Suncorp is reviewing the future of its Resilium authorised representative network as the group continues to rationalise its operations.

The insurer has retained corporate adviser 333 Capital to look at options for the Resilium business, which was acquired from AMP in 2011 and later expanded and rebranded.

The Australian Financial Review reported this morning on speculation that the future of the Resilium business is being examined, with options including partnerships, joint ventures or a sale and investment in the business.

A Suncorp spokesman told insuranceNEWS.com.au today the company doesn’t comment on speculation. However, we have obtained independent confirmation from a reliable source that 333 Capital has been engaged to report on Suncorp’s options for the business unit.

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

And 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.

Resilium was formed in 2011 from the acquisition of AMP’s long-established general insurance sales unit. Informed sources have told insuranceNEWS.com.au the business could sell for around $35 million-$40 million. It reported revenue of $69.2 million last financial year and a profit of $159,000.

The disposal of Suncorp’s involvement in an AR network reflects a shift in thinking among the major insurers, whose strategic focus has moved 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 that the insurers are going through,” he told insuranceNEWS.com.au.