Assetinsure CEO Gregory Pfitzer has welcomed the move by CBL Corporation’s administrators to sell the surety bond insurer to a holding company co-ordinated by long-time business partner, Lombard Insurance.

Voluntary administrators KordaMentha last week announced Lombard Australia, an alliance of surety providers, will buy Sydney-based Assetinsure for an undisclosed price.

It could take up to six months to secure regulatory approval for the transaction.

CBL bought Assetinsure in 2015, but entered voluntary administration in February this year.

Assetinsure, which is Australia’s largest surety bond insurer, has previously said its parent’s financial troubles have had no impact on the business.

“The sale is a significant step forward in providing certainty around Assetinsure’s future,” Mr Pfitzer told insuranceNEWS.com.au.

“We will continue to service our existing customer base and to develop new opportunities.”

Lombard Insurance has provided reinsurance capacity for an unincorporated joint venture in Australia for more than 10 years, and the acquisition will solidify the relationship.

“The new shareholders are already intimately involved in the surety business and that support will continue,” Mr Pfitzer said.

“The change in ownership will provide new opportunities to grow and develop the business.”

He says the business is performing “better than budgeted” and expects to provide an update on the year in due course.

Meanwhile, KordaMentha has secured New Zealand High Court approval to further adjourn a CBL creditors’ meeting to no later than December 18.

It was due to take place this week. KordaMentha asked for the delay to take into account a Reserve Bank of New Zealand application to liquidate CBL subsidiary CBL Insurance, which has been in court-imposed interim liquidation since February.

The liquidation hearing for CBL Insurance is set for today.