ATC Insurance has acquired specialist underwriting agency and wholesale broker Sterling Insurance for $33.2 million.

Sterling specialises in general liability, professional indemnity and aviation risks across Australia and New Zealand.

ATC says the purchase brings further depth to its diverse portfolio.

“Sterling is highly respected within its sector, with a strong focus on niche, hard-to-place and complex risks,” chairman and MD Chris Anderson said.

“We are thrilled to welcome Sterling to the ATC family and look forward to working closely with their team as we continue to grow together.”  

Sterling will operate under its long-established brand, led by an executive team including MD Tony Parington, director and liability underwriter Linda King, and director and liability manager James Emerson.

“Sterling is now part of an independent group of Australian companies where there are natural synergies with our products and company cultures,” Mr Parington said. “Definitely exciting times ahead that have re-energised my love for the insurance industry.”

UK-based BP Marsh – an investor in early-stage financial services businesses – held about 20% of Sterling and 25% of ATC before the transaction. Its ATC stake now rises to 27%. The total consideration for Sterling involves a mix of cash and equity, it says.

BP Marsh says it identified the potential to combine the two companies, and the deal allows Sterling senior management to roll equity into ATC while also giving some long-standing shareholders the opportunity to realise their investments. 

“We’ve worked closely with Sterling since our initial investment in 2013 and have enjoyed our partnership with the team,” BP Marsh chief investment officer Dan Topping said.

“We’re pleased to support this consolidation, and we look forward to our continuing relationship with the Sterling team as part of ATC.”

ATC is budgeting for gross written premium of more than $225 million in the year to June 30, excluding the Sterling acquisition.

The underwriting agency – a Lloyd’s coverholder – was established in 2006 and has offices in Melbourne, Brisbane, the Gold Coast, Sydney and Perth.

The Sterling transaction, completed on Monday, is ATC’s second following the integration of MB Insurance in 2021.

The agency’s products include accident and health, construction, plant and equipment, and sport, leisure and events, in addition to prestige motor via MB Insurance.