South Australia-based MGA Insurance Brokers has purchased two brokers to take its premium income over $115 million and its branches to 22.

MGA MD John George says the combined premium income of the brokerages is about $10 million.

The company has picked up Cranston Australia's Mildura brokerage in north-west Victoria, along with 75% of Portfolio Planning Solutions (PPS) in Wayville, Adelaide, with an option to obtain the rest in 2009.

Mr George says about a quarter of Cranston Australia's business is personal lines, with the balance in commercial rural business. PPS's book is 90% commercial lines.

Cranston local manager Selena McKendrick will remain with the business under MGA's corporate authorised representative arrangement, as will PPS staff Peter Coombe, Phil Keenihan and David Millington.

The corporate authorised representative model is unusual, Mr George told Sunrise Exchange News.

"It's a form of contracting arrangement whereby our brokers contract to us for the management of a portfolio of business. We own the book of business. It gives them the opportunity to run a business within our business."