In just two years, unlisted public company Australian Consolidated Insurance Ltd has bought six insurance and financial services firms, creating a national insurance company generating sales of more than $40 million.
In just two years, unlisted public company Australian Consolidated Insurance Ltd has bought six insurance and financial services firms, creating a national insurance company generating sales of more than $40 million.
Started in March 2005 by current managing director and insurance industry professional, Wayne Miller, ACI is building through acquisitive growth and eyeing an Australian Securities Exchange listing within two years.
With four offices in Western Australia, and one each in Sydney, Melbourne and Auckland, ACI specialises in insurance broking, risk management and wealth creation for the small to mid-cap market.
Its niche markets have grown to incorporate rural business, offshore oil and gas, mining and construction, SMEs and not for profits.
“We have built the company quite rapidly,” Mr Miller told WA Business News.
“Our game plan was to acquire a company every three months settled and merged. That has been our track record over the past nine months.”
ACI’s most recent acquisition, insurance broker Brian Bushell and Associates, on May 31, took the total number of staff in the group to 42, including 34 brokers.
This follows the acquisition of leading WA rural insurance brokers Hammond Insurance Broking in February, Auckland-based Tasman Insurance Brokers in October 2006, and underwriting agency Jascad Australia in May 2006.
ACI established its eastern states presence in September 2005 with its first acquisition, Sydney-based City Pacific Financial Services, followed by Melbourne-based insurance broking firm Clarendon Insurance Brokers in July 2006.
Mr Miller said the company was currently negotiating a “quantum leap” merger with an eastern states firm roughly the same size as ACI, which was expected to be finalised in the first quarter of next year.
He said the company was also currently eyeing three companies in WA.
Mr Miller believes the exit of the baby boomers out of the service organisations they founded is creating a wealth of opportunity across the both insurance and financial planning sectors.
“We expect the expansion to continue over the next two years on the back of baby boomer generation moving out of business,” he said.
“Baby boomers do business on trust and respect, and we’re the ideal generation to capitalise on that.”
Mr Miller said ACI operated on a practice of retaining principals of the acquired company in some capacity, providing clients with confidence and a long-term commitment to service delivery.
“We’re different to our competitors in our attitude towards principals. They are usually the founders, they’re astute businessmen. We don’t want to put them on the bench,” he said.
Next month, ACI will expand its wealth management service by offering an online share trading system through its website.
The online share trading service, powered by IWL Broking Solutions, will complement ACI’s online delivery method for its insurance services as part of a unique ‘Launchpad’ distribution system.
Mr Miller built the company from seed, before installing a public company structure with about 60 shareholders, mostly ex-clients and ex-colleagues.
Mr Miller owns 40 per cent of the company, with key directors and executives holding 20 per cent.
The Loans Café founder Anne-Marie Syme holds the position of group chairman, with Community Newspapers financial controller Mark Shelton taking on a non-executive director role.
Mr Miller has 27 years’ experience in the insurance broking and risk management industry.
Outside of insurance, he co-founded injury management firm Medepartner Ltd, which achieved a back-door ASX listing through Konekt Ltd after his departure.
