Assetinsure sold by CBL administrator
CBL Corporation’s voluntary administrators announced today a deal to sell Sydney-based Assetinsure to Lombard Australia, a newly formed holding company made up of an alliance of surety providers.
The sale – which ends a period of uncertainty about the next move for Assetinsure, Australia’s largest surety bond insurer – is subject to regulatory approvals. The terms, including the price, remain confidential, administrators Brendon Gibson and Neale Jackson of KordaMentha say.
The holding company is coordinated by Lombard Insurance, which has an existing working relationship with Assetinsure going back more than 10 years.
New Zealand-based CBL bought 100% of Assetinsure in September 2015. CBL had expanded rapidly into the European surety market, but announced in February it was in voluntary administration.
Assetinsure CEO Gregory Pfizer says the acquisition by Lombard will build on the already strong ties between the two companies.
“Assetinsure and Lombard have successfully operated an unincorporated joint venture in the Australian surety market for more than 10 years,” Mr Pfizer said.
“Lombard has also provided significant reinsurance capacity in support of this joint venture throughout the period of its existence.
“The acquisition solidifies a strong relationship built over the years and will allow us to grow our specialty classes of business in the future”.
KordaMentha has moved to sell a number of CBL-owned businesses in the UK in recent months.