The search for new office space, combined with a director’s retirement plans, were two triggers for the merger between McKenna Hampton Insurance Brokers and Centro Insurance and Risk Managers, which will come into effect from July 1.
With both companies looking to expand their presence in the marketplace, McKenna Hampton approached Centro regarding office space.
“There was a need for us to find some office space because the building where we are now is being demolished. We’ve known Centro for a long time and talked about sharing office space with them,” McKenna Hampton director Phil Matthewson said.
The approach came at a time when one of Centro’s directors was planning a transitional period ahead of his retirement, leaving Centro open to examine its future options.
Mr Matthewson said the two companies had fairly similar operations, with both being founding members of the Insurance Broking Network Association.
“We operate with the same type of business to a large degree; we deal with general insurance for small to medium businesses with some corporate activity in the mining and resources sector,” he said.
Centro director Lindsay Dry said the merger allowed the two companies to move forward in a very competitive field.
“That’s the way of the future, these days you have to expand by acquisition,” Mr Dry told WA Business News.
The merger will lift McKenna Hampton’s staff from 16 to 30, with the annual turnover estimated to increase from $18 million to $30 million.
According to WA Business News Book of Lists, McKenna Hampton will qualify in WA’s top 10 insurance brokers when the merger is completed.
“The merger makes us significantly bigger in the scheme of things,” Mr Matthewson said.
He said this would allow the company to expand its operations, and possibly grow in new areas.
Mr Dry said that, as a result of the increased resources the merger would provide, the business would keep growing both its corporate and commercial offerings.
McKenna Hampton will move to Centro’s premises at 55 Salvado Road in Subiaco this week.
