Munich Re insurance subsidiary Great Lakes Australia (GLA) has collaborated with broker network Steadfast Group to acquire Calliden Group.
As part of the deal, Munich Re will support Steadfast in relation to the acquisition, which include two businesses Calliden Agency Services Limited (CASL) and Calliden Insurance Limited (CIL).
Munich Re will acquire CIL for about $40m (€28m), after Steadfast completes the acquisition of Calliden.
In addition, Munich Re will acquire the Calliden Agency portfolio for business package and middle market products that is underwritten by GLA and related operating infrastructure from CASL.
The acquisition will help GLA to develop products, according to current-market commercial insurance needs.
Based on the Calliden agency portfolios acquired, Munich Re will work with Calliden team to create new business pack and commercial Managing General Agency (MGA), in order to provide services to all intermediaries in Australia.
Munich Re management board member Ludger Arnoldussen responsible for Germany, Asia Pacific and Africa Ludger Arnoldussen said the establishment of a new commercially-focused underwriting agency will enable GLA to provide alternative to all distribution partners across the market.
"Furthermore, we look forward to a long-term partnership with Steadfast, which will enable us to jointly develop profitable target-niche and commercial business," Arnoldussen added.
The transactions, which are expected to be completed by the end of this fourth quarter, are subject to regulatory approvals and customary closing conditions.
Image: Munich Re will support Steadfast to acquire Calliden. Photo: courtesy of Chaiwat/ FreeDigitalPhotos.net.