Towergate and Towergate Mardon Insurance are they in trouble?

[Sandyshore]

The reason I ask one of the main directors has left. Fitch the rating Agency have down graded and the half year results show a loss of £20,000,000.00 .
Internet infers they have to sell part of the business to survive.
Some on the forum have mentioned Towergate in the past thought this might be of interest.

 

[Vitesse]

We have our business premises insurance with them. I would be interested to know more.

 

[Seastoke]

Hope ur takin the piss

 

[rbcoomer]

http://www.insurancetimes.co.uk/hod...s-of-towergate-strategy-fitch/1410444.article

Didn't see anything about selling part of business however... (Although an obvious way to reduce debt)

 

[PhilipF]

We have our business premises insurance with them. I would be interested to know more.

Yes, we have property insured with them, this runs out next month. Very certainly they will not get any more business from us:disgust:

We used to place some of our insurane through a broker in Sherborne Dorset. Must have been a year or so back, this firm was taken over by Towergate, now bear in mind that we had been dealing with a broker up to that time. I see that Towergate still appears to be classed as a broker, but, though I must have had my doubts at the last renewal, they took over our insurance themselves, part of the reason I did so was that I had been dealing with the people in that office, and the office was still handling our insurance.

But, a week or so back we visited the office, and found it had been closed. No one had bothered to inform us that this would be done, see now that they say to use an office in Taunton. Assume the nice folk I dealt with in Sherborne have been dismissed.

I hold to the opinion that a broker ought to act as a intermediary, and cannot take on the insurance them self. If I have to deal with the insurerthen that should be direct, preferably via a local office, or by an agent. Fact, this is what I intend to do. My car is already insured with NFU Mutual, these use local agents. My business will be transferred to them.

 

[Vitesse]

My business will be transferred to them.

Due to the nature of our business we have a very limited choice of broker. We used to use a specialist independent until Towergate made us a good offer so we switched. They are very corporate, though.

The policy is due to be renewed in the new year. It might be time for another look.

 

[stuartwineberg]

Interesting as I believe that the Premier marina insurance scheme is rebranded Towergate

 

[PhilipF]

Due to the nature of our business we have a very limited choice of broker. We used to use a specialist independent until Towergate made us a good offer so we switched. They are very corporate, though.

I can understand that. Even so, I'd either do my damnedest to find a broker, or deal direct with the insurer.

The policy is due to be renewed in the new year. It might be time for another look.

I most certainly would do so.

 

[oldgit]

Our club has a complaint with the Ombudman about Towergate.
We were left with a bill for many many thousands of pounds when we dscovered we were not insured for a not unusual situation.

 

[sailorman]

Our club has a complaint with the Ombudman about Towergate.
We were left with a bill for many many thousands of pounds when we dscovered we were not insured for a not unusual situation.

make a claim on your clubs "officer indemnity" policy, negligence in not reading the policy wording

 

[SilverTT]

I had my boat insured with towergate. I had to claim a total loss which they dealt with without any worries.

 

[Groot T]

Very interesting thread. We insure with Towergate & have been asking for our insurance invoice since April this year. We've got E-mails guaranteeing that we are covered and on Friday I had a peculiarly worded E-mail with an invoice attached to it requesting payment by return.

Will keep my eye on this thread very closely.

 

[Anders_P42]

Are you talking about Towergate Underwriting Group Limited? I have car insured with them.

 

[stuartwineberg]

This statement from Fitch credit rating agency 21 October
LONDON, October 21 (Fitch) Fitch Ratings says the resignation of Towergate Finance plc's (Towergate) Chief Executive has heightened uncertainty on the group's ability to successfully extract the planned operational efficiencies under its strategic reorganisation. In its review of the company conducted in August 2014, Fitch had noted declining profitability and persistently high financial leverage since Towergate partly refinanced its capital structure in May 2013. The agency also noted sustained pressure on free cash flow, primarily due to costs incurred as part of the group's strategic reorganisation. Towergate's IDR is currently 'B', with a Negative Outlook. Fitch continues to believe that the series of strategic measures taken by Towergate to rationalise and enhance its processes has merit and expects some cost-saving opportunities to materialise. However, there are inherent execution risks in implementing such a large transformation plan, which have been heightened by the recent resignation of the Chief Executive. The agency will continue to monitor how operational efficiencies are extracted and the extent to which profitability improves and leverage reduces in FY15. Fitch also notes that the speed of delivery of the transformation plan will be influenced by the time taken to appoint a new Chief Executive, which could slow the implementation of the planned strategy. It is also possible that a new Chief Executive may look to take the business in a different strategic direction which may affect the group's underlying credit metrics. Fitch would consider a downgrade of Towergate's IDR to 'B-' if benefits from the cost savings programme are lower than expected, if there is a lower contribution from acquisitions or further underlying earnings pressure

 

[Sticky Fingers]

A business that's being systematically destroyed in the pursuit for corporatisation over customer service....

I worked for Towergate (in the IT function, not insurance) for 7 years, left last year under what I would politely call painful circumstances. What would you like to know...

 

[stuartwineberg]

A business that's being systematically destroyed in the pursuit for corporatisation over customer service....

I worked for Towergate (in the IT function, not insurance) for 7 years, left last year under what I would politely call painful circumstances. What would you like to know...

I think everyone is trying to get a handle on whether their vessels are safely insured at the moment and will continue to be for the next year or so and whether claims will be met. Please reply cautiously - this is a public forum - don't get sued!

 

[Sticky Fingers]

^ Yes, no problem. I do contractual compliance for a sideline so I understand the point. It's going through a major management shakeup (CEO and most of his Exec buddies leaving), so I'd expect some more (significant) restructuring as the external investors (esp Advent) work to get their investment back.

Re money: Towergate has both broker and underwriter within its (very complex) group but is not the ultimate carrier (ie, the underlying 'insurer'), so the premiums paid by policyholders ultimately flow outside of the company and into a carrier insurer eg RSA or Axa.

I saw no evidence of malpractice (indeed, internal compliance and risk functions were being tightened) so my view is that provided your declarations are accurate, the premium has been paid and the policy covers the incident in question I'd be pretty surprised if the policy was invalid or a valid claim was unpaid. If you're in any doubt then you should put your concerns in writing. Nigel Mills is (or was) the MD at Towergate's marine division which includes Mardons.

 

[Gentlemanracer]

We snagged semi submerged fishing debris returning cross channel this year. VP main agent's estimate was around £7k plus the vat for a leg rebuild. Towergate's surveyor showed up, all solved for £1.5k plus the vat. Towergate performed very well throughout, the VP feeding frenzy calibration was a high point. NCB remains as protected. Good show all round.

 

[Sticky Fingers]

^ good to hear. You should write and let them know.

 

[rubberduck]

We use them extensively for business insurance, & have had no problems, if fact they have paid several client claims they could have wriggled out of to keep us happy.