CGU Insurance and Austagencies have joined forces to launch NewSurety, an underwriting agency specialising in surety bonds.

The agency starts operations today as an authorised representative of Austagencies. It will issue surety bonds and provide claims-handling services on behalf of CGU.

CGU Chief Underwriting Officer Darren Maher says NewSurety aims to become “a leading underwriting agency in the surety market”.

Austagencies MD Craig Patterson says the alliance with CGU “utilises our collective strengths. NewSurety is committed to consistently delivering an exceptional standard of claims and underwriting service to customers supported by established and systemised processes.”

Austbrokers CEO and MD Mark Searles told insuranceNEWS.com.au: “We have looked at segments we can take a leadership position in and this sits very well with that strategy.

“We are expecting a very favourable response from the marketplace.”