| Swinton Acquires Budget Retail Branch Network | | | | All Budget branch staff will remain employed by |
| Annual income now over £500m, with 442 | | | | Swinton. The total number of Swinton employees |
| branches and over 2m policies. Swinton Group, | | | | is now 3,000, made up of staff working in the |
| the UK's biggest High Street insurance chain, | | | | branches, call centres and head office functions. |
| today purchased the high street insurance | | | | As part of the deal Swinton will also take over |
| intermediary business Budget Retail from the | | | | Budget's taxi and motor-home units based in |
| Budget Group. | | | | Warrington and Coventry respectively. |
| The deal continues the growth strategy of | | | | Around 230,000 policies will be added to the |
| Swinton, giving the company an annual income of | | | | Swinton database and the combined operation will |
| more than £500m and consolidating its | | | | hold more than 2m insurance policies. |
| position as a leading UK insurance intermediary. | | | | Patrick Smith added: "We have strategic plans to |
| Swinton's existing 350 high street branches | | | | continue this growth and enhance our current |
| (including those of its brand Colonnade, acquired in | | | | business capabilities by increasing our customer |
| 2002) are now joined by 92 Budget branches | | | | base through further improvements in direct |
| offering home insurance, car insurance, travel | | | | marketing, increasing our diversification of product |
| insurance, pet insurance and most other forms of | | | | and enhancing the relationship between our |
| personal and life cover. | | | | branches and our online business. |
| The Budget Retail brand will be maintained for 12 | | | | "We intend to keep all the new branches open as |
| months, after which the branches will trade under | | | | we believe that Budget's coverage is |
| one of the Swinton brands. | | | | complementary to our existing network and the |
| Patrick Smith, Chief Executive of Swinton, says: | | | | increased capacity will allow Swinton Group to |
| "This deal means that we have over three times | | | | handle our planned growth and further service our |
| the national coverage of our nearest competitor. | | | | customers' requirements. |
| We are within easy reach of almost everyone in | | | | "Our model has great capacity for expansion and |
| the UK. This gives us a huge advantage over our | | | | we intend to take on the giants of our industry |
| major competitors who only offer telephone or | | | | and show that, by caring more for our |
| internet contact.' | | | | customers, we can become the leading provider in |
| "Research shows that when customers need | | | | the personal insurance market." |
| assistance with their insurance impersonal | | | | Last year Swinton had a gross premium income |
| interactive voice response is strongly disliked by | | | | of £440m and expects premium income to |
| most people. Our professional teams, working | | | | grow to more than £600m next year |
| right across the UK, give us a great opportunity | | | | following today's purchase. The company has |
| to capitalise on our personal service operated | | | | made over 250 broker acquisitions during the past |
| through local branches either face to face or on | | | | five years. |
| the telephone. Our successful growth has shown | | | | Cobbetts LLP acted as legal advisors and Swinton |
| the clear benefits of providing this personal | | | | received advice from Ernst & Young. |
| service." | | | | |