Well-regarded insurance team to help Kennedys stay on the growth track

Who says insurance is the slow lane of commercial law? Certainly not Kennedys which, not content with breaking into the UK top 50 last year on the back of 30% revenue growth, in December secured itself an early Christmas present with a deal to take on a 70-strong team in Sheffield from Halliwells.

Building on its recent takeovers of a regional branch of Reynolds Porter Chamberlain and insurance boutique Davies Lavery, the deal hands Kennedys its ninth UK office and is expected to swell its revenues to the tune of at least £4m a year.

And there is no question that the 45-lawyer team, led by the impeccably connected insurance specialist Suzanne Liversidge, is seen as a significant prize for Kennedys, securing the firm a credible presence in the Yorkshire region.

The well-regarded Liversidge, who was named Sheffield businesswoman of the year in 2007 and 2008, will run the operation for Kennedys, having originally launched the practice for Halliwells as a means of expanding its insurance franchise.

Some incorrigibly City-centric lawyers may scratch their heads at the idea of launching in Sheffield, but the cost base is attractive, the team efficient and the regional location chimes with Kennedys' insurance focus and aims of building a genuinely national network.

Kennedys managing partner Nick Thomas (pictured) comments: "Our growth has been planned and is a culmination of a lot of investment over the previous five years from organic and lateral growth. The team in Sheffield presented a good opportunity as well as allowing us to plug a hole in the map in the North East and Yorkshire."

The team also compliments Kennedys' existing practice, with mutual clients including AIG (now Chartis), AXA, Debenhams, the Ministry of Defence, the Treasury Solicitor's Department and Gallagher Bassett. The office will also give Kennedys a broader spread of local authority work across the UK. Having already acted for a number of southern-based authorities, including its recent appointment to the London Boroughs Legal Alliance, the firm can now add a host of Northern local authorities to its client roster such as Rotherham and Doncaster – with a further intention to use this office launch as a platform to win new work in the public sector.

Halliwells, for its part, acknowledges the eight-partner team will be a loss, but maintains the remaining commercial practice in Sheffield is still a coherent and profitable business.

But while there is widespread consensus that the insurance focus that makes up the bulk of the practice will fit well with Kennedys, some have doubts about the construction practice moving over and Kennedys' stated desire to build a general commercial practice in the city. Whatever your view, Kennedys looks set for continued investment in the practice.

One potential issue for Kennedys will be securing attractive exit terms with Halliwells, which, having seen a number of partner departures over the last 18 months, is expected to drive a hard bargain.

That could mean holding equity partners to 12 months' notice and the larger number of transferring fixed share partners to six months. Kennedys might have a wait a while before it starts reaping the rewards of its latest trophy deal.