New Zealand-based builders’ warranty specialist Contractors Bonding Ltd (CBL) has expanded into the Spanish market with the acquisition of European Insurance Services Ltd (EISL).

The acquisition will take Auckland-based CBL’s gross written premium from $NZ41 million ($31.9 million) last financial year to over $NZ100 million ($77.8 million) in the next 12 months.

MD Peter Harris says EISL writes residential builders’ warranty insurance almost exclusively, and in April this year expanded its operations from France into Spain.

“EISL is a high-quality producer of well-underwritten premium with a well-developed network of nearly 500 brokers throughout France,” he told insuranceNEWS.com.au. “It would have taken CBL 10 years to build that network from a distance.”

CBL was already writing business in France prior to the acquisition. Mr Harris says the increase in scale will enable it to source and provide related insurance products to a well-defined and loyal broker network in France and Spain.

All EISL’s senior management and directors are remaining with the company, and CBL has appointed two directors to the board. There are no redundancies or cost savings planned, and Mr Harris says the increase in the executive talent pool “can be utilised in several of the more than 30 other countries we deal in.”

“CBL has had a very visible representative office in London for over five years that will also provide close support.”