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31/03/2009, Assetinsure enters the Surety Bonding market
Assetinsure, Australia’s specialist insurance group, has launched a new Surety division to provide performance bonding capacity to Australian and New Zealand companies.
Assetinsure has entered the market because of the current shortage of banking credit lines in Australia and New Zealand and the immediate need for major capacity to be brought into the region, said Peter Wedgwood, CEO of Assetinsure.
Assetinsure provides a number of specialist insurance products mainly to companies, financial institutions, and professionals to protect their respective assets, credit risks and professional liabilities.
The surety product range offers companies an alternative to bank guarantees where, in many cases, these have to be cashed backed, whereas bond facilities do not normally require collateral as security.
Mr Wedgwood said the Assetinsure capacity would be directed through Westport Insurance Corporation, an APRA licensed insurance company rated A+ by Standard & Poor’s, and a wholly owned subsidiary of Swiss Re – the world’s largest reinsurance group.
“We are indeed fortunate to deliver this new capacity through the Swiss Re group who have had a long involvement in this specialist class of business."
In addition to the Westport relationship, Assetinsure have also entered into a joint venture agreement with Lombard Group from South Africa. Lombard is the largest provider of performance and surety insurance bonds in South Africa and has a number of South African construction clients operating in Australia.
The joint venture brings together the experience and resources of two organisations that collectively will deliver comprehensive bonding capacity to clients in Australia, New Zealand, South Africa and the Pacific Region.
Surety facilities are used primarily by construction and engineering companies together with a range of manufacturers and servicing companies to meet bond obligations under contracts.
Assetinsure’s Surety division is headed by Andrew Calvert who has more than 15 years’ experience in the industry. Mr Calvert, who will lead Assetinsure’s team of experienced underwriters, is a wellknown operator in the surety industry.
Mr Calvert said: “We believe we have timed our entry into this specialist sector given the banks’ rationing of credit lines.
“Surety, in short, is a godsend to companies who have to place sizeable bonds with clients and have traditionally accessed these through their banking lines.”
About Assetinsure
Assetinsure is a general insurer licensed by APRA. Assetinsure specialises in underwriting selected insurance product lines, including professional indemnity, aviation, industrial special risks, construction, engineering, motor, financial risks and surety. Customers are predominantly middle market and corporate buyers. Assetinsure has been authorised by APRA since February 2004.
For further information, please see www.assetinsure.com.au or contact Andrew Calvert on 02 8274 2855 or andrew.calvert@assetinsure.com.au.
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