Austbrokers has bought Sydney-based financial services business The Taggart Group.

Taggart has around 6000 clients and writes general and life insurance as well as providing financial planning services.

The business employs 14 staff and was founded in 1987 by former high school deputy principal Jim Taggart.

He will stay with the firm and told insuranceNEWS.com.au he can see it growing under Austbrokers.

Dr Taggart says he has been looking at succession for some time, and that Austbrokers can accommodate the life and general insurance licences held by the group.

Austbrokers CEO Lach McKeough says Austbrokers Sydney and Austbrokers Financial Services will manage the business.

“The Taggart business will give us valued scale in our financial services business and provide additional skillsets to boost our overall client offerings,” he said.

Taggart Group was a long-term IBNA member.

Coincidentally, Michael d’Apice will take a shareholding in Austbrokers Financial Services, which he has managed since it was established in 2005.

“It’s just another way of ensuring that we maintain our owner-driver model within the businesses, and safeguard retention and growth of client bases for the future,” Mr McKeough said. “At the same time, we are pleased to be able to provide a great opportunity for our people.”

Meanwhile, Austbrokers has scored an upgraded “buy” recommendation from stockbroker Merrill Lynch, with a target price of $8 a share. It closed at $6.95 on Friday.

Analyst Thomas Cherian says the premium cycle is expected to continue to harden, boosting Austbrokers’ income.

He says rival broker group Steadfast will be focused on its internal consolidation and is less likely to become a more aggressive competitor for the same acquisition targets.