Focus is on bringing added value to certain market segments
By Dennis Pillsbury
Managing Partners of Jones Brown, Inc., include (standing from left): Brian W. Jones, President & CEO; Richard Dowling, CFO; John Lindsay; and Jack Mazakian. Seated (from left) are: Kirk Thompson and Mark Terrill.
When Johnson & Higgins became part of Marsh & McLennan, many in the industry wondered whether a way of conducting broker business had passed. Had stockholder pressure for instant--or at least quarterly--gratification spelled an end to the J&H philosophy of bringing extra value to each relationship?
The founders and managing partners of Jones Brown, Inc., answer that with a resounding "No!"
"We formed Jones Brown in September of 1997 to recreate the dream," according to Brian Jones, president and chief executive officer. "Our idea was to bring true value to certain segments of the market, just as J&H had done."
Brian, who was a senior executive with Johnson & Higgins, elected to leave following the merger of J&H with Marsh in order to form Jones Brown. He was joined by Donald Brown, former J&H chairman and chief executive officer (Canada); Brian Reeve, a prominent Toronto attorney; and Queensway Insurance Co. as the original shareholders. Jones Brown is headquartered in Toronto and has offices in Vancouver, Calgary and Montreal.
This emphasis on service has created an atmosphere of "passionate enthusiasm by all partners," John Lindsay, managing partner, says. "They all have a glint in their eye and enjoy starting something new. Coupled with that enthusiasm is a tremendous amount of talent. No one really can compete against that. That's why we continually have new partners joining us."
Richard Dowling, chief financial officer and managing partner, adds, "We initially invested in human capital. We made several acquisitions that involved interesting niches. We certainly don't take a cookie-cutter approach to acquisitions. We're looking for people who aspire to be partners and will fit into our culture. They need to have enthusiasm for the business. We spend a disproportionate amount of time making sure the acquisitions are right."
The first acquisition was Thompson Entertainment Insurance Brokers on May 1, 1998. Founding partner Kirk Thompson "brought a wonderful book of entertainment business with him," Brian Jones says.
"We insure Hollywood north," explains Kirk, now a managing partner with Jones Brown. "Our primary focus is insuring film and television productions for Canadian producers shooting both in Canada and around the world. We are also involved with insuring the infrastructure that supports the filmed entertainment industry. Such risks include studios, post-production facilities and the Toronto International Film Festival. Our business was negatively affected by SARS this year with many foreign actors not wanting to come to Toronto. The increase in the Canadian dollar has also made our market a little less attractive to foreign producers."
Brian Jones adds that, despite these setbacks, Kirk's book has grown from $600,000 to $2 million, making Jones Brown one of the largest specialty entertainment brokers in Canada.
In addition to entertainment, other important niches for Jones Brown are:
* Sports and Recreation, including Motorsport and Golf
* Financial Institutions
* Oil and Gas
* Aviation
* Technology
* Bloodstock
* Commercial
* Private Client Services
The Sports and Recreation Division provides insurance brokerage expertise to a broad range of sports teams and associations, individual athletes and public and private facilities. The division works hand in hand with entertainment where special events liability, non-appearance, image protection for sponsors, player bonuses and amateur prospect income loss all are part of the game.
The Motorsport Division was established in 2002 and has already become the leading provider of insurance and risk management services to the Canadian Motorsport Industry. Clients range from go-kart tracks to the highly professional Indy and F1 events.
Chairman Donald Brown (seated) and Brian Jones are two of the founders of Jones Brown, Inc.
The Golf Division was enhanced when Simmlands Insurance Brokers became a member of the Jones Brown team in January 2003. That added some 450 golf clubs to the client list, along with associations and golf professionals. It also added several experienced brokers possessing more than 25 years of experience in the golf sector. The golf division was recently enhanced with the addition of Ashley Chinner, who joined April 1, 2003. Ashley began his career as a professional golfer in 1989 and won the 1996 Canadian PGA Championship, in addition to making it near the top of the leader board at a number of other prestigious events, including a 2nd place at the 1999 Buy.com Florida Classic.
The newest target in the sports and recreation area is the horse world. "We recently completed a $750 million property and boiler & machinery insurance program for the largest owner of U.S. racetracks," Brian notes. "We plan to leverage the relationships we've developed to get deeper into the horse world."
"Financial institutions D&O has become a critical concern, especially since the passage of Sarbanes Oxley legislation," notes Jack Mazakian, managing partner in charge of that division. "It is quickly becoming a hot ticket for every director. They want to know what kind of protection they have and we're able to tell them. That's part of what makes us unique in this field. We actually attend the audit committees for many companies and will help them by explaining how insurance policies will dovetail and identify areas where coverage is needed." Tillinghast recently labeled Jones Brown as one of the top four brokers of this coverage in Canada.
Jack continues by noting that "Sarbanes Oxley opened eyes and made the demand greater. However, we already had used the moral approach in Canada. That's been part of our strategy for many years."
Managing partner Mark Terrill in Calgary joined Jones Brown in 2000 after initially rejecting acquisition offers. He brought with him an expertise in oil and gas that already has paid off handsomely. "We currently have 245 clients," notes Mark.
"Alberta is an energy hub and is especially strong right now. There's been a huge influx of people and the economic outlook is very strong. Our strength in this sector has allowed us to grow and was recently recognized when we entered a joint venture in June 2003 with the Canadian Petroleum Insurance Exchange Ltd. (CPIXL) to launch JB Oil & Gas Insurance Ltd. to offer insurance solutions, industry expertise and innovative risk management strategies to energy companies."
CPIXL is a reciprocal owned by the Subscribers of the Canadian Petroleum Insurance Exchange and provides administrative services to the existing Subscriber base. As joint partner, Jones Brown has taken over sales functions and will broaden the availability of insurance services to members.
The Jones Brown Aviation Division provides risk and insurance brokerage expertise to manufacturers, fixed-wing and helicopter operators, as well as airports. Clients are both large and small. The division includes pilots, underwriters, risk managers and brokers with expertise in this field spanning two decades.
"We are convinced that our philosophy of providing extra value to our niche clients already has made us one of the 'new' brokers of choice," Brian notes. "We help our customers with professional advice and prompt response at no extra cost and they appreciate that."
He concludes, "While Canada offers stability and a good working environment, we intend to establish a relationship with someone in the U.S. to give us more of a global reach."
Richard Dowling adds, "We give people the opportunity to have fun, work as a team and earn a good living as partners. There's an energy here that is infectious. In a twist of the Lloyd's tradition of ringing a bell when a disaster strikes, we ring a bell when a new account is written. Everybody really gets into it and enjoys each other's successes." *
For more information:
Jones Brown, Inc.
Web site: www.jonesbrown.com