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Media Releases |
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19/02/2009 1:14:36 PM, Investors buy out Babcock & Brown's share of Assetinsure Group
Assetinsure Holdings Pty Ltd (AIH) is pleased to announce that existing and new shareholders have reached agreement with B&B Insurance Pty Ltd (B&B) to buy its 50% shareholding in AIH. AIH owns 100% of the licensed insurance carrier Assetinsure Pty Ltd (Assetinsure). The sale is subject to regulatory approval.
B&B’s 50% shareholding will be acquired by a combination of GLOBAL Group of Australia Pty Ltd (GLOBAL), 30% and existing shareholders and management of Assetinsure, 20%.
As a result of the transaction, B&B will no longer hold any stake in the Assetinsure Group.
The sale of its investment in AIH is part of the B&B Group’s ongoing asset sales programme.
From Assetinsure’s perspective, the sale allows the company to move forward on a very positive footing, given that the uncertainties surrounding the B&B Group can no longer be linked to Assetinsure’s day-to-day business or financial standing.
Existing shareholders and management are excited by the opportunity to increase their stake from 50% to 70% in a business they believe has a very strong future. This consolidates the company’s position as an independent Australian general insurer.
“To have GLOBAL return as a 30% shareholder is a strong vote of confidence in management and the business potential”, said the CEO Mr Wedgwood. GLOBAL previously owned the reinsurer Gerling Global Re which AIH purchased on 1 September 2003. The entity was subsequently renamed Assetinsure and transformed into a direct insurance carrier.
The new shareholding structure represents a sound balance of private shareholders, an insurance institution, and senior management investing in the long-term future of Assetinsure. The shareholder groups fully understand the insurance business and the opportunities that lie ahead in a changing market.
For further information, please see www.assetinsure.com.au or contact Peter Wedgwood, CEO on 02 9251 8055 or Gregor Pfitzer, COO, on 02 8274 2832.
About Assetinsure
Assetinsure is a general insurer licensed by APRA. Assetinsure specialises in underwriting selected commercial insurance product lines, including professional indemnity, aviation, property, motor, financial risks and surety. Customers are predominantly middle market and corporate buyers. Assetinsure has been authorised by APRA since February 2004. For corporate profile, services and financials, visit www.assetinsure.com.au.
About GLOBAL
GLOBAL is owned by Globale Rückversicherungs-AG (Global Re) in Germany (www.globalre.com) which has over $3 billion in assets worldwide. GLOBAL is the local, non operating holding company for Global Re’s activities in Australia which include 100% ownership of Global Life Reinsurance Company of Australia Pty Ltd, an APRA licensed life reinsurance company. GLOBAL has maintained involvement with Assetinsure over the years particularly through their representative on the Assetinsure Board.
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