Kepa has announced a strategic alliance with the Papamoa-based risk insurance advice firm, Lloyds Insurance.
The partnership is the third in the dealer group’s ongoing programme of alliances with fast growing financial advisory practices.
Kepa has purchased a 35 per cent stake in the renewal commissions of Lloyds, which services the Bay Of Plenty/Waikato regions and specialises in life, health, income protection, trauma and business disability insurance cover.
Lloyds Insurance Principal, Mike Lloyd, intends to exit from the business at the end of the 2021 financial year but will continue to lead the firm and service all clients in the renewals book, until that time.
Following his exit, Kepa will have the right of first refusal over the remainder of the renewals book.
Kepa Chief Executive, Brendon Neal, says the alliance will release capital to Lloyd and enable a pathway for succession in the growing business.
“Mike and Lloyds Insurance enjoy a strong reputation in the Bay of Plenty and the Waikato for helping individuals and businesses manage risk,” said Neal.
“Kepa will help Lloyds Insurance build on this legacy by facilitating a succession plan for Mike, while still allowing the company to continue to service the strong demand it enjoys in the region.”
He said alliances such as these allows advisers to transition from the industry knowing their clients will be well looked after.
Lloyd noted the partnership would also help his company prepare for the changes coming with the Financial Services Legislation Amendment Bill.
“I have enjoyed a long-standing working relationship with Kepa and over that time have built trust and confidence in the ideals and values that Kepa stands for,” he said.
“This agreement will allow me to transition from the business and – over the longer term – hand my clients to an organisation I trust.”
In April, Kepa provided capital to the Auckland-based Financial Design Group, which followed its first alliance established between Kepa and the Takapuna-based Mortgage Lab in late 2017.
Kepa stated that both organisations are growing strongly.
“The alliance with Mortgage Lab, FDG and now Lloyds Insurance are proving the great benefits of Kepa’s new partnership model,” said Neal.
“We are looking to further develop this opportunity with other advisory practices in the coming months.”