Lloyd's insurer Beazley Group has expanded its presence in the Australian group disability market with agreements to acquire two managing general agencies (MGAs), Australian Income Protection (AIP) and Blue-GUM Special Risks (Blue-GUM).
AIP is a provider of disability insurance to industry superannuation funds, retirement funds run by industry associations and trades unions. The agency underwrote gross premiums of AUD$30m in 2010.
Blue-GUM focuses on the distribution and management of life insurance-based group disability and death benefit policies. It underwrote gross premiums of AUD$2.6m in 2010, and has also been engaged in selling access to its underwriting, claims and policy administration software.
Beazley plans to merge the two companies with its existing Australian accident and health business as part of the Beazley Group, creating a business that will be able to offer a full product range, including permanent and temporary disability benefits, to superannuation funds, employers and affinity groups.
Beazley’s current presence in the Australian accident and health insurance market derives from its acquisition in 2008 of Momentum Underwriting Management, an MGA focusing on life, accident and health business.
Following the latest acquisitions, Beazley said it will merge its current Brisbane offices with AIPs and acquire a new office in Sydney.
The transaction is subject to regulatory approval in Australia and the UK.