Axis buys Dexta Corporation

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Breaking News, 9 December 2008

Stardex Insurance Group has sold its professional risks underwriting agency Dexta Corporation to Axis Specialty Europe.

Stardex is Australia’s largest and most diversified underwriting agency group. In an announcement to the New York Stock Exchange, Axis said the transaction is expected to be finalised next month. The sale price is subject to a confidentiality clause.

Axis Specialty Europe is part of the giant Bermuda-based Axis Group, which has provided insurance capacity to Dexta since July 2005. Axis became an authorised insurer in Australia earlier this year.

Announcing the sale this morning, Stardex CEO Bob Lee said the Dexta sale will enable the Stardex group “to aggressively position the remaining agencies to ensure their future growth and market-leading roles are enhanced”.

“By selling Dexta, we’re in a strong financial position, with no external debt as a group. It allows us strategic flexibility, on a business-by-business basis, to move forward.”

Mr Lee says there are no current plans to sell other companies within the group – MB Insurance Group, SLE Australasia, General Aviation, Pacific Underwriting, Agricola and New Zealand agency Inbroke.

Dexta MD Tony Wheatley will join Axis Capital as Country Manager for Australia. Mr Lee says there will be no changes to management, policy wordings or servicing capabilities.

Axis COO Dennis Reding says the acquisition “represents a key strategic step for our regional expansion strategy in Australasia. We also expect to enhance this platform to provide additional products in the region over the coming years.”