ONE of the world’s largest insurance companies is set to open offices in Perth and Sydney, after cutting ties with Western Australia-based broker Australian Reliance.
Lockton plans to sell its stake in Australian Reliance, recruit 34 of its staff and open its own offices from May 18, branded as Lockton Australia.
The privately-owned US-based group took a 10 per cent interest in Australian Reliance in 2009.
Prior to the announcement, Australian Reliance, which was originally branded West Coast Group, was ranked fifth among Western Australian insurance brokers, according to the WA Business News’ Book of Lists.
Lockton Asia Pacific executive chairman Gerry Callaghan said the move was driven by a desire to build an expanded presence in the Asia Pacific region.
“We already have offices throughout Asia and the Pacific, which are wholly owned, therefore it was our intent to develop a pan-Asia Pacific strategy,” Mr Callaghan told WA Business News.
“We have a strong mining operation back in London, we work well with the Perth team, and obviously, with the strengths of the WA economy, Perth is a very attractive site for Lockton to operate from.”
Mr Callaghan described the split as an amicable resolution, and said the firms would continue to have a working relationship in the future.
“We will still have an operating relationship with Australian Reliance, we will still accept referrals for business and work together where it’s appropriate,” he said.
Lockton Australia chief executive Adam Rhodes, who was formerly chief operating officer at Australian Reliance, said the split was designed to reflect the diverse needs of clients.
He said Lockton would maintain its focus on large, multi-national corporations in the Asia Pacific region, while Australian Reliance would continue to service smaller enterprise in the local sphere.
“The client mix is such that in order to really walk the walk in terms of looking after client need, it had become an ever-increasing priority to be able to focus on specific segments,” Mr Rhodes said.
“Andrew Donnelly, CEO of Australian Reliance, has a particular view in relation to a growth strategy around local and regional business, and Lockton is an international company whose focus is on serving the needs of corporate and international clients.
“It was a natural evolution, it wasn’t a priority that came out of nowhere, but it’s really where the businesses are at.”
