Suncorp will sell its authorised representative (AR) network Resilium through a management buyout led by Adrian Kitchin after last year appointing advisers to review options for the business.

Mr Kitchin will continue as MD of Resilium after the sale, as reported in a Breaking News bulletin earlier today. The deal is expected to be completed by the end of the financial year.

Suncorp CEO Customer Marketplace Pip Marlow says the move to a standalone business enables Resilium to further invest in its products and services.

“We’re committed to working with Adrian and his team to ensure a smooth transition for the corporate authorised representative network, Resilium customers and our people,” she said.

“We have formed a long-term strategic alliance that allows Resilium to distribute Suncorp’s GIO and Vero-branded products, alongside those from other insurers.”

Resilium reported revenue of $69.2 million last financial year and a profit of $159,000. The business has about 65 staff, including shared support roles.

The deal is estimated to be worth more than $40 milllion. 

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 – but not owned by – the Steadfast network.

Mr Kitchin joined from Insurance Advisernet in 2015. He previously worked at Liberty International Underwriters and was general counsel at Aon Risk Solutions.

“With the support of Suncorp we have built a strong business and I want to continue this momentum providing trusted and customised advice, products and support to our customers,” he said.

The disposal of Resilium follows IAG’s decision last year to sell its AR group, Community Broker Network, to Steadfast for an undisclosed sum.

The major insurers are honing their strategic focus and jettisoning unwanted operations.

Suncorp retained corporate adviser 333 Capital to examine options for Resilium including a sale, joint ventures or partnerships.

The group last year announced the $725 million sale of its life insurance business to TAL Dai-ichi Life.

Suncorp says it will pay a special dividend of eight cents a share after recently wrapping up that deal. The dividend, totalling about $100 million, is part of plans to return about $600 million of capital to shareholders.