Wesleyan looks for expansion
Birmingham-based financial services giant Wesleyan Assurance Society has an "eye out for acquisitions" and would consider a move for a general insurance broker business, its chief executive Craig Errington told Insider. His comments come as the company's life insurance and pensions business reported a 19 per cent increase in overall new sales to £27.3m for the year ended 30 September 2010.
Wesleyan, which has about 1,000 staff across the business and reports a turnover (premium income) of £200m, took over Manchester-based Key Business Professions earlier this year and has also purchased Liverpool Victoria's £50m personal loan book, which it says has doubled the Wesleyan Bank's assets and brought about new jobs. Wesleyan also reports £4.5bn of funds under management.
Now, Errington said the company could expand further. He told Insider: "We always have an eye out for potential acquisition opportunities and should one come along that fits with what we're trying to do in the market, we will look to take it further."
He revealed that a general insurance broker business would be likely to fit that criteria.
He added: "We are prudent in our approach and are only interested in businesses that are successful."
He said the company would be looking to increase its number of staff further. It follows its announcement last month that it will create 90 new jobs over the next two years as it develops a new sales relationship centre at its head office.
Errington said: "We have been growing our presence in the lawyers market so there's likely to be further growth in our levels of staff. We are in a position to grow."
Wesleyan provides specialist financial services to doctors, dentists, teachers and lawyers. The chief executive says the niche appeal of the company and fears over changes to the tax system has encouraged new business.
Its life insurance and pensions branch yesterday reported a 19 per cent increase in overall new business sales to £27.3m for the year ended 30 September 2010. It also reported a 51 per cent rise in ISA and unit trust sales and a 19 per cent increase in life and saving products.
Errington said: "2010 has been a year of continued growth for Wesleyan despite difficult market conditions. We believe that our model of offering tailored financial services and products to professional customer groups has put us in strong position. We have a real understanding of the issues affecting our customers and are able to guide them through these uncertain economic times.
“The increase in sales of savings products indicates that our customers are looking for a safe place to invest their money and value Wesleyan’s track record of financial strength and investment performance. The increase in ISA allowances has also contributed to strong sales performance in this area; in the teaching segment alone we’ve seen a 77 per cent increase in ISA sales, the highest of any of our established client groups.”
Bryan Jackson, Wesleyan’s chairman, added: “Unlike many others in the sector, Wesleyan is flourishing despite the difficult economic climate. We have maintained a prudent approach, keeping a careful eye on costs while taking decisions to grow the business in a considered way to the benefit of our members and staff.”
