Austbrokers has moved into the New Zealand broking market with the 100% acquisition of the management group for the BrokerWeb cluster group, as well as a 50% interest in the country’s largest independent brokerage, BrokerWeb Risk Services.

BrokerWeb Management has 40 members, and BrokerWeb Risk Services has six branches across New Zealand. The deal, announced this morning, is worth more than $NZ20 million ($18.15 million).

Austbrokers says the deal “signals a major shake-up in the New Zealand insurance broking industry, which has long been considered a duopoly between Aon and Crombie Lockwood”.

It is one of the largest transactions undertaken by Austbrokers so far and was executed through its 80% subsidiary NZ Brokers Holdings.

The group says the combined acquisitions make Austbrokers New Zealand’s largest insurance broking cluster network, with $350 million in gross written premium and more than 120,000 clients.

Previously Austbrokers has only been represented in the NZ market by its 50%-owned partner IAA.

CEO Mark Searles says Austbrokers’ owner-driver model was used as the platform for growth. “Overnight this approach brings Austbrokers Holdings and our New Zealand partners significant market scale and leadership.”

He says BrokerWeb Management is similar to the AIMS joint venture cluster group partnership in Australia, “creating further natural synergies”.

Austbrokers Chief Broking Officer Keith McIvor has taken a 20% interest in NZ Broker Holdings funded out of his own resources, and has entered into an agreement with Austbrokers to regulate the governance of NZ Broker Holdings and its investment in BrokerWeb. He and Mr Searles will also join the BrokerWeb board. 

BrokerWeb Risk Services CEO David Archer and BrokerWeb Management CEO Jim Harris will remain in their current roles, and all businesses involved in the transaction will continue to trade under their existing brands.

More information in our regular bulletin on Monday.