Andrew Fluitsma

Honan Insurance Group (Honan) Executive Chairman, Damien Honan, has announced an exciting new reinsurance offering to the broker marketplace with the launch of Honan Re that will commence operations this week.

Based in Singapore and headed by Honan Asia’s Managing Director Eliza White, Honan Re will offer facultative reinsurance solutions to the organisation’s insurance partners.

Commenting further on the announcement, Damien Honan said “We’re very proud of the reinsurance offering as it deepens and broadens the group’s capabilities and further enhances Honan’s reputation as an industry leader.

“The establishment of Honan Re has also been a personal goal of mine, to build a reinsurance team to support the wider Honan group since we commenced operations in Singapore in 2012”.

“In the current marketplace conditions, we believe it is the best time to launch this initiative and continue to expand Honan’s capabilities and the support we offer our insurer partners”.

Honan Chief Executive Officer, Andrew Fluitsma said Honan was the only Australian broking house to offer reinsurance solutions and its launch comes at an opportune time when the market needs additional capacity and innovative thinking.

‘The addition of a reinsurance offering reflects Honan’s attitude of constantly pushing the envelope to develop and deliver leading edge solutions.  It’s also a testament to the efforts of our incredible team and the success we’re building throughout the region”.

Honan Re will be positioned as a dynamic and solutions focused division of Honan Insurance Group and aims to support the organisation’s partners throughout the entire reinsurance cycle.

Singapore was selected as the base for Honan Re for its reputation as the insurance hub of Asia Pacific and strategic geographical position that offers access to international markets in Asia, Australia, Europe and North America.

Honan Re’s Eliza White said, “The launch of Honan Re demonstrates our ability to innovate and offer clients coverage that meets their changing circumstances and challenges.  We will quickly bring together experienced reinsurance minds and utilize latest technology and robust analytics to address the insurance needs of our partners.”

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Commenting further on the announcement, Andrew Fluitsma said the appointment of Sue Klose will add further depth to the Board as Honan broadens and expands its marketplace activities and grows its operations both in Australia and internationally.

Sue Klose is an experienced non-executive director and executive, with a diverse background in digital business growth and operations, corporate development, strategy and marketing.

She is currently a non-executive director of Nearmap, a provider of aerial imagery and location intelligence; Envirosuite, a global leader in environmental data and intelligence; Pureprofile, a provider of data insights, quantitative research and lead generation; and Stride, one of Australia’s largest mental health care providers.

Prior to her move to Australia, Sue held various digital media management and strategy roles in the United States, primarily with Tribune Publishing and as a consultant with Marakon Associates.

Sue also has an MBA in Finance, Strategy and Marketing from the JL Kellogg School of Management at Northwestern University, and a Bachelor of Science in Economics from the Wharton School of the University of Pennsylvania.

“This is an exciting time for Honan and Sue’s experience will be invaluable in the attainment of the group’s strategic objectives and focus on driving growth and innovation”, said Andrew Fluitsma.

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Andrew Fluitsma

Honan Insurance Group (Honan), one of Australia’s fastest growing international brokers, has announced it has acquired Bovill Risk & Insurance Consultants (BRIC), one of the country’s foremost professional indemnity (PI) and construction insurance specialists.

The Acquisition will see BRIC join Honan’s family of brands and continue to operate under its own identity but will be branded and marketed as BRIC – a Honan Company, marking a significant milestone for Honan and BRIC alike.

“A true leader in its field, we’ve long admired BRIC for its revered reputation, deep expertise and highly trusted relationships with clients and industry bodies,” said Honan CEO Andrew Fluitsma.

“Thanks to our existing trading relationship, and BRIC’s operational rigour, we were able to expedite the Acquisition with incredible speed and confidence. Not only will this Acquisition expand our PI and construction insurance capability, but enable us to offer a strengthened national presence in those key markets.”

For BRIC Founder and Managing Director Chris Bovill, the opportunity to join Honan was one with multiple returns.

