DAC Beachcroft is to corporatise its claims solutions arm as a subsidiary of the firm’s LLP in a bid to boost the efficiencies of the business.
The firm has long harboured plans to standardise its commoditised business following legacy Beachcroft’s acquisition of Kingslegal in May 2009 (11 May 2009). Following the acquisition the firm established volume arm ‘B2 from Beachcroft’, effectively ringfencing its commoditised capacity from the remaining practices. Challenges over the branding, however, forced a rethink and the brand was dropped.
Following the merger with legacy Davies Arnold Cooper (DAC) last November (31 October 2011) plans were put in place to look again at how partners were working and how best to leverage its commoditised services business.
The firm appointed Zurich Financial Services’ European claims director Bill Paton in April to lead the venture after he formally joined the firm last month (2 April 2012).
It is understood that Paton will chair the board of the business, which will report to the LLP. It will also have its own board, details of which will be finalised in the coming weeks.
Sources close to the firm said it was not intending to apply for an ABS licence.
Managing partner Paul Murray told The Lawyer last October: “Firms can pretend there’s still work out there on the same rates, but corporate fees are coming down. Fees are down by as much as half in some areas. Now it’s down to seeking out the value in our business.”