Dual Asia Pacific has purchased a controlling stake in New Zealand’s International Underwriting Agencies (IUA), marking the firm’s first acquisition since it began trading.

The deal brings together the two major Lloyd’s coverholders in the country to form the largest speciality underwriting agency in New Zealand with a combined annual premium approaching $60 million, Dual says.

“After a 15-year track record of compound 15% organic growth we have been very selective in our first acquisition," Dual Asia Pacific CEO Damien Coates told insuranceNEWS.com.au today. “For us it has all been about cultural alignment and we have very much found that with IUA.”

The Auckland-based firm, led by Directors Mike and Debbie Street, has core expertise in property and annual premium of more than $NZ30 million ($28 million). IUA also operates from Christchurch, was established in 1997 and has support from a spread of Lloyd’s syndicates.

Dual, a liability specialist that has been in New Zealand for 10 years, has acquired a 51% stake for an undisclosed price.

“We believe the complementary nature of the two business is really going to bring value to our broking partners,” Mr Coates said. “The New Zealand market is very much dominated by a couple of large insurers and by Dual acquiring IUA we will be able to offer a whole-account solution.”

Dual Asia-Pacific’s parent company is UK-based Hyperion Insurance Group, which has long been an active acquirer of businesses.

Mr Coates says the New Zealand deal is particularly positive as the wider business environment faces challenges from the COVID-19 pandemic and people look for signs of activity that may begin delivering an economic kick-start.

“While we are operating in uncertain times, Hyperion is committed to long-term growth and we see this acquisition as all about growth,” he said. “We will be looking to bring the businesses together and to hire more people.”

Dual and IUA will continue to operate independently under the Streets’ leadership, reporting into Mr Coates, for the time being given current circumstances.

“As we enter peak trading periods we want to minimise disruptions to our broking partners and one way to achieve this is to delay the full integration including co-location to later in the year,” he said.

Dual Asia-Pacific, which has seven offices across four countries, says the IUA deal takes it to a $250 million premium business.

“We will be looking to make further acquisitions of speciality lines underwriting agencies where we believe we can deliver value to our broking partners in Australia, New Zealand and in Asia,” Mr Coates said.