“Since inception in 1996, we’ve continuously expanded our business through the growth and development of our people. Our culture of being willing to do hard things has been key – we love chasing the interesting, challenging things so many others shy from. In Honan, I recognised this ethos too – a bold and fresh challenger brand doing great things,” said Bovill.

“Of course, our people and clients will now have the benefits of Honan’s global network, buying power, broader expertise and go-to-market sophistication, but it was the promise of joining a dynamic business working hard to achieve great things that was too good to refuse. I’m thrilled for our people, our clients and our partners – the chapter ahead is a bright one.”

With a commitment to providing tailored recommendations and high-quality customer service, Honan has grown revenue at a compound annual rate of approximately 17% over the last 19 years. Privately held in partnership with accelerated growth experts TA Associates, Honan’s main verticals are in the corporate, strata, real estate and employee benefits markets, primarily in Australia, New Zealand and Southeast Asia.

BRIC is a boutique insurance broker specialising in professional indemnity and construction insurances. BRIC’s construction insurance capability has strong penetration in the Victorian and NSW markets, particularly its distributorship of Builder’s Warranty on behalf of the Victorian government agencies. BRIC’s PI offering extends to occupations including but not limited to Engineers, Project Managers, Building Surveyors, Accredited Certifiers and IT Consultants throughout Australia. With Honan’s current PI offering predominantly servicing NSW, the Acquisition will strengthen the brand’s national footprint in this key business vertical.

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Edward Sippel

TA Associates, a leading global growth private equity firm, has announced that it has signed a definitive agreement to make a strategic growth investment in Honan Insurance Group (“Honan”), a leading commercial insurance broker.

Honan’s Group CEO and Executive Director, Damien Honan, Chief Executive Officer, Andrew Fluitsma, and Chief Operating Officer, Laurence Basell, will continue to lead the business and be shareholders alongside TA. Financial terms of the transaction were not disclosed.

Honan designs, prices and negotiates insurance policies on behalf of corporate clients. The Company’s main verticals are in the corporate, strata, real estate and employee benefits markets, primarily in Australia, New Zealand and Southeast Asia. Honan has more than 200 employees in seven offices and is part of the World Broker Network (“WBN”), a global network of independent insurance brokers and risk advisors. The Company was founded in 1964 and is headquartered in Melbourne, Australia. Honan has grown revenue at a CAGR of approximately 17% over the last 19 years.

“We are very pleased to welcome TA Associates as an investor in Honan,” said Damien Honan, Group CEO and Executive Director of Honan Insurance Group. “In choosing to partner with TA, the Honan team was particularly attracted by the firm’s global presence, long history of investing in the insurance brokerage sector and experience in partnering with growing companies. We believe that TA will be a valuable partner as we seek to further grow Honan both in the domestic Australian market and overseas.”

“With a commitment to providing tailored recommendations and high-quality customer service, Honan has grown significantly over the past few years,” said Andrew Tay, a Senior Vice President at TA Associates. “We are excited to be investing in Honan alongside a talented management team, and we look forward to building on their track record of growth.”

“We have been impressed by Honan’s strong reputation within the commercial insurance brokerage industry and its vibrant corporate culture,” added Edward Sippel, a Managing Director and Co-head of Asia operations of TA Associates Asia Pacific Ltd. “We are delighted and honored to be partnering with the Honan management team as they embark on the Company’s next phase of growth.”

“This is an important milestone for Honan as we continue to focus on providing the highest quality advice to our dedicated and loyal customer base, especially in the current challenging environment,” said Andrew Fluitsma, Chief Executive Officer of Honan Insurance Group. “The opportunity to bring aboard a long-term, well-respected growth-oriented global investor such as TA, that is fully-aligned and supportive of our business model, is very exciting. We are confident that Honan will benefit from TA’s complementary array of resources and skills.”

The transaction is expected to close in the second half of 2020, pending customary regulatory approvals and closing conditions.

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Commenting further on the appointment, Andrew Fluitsma said the appointment reflects Honan’s commitment and plans to deepen client engagement and position the group as a leading risk partner of choice in the broader Asia Pacific region.

