Former Gerling Re Australia CEO John Bubb has started a new reinsurance business, Australian Reinsurance Underwriting Services (ARUS), in what he describes as a bid to lift market capacity.

He told Sunrise Exchange News the industry is “crying out for local representation”, and although many big international players aren’t interested in making Australia a key market, they see opportunities to expand their presence here.

 “If you had the option of dealing with a foreign company with an A rating or an Australian company with an A rating, which would you pick?” Mr Bubb asked. “At least with ARUS they can say, ‘we know and trust these guys’.”

He has strong business goals for the group, saying he doesn’t want to create another Gerling. Instead, he wants a small portfolio of two or three clients.

So far the business has done well, becoming Australian and New Zealand agent for Brit Insurance Holdings.

And he’s encouraged by the level of broker support already expressed for the new venture. Mr Bubb says that although he enjoyed his time with Gerling Re, it’s time to focus on other opportunities. “Gerling was a wonderful company. Unfortunately, circumstances beyond our control saw it fall through.”