The acquisition means that as well as growing its market share, LFC will now be able to write direct policies for a wide range of specialist trades.

Shield Policies, now trading as LFC Shield, was established in 1923. Over the years it has built up an excellent reputation for providing competitive policies to small and medium-sized businesses. This, on top of its underwriting capacity, makes Shield an ideal addition to the LFC Insurance Group.

LFC Group managing director Jerry Clayton said, "This is one of our most exciting takeovers yet. We have acquired a number of brokers in the last few years but the acquisition of Shield means we can now write certain policies ourselves, which gives us a very competitive edge.

"The Shield team is extremely professional and has built its reputation on quality of service above all else. That fits perfectly with what we have always done at LFC and I am very confident about the prospects."

Steve Haynes, former MD of Shield, said, "LFC is a leader in the highly competitive world of commercial insurance and we are delighted to become part of the group. Our clients will benefit from significant cover improvements and highly competitive premiums but there will be no compromise to our quality of service."

The acquisition means the LFC Insurance Group is on target to write a £30 million gross premium in 2008 and now employs nearly 100 people operating from their four sites in the south east – as well as the Eastbourne Office in Martello Road, the company has three further offices in Essex.