Sydney, Australia (CU)_ After generating its maiden profit in the last fiscal year, the underwriting agency, Ensurance, is planning to expand its Australian operations. The company earned an after-tax profit of $273,745, which is a turnaround from a loss of $1.3 million a year ago, while the gross written premium (GWP) grew from $35 million to $57 million. According to the company, the results show its continuous aim to develop the underwriting agency as a fast-growing provider of specialized insurance coverage.
According to CEO Tom Kent, “It’s obviously a big turnaround in the past 12 months. This is a big moment for us but more importantly I think it just hails the start of a new beginning. The next 6-12 months are really for us all about adding more diversity into our product set.” After the sale of its Australia-focused underwriting business to 360 Construction and Engineering in 2020, Ensurance has been primarily focused on the UK market. However, the company is once again showing an interest in entering the Australian market.
TK Specialty Risks (TKSR), a professional and financial lines specialist underwriting agency with a network of over 70 brokers around the nation, was purchased by Ensurance in 2021. In addition, Ensurance revealed the sale of its UK unit to PSC Insurance Group of Melbourne, Australia, for $8.2 million in a non-binding agreement last month. The transaction is undergoing due diligence. Ensurance stated that the sale’s profits will be utilized to assist its Australian operations.
According to the company, during the 2021/2022 fiscal year, TKSR was promptly re-branded as Ensurance Australia, and the company’s management began growing its base across Australia in order to offer its professional risks insurance product suite. According to Mr Kent, “The decision to sell the company’s UK operations reflects a strong belief in the opportunities awaiting us in the Australian market”. He added, “We want to ensure the company takes full advantage of what is a fast-growing market for niche insurance products. The sale of the UK operations will enable us to focus solely on this opportunity.”
Mr. Kent said that the brokering platform is a priority for the underwriting agency, as it focuses on a larger portion of the Australian market. He said, “What we want to be doing is working closely with all of our broker partners. We’ve doubled our broker agency agreements over the course of the past year. We deal with brokers of all shapes and sizes and that’s a flag we’ll proudly fly for as long as we can.” According to him, the Steadfast and Ausbrokers networks generate nearly sixty percent of the Australian income. He said, “We actively encourage brokers to come to us when they’ve got an idea for a new product or when they’re struggling for capacity so we can build products for them”
