Broker network acquires major stakes in two businesses

Broker network acquires major stakes in two businesses | Insurance Business

Broker network acquires major stakes in two businesses
Austbrokers Holdings Limited has acquired a 50% interest in WA brokerage Nexus Risk Services and a 75% stake in niche offshore energy agency Asia Mideast Insurance and Reinsurance P/L (AMIR).

Austbrokers said in a market announcement that the acquisition of a stake in Nexus would expand its presence in the WA broking market, and add 13,000 SME and commercial policies to the Austbrokers Group. It takes the total Austbrokers network to 50 stand-alone partner insurance brokerages.

The group said the move would enhance its position as the largest equity-based broking network in Australia, with total general insurance gross written premium now in excess of $2bn.

Mark Searles, CEO and managing director of Austbrokers Holdings said: “Adding Nexus to the Austbrokers family is a natural extension as we embark on our next phase of growth through diversification and strategic acquisitions.”

Fabian Pasquini, chief distribution officer at Austbrokers stated: “Broking and insurance distribution is a core component of the group, and in WA, Nexus is one of the best in the business. Their outstanding leadership, operating model and portfolio diversity have remarkable synergies with our existing Austbrokers network. We look forward to helping Nexus grow and become even more successful over the coming years.”

Searles said taking a 75% share in AMIR was part of a strategic move to expand the product offering of the group and diversify its revenue base.

Craig Patterson, managing director of Austagencies said: “We are keen to extend our specialised underwriting niche business into areas where we have, or can attain, leading positions.”

He added that the acquisition opens up a global market platform with strong capability in offshore energy risks and cover for energy-related construction and associated activity.

AMIR founder and MD Adel Dawood said Austbrokers would help the business further develop its existing and future plans.