AUB Group has announced it will work in partnership with Suncorp to introduce a direct life insurance offering.

CEO and MD Mark Searles told the group’s annual general meeting last week the proposition will “help mitigate financial risk for clients” and build a new business stream.

A spokesman for Suncorp told insuranceNEWS.com.au the deal is still being finalised.

Mr Searles’ address also highlighted AUB Group’s shift away from its previous complete reliance on Australian broking.

Four years ago 90% of group income came from this area, whereas today it is 70% – with 15% from underwriting, 11% from risk services and 4% from New Zealand.

“The significant headwinds of premium rate and interest rate reductions experienced by Australian broking have been offset by the growth in our other business areas,” he said.

“The additional good news is that as premium rate normalises, then we will expect to see the return to growth of Australian broking in addition to the continued growth of our other areas.”

Mr Searles outlined other strategic actions in addition to the direct life offering – continuing to strengthen technology partnerships; building on the strengths of brokers using a common system; continuing to bring new partners into the group; and driving collaboration opportunities available to partners.