Cooper Gay Swett & Crawford (CGSC), the global reinsurance, wholesale and specialty broker, has announced plans to streamline costs and generate operational efficiencies following the filing of the group’s 2013 report and accounts and a downgrade to ‘B-‘ with a stable outlook from ‘B’ by Standard & Poor’s Rating Agency.
Group CEO Toby Esser said: “CGSC’s global coverage and the range of our business offering is an enormous strength, but the by-products of our successful organic and acquisitive growth over the last 18 months are some profit reducing inefficiencies that need to be addressed. Our 2013 results brought the less efficient aspects of our operating model into sharp focus, and have been a catalyst for positive change in reviewing how we operate across the Group.
“2013 was the first time in CGSC’s history that the business did not grow substantially in profit terms. The challenges facing the group continue to have an effect in 2014, but, as recognized by S&P, our focus on reducing costs, the significant acquisitions of NMB and Epsilon, the launch of start-ups ProPraxis, Latitude, Cooper Gay Dubai and Swett & Crawford Latin America, and the tactical sales strategies we have implemented are all beginning to have a positive impact. As a clear demonstration of this emerging upward trend July 2014 was our largest ever revenue month in CGSC’s history, and an excellent indicator that we are heading in the right direction.”
He added that “despite the acquisitions and launches of some excellent businesses over the last 12 months we need to take some corrective action. Our focus is now on creating the best operating model and structure for our group, and continuing to instill a dynamic but efficient culture across our global businesses.”
As part of the restructuring plan Esser indicated that the CGSC Group plans to hire a number of senior executives over the coming months. “Bolstering our existing management team underscores our commitment to implementing efficient processes around day to day business and around driving the new elements of our business forward,” he said.
Commenting on CGSC’s plans for the future, Esser said: “The CGSC business today is already very different from the business at the end of 2013. Going forward, we will continue to diversify and grow our business, identifying opportunities that will add good incremental value to our bottom line and improve our competitive advantage.”
Source: Cooper Gay Swett & Crawford (CGSC)
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