North-west merger reveals national drive

Consolidation in the North-west defendant legal market continued this week, as DWF and Ricksons announced plans to merge.

The firms admitted competitive pressures have placed both in a difficult position in terms of achieving organic growth, particularly after rivals Halliwells and James Chapman joined forces in May this year.

DWF's insurance department currently comprises more than 200 people in Manchester and Liverpool. The merger with Ricksons will bring that number to 350, and create an insurance practice with a fee income of £23m and offices in four cities - Manchester, Liverpool, Leeds and Preston.

The combined firm will have expertise in key areas such as disease, health and safety, fraud, catastrophic injury and commercial insurance litigation, and it is claimed that the combination of these specialist teams will provide a market-leading offering in these areas.

DWF currently acts for Royal and Sun Alliance, Admiral, Equity and Allianz Cornhill, while Ricksons' client base includes Norwich Union, QBE, Fortis, Groupama and its recent panel win for the Motor Insurers' Bureau.

Paul Berry, head of insurance at DWF, said: "Both firms have ambitions to become leading regional and national players in the insurance and commercial markets. However, while our fee incomes have been increasing at record levels, we recognise that in the current market - with consolidation in both the legal and insurance sectors - organic growth alone will not be sufficient to realise our aims.

"Each firm had independently identified the other as a potential merger partner, and discussions have progressed quickly. It was clear that we had many synergies and, most importantly, the culture fit was right."

Ricksons' managing partner, Anthony Hughes, added: "Both firms have strong insurance practices and an excellent reputation with clients - there is a perfect synergy between us.

"Together, we can build a much stronger business and enjoy an increased profile in the market. Meanwhile, clients will benefit from a greater depth and breadth of expertise, while maintaining the personal relationships they have developed over the years."

He added: "The merger will put us in a much better position to benefit from new business prospects arising, and we are really excited about the opportunities it presents."