Towergate pays out to Arthur J Gallagher for chief David Ross

Towergate, the UK insurance group which underwent a massive financial restructuring this year, has paid £8 million to rival New York-listed insurance broker Arthur J Gallagher.

This is to settle High Court proceedings over its poaching of David Ross as its next chief executive.

As result Ross will join Towergate in November and two of his colleagues from Gallagher in September.

The sum was part of a £20 million settlement between Ross and the others and Gallagher. The remaining £12 million was paid by Towergate's majority owner, Highbridge.

John Tiner, the former head of the Financial Services Authority who chairs Towergate, said: “I am very pleased that a settlement has been agreed between a number of incoming executives and Gallagher, bringing much needed clarity to the management of the Towergate business.

“With all of these appointments alongside our existing leaders we will have an outstanding executive team, whom I am confident will lead the business to sustained success in the future.”

Privately owned Towergate originally announced Irishman Ross’s appointment in February when it also unveiled a refinancing which led to big losses for investors.

Today it revealed a profits wipe-out in the first half with losses of £58 million against a profit of £15 million in 2014.