Australia-based AUB Group has taken full ownership in New Zealand insurance broker BrokerWeb Risk Services (BWRS) by acquiring the remaining 50% stake for an undisclosed price.
The Australian insurance company, which carried the deal through its New Zealand-based subsidiary AUB Group NZ (AUB NZ), said that it is the group’s largest acquisition till date. It was in November 2014 when AUB NZ made its first investment in the New Zealand insurance broker by acquiring a 50% stake.
BWRS, which offers insurance broking and risk management solutions for corporate, commercial, rural and domestic insurance buyers, has gross written premium (GWP) of NZ$150m ($101.7m).
The insurance broker through seven branches and three associate companies serves 25,000 clients across New Zealand.
BWRS CEO David Archer said: “BWRS is now very well placed to continue its strong momentum of growth. I look forward to supporting the BWRS team during this transition, and to seeing the firm continue to strengthen, with all the advantages of the AUB partner network.”
AUB Group’s decision to take 100% ownership in the broker comes in the wake of its A$116m ($82.41m) capital raise in November 2018.
AUB Group CEO and managing director Mark Searles said: “Strategic acquisitions across Australia and New Zealand continue to form a key element of AUB Group’s diversified growth model, whereby organic growth is complemented by acquisitions that demonstrate strong strategic and cultural alignment.
“BWRS is a leading insurance broker with immense opportunity, and is an ideal fit for our unique ‘skin in the game’ partnership model.”
AUB Group revealed that it has allocated more than A$67m ($47.6m) to acquisitions in the present financial year.
In last November, the insurance company signed a deal to acquire a majority interest in Adroit Insurance & Risk, an Australian risk advice and insurance broking company. Headquartered in Geelong, Victoria, Adroit through 12 branches serves over 25,000 customers in regional and metropolitan Victoria and New South Wales.
After excluding BWRS, AUB Group, in the last five and a half years, has closed 39 transactions with a combined worth of A$199m ($141.4m).