Australia-based Austbrokers (AUB) has purchased of a 50% interest in one of the largest general insurance broking businesses, Nexus (Aust), trading as Nexus Risk Services, with aims to boost its presence in the West Australian broking landscape.
Following takeover of AUB, Austbrokers will become one of the largest equity-based broking networks in the country with total general insurance gross written premium in excess of $2bn.
AUB has also acquired, through Austagencies, a 75% share holding in Asia Mideast Insurance and Reinsurance (AMIR) a niche offshore energy underwriting agency, to strengthen its interests in specialist underwriting agencies.
Austbrokers CEO and managing director Mark Searles said the two acquisitions supported his vision to drive significant growth in the business through both existing and expanded revenue channels.
"Adding Nexus to the Austbrokers family is a natural extension as we embark on our next phase of growth through diversification and strategic acquisitions."
As per the terms of the transaction, the Nexus acquisition will add 13,000 SME and commercial policies to the Austbrokers Group and takes the total Austbrokers network to 50 stand-alone partner insurance brokerages.
Further, Nexus managing director Mark Patterson will continue to spearhead the business, and will be accountable for the strategic direction and day-to-day management.
Searles said that the acquisition of a 75% share in AMIR was part of a strategic move to expand the product offering of the group and diversify its revenue base.
Austagencies managing director Craig Patterson said: "The AMIR acquisition is significant as it opens up a global market platform with strong capability in offshore energy risks, as well as cover for energy-related construction, and associated activity."
Image: Australian Austbrokers acquires majority stake in Nexus, AMIR. Photo: courtesy of scottchan / FreeDdigitalPhotos.net.