Damien Honan talks about the company’s NGA Benefits acquisition – another milestone for the group as it focuses on becoming the leading independent insurance advisory business in Australia, New Zealand and Southeast Asia
In October, Honan Insurance Group announced its acquisition of Singapore-based NGA Benefits, a leading employee benefits consulting, insurance intermediary and benefits administration company that operates throughout Singapore and Malaysia.
According to Honan, the acquisition is part of the company’s ongoing investment in Southeast Asia. In 2015, it purchased Singaporean brokerage MACS Insurance Brokers.
Damien Honan, CEO of Honan Insurance Group, gave
Insurance Business an insight into the thinking behind the transaction, as well as the group’s endeavours in Southeast Asia.
IB: How did the deal come about?
Damien Honan: I really believe it was a direct result of two key things – Honan’s strong reputation, and our commitment to nurturing relationships.
Part of my role as CEO is to develop relationships in the insurance and employee benefits industries across the globe. We already had a good network in Singapore based on our earlier acquisition. This opened up the door to meeting NGA. I could immediately see the alignment to our culture and style of doing business – they are also very client-focused.
IB: Why did Honan feel the need to strengthen its overseas business?
DH: Part of our growth strategy is to build our presence in a way that adds value to our clients. We see Southeast Asia as an integral part of that value proposition. We also have a presence in the USA and in New Zealand.
IB: What does NGA Benefits bring to the group?
DH: NGA Benefits has some great talent under the direction of Rachel Wee. Their service culture and client philosophy are very similar to ours at Honan.
We’ve had strong organic growth in Australia due to our focus on people, partners and clients. So, for me, those three things need to line up very closely.
NGA also has great capability in managing large multinational and local corporate clients. They use a best practice platform and set a high client service standard. The Malaysian service centre will also provide a great leverage point; we are considering how we could potentially integrate this through the group.
IB: Since Honan arrived in the Asian market, how has the business fared in the wider region? Are you pleased with its progress so far?
DH: We’re very happy with our progress in the Southeast Asian market. It’s a competitive market, but we approached our first acquisition with the mindset to learn and grow. We invested in the opportunity by sending key executives to Singapore to help drive the business forward.
I believe it’s increased our global footprint by facilitating inbound business. The outcomes have obviously paved the way for the NGA acquisition.
GOING GLOBAL
Damien Honan has led Honan Insurance Group since 1993. Under his leadership, the group has expanded its footprint across Australia and the wider world. Since November 2001, the group has been a member of the Worldwide Broker Network (WBN), the world’s largest network of independent property and casualty brokers and employee benefits consultants. As a partner of the WBN, the group has the capability to advise and transact in more than 100 countries. In 2015, Honan Insurance Group (Asia) was officially formed, following its acquisition of MACS Insurance Brokers.
IB: Are you surprised that more Australian brokers haven’t ventured into the Asian market? It seems like a logical step for those with the right experience to branch out into the wider region?
DH: In truth, I’m quite focused on building our own path following a carefully thought-out strategy. I don’t invest a lot of time in considering what other brokers are doing, or what has been done before us.
If I think about Southeast Asia, it’s a unique market. It takes a lot of commitment to make it work. You need to understand local customs and culture. You need to have your timing right, and a long-term strategy behind the decision.
IB: Are there any more deals in the pipeline either at home or abroad? How does Honan expect to grow over the coming year?
DH: At this stage, we’re heavily focused on our organic growth. We are investing in some of the incredible talent we have at Honan. We’re constantly trying to improve our product and service offerings to clients, and, of course, to refine our value proposition to the market.
When I sit back and think about it, we’ve had a fantastic growth journey over the past few years. I really believe we’ve geared Honan to create its own distinctive mark on the broking industry.
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