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MGA adds Cranston book to growing portfolio

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MGA Insurance Brokers has acquired fellow Adelaide-based brokerage Cranston Australia.

MGA MD Paul George says his company – one of the Austbrokers network’s largest partners – now has premium income of about $260 million a year from 37 branches across Australia.

He told Cranston, a Steadfast member which sells general and agricultural insurance, has some key Adelaide commercial accounts, which is a “highlight” for MGA.

Cranston’s Adelaide office has three staff, two of whom will transfer to MGA’s Adelaide office by August 1. An assistant broker will leave.

Senior broker Carol Caldwell will transfer, and Robert Day will continue in a consulting role after he moves to MGA.

“He is one of the better-known commercial brokers in the Adelaide market and we are pretty excited about him joining us,” Mr George said.

It is the second time MGA has acquired a Cranston brokerage. In 2006 it bought the broker’s Mildura business.

Cranston Australia will retain a portfolio in Horsham, Victoria.

MGA recently purchased shares in Austbrokers Southern in Bega, NSW, and opened branch offices in Perth and Broken Hill.

In April MGA transferred premium funding arrangements from Macquarie Premium Funding to Austbrokers’ Hunter Premium Funding facility, generating more than $30 million in funded premiums.

“Everything presented in the Hunter arrangement made sense for MGA and our portfolio managers,” Mr George said.