal with its Brexit risks, alongside new opportunities in its healthcare protection division and has taken on new event specialists to grow its events business.
“A combination of organic growth and acquisitions feels right to me,” he said, “and honestly, I love being busy. It’s what gets me up in the morning – that passion for the business and for exploring where we can go. There are so many great opportunities out there and it feels great to really be a part of that.”
