‘No more plans to sell,’ says AR network chairman

‘No more plans to sell,’ says AR network chairman | Insurance Business

 ‘No more plans to sell,’ says AR network chairman
Authorised representative network Insurance Advisernet has no plans to sell its authorised representatives business after divesting its underwriting agencies to Austagencies, the chairman Ian Carr has told Insurance Business.

IAA sold to Austagencies 100% of Mint Property and Casualty, Mint Transport (Civil Contractors) and Mint Taxis and will take 50% of Mint Plus. IAA last year consolidated six underwriting agencies into Mint. The sale of the IAA’s underwriting agencies to Austagencies is to be completed by 31 March. The acquisition is set to give Austagencies a GWP of $280m. Meanwhile, by 30 June, IAA in Australia will have $400m of premium.

IAA chairman Ian Carr told Insurance Business that the network had no plans to sell the AR business, stating the deal allows the IAA to focus on growing the AR business: “We are dedicated to growing our authorised representative network in Australia and New Zealand and Austagencies is keen to grow their agency business. Therefore we were able to come to an arrangement whereby Austagencies takes over the underwriting, allowing us to focus on our AR network.

“If Austagencies is stronger and able to deliver more products and services to our ARs that is in the best interests of the IAA too.”

Austagencies MD Craig Patterson has welcomed the company’s acquisition of Insurance Advisernet Australia’s underwriting arm.

He told Insurance Business: “The proposed acquisition of Mint Underwriting by Austagencies unifies the underwriting agency model within the group and has the support of Mint shareholders. At this point Austagencies are still working through the acquisition process and there are a number of actions that require completion.”

Austbrokers Holdings acquired 50% of IAA in October 2006, for an initial payment of $4.3m.