Allied general manager Brendon Smith says Metro has nearly 80 insurance brokers, as well as a few mortgage brokers, and will double the size of Allied's insurance operation.
Before the acquisition, mortgage broking accounted for about three quarters of Allied's business.
"It's an exciting acquisition for us," Smith says. "We're serious about mortgages but equally we want to be a serious player in that insurance risk space and that's what it's about," he says.
Allied currently provides services to about 230 brokers operating under either its Kiwi Mortgage Market brand or their own brands. Metro will continue to operate under its own brand.
Smith says both organisations are Wellington-based and there are a number of synergies in putting the two together.
It will essentially be business as usual for the Metro brokers: "there's no change for the Metro brokers. They can continue to do business as they do today." Keith Mansill will continue to operate as Metro's general manager.
However, Allied will be able to offer Metro's brokers a wider range of services, including its software capability, training, professional planning and development, Smith says.
"There's no additional cost for them to do so."
In informing the Metro brokers of the move, Mansill said Metro had been "looking at options to extend and improve the way we do business with you" for some time.
It had been in discussions with a number of producer groups "with the intention that we position ourselves to provide you with superior backup, support and services."
Metro's existing insurer relationships will remain in place and it will pick up new relationships through Allied, Mansill said.
