The acquisition of Riskworks adds more than £5m in gross written premium (GWP), taking Tower’s run-rate GWP beyond £40m. It forms part of Tower’s strategy to become a national broker controlling between £75m and £100m in GWP.
The acquisition marks the beginning of Tower’s buy-and-build strategy, with the business considering further opportunities across the UK alongside continued organic growth of more than 20 per cent annually. It comes eight months after securing a major growth funding line from private credit investor TDC.
Founded in 2017, Tower has grown from a one-person operation into a Top 100 independent insurance broker employing 52 people.
The Riskworks deal will strengthen its presence across the North West and establish a significant base in the Manchester market.
Riskworks has a team of experienced individuals with a reputation of delivering creative insurance solutions to companies in all sectors, in particular commercial, food, technology and energy. It has an experienced high net worth team and will become Tower’s centre of expertise.
The Riskworks team will remain with the business, which will continue trading under its existing name as part of Tower Insurance Brokers.
Tim Forshaw, CEO and founder of Tower Insurance Brokers, said: “Completing our first acquisition is an important milestone for Tower. Riskworks strengthens our expertise in high-net-worth and energy insurance while giving us a much stronger presence across the wider North West.
“It’s a well-established business with good people and a strong reputation, which made it the right fit for us. We have a healthy pipeline of further acquisition opportunities and, with TDC’s continued support, are well placed to build on the strong organic growth we have already achieved.”
Riskworks’ majority owner, Nick Gray, the founder will support the transition and integration.
Nick added: “I am delighted that Riskworks has joined forces with Tower Insurance Brokers. It's a perfect fit, as we share the same vision of providing clients with a personal service backed by a team of highly skilled insurance professionals.
“Tower has a strong reputation in the insurance market, which will be invaluable in growing the business and supporting Riskworks’ clients. This will ensure we continue to deliver the best possible insurance and risk management service. Tower also has a dedicated in-house claims team, which will be important in supporting Riskworks in this vital area of client service.”
Jonathan Robinson, Partner at DWF, said: “Tower has already built a strong proposition in the insurance broker market, and this first acquisition marks the next step for the business as it looks to grow across the UK.
“As a global firm with its roots in the North West, we’re committed to supporting businesses across the region to grow further afield. It’s why our regional strength and international footprint are so important, allowing us to combine local expertise with a wider network to ensure North West businesses can grow with confidence.”
Tower was also advised on the transaction by Dow Schofield Watts’ North West team, led by Gregg Pendlington, Jack Keoghan and Ben McKie, while tax advice was provided by Peter Hully at Claritas.
TDC was advised by Ben Edwards and George Walmsley from Addleshaw Goddard.
