Motor underwriting agencies Austruck and Cabsafe are merging to create the Australian Transport and Logistics Insurance Group (ATL) from November.

ATL’s new CEO Steve Nichols told insuranceNEWS.com.au splitting Cabsafe from parent Allsafe Insurance Brokers and merging it with Austruck has allowed it to leverage economies of scale.

He says the streamlining will allow the businesses to prosper.

“Without exaggerating the problem, the business was more complex than it needed to be,” he said. “By bolting the two motor agencies together it will allow us to grow and strengthen those two business.

Mr Nichols has ended his involvement with Allsafe, where he was MD.

He says the merger will also leverage the underwriting strength of Hollard Insurance Group, which bought 50% of Austruck last year.

“There will be some client-focused gains as a result of the merger and a renewed focus on new products and growth opportunities,” he said.

Branding on current products will remain for the purposes of continuity.

The new management team under Mr Nichols includes former Austruck MD Barry Kearney, who is now Head of Underwriting.

Current staff will remain, and the business will be majority-owned by the executive management team.

ATL will engage all current clients and intermediary channels to grow its portfolio.