AUB Group (ASX:AUB), Australasia’s largest equity-based insurance broker network, and IBNA (the non-equity Australian insurance broker network), have today announced a decision to mutually end their AIMS joint venture relationship. The decision has been reached due to diverging requirements across the two member groups on the future direction of the partnership. AUB Group and IBNA will work closely towards a mutually agreed transition period.
AIMS, established in 2007, is a joint venture between Austbrokers (AUB Group’s equity-based Australian insurance broker network) and IBNA (a non-equity insurance broker network) to source capacity and offerings, working for the collective benefit of all its broker members.
Mike Emmett, CEO and Managing Director of AUB Group said, “Capacity sourcing and product offering design is a key component of the Group’s value proposition for its partners. When AIMS was established, it was ahead of its time and has since served Austbrokers and IBNA for mutual benefit and I’d like to thank IBNA for their continued support throughout the joint venture. We believe the interests of our partners will be better served through increased control and direct collaborative engagement with insurance carriers allowing us to negotiate greater flexibility and innovation in product design.”
For AUB Group, the change is aligned to a strategic shift to enhance its partner proposition, particularly within capacity sourcing and product innovation. AUB Group is confident that greater direct influence in sourcing our capacity is the most beneficial arrangement for our partners and clients. Under a new arrangement, AUB Group will be able to better leverage our scale, footprint, expertise and specialty capabilities to negotiate and deliver market-leading offerings that meet the specific needs of our client portfolio. Going forward, the scale, market share and capability of Austbrokers will allow the business to negotiate similar or better terms from existing and new carrier partners, with an opportunity to enhance run-rate earnings in the future.
IBNA Limited Chairman, Gary Gribbin said “For the past twelve years AIMS has been a wonderful construct, serving the interests of IBNA and Austbrokers members and their clients. But now is the right time to move forward in a different direction, one which will secure the strategic position of IBNA members and will provide appropriate support for their businesses and their clients. I offer sincere thanks to Austbrokers and AUB Group and of course wish them well in the future.”
About AUB Group: AUB Group Limited is Australasia’s largest equity-based insurance broker network driving approximately A$3.2 billion GWP across its network of 93 businesses, servicing more than 550,000 clients and over one million policies across more than 600 locations. In Australia, the Group has around 20 percent of the commercial insurance broking market share with investment in 61 broking businesses, complimented by established capabilities in life insurance broking, premium funding, claims management and legal services. In New Zealand, AUB Group holds equity stakes in seven major insurance broker partners, an underwriting agency as well as equity in NZbrokers, the largest broking management group in New Zealand with presence in 140 locations. The Group also has a portfolio of 19 agencies within its SURA business with access to delegated global underwriting capacity for niche specialist insurance products. The Group’s Risk Services division includes equity investments in three businesses with capabilities in loss adjustment, investigations, claims management, claims legal support and rehabilitation services.
About AIMS: AIMS is a joint venture between Australian insurance broking groups Austbrokers (equity-based partnership group) and IBNA (non-equity members group). AIMS provides membership services to over 150 member brokers across Australia.
About IBNA: IBNA is a network of insurance brokers in Australia which comprises of members who are locally owned that aim to provide clients with the benefits of big business buying power while delivering professional and personalised service. Having begun with humble state-based beginnings, IBNA became a national association in 1994 and has since grown into an unlisted public company that is governed by its Board of Directors.