Issue No. 64 - April/May 2012
MGA Insurance plans more expansion
Adelaide-based national insurance broking firm, MGA Insurance Brokers says further acquisitions cannot be ruled out as the firm looks to consolidate its position in the national market.
In February, MGA completed the purchase of Barker Meier Insurance Brokers, adding to its Adelaide business.
This followed the acquisition of Affinity Insurance Brokers in Victoria in September last year and the opening of a new office in Perth in February 2011, giving MGA a presence in all mainland capital cities.
GM, Paul George, says the Barker Meier purchase represented an opportunity to expand MGA’s presence in its key market.
“Barker Meier was placed in administration in late 2011, but we believed it was a fundamentally sound business that could be easily revived and incorporated into our network,” Paul says.
“After undertaking due diligence, we made an offer to the receivers, KordaMentha and completed in the sale on 29 February.
“The timing was ideal following our acquisition of Affinity. Melbourne had been the last major centre that we needed to penetrate and the purchase of Affinity provided us with an established business and offices in Melbourne and suburban Bayswater. “
Paul says further opportunities will certainly be considered, but would need to fit the firm’s longterm strategy of doubling its business in interstate markets in the next five years. He says the eastern states are areas which would be particularly important to MGA’s growth strategy. “At the moment, about two thirds of our premium income comes from South Australia, which is hardly surprising given that this is our home market,” he says.
“However, we would like to grow our business interstate so that SA represents about 50% of our business. That means a lot of growth will be required interstate, as we are also looki...