Munich Re Joins Broker Steadfast to Acquire Australia’s Calliden Insurance Operations

Munich Re’s primary insurance subsidiary Great Lakes Australia (GLA) has reached an agreement to support Australia’s largest broker network, Steadfast Group in their proposed acquisition of Calliden Group Ltd.

Munich Re said it plans to “acquire the authorized insurer, Calliden Insurance Limited,” and that GLA would thereby “secure access to a leading-edge commercial underwriter platform and expert personnel, previously part of Calliden, to advance GLA’s business package and commercial insurance product distribution.”

Munich Re also explained that the “distribution strength of the largest broker network in Australia will provide GLA with the opportunity to develop products tailored to current-market commercial insurance needs.”

The bulletin also explained that as part of the transaction, “Munich Re will continue to work with the well-regarded Calliden team to establish a new business pack and commercial Managing General Agency (MGA), based on the Calliden agency portfolios acquired, to service all intermediaries in Australia.

“The proposed transaction represents a new chapter in the long history of cooperation between Munich Re and Calliden, initially with Munich Re being Calliden’s largest reinsurance partner since 2005 and more recently with GLA’s role as insurance supporter of Calliden’s MGA since 2012.”

Ludger Arnoldussen, member of Munich Re’s Board of Management responsible for Germany, Asia Pacific and Africa, commented: “The establishment of a new commercially-focused underwriting agency will enable Great Lakes Australia to provide a fresh alternative to all distribution partners across the market. Furthermore, we look forward to a long-term partnership with Steadfast, which will enable us to jointly develop profitable target-niche and commercial business.”

Munich Re explained that as part of the partnership it “will support Steadfast with the planned acquisition: Steadfast has submitted an offer to acquire 100 percent of the Australian insurer Calliden. Calliden has two distinctive businesses – Calliden Agency Services Limited (CASL) and Calliden Insurance Limited (CIL). Immediately after the completion of the transaction by Steadfast, Munich Re will then acquire all of the shares in CIL for around A$ 40 million [US$37.5 million – €28 million), subject to net asset value adjustments upon closing.”

Munich Re also said it will “acquire the Calliden Agency portfolio for business package and middle market products already underwritten by GLA and related operating infrastructure from CASL. Completion of the transactions is subject to regulatory approvals, approval by shareholders and customary closing conditions, which are expected to be completed at the end of the fourth quarter of 2014.”

Both Steadfast and Calliden are listed companies on the Australian Securities Exchange (ASX).

Source: Munich Re

Topics Mergers & Acquisitions Agencies Insurance Wholesale Australia