Austbrokers has paid $8.6 million for a 60% stake in work health and safety rehabilitation service provider Allied Health Australia.

It gives the broker group a leading position in the NSW return-to-work services market.

“This acquisition reinforces Austbrokers’ disciplined approach and appetite to deliver on its strategy,” CEO and MD Mark Searles said.

“Austbrokers has long signalled its intention to expand scale in risk services provision and take our highly successful owner-driver business model further into this market segment.”

Allied Health has more than 110 staff and owns injury management businesses Pinnacle Rehab and Peak Conditioning, which provide services under the WorkCover NSW scheme, working with managing agents and clients.

Allied Health directors Kevin Garvey and Lance Morton will continue in their roles and retain a 40% interest.

The deal is part of Austbrokers’ risk management and diversification strategy, initiated two years ago, which has generated broader sources of revenue through successful equity partnerships.

Mr Searles says adding Allied Health will help Austbrokers become the leading risk management partner for businesses in Australia and New Zealand.

“This is our fourth standalone specialist risk services partnership since the inception of our risk services division a year ago, and is in addition to competencies already present within a number of our existing partners,” Mr Searles told insuranceNEWS.com.au.

“[Financial-year] results are undisclosed at this time, but I can say it’s a rapidly growing area for our group.”

He says the Allied Health deal “drives diversified revenue to the group, mitigating the effects of the insurance cycle – something we have long signalled as a strategic objective”.

In January Austbrokers bought a 60% stake in occupational healthcare provider Altius Group.

Its aggressive expansion strategy has extended to New Zealand, where Austbrokers bought BrokerWeb Management and merged it with BrokernetNZ to create the country’s third-largest broking group, NZbrokers.

Also see ANALYSIS