Cluster group Austbrokers is to be listed by Netherlands-based ING Group in a $100 million initial public offering (IPO) of $100 million, according to a weekend report.

The Fairfax press broke the story, quoting “sources familiar with the plan”. The report has not been denied by ING or Austbrokers, although the people closest to the plan have not been available for comment.

Austbrokers has 90 offices and about 600 employees nationally. Established in 1983 as a cluster, it has grown by acquiring equity in broking and financial services businesses – and it has been picky about who joins. Austbrokers Holdings Limited is a fully owned subsidiary of ING.

The cluster has a total turnover of more than $740 million in general insurance premium and more than $42 million in new life risk and $80 million in assets under management.

CEO Lach McKeough says the ability of individuals to draw on the strengths of ING Group has been “at the heart of the network”. 

This year ING has sold business units in Asia, Australia and Europe to release capital for its banking and financial services operations. In May it sold its share of QBE Mercantile Mutual to QBE.

It’s probably a good time for an IPO, with insurance shares the darling of the stockmarket at present. After all, shares in OAMPS have risen 38% in the past year.

Some analysts believe the success of the IPO could hinge on investors understanding the unique make-up of Austbrokers, whose members usually retain a 50% share in their companies. One industry source said yesterday that this aspect of the cluster could make it difficult to deliver control of the company to any investor intent on buying the company.

“Under the present form of Austbrokers, it’s probably best suited to investors who want to make money on their investment by sitting back and letting them get on with the job,” another source said. “Those member companies are run by real professionals, and I can’t see most of them wanting to let go their control of their own operations.”