Acquires leading New Zealand brokerage group
AUB Group NZ (AUB NZ) has today announced the acquisition of the remaining 50% shareholding of BrokerWeb Risk Services (BWRS), bringing AUB NZ’s shareholding to 100%, effective 1 January 2019. BWRS is one of New Zealand’s largest insurance brokers, with NZD150 million in gross written premium (GWP).
Discussing the announcement, AUB Group CEO & Managing Director, Mark Searles, said, “Strategic acquisitions across Australia and New Zealand continue to form a key element of AUB Group’s diversified growth model, whereby organic growth is complemented by acquisitions that demonstrate strong strategic and cultural alignment. BWRS is a leading insurance broker with immense opportunity, and is an ideal fit for our unique ‘skin in the game’ partnership model.”
AUB NZ purchased 50% of BWRS in November 2014. Today’s announcement follows the Group’s AUD116 million capital raise in November, which also saw the announcement of an increased shareholding in Adroit Insurance & Risk. The Group has now committed over AUD67 million to acquisitions in the current financial year.
Serving 25,000 clients from seven branches throughout New Zealand plus its three associate companies, BWRS supports large corporates, SME and retail consumers alike, with their total insurance and risk management needs.
Partnership business model
Staying true to AUB Group’s partnership business model, a key employee shareholding structure will be implemented at BWRS, enabling its leadership team to have ‘skin in the game’ and creating alignment with AUB Group shareholders. As part of this acquisition, David Archer – Founder and CEO – will step down from his role. Recruitment for a new CEO is underway, and David will remain active in the business for a suitable period to ensure a smooth transition. No other changes to the BWRS leadership team are envisaged, and they will continue to lead the company with the support of AUB NZ.
Discussing the announcement, Keith McIvor, Managing Director, AUB NZ, said, “BWRS has had a very successful few years, thanks to the leadership of David Archer and his executive team. We thank David for his ongoing support since the first 50% acquisition in November 2014, and for his hard work in establishing a strong leadership team and business strategy to take BWRS forward.”
David Archer, CEO, BWRS said, “BWRS is now very well placed to continue its strong momentum of growth. I look forward to supporting the BWRS team during this transition, and to seeing the firm continue to strengthen, with all the advantages of the AUB partner network.”
Over the past five and a half years, AUB Group has completed 39 transactions totaling AUD199 million (excluding BWRS), providing the Group with ownership of a robust network of diversified risk management enterprises, and continuing the success of Group’s unique partnership business model.