Sydney, 02 March 2007
Macquarie Relationship Banking today announced it had acquired 100 per cent of Insurance Pay Canada Inc. (“Insurance Pay”), expanding its specialist insurance broking services internationally.
Under the terms of the acquisition, Insurance Pay will become a wholly-owned subsidiary of Macquarie Bank Limited.
Insurance Pay, one of Canada’s most dynamic premium finance companies, provides short term loans to commercial customers to finance their insurance premiums.
Insurance Pay, headquartered in Toronto, with representatives in Vancouver, Calgary and Montreal, employs 11 people.
Macquarie also announced plans to take its insurance broking services expertise to London in around April. Initially it will provide insurance brokers with finance for mergers and acquisitions, with plans to provide premium funding in the near future.
Macquarie Relationship Banking Associate Director and head of Macquarie’s Insurance Broking Services, Paul Cilia, said the offshore expansion will benefit Australian insurance brokers.
“Our goal is to deliver clients ‘world’s best’ products and services, so we will use the learnings we gain from both Insurance Pay, one of Canada’s leading premium funders, and these new markets to further enhance our existing range of specialist offerings,” Mr Cilia said.
Mr Cilia said the expansion can also benefit insurance brokers by providing them with a new strategy to maintain their bottom line in a softening market.
“Softening premiums are impacting many insurance brokers’ incomes so many brokers are endeavouring to maintain profitability through business acquisition and improved business efficiency. Our international expansion means there is now a third strategy insurance brokers can consider, which is international growth.
“Our offshore expansion, combined with our industry expertise, makes us the ideal financier to assist insurance brokers pursue business opportunities such as merger with, or acquisition of, brokerages in either the United Kingdom or North America.”
Mr Cilia said the Insurance Services team’s entry into North America and the United Kingdom is consistent with Macquarie’s global strategy of selectively entering markets where there is a genuine opportunity to introduce our specialist skills and services.
“We believe Macquarie’s premium funding and business banking offerings are internationally competitive so we’re confident they will be well-received by insurance brokers in North America and the United Kingdom.”
Macquarie’s Insurance Broking Services team specialises in providing innovative banking solutions to insurance brokers. In Australia, its specialist offerings include premium funding (Macquarie Premium Funding); finance for merger, acquisition and succession planning; trust accounts as well as insurance payment collection and reconciliation services.