Kent insurance tycoon Peter Cullum is handing £10 million to his old business school to launch a centre for entrepreneurship.

Towergate executive chairman Mr Cullum, who completed an MBA at the Cass Business School , Moorgate, London, set up his Maidstone-based insurance intermediary in 1997. It is now worth around £3 billion and employs 4,000 in the UK.

The new centre at Moorgate - to be known as the Peter Cullum Centre for Entrepreneurship - will be headed by a specialist professor and will provide academic support and funding to a new generation of would-be business leaders.

It will focus on the finance and service sector and it is understood it will be one of the largest of its kind in the world. It will also carry out research and consultancy work.

The announcement comes just days after the company sold £100 million of shares to US hedge fund Och-Ziff, with payments of up to £1,000 going to staff.

Mr Cullum said: “Studying at Cass furnished me with the skills I needed to achieve my ambitions and I am delighted to be able to offer that opportunity to a younger generation.

"The entrepreneurship centre at Cass will allow both young and more established entrepreneurs to present their ideas to a panel of people who have gone through the same challenges and will be empathetic to their needs.”

Richard Gillingwater, Dean of Cass Business School, City University, said: “Peter’s association with Cass goes back a long way and this unique, innovative and visionary initiative will put Cass’ commitment to nurture the next generation of entrepreneurs firmly on the global map.”

Paola Barbarino, development director at Cass, said: “This is a venture philanthropy initiative on a truly grand scale. We hope in due course other Cass alumni will be inspired to do what Peter has.”

The funding will establish a £10 million seed fund which will also help establish office space and facilities to develop new business ideas.

Mr Cullum began his insurance career in 1969 with the Royal Insurance Group and progressed to sales and marketing positions.

At the age of 21, he became the youngest person to pass the Chartered Insurance Institute fellowship examinations.

He was recently voted Entrepreneur of 2008 by Management Today and he was awarded an honorary doctorate by Cass Business School in 2007.

Towergate employs 250 in Kent, at offices in Maidstone, Sevenoaks and Whitstable.