Munich Re to expand Australian insurance business through Calliden dealReprints
Munich Reinsurance Co. plans to expand its specialty, middle-market and small commercial insurance business in Australia in a three-way deal with broker network Steadfast Group Ltd. and insurance group Calliden Group Ltd.
Under the terms of the deal, Sydney-based Steadfast will acquire Calliden Group, a Sydney-based holding company that owns an insurer and managing general agency, in a deal worth about 105.4 million Australian dollars ($98.4 million). Munich Re unit Great Lakes Australia will then immediately acquire Calliden Insurance Ltd., Calliden's authorized insurer, and the portion of Calliden's small business and middle-market agency business that is already underwritten by Great Lakes, for about AU$40 million ($37.4 million).
Munich Re will work with the Calliden team to establish a new managing general agency based on the portfolios acquired, Munich Re said in a statement.
Steadfast will retain underwriting agency Calliden Agency Services Ltd.
“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,” Ludger Arnoldussen, a member of Munich Re's management board responsible for Germany, Asia Pacific and Africa, said in the statement.
“Furthermore, we look forward to a long-term partnership with Steadfast, which will enable us to jointly develop profitable target-niche and commercial business,” he added.