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MGM slashes network by 60 agents

Mortgage Strategy has learned that MGM Assurance, provider of specialist financial services, has dramatically reduced its network by terminating the contacts of an estimated 60 agents.

An industry source says MGM has decided to retain an alleged 20 to 30 of its larger firms that generate a lot of life businesses, but is terminating the contracts of many smaller firms that produce less.

The source says the decision shows MGM is “losing its appetite for mortgage business”.

The firms whose contracts have been terminated have been given 30 days’ notice, and many are angry about the “bizarre” way MGM handled the matter. Some heard they were being given the boot over a week ago through the grapevine, but only received an official telephone call last Wednesday.

One appointed representative, whose contract was terminated in the cull and asked to remain nameless, says: “MGM is swimming against the tide by reducing its network and refusing to look at multi-tie. It just doesn’t seem to want to make the mortgage side of the business work.”

MS has also learned that around half of the firms retained by MGM are rumoured to be thinking of leaving the network, with many considering moving to multi-tie networks where the profit potential is higher.

But MGM says the retained firms are happy with its proposition. Alan O’Nell, head of marketing at MGM, says: “The decision to terminate some agents’ contracts is part of our expansion strategy to increase business volumes by focussing on stronger firms. We are looking to expand our product range and these cuts will free up resources so we can develop our service to remaining agents.”


HLIS launches Diamond

Heath Lambert Insurance Services has launched Admiral Groups Diamond home insurance. This follows the successful launch of home insurance earlier in the year.David Rudd, business development director at HLIS, says: We are delighted to be working with the Admiral Group in developing and delivering home insurance products for their and Diamond customers. There […]

Haart predicts 5% increase in property prices in 2006

Haart is predicting UK property prices to increase by 5% in the first half of 2006. Its 2006 housing market forecast also reveals annual growth in the housing market is set to be 2-3%.It also anticipates Self Invested Pension Plans and Home Information Packs will boost the housing market. Paul Smith, chief executive of haart […]

Goldsmith Williams launches international sister company

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India Election Update

What a difference six months makes. Speaking in September last year, we had warned of ‘excessive pessimism’ afflicting the market’s perception of India. Since then, responsible central bank policy from the Reserve Bank of India (RBI), alongside improving global growth, has meant that India’s macro environment is strengthening quickly. The current account deficit has shrunk, inflation is falling and the government has embarked on a heavy dose of much needed fiscal consolidation. As a result, the rupee has been one of the strongest global currencies this year while the market has touched all-time highs, rallying by more than 20 per cent (GBP) since September. This begs the question: are we now in a period of ‘irrational exuberance’? Not yet.


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