Suncorp may decide to sell its Resilium authorised representative (AR) network after a review of the business.

The insurer has retained corporate adviser 333 Capital to examine options, which may include a sale, joint ventures or partnerships, or continuing to invest in the business’ current structure.

Resilium was formed in 2011 from the acquisition of AMP’s long-established general insurance sales unit. It later launched a broking arm, Resilium Insurance Broking, which is part of the Steadfast network.

Informed sources have told insuranceNEWS.com.au the business could sell for about $35-$40 million. It reported revenue of $69.2 million last financial year and a profit of $159,000.

Resilium is led by Adrian Kitchin, who joined from Insurance Advisernet in 2015, and is chaired by Pip Marlow.

A Suncorp spokesman said today the company “does not comment on speculation”.

However, insuranceNEWS.com.au has obtained independent confirmation from a reliable source that 333 Capital has been engaged to report on Suncorp’s options in selling the business unit.

Earlier this month IAG sold its AR group, Community Broker Network, to Steadfast for an undisclosed sum. At the time, a spokesman told insuranceNEWS.com.au the sale reflects the group’s strategy “to focus on our core operations”.

Last month Suncorp sold its life insurance business to TAL Dai-ichi Life for $725 million, with the transaction expected to close by the end of the year.

Suncorp’s move on the AR network reflects a shift in thinking among the major insurers, whose strategic focus has changed from third-party distribution to product manufacturing and a more customer-oriented sales approach.

Morningstar analyst David Ellis says insurers – and financial services companies more widely – want to make more effective use of capital and concentrate on higher-margin businesses.

“It is an ongoing process the insurers are going through,” he told insuranceNEWS.com.au.