Growing player in the niche specialty insurance brokerage and underwriting agency sector, with a foothold in the U.S market following the acquisition of RK Harrison (RKH). Strong relationship focus and broad, innovative product offering fostering strong retention rates. Limited scale given lack of presence in deeper mainstream insurance brokerage market. Softer pricing environment, ongoing integration costs, and relatively high central overheads, all weighing on profitability. Highly leveraged credit metrics due to 2015 adjusted debt of £603.6 million, including about £192 million of contracted payments to minority shareholders, earn-outs and contingent liabilities. We forecast that debt to EBITDA will remain above 6x and that the company will maintain funds from operating cash interest coverage of over 2x, and generate free operating
