MGA Insurance Brokers has taken a 40% stake in Austbrokers RWA as it continues its expansion program and looks to increase its regional presence.

RWA includes a main office in Tamworth, branches in the northern NSW towns of Coonabarabran, Walgett and Gunnedah, and an office in Sydney.

MGA MD Paul George says his group has specialised in regional areas for more than 25 years, positioning itself to compete with the major players.

“RWA is very much in this zone for us,” he said. “It has committed and long-term personnel who have created a solid community presence and strong office network.”

MGA, one of the largest partners in the Austbrokers network, has bought the shareholding from John Hallman, who will remain with RWA and focus on northwest NSW.

Regional offices will retain their Austbrokers RWA trading names, while the Manly office in Sydney will become MGA Insurance Brokers.

The deal builds on a previous link between the businesses, with the MGA subsidiary Millennium Underwriting Agencies having a distribution relationship with RWA for farm insurance products over several years.

Earlier this year Adelaide-based MGA entered a joint venture with Sherbourne Insurance Brokers, based in the Victorian regional centre of Shepparton. It has also opened an office in Phnom Penh in Cambodia – its first overseas expansion.

Mr George says the group will keep seeking opportunities to team up with brokers and provide support through back-office functions and administration.

“We are finding we are able to bring plenty of value to the table both in products and efficiencies,” he told insuranceNEWS.com.au.

The RWA acquisition brings the MGA branch network to 35 offices.