Hollard will recycle capital from the sale to Steadfast of its share in Nautilus Marine “to finance the next wave of insurance entrepreneurs”, according to MD Richard Enthoven. 

NM Insurance, which owned the underwriting agency, was 84% owned by Hollard and broker Ian Frith. The company’s management owned the rest.

Under the deal revealed last week by insuranceNEWS.com.au, Steadfast has acquired 70% of the share capital of NM Insurance, while the management will hold 30%.

Steadfast MD Robert Kelly says Nautilus, which specialises in pleasurecraft cover in Australia and New Zealand, will operate under Steadfast’s “co-ownership” model.

The agency also operates a motorcycle insurance operation in New Zealand, and Mr Kelly says the range of Nautilus products will be expanded over time.

The underwriting agency has been a Steadfast strategic partner since 2009. The final purchase price will be based on Nautilus’ performance in the next financial year.

Mr Enthoven says the pleasurecraft insurance market is challenging, and he is “incredibly proud of the work of Ian Frith and the Nautilus management team in building such a successful business. It will prosper from being in the Steadfast stable.”

Hollard owns a number of insurance operations in Australia and has also invested in local brokerages and underwriting agencies.

Mr Enthoven says money realised from Hollard’s share of the Nautilus sale will be “recycled” and invested in other insurance opportunities.

“We are in advanced discussions with a number of entrepreneurs who need investment to continue developing,” he told insuranceNEWS.com.au. “We are in a position to help finance the next wave of insurance entrepreneurs.”