Austbrokers buys into Nexus Risk Services

Austbrokers Holdings has expanded into the Western Australian broking sector with the purchase of a 50 per cent interest in Bunbury-based insurance broker NEXUS Risk Services.

The group has also expanded its interest in underwriting agencies with the acquisition of a 75 per cent share in offshore energy agency Asia Mideast Insurance and Reinsurance. 

The acquisitions were collectively valued at $7.5 million, which will be funded by Austbrokers' existing cash reserves.

Austbrokers said taking a majority share in AMIR was part of a strategic move to expand the product offering of the group and diversify its revenue base.

“Broking and insurance distribution is a core component of the group and in WA, Nexus is one of the best in the business,” Austbrokers chief distribution officer Fabian Pasquini said. 

“Their outstanding leadership, operating model and portfolio diversity have remarkable synergies with our existing Austbrokers network.” 

Austbrokers said the Nexus acquisition would add about 13,000 SME and commercial policies to the group and would take the total Austbrokers network to 50 standalone partner insurance brokers.

Nexus managing director Mark Patterson will retain his role and continue to lead the business, with responsibility for the strategic direction and day-to-day management.