Underwriting agencies Winsure and Mecon have merged to take advantage of their complementary coverage of sections of the building market.

However, the two organisations will continue to trade under their existing brands.

Mecon, which is twice the size of Winsure, provides construction and mobile plant insurance while Winsure offers general liability, professional indemnity and builders’ warranty insurance.

“Both businesses have been looking to develop and expand for some time, and this provides us with a good opportunity for organic growth,” Winsure MD Matt Boon told insuranceNEWS.com.au. “I see product and distribution opportunities opening up in the near future.”

Mecon MD Glenn Ross says construction is “a very hotly contested area of the market. That makes the amalgamation very attractive to both companies.”

While shareholdings have been merged in a way that reflects the relative sizes of the two businesses, Mr Ross and Mr Boon will continue to separately manage both companies.

Their Sydney offices will relocate to a new joint office, while Mecon’s offices in Melbourne and Brisbane will retain their current locations. The combined business has 25 staff. 

Mecon policies will continue to be underwritten by Munich Re’s Great Lakes Insurance, while Winsure predominately uses Lloyd’s as its underwriter.