Munich Re Joins dealer Steadfast to accumulate Australia’s Calliden insurance Operations

Munich Re’s number one coverage subsidiary high-quality Lakes Australia (GLA) has reached an settlement to aid Australia’s biggest broker network, Steadfast group in their proposed acquisition of Calliden organization Ltd.

Munich Re stated it plans to “acquire the authorized insurer, Calliden coverage restrained,” and that GLA would thereby “relaxed get right of entry to to a leading-aspect commercial underwriter platform and expert employees, previously a part of Calliden, to advance GLA’s commercial enterprise package and business insurance product distribution.”

Munich Re additionally defined that the “distribution strength of the most important dealer network in Australia will provide GLA with the opportunity to develop merchandise tailored to cutting-edge-marketplace business coverage wishes.”

The bulletin also defined that as part of the transaction, “Munich Re will retain to paintings with the well-appeared Calliden group to establish a brand new enterprise percent and industrial managing standard enterprise (MGA), based totally at the Calliden organisation portfolios received, to service all intermediaries in Australia.

“The proposed transaction represents a brand new chapter within the long records of cooperation among Munich Re and Calliden, to start with with Munich Re being Calliden’s biggest reinsurance accomplice on account that 2005 and extra these days with GLA’s position as insurance supporter of Calliden’s MGA when you consider that 2012.”

Ludger Arnoldussen, member of Munich Re’s Board of control answerable for Germany, Asia Pacific and Africa, commented: “The established order of a new commercially-focused underwriting business enterprise will allow great Lakes Australia to provide a sparkling alternative to all distribution companions across the marketplace. moreover, we stay up for a protracted-time period partnership with Steadfast, with a purpose to allow us to mutually develop worthwhile goal-area of interest and business business.”

Munich Re explained that as a part of the partnership it “will assist Steadfast with the planned acquisition: Steadfast has submitted a suggestion to gather a hundred percentage of the Australian insurer Calliden. Calliden has two distinct businesses – Calliden business enterprise offerings limited (CASL) and Calliden insurance restricted (CIL). at once after the finishing touch of the transaction through Steadfast, Munich Re will then acquire all the shares in CIL for round A$ 40 million [US$37.5 million – €28 million), concern to net asset cost modifications upon remaining.”

Munich Re additionally stated it will “accumulate the Calliden organization portfolio for business package deal and middle marketplace products already underwritten with the aid of GLA and associated running infrastructure from CASL. crowning glory of the transactions is problem to regulatory approvals, approval by using shareholders and commonplace final conditions, which can be anticipated to be completed on the stop of the fourth area of 2014.”