CGU will establish its own marine insurance company within the next few months after losing a battle with Zurich over the joint ownership of Associated Marine Insurance.

Zurich argued that when Insurance Australia Group acquired CGU in January 2003, the ownership agreement meant Zurich could legally terminate CGU’s 50% stake in the company. 

Marine insurance generates about $300 million a year in premiums, which CGU wants a share of. In fact, the group aims to be a leading Australian marine insurer within five years.

Bob Wagstaffe, CGU’s Group Executive for Intermediary Business, says the company promises brokers a comprehensive range of insurance choices, and marine insurance is part of that.

Malcolm Freeman, the group’s National Manager of motor trades and commercial direct business, will head the new business, which is yet to be named. Mr Freeman has held various senior management roles in CGU, including the Commercial Union/NZI integration, the CGU/Fortis integration and implementation within CGU of the GST.