An ASX-listed insurance giant is believed to be mulling the sale of its smash repairer investment.
Suncorp, through its investment arm, Suncorp Insurance Ventures, owns a 95% stake in Capital S.M.A.R.T Repairs, Australia ’s second biggest smash repairer, which has a capacity for more than 200,000 repairs a year across its 45 sites in Australia and New Zealand.
Most of Capital S.M.A.R.T’s customers come from Suncorp-related insurance claims, with 45% of the insurer’s personal insurance motor repairs making it to the smash repairer during the last financial year according to Suncorp’s annual results.
Sources told Street Talk that Suncorp is seeking a new capital partner for Capital S.M.A.R.T who could buy its stake and has hired adviser Luminis Partners to review and test buyer interest in the smash repairer, which is reported to have revenue of $300 million and about $30 million EBITDA.
The Capital S.M.A.R.T review follows a $725 million deal to sell Suncorp’s life insurance business to TAL Dai-ichi Life Australia and comes as the insurer’s chief executive Michael Cameron cleans up the company’s portfolio, Street Talk said.