Suncorp is to expand its motor reach with the acquisition of MTA Insurance (MTAI), which sells motor and consumer credit cover through vehicle dealers.

Suncorp Commercial Insurance CEO Anthony Day says the division’s strategic plan highlights the motor dealer distribution channel as a priority for growth.

“The acquisition, subject to Australian Prudential Regulation Authority approval and MTAI shareholder approval, will strengthen Suncorp’s capability to service the insurance needs of motor dealers and their customers,” he said.

“The acquisition will not only provide more depth of specialists in the motor dealer channel but also extend our geographic reach in this channel across the country.”

Listed car dealer AP Eagers holds 20.65% of Brisbane-based MTAI.

This morning Eagers told the Australian Securities Exchange it supports the deal and expects to recognise a pre-tax gain of about $6 million in this year’s result.