Australia based Insurance Investment Solutions (IIS) has purchased a strategic shareholding in Asia Mideast Insurance and Reinsurance (AMIR), an international underwriting agency specialising in the energy segment.
“We’re very excited to have another independent agency operating in the Australian and international markets, giving brokers and their clients a wider choice,” said Peg Reuben (pictured), IIS managing director.
“IIS and AMIR provide collective underwriting capability and specialist product knowledge that enhance our insurer and intermediary relationships, enabling us to deliver best outcomes to brokers and insureds, including claims management capability,” she said.
Both firms bring very contrasting specialities to the partnership. IIS, an independent managing general agent (MGA), focuses on residential and commercial strata insurance. AMIR works across risk areas including oil, gas and renewable energy.
To an outside observer, this might appear like a radical change for IIS.
“It’s not a radical change at all,” said Reuben.
“While IIS has predominantly been writing strata, our directors have vast experience across property, liability, construction, engineering, marine and other products. Underwriting principles are constant across all market sectors.”
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Reuben said there were no particular issues bringing partners with such divergent business focuses into an alliance.
“There were no specific challenges in bringing AMIR under the IIS Group umbrella. It is a strategic alliance that benefits from the broad range of skills our IIS directors exhibit and the specialist expertise within both agencies.”
She said IIS has a selective distribution model and is always seeking partnership and joint-venture opportunities to enable access to more market segments with discreet, niche products.
“We’re happy to look at any niche segments where agencies can provide better service and performance for brokers, clients and our underwriting partners,” said Reuben.
She doesn’t envisage any huge changes at either firm as a result of the strategic partnership.
AMIR was established in 1997 and is an approved Lloyd’s coverholder. The firm primarily underwrites upstream, downstream and renewable risks globally. AMIR underwrites a full range of energy products including renewables, oil and gas. From May this year their new energy binder was written 50% by Convex Insurance UK.
Convex has been targeted by environmental groups for not ruling out providing insurance coverage for the controversial Adani Carmichael coal mine project in Australia. Marine conservationists say the project threatens the survival of the Great Barrier Reef.
However, ironically, in 2012 the founder of Convex, Stephen Catlin, was the chief sponsor of the Catlin Seaview Survey. This major international environmental project aimed to research and protect the world’s coral reefs, including the Great Barrier Reef.
After the recent climate conference in Glasgow, insurance industry stakeholders are playing closer attention to the industry’s very mixed environmental record.
IIS declined to answer questions about how it regards AMIR’s involvement in gas and oil projects, or the issue of climate change and its impact on the insurance industry.
The purchase of a strategic shareholding in AMIR follows the completion of a management buyout of IIS. The firm is now fully independent from the underwriting agencies group Austagencies Insurance and its parent, AUB Group.
According to a media release, the strategic shareholding deal gives AMIR’s managing director Adel Dawood an agreed exit strategy and provides a transition plan that benefits underwriting partners and AMIR clients.
