South Australian-based insurance broking firm MGA Insurance Brokers is expanding to 40 offices around Australia with the purchase of the Horsham business, Cranston Australia Insurance Brokers.
The deal comes into effect on September 16 and follows the acquisition of Cranston’s Mildura operation in 2007 and its Adelaide portfolio in August last year. MGA’s Managing Director Paul George says the latest acquisition completes the integration of Cranston into the MGA network, a process that started after discussions with Tony Cranston back in 2007.
“Horsham is a key regional area and this agreement fits extremely well in MGA’s expansion strategy of continuing to build its national regional base,” George says.
He adds recent growth was the result of a well-developed model where independent brokers with successful businesses looking at succession were invited to join.
“This provides those brokers with the opportunity to be part of a national business with good economies of scale and an opportunity to continue to work within the industry earning income and remaining active until they are ready to retire,” he explains. “We have had a strong association with Tony Cranston for the past nine years and we are looking forward to working with the team in Horsham.”
George notes that as a result of the agreement, Anthony Blake would join MGA as a Portfolio Manager, along with three administration staff.
Cranston says MGA and Cranston Australia share similar philosophies which was a key to the relationship the companies had enjoyed.
MGA will introduce new products to the Horsham business through its underwriting agency Millennium, mainly in the farm insurance space. Millennium is a specialist regional and rural agency which provides farm and crop products exclusively to the MGA network.
The Horsham acquisition follows MGA’s purchase of BankSA’s business insurance portfolio earlier this year. BankSA’s business insurance portfolio had around 7,000 policies, predominately SME and business insurance lines.