Denney O'Hara - A wise head

Katherine Brandon speaks with Brian Denney, chairman of Denney O' Hara, to discuss his fifty years' industry experience

Brian Denney has had a prestigious and varied career. Starting off in the military, in which he is still involved today, he co-founded Denney O'Hara in 1958. A chairman of the British Insurance Brokers' Association chairman for two years, he was also the founder chairman of the IFA Association (the predecessor of AIFA), playing an instrumental role in the merger of the trade associations that formed it.

Denney set up Denney O'Hara with Terry O'Hara in the belief that they could be of greater help to clients as independent brokers than they were working at the Royal Exchange. "There were so many general insurers back then that it was an extremely competitive market, which made it difficult for clients to know where to turn," Denney reminisces. "At first we had nothing. We had no clients at all but in the first year we exceeded our estimated turnover by £200, which was a lot of money back then." As its reputation spread, Denney O'Hara soon started to gain commercial clients of considerable size.

Some of these earliest accounts are still with Denney O'Hara today. One customer Denney first advised about insurance in 1959 when he was a pilot officer in the RAF has now progressed to be the chief constable of a local airbase.

Priority

Denney attributes his firm's success to its client focus, which has helped the firm achieve a high retention rate and attract a lot of business through referrals. "If I could give advice to a broker looking to start up his own business, it would be to always put the client first," Denney notes. "The client has entrusted you with their portfolio and you are responsible for looking after it. Always be seen to make the contract more advantageous to the client rather than looking to line your own pocket and more business will follow."

Denney prioritises installing this 'client first' philosophy in all his staff members. A large number of his employees have accrued over ten year's service, with one member of staff working at the broker for 37 years.

Engaging with staff is what Denney believes has kept so many of them at the company, despite the high personnel turnover seen in most of the market. Denney explains: "While the clients are appreciative of the service they receive, the staff feel part of the team as they spend time with them rather than dealing with abstract issues. Ours is a very personal business; it is important that contact is maintained so staff want to feel involved. Ours are on a first-name basis with many of their clients."

Despite the desire to please the client being so deeply embedded into the broker's culture, Denney encourages staff to be realistic rather than make extravagant promises when speaking to clients; he notes that the phrase 'you can always come back as a fool but never a liar' is heard around the office often.

The path for Denney has not always been so smooth: Terry O'Hara retired from the business in 2001, leaving it in Denney's hands. Alongside running the business with his management team, Denney is still involved in the military and is currently deputy honorary colonel of rifles in both the Territorial Army and the Cadets, as well as the deputy lieutenant of West Yorkshire. At the age of 75, he is still an incredibly busy man.

However, Denney is no stranger to a management challenge. Commenting on his chairing of BIBA and the IFA Association, he comments: "There is no doubt that my involvement in the associations added to our reputation and opened up markets for Denney O'Hara, yet it was a very taxing job and kept me away from the business.

"I had to make sure that each of the tasks I had undertaken were receiving equal and proper attention while still making sure that I was at home to help look after my two daughters. It was the biggest challenge I have had to face but it was totally self-inflicted."

Spectacular

There have also been some unique situations that Denney has had to handle, including trying to arrange £1m of personal accident cover for the managing director of a glass merchant involved in a press launch of a product. When asked for more details, it emerged that the director wanted cover in order to stand behind a panel of allegedly bulletproof glass, which was to then be fired at with a double-barrelled shotgun. In the event, Denney brokered cover of £250,000 for the stunt; the glass manufacturing company is still a client today.

Denney admits that his broker is not totally immune from the current economic climate: "There is a general tightening of the belt for all apart from the very highest net worth clients," he notes. "Young professionals in particular are cutting back on cover."

However, Denney is not too worried about the effects of the credit crunch: "In many years of business, one learns to recognise the signs that the economy is struggling and take the steps to prepare where savings can be made." Denney believes that Leeds is more resistant to economic difficulties than many parts of the country: "Leeds itself is quite amazing. It has lost its tailoring and heavy engineering businesses to Eastern Europe and China but, even during a recession, Leeds maintains a very healthy business flow."

Denney O'Hara

Chairman: Brian Denney

Established: 1958

Location: Leeds

Number of staff: 19

Main lines of business Commercial risk and high net worth personal lines

Gross written premium: £13m.