AFG investments
You can purchase access to this special report or subscribe to Business News.
Subscribe to Business News.
Insurance companies Allianz and Tower have each acquired a 5 per cent shareholding in mortgage broking firm Australian Finance Group.
The investments are part of AFG’s strategy of widening its product range to include life and general insurance.
Allianz and Tower paid $7.5 million for their shares, valuing Perth-based AFG at $150 million.
They join Macquarie Bank, which acquired a 10 per cent shareholding in 2001.
Managing director Brett McKeon said AFG would progressively introduce a range of insurance and wealth management products over the year.
Its members would be given additional training so they were able to sell the new products.
The move into insurance adds to AFG’s diversification strategy, under which the company has added commercial mortgages, personal loans, hire purchase and leasing, and debtor finance to its product range.