THE management team that turned around a loss-making Worcester company has put its money where its mouth is and bought it out.

And the new owners of personal insurance broker Bennetts Insurance are looking forward to reaping the benefit of their hard work themselves as the company goes from strength to strength in the future.

Bennetts operates from 30 branches, mainly in the south of England, and has its head office in Bridgepole Road, Warndon.

The management team was led by chief executive Ian Darbyshire and finance director John Langley.

Each member of the team has taken a significant stake in the business, which they took just two years to haul from deep in the red to break-even.

Extra cash for the deal came from specialist management buy-out firm Advantage Capital.

"The investment by Advantage Capital will provide the funds to allow the business to grow into substantial profitability in its next financial year," said a spokesman.

Bennetts Insurance sells a range of insurance and home services policies to customers who are "cash rich and time poor" and want personal service from a local broker.

The company's plan is to increase business though the acquisition of other broker firms, increasing the company's branch network.

The management team was advised by Birmingham-based Bentley Jennison Corporate Finance.

Roger Wood, from Bentley Jennison, said the insurance industry was becoming more concerned about cost, driving the trend for both insurers and brokers to merge.

"Consolidation is likely to speed up ahead of 2004 when the Financial Services Authority assumes responsibility for regulating the sale of general insurance products," he said.

"Well-run and professionally managed brokers like Bennetts will be then well-placed to exploit this market opportunity."

Bentley Jennison worked with the management team at Bennetts for more than six months, providing strategic advice on the best way to market the potential management buyout to potential financial backers and the optimum way to structure the deal.

"We were able to use the company restructuring, its strong business strategy and the record of the management team to find the right backer for Bennetts," said Mr Wood.

Bennetts Insurance was founded in 1948 and now has 230 employees, with an annual gross premium income of £40m.