Brokerage Rothbury agrees deal with national adviser group

Brokerage Rothbury agrees deal with national adviser group | Insurance Business

Brokerage Rothbury agrees deal with national adviser group
A new strategic partnership between Rothbury and financial services provider Lifetime Group will provide opportunities for brokers, according to Rothbury CEO Roger Abel.

All jobs would be retained with Rothbury and Lifetime staff co-locating throughout the country over time, the companies said in a statement this week.

Advisers and related staff would come together in Auckland, Tauranga, Hamilton, Wellington and at Lifetime’s head office in Christchurch, with the Moorhouse Avenue premises becoming home of Rothbury’s Christchurch branch.

The deal, which takes effect on 22 December 2016, involves three key transactions, including an exchange of assets and expertise. This includes:
  • Lifetime taking over Rothbury Life (which is Rothbury’s life insurance and mortgage division, and a team of 22) as a going concern;
  • Rothbury acquiring Lifetime’s general insurance brokerage and premium funding operations as an asset sale;
  • Rothbury purchasing a 19.5% ‘cornerstone’ of Lifetime shares in a deal worth in excess of $10 million.
Abel, who will join the Lifetime board as a director along with Rothbury Group director Owen Shaw as an alternate, said the two companies had been in negotiations for the past few months and both parties were ‘thrilled’ to get the deal across the line.

“This new partnership with Lifetime presents opportunities for Rothbury insurance brokers, Rothbury Life and Lifetime to all benefit, grow and share our collective knowledge both within our businesses and with our clients,” Abel said.

“Lifetime Group’s client-focused approach to delivering independent professional service aligns perfectly with Rothbury’s values.

“Rothbury already has offices in Christchurch and Ashburton, but this step provides a great opportunity to strengthen our presence across Canterbury, New Zealand’s second largest region.”

Lifetime would continue to work with the Rothbury brokerage, which was a founding NZ member of Australia’s largest insurance broking network Steadfast Group, for general insurance clients and together form a national partnership, creating one of the strongest financial services businesses in New Zealand, the companies said.

Lifetime group CEO Mike Jones said the strategic move and expertise being shared would ultimately benefit both new and existing clients.

“We’re both national-operating companies with very similar cultures and complementary client offerings,” Jones said.

“There’s a natural alignment of values – our organisations each take pride in our integrity, ethics and accountability.”

“I firmly believe this opportunity will be hugely beneficial to both businesses and is great news for our future growth,” Abel added.

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