DAC Beachcroft's recently elected management duo, managing partner David Pollitt and senior partner Virginia Clegg, have a lot on their plates.

The pair are plotting significant international expansion across Latin America – where they have opened no fewer than three offices in recent years – and Asia, as well as reviewing the firm's strategy and its governance structure.

Latin America in particular is the firm's big play. It has opened in Chile, Mexico and Colombia via tie-ups with local firms over the last four years, as well as launching a base late last year in Miami, a key insurance hub for the LatAm region. 

Now the firm has Peru on the agenda, exploring an association with a local firm, with Argentina and Puerto Rico also both on the wishlist.

"Latin America was our big bet – no one had done it, not the way we have," Pollitt says. "We read the market, we saw that insurers can't make any money in the UK or Europe so where are they going to go? They are going to go to the higher growing economies."

Pollitt says that he encountered opposition when he first floated the idea of a Colombia merger.

"When I first said Colombia is going to be next, people said: 'Ooh, it's all drugs! You can't go there; you'll get shot!'"

He adds: "They have the drugs under control, a thriving economy, and they have spent billions on hydro power, roads, trains and hospitals, all of which needs insurance," he says. "Where is it going to come from? London."

Building on these offices, Pollitt is now keen to replicate this success in its new Latin American targets. Peru is likely to be an easier win than Argentina and Puerto Rico, which he puts into the "difficult but maybe not too difficult pile". 

New territories

While Latin America is central to DAC Beachcroft's plans for international expansion, the firm is not stopping there. As a result of stagnant growth in the UK insurance market, it is looking to other developing countries, as well as Europe.

Spain, as a gateway to Latin America, will be a key part of the firm's five-year plan. It currently has a Madrid office with three partners and eight other lawyers but Pollitt says the firm wants to grow and to be the "number one insurance firm in Spain".

As part of its Iberian ambitions the firm previously struck an alliance with 20-lawyer Spanish firm Munoz Arribas in January 2015 targeting Latin America.

Further afield, DAC has identified Malaysia and Korea as key opportunities for future growth. It currently has an association with a firm in Malaysia, Gan Partnership, and is mulling a similar opportunity in Korea.

It also plans to expand in Singapore, where it is down to one partner after office founder Ben Nicholson moved to Kennedys in August 2015, though does not expect to see as much growth here. 

Future proofing

Alongside the international expansion plans Clegg and Pollitt have kicked off a series of reviews of the firm's strategy and governance since they took the reins in November.

Pollitt explains the rationale: "It is about making sure we are very clear on where we want to go strategically, making sure we can articulate it clearly to our clients and our market and with a governance structure that underpins all of that to make sure we are on track to achieve our strategic plan."

Clegg, as senior partner, has responsibility for the governance review, which is being led by Giles Peel, the head of the firm's governance advisory practice. She explains that the review will be wide-ranging, looking at the board and executive structure, to ensure that, "we have a business that is streamlined with government processes fitted by best practice," she says.

Pollitt, meanwhile, is leading the strategy review in an effort to determine where to target investment. The firm is currently structured around three main sectors: insurance, real estate and healthcare. Insurance is still the firm's prized focus, accounting for 60% of its revenue.

He says the review is looking at areas outside these core sectors where there could be growth prospects. "It is about making sure that we are capturing all the good stuff we can do and picking some additional incubator sectors we want to invest in over the next few years," he comments.

In addition, Clegg and Pollitt are working together on a review of the firm's culture as "the glue that binds everything together."

Part of that process is a new leadership development project, working with the Moller Centre in Cambridge. Clegg explains: "It is not to say we haven't got some fantastic leaders, but we need to bring through the new crop.

What will not form part of the review, due to conclude at the end of this calendar year, is any overhaul of the firm's merit-based partner pay system. It will, however, look at areas such as diversity and inclusion, including issues such as recruitment, maternity and paternity leave.  

As Clegg concludes, the aim is to make "sure we have a business that is future-proofed and attractive to the talent coming through."