Eliza has deep market knowledge and insight and comes to Honan with a strong broker background and experience in sales, corporate risk, complex risk solutions and management expertise.

Prior to joining Honan, Eliza worked for Starr International and has an extensive background in risk insurance, underwriting (specializing in the energy and risk sectors), management, analytics and global insurance.

These attributes are complemented with a practical insight and appreciation of the Asian risk insurance and brokerage market.

“The demand for risk insurance services is increasing rapidly throughout Asia and Honan is well positioned to capitalise on these growth opportunities”, said Eliza.

“I’m delighted to be joining a dynamic organisation and look forward to working with Honan’s senior team in Singapore to realize the organisation’s strategic objectives”.

This announcement marks another important step in Honan’s strategic aspirations in Asia Pacific and the appointment will help drive our continued growth and momentum concluded Andrew Fluitsma.

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Commenting further, Andrew Fluitsma said “We are already witnessing global underwriting markets in Lloyds ceasing to write certain classes of business such as Professional Indemnity and Marine – and we expect this to continue”.

“Honan also expects a continuation of upward pricing pressures throughout 2019, bringing with it another challenging buying year for businesses.  Insurer risk selection and appetite will continue to drive underwriting behaviour leading a growing rating / pricing gulf between low hazard and less desirable occupancies”.

“Underwriting profitability remains the key performance metric in the medium term as insurers continue to focus on good performing and risk managed businesses”.

Claims pressure from settlements in securities class actions is likely to be a factor for the foreseeable future with Side C/ D&O insurance.

Certainty of recommendations and changes will be further clouded should there be a change in government at a federal level.

Honan’s Quarterly Market Update affirmed that after almost two decades of favourable buying conditions, 2017 and 2018 saw the beginning of significant change; a change and market dynamic which will continue and accelerate in 2019.

Throughout 2018, insurers found themselves in a challenging position, whereby previous strategies to build market share through top line premium growth were replaced with the need to bolster bottom line profitability.

With this approach came a willingness to walk away from business should the underwriting re-calibration not yield acceptable levels of profitability.

Communication and relationships are pivotal said Travis Wendt, Honan’s Head of Broking & Carrier Management.  “Relationships flexibility still exists in the wider market but only if the right messages are communicated – and communicated early.

“Insurer selection, transparency, relationship management and “selling” your individual risk profile to the market is critical to not only help mitigate prevailing market issues but also to assist your company to stand apart during this market correction”.

“Honan is proactively driving the renewal process earlier for clients to allow adequate time to address any surprises or consider strategies which may mitigate underwriting volatility”.

Highlights of Honan’s December 2018 Quarterly Market Update

• Food & Beverages – We are seeing a significant correction in pricing for non-desirable, high hazard business.  F & B related accounts (packaging, processing and storage related) have seen major withdrawals of market capacity locally brought on by the frequency/severity of fire & stock losses, construction from combustible materials such as EPS (Expanded Polystyrene) and low levels of automatic protection. This is being brought on by frequency of claims, ageing infrastructure, combustible materials used in construction and a lack of fixed protection (automatic sprinklers and smoke detection).
• Queensland & Western Australia to face tighter conditions – Insurers are actively controlling their sideway exposure to Natural Catastrophe perils such as weather, flood and earthquake, where the impact is mainly felt in Queensland and Western Australia. This is being seen in a tightening of underwriting in the form of reduced limits, increased pricing and capacity withdrawals. This underwriting discipline has been brought on by increased reinsurance costs, increased net retentions emanating from the events of 2017.Directors & Offices – Financial Lines underwriters are focussing on (and already been actively remediating) their Directors &
• Offices portfolio, especially ASX listed entities that purchase Side C cover.
• Cyber Insurance market – There has been an increase in the number of data breaches notified to the Office of the Australian Information Commissioner (“OAIC”).

The top 5 industries that reported breaches were health care service providers, legal, accounting and management services, finance (including superannuation), education and professional associations or “charities”.

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Last week Honan announced the appointment of Blair McNamara as Head of Legal and the internal promotion of Sharan Uppal to Chief Client Officer and Carly Blakiston to Head of People & Culture.

