Munich Re to boost Australian unit via acquisition

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

Calliden has two businesses: Calliden Agency Services Limited (CASL) and Calliden Insurance Limited (CIL).

Steadfast Group will initially acquire both. Immediately after the acquisition, Munich Re will acquire the authorised insurer, Calliden Insurance, for around AU$40 million (€28 million).

Munich Re will also acquire the Calliden Agency portfolio for business package and middle market products already underwritten by GLA and related operating infrastructure from CASL.

As part of the transaction, Munich Re will continue to work with the 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 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,” said Ludger Arnoldussen, member of Munich Re’s board of management responsible for Germany, Asia Pacific and Africa.

“Furthermore, we look forward to a long-term partnership with Steadfast, which will enable us to jointly develop profitable target-niche and commercial business.”