Kepa and Lloyds Insurance strike strategic alliance

Media release 20 September 2018

Kepa and Lloyds Insurance strike strategic alliance

The partnership – the third in Kepa’s ongoing programme of alliances with fast growing financial advisory practices – creates a pathway for succession and growth of the Papamoa-based firm.

Kepa, a New Zealand leader in the provision of financial advisor support services, announces it has struck a strategic alliance with the Papamoa-based Lloyds Insurance to assist the firm build on the strong reputation it has established in the Waikato and Bay of Plenty.

Kepa has purchased a 35% stake in the renewal commissions of Lloyds, which specialises in life, health, income protection, trauma and business disability insurance cover for individuals and businesses.

Lloyds Insurance principal Mike Lloyd will continue to operate the firm, including servicing all clients in the renewals book. But the alliance envisages his exit from the business at the end of the 2021 financial year. At that point, Kepa has the right of first refusal over the remainder of the renewals book.

Kepa Chief Executive Brendon Neal says the alliance – the third in a developing programme of partnerships between Kepa and its members – releases capital to Mr Lloyd and creates a pathway for succession in the highly-successful business.

“Mike and Lloyds Insurance enjoy a strong reputation in the Bay of Plenty and the Waikato for helping individuals and businesses manage risk. Kepa will help Lloyds Insurance build on this legacy by facilitating a succession plan for Mike, while still allowing the company to continue to service the strong demand it enjoys in the region.

“The alliance, and the succession plan, demonstrate how Kepa can use its scale and expertise to provide members with assistance, whatever the stage of their career. Through alliances such as this, Kepa is creating pathways through which existing and new members can gain new opportunities to grow their businesses. They also allow advisors such as Mike to transition from the industry confident that their clients are in safe hands. We have no intention of competing with the Kepa network.”

Mr Lloyd said the alliance with Kepa allowed a staged exit from the industry and would also help Lloyds Insurance prepare for the changes coming with the Financial Services Legislation Amendment Bill now before Parliament.

The bill will see the transfer of regulatory responsibility from individual advisers to licenced Financial Advice Providers. Kepa has developed a programme, Fit4License, to help organisations prepare for the shift.

Mr Lloyd said: “I have enjoyed a long-standing working relationship with Kepa and over that time have built trust and confidence in the ideals and values that Kepa stands for. This agreement will allow me to transition from the business and - over the longer term – hand my clients to an organisation I trust.”

Mr Neal said Kepa’s partnership programme helps strong, growing and entrepreneurial advisory groups achieve their growth ambitions. In April, Kepa provided capital to the Auckland-based Financial Design Group. This followed on another alliance established between Kepa and the Takapuna-based Mortgage Lab in late 2017.

Assisted by Kepa both organisations are growing strongly. Meanwhile, the programme is leading to a sharing of financial advisory expertise and increasing collaboration across the Kepa network for the benefit of members and their clients.

Mortgage Lab has been locating its advisors in the offices of Kepa members that currently do not have a mortgage advisory practice. It has also expanded its own network to 11 mortgage advisers from 3 at the same time a year ago.

FDG meanwhile has added a presence in Whangarei, Wellington and Christchurch and is now targeting the recruitment of several other advisers through this year. Both organisations continue to use Kepa’s support services on an arms’-length basis, allowing them to deploy the solutions that most suit their business.

“The alliance with Mortgage Lab, FDG and now Lloyds Insurance are proving the great benefits of Kepa’s new partnership model. We are looking to further develop this opportunity with other advisory practices in the coming months,” Mr Neal said.

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About Kepa: www.kepa.org.nz
Kepa, the advisers institute, with more than 400 members is New Zealand’s largest financial advisory support and dealer group. Our range of bespoke adviser services includes product distribution; relationship management and compliance programmes; business planning, training and mentoring. We help our members provide the best care and advice to their clients and assist them in growing their practices.

About Lloyds Insurance: www.lloydsinsurance.co.nz/
Lloyds Insurance is a Personal and Business Risk Specialists located in Papamoa, Tauranga. Its motto is: ‘Taking take care of the if in Life’. It services the Bay of Plenty/Waikato regions with financial advisers specialising in life, health, income protection, mortgage protection, trauma and business disability cover.

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