Austral, Western United change hands

Global insurance brokers Marsh and BMS Group have each expanded their presence in Western Australia, adding to a string of M&A deals by big players buying local operators.

Today, Marsh announced its purchase of Stirling-based Austral Risk Services, while BMS disclosed last month it had agreed to buy Western United Financial Services.

Led by managing director Steve Halbert, Austral had a team of 17 brokers, making it the 16^th largest insurance broker in the WA market, according to Data & Insights.

Marsh, by comparison, will have about 175 brokers in WA after the acquisition, extending its lead as the largest player in the local market.

Western United, led by Brett Waterman, was also a mid-tier firm, with 12 brokers.

It is the second local firm to be acquired by London-based BMS, which bought SRG Group last year.

That came one year after SRG bought another local firm, Gibbscorp.

These transactions coincide with speculation Gallagher, which is the number two player in the WA market, is close to finalising another acquisition.

It bought major WA broker Strathearn in 2016 and has an appetite for more deals after completing more than 20 acquisitions across Australia since then.

If that plan comes to fruition, Gallagher plans to buy a local boutique established by some ex-Strathearn brokers.

ASX company Steadfast Group increased its shareholding in Fenchurch Insurance Brokers, which is still led by founders Richard Scragg, John Carrigg and Stuart McLean.

They had previously established CKA Risk Solutions, which was sold to Willis Towers Watson about seven years ago.

Fenchurch recently bolstered its team by recruiting Gallagher's national head of insolvency, Luke Goss, as executive general manager.

Two other notable moves last year were global player Lockton's purchase of Kim Gilbert’s Zenith Insurance Services, and international firm Howden's “partnership” with Eddy Pope’s Unicorn Risk Solutions.

Marsh’s chief executive Pacific Nick Harris said the addition of Austral Risk Services signalled the firm’s ambitious growth plans in WA.

Austral's Mr Halbert said that by joining Marsh, his firm's clients would have more access to world-leading resources and solutions, while staff would benefit from new training and development opportunities.

“I am excited to build on our shared commitment to serving clients, finding innovative solutions to the challenges they face, and delivering on our promises in a complex global risk environment,” Mr Halbert said.

“We’re proud of our history in WA as a mid-tier broker, and we also understand that now more than ever there’s an increasing importance for our clients to stay a step ahead of the business risk forces beyond Australian shores that can affect their day-to-day operations, whether that’s via the global supply chain, resource price shocks, or new forms of cyber threat.”

He said Marsh had global expertise along with a Perth team with strong ties to the local community.

“For us as a team, this move offers exciting opportunities to grow our careers and I’m personally excited about my ongoing professional journey kicking goals with my new colleagues at Marsh,” Mr Halbert said.

Austral has focused on the labour hire, mining services, transport, manufacturing, agribusiness, retail, and professional services sectors.

Its transport insurance business serves more than half of Perth’s taxi and limousine market.

Western United provides a full range of general insurance products but with a focus on workers’ compensation, injury management and workplace health and safety systems.

BMS Australian CEO Andrew Godden said the acquisition presented another step in the group’s expansion in Australia and, as well as providing more depth in some specialties.

“It also gives us access to additional ones such as hospitality and transport,” he said.

“Brett and his team have built up a very successful and well-respected business and we look forward to working with them in the future.”

Terms of the acquisitions were not disclosed.