Envest Group has taken a majority stake in Blue Zebra after acquiring Youi’s 36.9% equity interest in the underwriting agency.

“This transition marks an exciting new chapter for Blue Zebra and the team is confident we are well positioned to accelerate product development and strengthen our commitment to the broker channel,” Blue Zebra MD Colin Fagen said.

Envest was already an investor in the agency and Mr Fagen says it has now “moved into a majority shareholding position”.  

A spokesperson for Envest says the move “underscores its confidence in Blue Zebra’s growth trajectory and its role in reshaping the intermediated insurance landscape in Australia”.

The spokesperson says the agency “has grown significantly since its inception in 2017 and is one of the largest digital broker-channel distributors in Australia” for personal lines, commercial motor, cyber and SME products.

Envest says Blue Zebra has more than $290 million gross written premium and a network of more than 440 broker partners.

Youi sold its stake for 526 million rand ($45.5 million), the insurer’s South African parent Outsurance Holdings says in its annual report.

It decided to end its partnership with Blue Zebra after a strategic review earlier this year. Its partnership with the agency and participation in the broker channel stopped on June 30.

“The run-off of existing policies will be managed by [Blue Zebra] until the current contract expires, with Youi closely monitoring customer outcomes,” the annual report said.

Blue Zebra announced in June its new underwriting arrangements, with QBE backing its motor products and a panel of insurers supporting home building and contents, landlord and SME packages.