AUB Group has acquired New Zealand broker Runacres & Associates from IAG New Zealand for $NZ35 million ($32.6 million).

Runacres has gross written premium (GWP) of $NZ50 million ($46.6 million) and 30 staff across offices in Christchurch, Auckland and Greymouth.

The acquisition, transacted through 80%-owned subsidiary AUB Group NZ, is effective from December 31.

AUB MD New Zealand Keith McIvor says the deal is “very significant”.

“The acquisition reinforces our commitment to the New Zealand market and sends a clear signal that we are serious about being in New Zealand,” he told insuranceNEWS.com.au.

In line with AUB’s “owner-driver” partnership model, AUB will sell down a stake of up to 20% in Runacres to current CEO David Crick.

In July AUB combined its New Zealand broking operations under the NZbrokers brand, which now manages the largest cluster group of brokers in the country.

With the acquisition of Runacres, AUB’s GWP in New Zealand totals $NZ550 million ($513 million).

Runacres will run as a separately branded business. Mr McIvor says there will be no changes to the company’s operations or strategy following the acquisition.

“One of the things that excites us about Runacres is it’s a high-growth business,” he told insuranceNEWS.com.au.

“We are very excited about having Runacres in the AUB family. Runacres is a high-performing business with a strong track record of sustainable growth. Our role is to continue to support the growth that is already happening in the business.”

AUB – formerly Austbrokers – entered the New Zealand market in 2006. It is the third-largest broking entity in the country behind Aon and Gallagher-owned Crombie Lockwood.