Scots Insurance Firm Buys Competitor to Become Largest UK Independent

Staff and turnover double to 42 and £4M

A Glasgow-headquartered credit and political risk insurance broker has bought a rival company to become the largest non-quoted credit and political risk consultancy in the UK. International Risk Consultants (IRC) Europe has acquired TDF Credit Insurance Services – with offices in Leeds, Birmingham and London – from US-based financial services company GE Capital. The deal – a cash purchase worth in excess of £1M – sees IRC Europe grow its existing staff from 23 to 42 while turnover doubles to around £4M. IRC Europe joint managing director Alan Wallace said: “TDF is the perfect complement to our business not only in terms of location but also client base. The TDF acquisition gives us offices in Scotland, the north, the Midlands and the south east, which means we can give an even better level of service to our growing roster of UK clients. “While IRC’s clients have traditionally been larger companies, TDF’s are predominantly medium-to-large-sized firms. A combined client list of 300 gives us an excellent base from which to further develop the company.” 2005 will see a year of consolidation for the combined company. Wholly owned by IRC Europe, TDF CIS will be retained as a trading name. Part of the attraction of TDF is its well-respected staff, half of which have 20 to 30 years’ industry experience. No staff will be made redundant as a result of the acquisition and, according to Wallace, the company has significant growth plans for the years ahead. Wallace said: “Over the coming year we will focus on integrating the two companies’ business models and company cultures. In addition, we aim to increase turnover by 15 per cent and take on more staff in Birmingham and London. Our long-term plan is to increase turnover to £10M by 2010 through organic growth and acquisitions.” He added: “This acquisition opens up a lot of business doors for us and is a key part of our growth plans.” The UK credit and political risk insurance market is worth in excess of £300M premium. Credit insurance insures companies against receivable losses incurred by customer insolvency or persistent non-payment. Political risk insurance insures companies against potential loss of capital when exporting to politically unstable countries where war, terrorism and economic turmoil are commonplace. Notes to Editors Established in 1993, IRC Europe has experienced 12 years’ organic growth and enjoys a 97 per cent contract retention rate. During 2004, sales rose by 40 per cent and key appointments were made including Ralph Snedden, ex MD of the UK’s largest credit insurer, Trade Indemnity. During a career spanning 28 years Snedden has been responsible for 30 acquisitions across Europe. The combined company’s headquarters will be in Glasgow with 15 staff employed at its Blythswood Square offices. Ten staff will be employed at the company’s London offices, with 10 in Leeds and seven in Birmingham. Ninety per cent of the company’s clients are UK-based but 40 per cent of the company’s income comes from the 10 per cent of its business that lies outwith the UK. Clients include FTSE 100 and Fortune 500 business across a range of sectors including: electronics and telecommunications; steel and steel distribution; media and oil. IRC Europe is an owner-managed company with Wallace and joint managing director Tracey Anderson owning the majority of the share capital. IRC Europe has a joint venture arrangement with sister company IRC North America, based in Columbus, Ohio, giving the company access to the American market. IRC Europe and TDF CIS are authorised and regulated by the Financial Services Authority (FSA). Ends 29 March 2005 Issued on behalf of IRC Europe by Weber Shandwick Worldwide. For further information please contact David Sawyer or Charlie Mann on 0141 333 0557 / 07770 8869 (23) (26) / dsawyer@webershandwick.com Press pics available via e-mail