FMG Insurance Australia, a subsidiary of New Zealand-based FMG Group, has partnered with Australian Unity General Insurance in a venture that has just received approval from the Australian Federal Court.

FMG Group has transferred its Australian portfolio to Australian Unity, increasing the annual premium income of Australian Unity General Insurance to more than $110 million and expanding its reach into regional and rural Australia.

As a result, FMG’s Australian operations have become an underwriting agency – with the two companies equal shareholders – that will continue to trade under the FMG Insurance brand.

Warren Lockett, Group Executive of General Insurance at Australian Unity, says the mutual is focused on commercial insurance for small and medium-sized enterprises and domestic insurance, and the FMG joint venture will allow sensible diversification of risk.

“Australian Unity will now expand its portfolio to underwrite the farm, commercial, domestic and other products previously underwritten by FMG Insurance,” he said.

Former Manager of FMG’s Australian operations Brian Stewart has been appointed GM of the new joint venture.