AUB Group acquires one of New Zealand’s largest brokers

AUB Group acquires one of New Zealand’s largest brokers and current Insurance Broker of the Year - Runacres and Associates.

Sydney, 14 December, 2015: AUB Group Limited (ASX:AUB), through its 80% owned entity AUB Group NZ Limited has acquired New Zealand’s Insurance Broker of the year*, Runacres and Associates from IAG New Zealand Limited.

“This is further evidence of the targeted expansion strategy AUB Group has for New Zealand” said Mark Searles, CEO and Managing Director of AUB Group, and Chairman of AUB Group NZ. Along with the group's existing equity interests, the group now directly represents NZ $200 million in GWP in New Zealand. On top of that, the group owns NZbrokers, which manages the largest cluster group of brokers in New Zealand. In total,
either directly or through its partners, the group now represents NZ $550 million of GWP and is the third largest broking entity in the New Zealand market.

“Runacres is a high performing broking business with a strong track record of sustainable growth over the past five years” said Searles. Representing almost NZ $50 million GWP, 5,300 clients and with 30 staff across Christchurch, Auckland and Greymouth, Runacres are one of the largest brokers in New Zealand. Its portfolio spans corporate, commercial and personal clients.

The transaction also stays true to AUB Groups unique ‘owner-driver’ partnership model, with AUB Group NZ already agreeing to sell down an equity stake to David Crick, the current CEO and MD of Runacres. “AUB Group has long signalled its intention to replicate our highly successful ‘owner-driver’ partnership model into New Zealand, and the acquisition of such a high calibre business, reinforces our commitment to this” said
Searles.

The acquisition will retain key leadership within the business. David Crick CEO & MD is highly respected and will continue to lead the business. “I’m elated to be further strengthening our relationship with AUB Group NZ. I am confident that this partnership will provide my team with an effective platform for continued growth” said David Crick.

“Today’s announcement is a key step in confirming our position as Australasia’s leading insurance and risk management specialist. We’re excited by the future and the possibilities it presents,” said Mr Searles.

* Under NZ $50 million GWP

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