Kiwi and Allied to merge

Mortgage broking businesses Kiwi Mortgage Market and Allied Mortgage Brokers have announced plans for a merger that will create a near 250-strong broking group.

Tuesday, December 2nd 2008, 5:00AM

by Maria Scott

The companies say they have both remained sustainable during the economic downturn but that the merger will create a substantially stronger entity.

Each of the businesses operates different arrangements for brokers affiliated to them, Allied (AMBL), with 134 brokers, offering a fixed fee structure and Kiwi (KMM), with 112 brokers offering agency as well as licence agreements.

Brokers will be able to retain their existing business agreements or take up new terms. They will also be offered access to the KMM brand or independent trading under their own names, as has been offered by KMM and AMBL in the past.

Brian Greer, founder of KMM is to be chief executive of the new group. He said that the new entity would be able to offer improved terms to brokers.

Greer is to be supported in the management team by AMBL’s founding business development manager Brent David and KMM’s business development managers Brendon Smith and Cameron Marcroft.

The merged group will be putting strong emphasis on the sale of insurance in conjunction with mortgages. KMM and AMBL, between them, currently deal with three insurance companies, Sovereign, ING and AIG and Greer said relationships with all would be maintained.

The merger is subject to shareholder approval but the companies say that they are confident this will be forthcoming. Brokers and suppliers are to be briefed at a series of road shows throughout the country from 9 to 12 December. The new business will also launch its new name at the roadshows. It will start trading on 1 February 2009.

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