These senior executives are exceptional individuals and practitioners in their respective fields, with remarkable career accomplishments to-date, and the skills and experience required to support Honan’s strategic and growth aspirations said Andrew Fluitsma.

The new appointments and roles follow the recent launch of the new brand identity and senior leadership restructure whereby Damien Honan took on the role of Group CEO and Andrew Fluitsma CEO Australia & New Zealand.

Reflecting Honan’s commitment and investment in Asia Pacific, Brad Tymmons was appointed CEO, Asia and has relocated to Singapore to oversee group’s operations in the region.

Commenting further, Andrew Fluitsma said, “Since its inception and throughout the countries in which it operates, Honan has built a strong reputation for the provision of personalised solutions, innovative marketplace offerings and exemplary client service”.

“Furthermore, there has been significant investment in internal infrastructure improving processes and efficiency that have combined to facilitate the development, execution and adoption of strategy – that in turn has seen a significant increase in business growth”.

Hence the importance of these appointments and restructure as they mark another step in the organisation’s commitment to the future and its vision to deliver an exceptional client experience throughout the end to end journey with Honan.

Today, top companies are judged primarily on the basis of the client experience and we see this as an important investment in the Honan brand added Andrew Fluitsma.  By creating a powerful and memorable client experience that meets and exceeds expectations an added benefit will be clients acting as brand ambassadors and advocates for the organisation.

Therefore, it is imperative that Honan always stays ahead of the curve in the delivery of smarter, faster, more seamless solutions for clients – as well as playing an important and leading role in the broker sector, within Australia and the international markets in which it operates affirmed Andrew Fluitsma.

Andrew Fluitsma concluded, “Coming into the New Year and beyond, Honan is in a great position to grow by helping support Australian and Asia Pacific clients across all aspects of business risk with appropriate solutions to address their unique challenges”.

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Headquartered in Melbourne, Honan was established in 1964 and over the past 54 years has grown to become recognised as an industry leader with over 200 staff operating from offices in Melbourne, Sydney, Brisbane, Perth, Auckland, Singapore and Kuala Lumpur.

In November 2001 Honan became the only Australian member of the Worldwide Broker Network (WBN), the world’s largest network of independent property and casualty brokers and employee benefits consultants, giving Honan exclusive access into the network, and the capability to provide a truly integrated global service.

Unveiled this week, the old logo has been replaced with a new stylized and more easily identifiable wordmark of the Honan business name.

The colour progression from blue to pink through the logo reflects the progression of the organisation from a traditional corporate broker to one that explores new growth opportunities – for itself, and for clients.  It also reflects Honan’s humble beginnings in suburban Melbourne to a modern national and international focused business.

As part of Honan’s rebranding, there has also been a senior leadership restructure with Damien Honan taking on the role of Group Chief Executive Officer with overall responsibility for managing the organisation’s people, culture and legal activities.

Andrew Fluitsma is now Chief Executive Officer, Australia and New Zealand and will oversee the strategic direction and growth of the business across the region.

In addition, Andrew will manage finance, marketing and sales for the group.

Brad Tymmons steps into the role of Chief Executive Officer, Asia and has relocated to Singapore reflecting Honan’s commitment and investment into the region.

He will lead the organisation’s market penetration in Asia Pacific – a key growth channel for Honan.

In addition, Brad will continue to look after technology and special projects for Honan.

“Over the past five decades, Honan has built a strong reputation for the provision of personalised solutions, exemplary client service, quality and innovation in thought,” said Andrew Fluitsma.

“Our market research confirmed it was time to evolve our business image to better reflect who we are as a business, especially as we positioned the organisation in pursuit of new opportunities for future growth, acquisition and expansion.”

Andrew Fluitsma concluded, “In all, the branding and new senior roles embodies an exciting change for Honan and marks a strategic pivot in our growth journey.  While our commitment to the community we serve will not change, there is incredible potential to grow.

“Our new branding, senior roles and commitment to Australia and international markets positions us for those opportunities.”

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