PE firm backs Australia’s Honan’s growth plans

May 19 2020 by Andrew Tjaardstra

US-headquartered private equity player TA Associates has agreed to take an undisclosed stake in Honan Insurance Group.

The broker’s main areas of business are in the corporate, strata, property and employee benefits markets, primarily in Australia, Malaysia, New Zealand and Singapore.

The company was founded in 1964 and is headquartered in Melbourne and has grown revenue around 17% a year over the last 19 years. The broker now employs 200 people across seven offices and is part of the Worldwide Broker Network.

Damien Honan, Honan’s group chief executive and executive director, chief executive, Andrew Fluitsma, and chief operating officer, Laurence Basell, will continue to lead the business and be shareholders alongside TA.

Honan (pictured) commented: “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.”

Andrew Tay, a senior vice president at TA Associates, noted: “With a commitment to providing tailored recommendations and high-quality customer service, Honan has grown significantly over the past few years. 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.”

Edward Sippel, Hong Kong-based managing director and co-head of Asia operations of TA Associates Asia Pacific, also helped oversee the deal.

The undisclosed transaction is expected to close in the second half of 2020, pending regulatory approvals and closing conditions. TA, which has an average investment period of five years, also has a long track record of taking firms public.

InsuranceAsia News reached out to TA Associates for more details but the firm declined to comment at this stage.

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