Auckland-based specialty insurer and reinsurer CBL Insurance Group has unveiled its strategy for Sydney-based Assetinsure, which it acquired last September. 

CBL Group Chairman John Wells and MD Peter Harris will join the Assetinsure board. Current Chairman John Fahey will retire later this month after 12 years in the role.

A review of all Assetinsure product lines – including property, agency lines, multi-peril crop insurance, enthusiast special lines and rural products – is under way.

Targets, distribution channels and reinsurance rationalisation will also be considered.

“Unprofitable business will be divested,” CBL says.

Last November an owner-builder warranty product was introduced through a managing general agency arrangement with Melbourne-based AOBIS. Assetinsure is the exclusive insurer.

CBL has foreshadowed the expansion of Assetinsure’s credit enhancement product into New Zealand, southeast Asia (particularly Hong Kong and Singapore), London and European markets through commercial and investment banks.

“This specialist product is core business, typically offers good margins and continues to offer solid growth prospects,” CBL says.

Two new products are being “analysed and prepared” for introduction to Assetinsure in the next 60 days: a builders’ warranty product line for Victoria and SA, and personal guarantee insurance for SME company directors.

The directors’ cover, developed by CBL, indemnifies company bosses from personal loss incurred through providing personal guarantees for SME corporate borrowings. It will launch next month.

Assetinsure previously sold its general aviation insurance business to Swiss Re. It will continue to provide IT and support services to Swiss Re in relation to this business.

CBL listed on the Australian and New Zealand stock exchanges last October.