Insurance Advisernet’s joint-equity vehicle IA Equity Partners is investing in WA broker Nexus Risk Services in a transaction intended to boost its distribution network.

The deal is the first investment by IA Equity Partners, a joint venture between Insurance Advisernet and AUB, and is in line with AUB’s strategy to consolidate businesses in the Austbrokers network.

IA Equity will take over AUB Group’s stake in the brokerage, which will trade as Nexus Advisernet from July.

“By adding Nexus Advisernet to our already extensive distribution network we will exceed 260 practices and $1 billion of gross written prremium throughout Australia and New Zealand in 2021,” Insurance Advisernet Founder and Chairman Ian Carr said.

Nexus has more than 60 employees and representatives, some 6000 clients and places more than $80 million in annual premium. The brokerage was founded about 40 years ago, and now has offices in Perth, Bunbury, Geraldton, Albany, Katanning, Melbourne and Sydney.

Nexus Advisernet will establish authorised representative relationships with Insurance Advisernet and no longer hold a separate licence under the arrangement.

MD Mark Patterson, who bought into his father’s broking firm in 1986, says he has been looking at options for the business, where he has worked “with a team of very loyal and professional people”.

“The best outcome for me personally is to see our people be provided with the opportunity to take some equity in the future of the business,” he said.

“The Nexus Advisernet model facilitates that, while at the same time providing a compelling case for our customers.”

Mr Patterson and Mike Scala will continue to lead Nexus Advisernet as part of their commitment to the venture’s long-term success.