The Waterhouse Group, the Rochester-based insurer, has blamed market forces for getting out of personal insurance and focusing on commercial work and financial services. Paul Waterhouse, senior partner, blamed the change and diversification in the insurance market for the new strategy.

The Waterhouse Group is handing over its portfolio of personal insurance to UK broker Hill House Hammond, part of Norwich Union. Hill House Hammond will share the Waterhouse headquarters in Grafton House, High Street, Rochester.

Mr Waterhouse, who is president of Medway Chamber of Commerce, said market forces had forced many insurance companies to evaluate their competitiveness and specialise on certain services. "The insurance market is currently undergoing a period of change and diversification that has led me to decide to concentrate in the areas of commercial insurance and financial services," he said.

"Our company has built up a long established client list and we can assure them that other than the policies being transferred to Hill House Hammond, customers can expect to receive the highest level of personal service." Existing Waterhouse staff Sean Finneran, Sandra Geast, Phyl Summers and Lisa Washbrook are also transferring to Hill House Hammond.

Waterhouse company manager Julie Brann said:" We can only see this as beneficial for all our clients both in the commercial and private sectors. Hill House Hammond offers a first class service to private individuals and we will continue to look after our commercial clients. We have already taken on two additional staff to enable the company to concentrate on all future development."