Broking behemoth Steadfast have merged two leading Tasmanian brokers into one hub, as well as purchasing a majority stake in a leading marine underwriter.
The broker network announced today they had merged ANCA Insurance Brokers with Saunders Higgins as part of their hubbing strategy, designed to cut back office costs.
Steadfast CEO and Managing Director Robert Kelly says the hub will give them a platform to create scale benefits and costs savings for brokers across Tasmania.
“Although we have increased our ownership in the combined entity to 87.5%, we expect to sell back equity to key management personnel in the near term to maintain a strong co-ownership model.”
ANCA Director Nigel Clutterbuck says: “The merger will allow us to truly have a state-wide focus with a branch network operating in four major cities within Tasmania.”
Meanwhile, Steadfast has purchased a 70% stake in specialist underwriter Nautilus Marine Insurance.
Established in 2005, NM Insurance is an underwriting agency specialising in marine and motorcycle insurance in Australia and New Zealand, and finished the 2013 financial year with an EBITA of $1.6 million.
NM Insurance CEO, Lyndon Turner says becoming an equity partner with Steadfast has been a result of their strong support through their intermediaries and leading market products.
“We look forward to continue working with Steadfast now as an equity partner, as well as growing with our other partners across Australia and New Zealand,” he says.
“Our business has been built on solid relationships held with our intermediaries supporting our market leading products, and our underwriting partners.”
“We expect Steadfast’s ownership in NM Insurance will ensure we continue to be a leading supplier in all the products we offer under our various brands, including our most prominent, Nautilus Marine.”
Kelly says NM Insurance has the personnel to thrive with the Steadfast culture.
“We are pleased to add another high quality business to Steadfast Underwriting Agencies. NM Insurance has been a strategic partner with Steadfast since 2009 and complements our underwriting agency offerings,” he says.
“The business is run by a group of young, ambitious and energetic people who have the innovation and drive in keeping with the Steadfast culture.
“We are thrilled to be able to support their growth and add value to the Steadfast Network.”