CBL Corporation Limited has completed its NZ$46 million acquisition of Australian specialty insurer Assetinsure Holdings Pty Ltd
, the company has announced.
The Auckland-based credit surety and financial risk insurer has plans to broaden its operations from its current mainly European business and said this acquisition was an important strategic step in its goal to build business in Australia.
CBL managing director Peter Harris
said: “We can now distribute products in Australia through an APRA regulated entity, and introduce certain Assetinsure products and relationships into our existing international markets.
“Currently our business is strongly weighted to Europe, which accounts for more than 70% of the business written by the company. We expect the purchase of Assetinsure will go some way towards broadening our operations.”
Assetinsure is the largest surety bond insurer in Australia and has three offices in Sydney, Brisbane and Perth.
Harris added: “We are excited to be able to utilise the knowledge and experience that the Assetinsure team has of the Australian market, and look forward to being able to apply some of our international products and knowledge into the Assetinsure distribution channels.”
Assetinsure executive director and largest shareholder, Peter Wedgwood, said: “There is a lot of synergy between our two companies, and we are very pleased to become part of the Group."
“CBL’s global focus will provide us access to other markets.”
It has been a busy week for CBL, which made its debut on both the Australian and New Zealand stock exchanges on Tuesday
The company had cited funding for growth, including the Assetinsure acquisition, and increasing its regulatory capital as the primary reason for its decision to list.