Calliden completes purchase of rural agency
Calliden has bought out the remaining 50% stake in rural and regional underwriting agency Argis from Australian Unity for $6.3 million.
The insurer acquired a half share in Argis as part of last year’s $62.5 million purchase of Australian Unity’s general insurance business.
Following the deal, FMG Insurance – the former Australian branch of NZ’s Farmers’ Mutual Group (FMG) – was rebranded as Australian Regional General Insurance Services (Argis).
FMG Insurance was formed in 1994 as a local insurer and morphed into an underwriting agency two years ago when FMG entered into a joint venture with Australian Unity.
Argis now has five offices in regional areas across eastern Australia.
Meanwhile, Calliden remains embroiled in a legal battle with Australian Unity, which acquired a 13% stake in the insurer after last year’s deal.
Calliden commenced legal proceedings last month in the NSW Supreme Court in an attempt to recover $3-$4 million it claims it is owed due to a shift in asset value between purchase agreement and completion.
Calliden Group Marketing Agencies and Ventures Director Mike Hooton says Calliden’s relationship with its second-largest shareholder remains cordial despite the legal wrangle.
“It’s not having a detrimental effect on our business,” he told insuranceNEWS.com.au.
The insurer acquired a half share in Argis as part of last year’s $62.5 million purchase of Australian Unity’s general insurance business.
Following the deal, FMG Insurance – the former Australian branch of NZ’s Farmers’ Mutual Group (FMG) – was rebranded as Australian Regional General Insurance Services (Argis).
FMG Insurance was formed in 1994 as a local insurer and morphed into an underwriting agency two years ago when FMG entered into a joint venture with Australian Unity.
Argis now has five offices in regional areas across eastern Australia.
Meanwhile, Calliden remains embroiled in a legal battle with Australian Unity, which acquired a 13% stake in the insurer after last year’s deal.
Calliden commenced legal proceedings last month in the NSW Supreme Court in an attempt to recover $3-$4 million it claims it is owed due to a shift in asset value between purchase agreement and completion.
Calliden Group Marketing Agencies and Ventures Director Mike Hooton says Calliden’s relationship with its second-largest shareholder remains cordial despite the legal wrangle.
“It’s not having a detrimental effect on our business,” he told insuranceNEWS.com.au.