Towergate continues Scottish expansion

TOWERGATE, Europe's largest privately owned insurance intermediary, is back on the acquisition trail in Scotland as it unveils plans to triple the size of its Edinburgh office.

Kenny Hogg, managing director of Towergate Scotland, told Scotland on Sunday he will build the firm's operations in the Scottish capital to include about 60 people, matching its presence in Glasgow.

The growth will come through a mixture of adding staff at its existing office in Edinburgh and by taking over rivals.

That expansion starts this week with Hogg making two senior appointments, bringing on board Stuart George and Peter Fraser, both from Heath Lambert.

Hogg has access to Towergate's 100 million acquisition war chest, which he will use to build on the firm's 14 offices and 250 staff north of the Border.

Since it was launched in 1997, Towergate has been highly acquisitive, taking over 180 companies to build a portfolio of premiums worth 3 billion, managed by 4,000 staff in the UK.

Those takeovers included both Aberdeen-based McAra Associates and Edinburgh's Albannach in 2008 and the 2006 purchase of Paymentshield, which the group moved from Southport to Edinburgh.

Hogg said: "We're looking to broaden our general insurance business in Edinburgh, offering a personal service to local clients but backing that up with the buying power of a much larger firm."

Towergate was founded by Peter Cullen, who sold stakes in the insurer and sister outfit Cullen Capital Ventures to private equity firm Advent in January for 200m, in the latest step towards Towergate's expected stock market flotation.