The heavy motor insurance market is undergoing some big changes, with Sydney-based underwriting agency Savannah Insurance the latest to exit and Hollard set to buy 50% of Austruck Insurance.

Major underwriting agency SRS has bought Savannah’s heavy motor book. It will also manage the run-off of Savannah’s heavy motor business and underwrite renewals.

SRS CEO Paul Lynam told insuranceNEWS.com.au the former Savannah business will be underwritten at Lloyd’s. The Savannah book was formerly underwritten by Catlin, which had renewed the business for this year.

Hollard MD Richard Enthoven says his company has taken over the underwriting of the Austruck business and is finalising the purchase of 50% of the company.

It follows the closure of Brisbane-based heavy motor, truck and machinery underwriting agency Transcorp at the end of last month. Its 14 staff were laid off and MD Mick Byrne retired.

Renewal rights on the Transcorp book were secured by Austruck.

Catlin will handle the run-off for Transcorp’s post-2010 claims, while the run-off of claims from 2002-2012 will be handled by Hollard.

Mr Enthoven told insuranceNEWS.com.au Hollard “has been looking for a value-added partner for a commercial motor venture for some time. We are delighted to have recently supported Austruck as underwriter and will be going on-risk from May 1.

“We look forward to working with [Austruck MD] Barry Kearney and his team to grow Austruck into a successful business in a highly competitive market.”

Mr Lynam says SRS has been involved in commercial motor “for at least 20 years”.

Savannah’s two specialist heavy motor underwriters, David Wigley and Nadine Watts, started work at SRS today.