According to Mike Tandy, managing director at Firedart, the decision to merge the businesses was taken in order to create a leading specialist within the engineering and construction guarantee underwriting space. "There are already a number of synergies between the two companies and this merger will enable the combined group to drive down costs and offer contractors a one-stop-shop policy for all the cover required on building contracts. It will also provide cross-selling opportunities, enabling both businesses to explain the two service offerings to their existing broker bases, thereby reaching a far wider pool of brokers."
Tandy says Firedart has been actively interested in offering construction guarantees for some time and the merger will provide the company with an already established brand and team of specialists under the leadership of Dave Agrella, the current MD of Construction Guarantee.
"Firedart has been approached by a number of brokers and clients with regards to offering guarantees in the construction sector and this merger will enable us to offer a full solution to clients. In addition, by offering an insurance solution that meets the client's every need, it provides a more streamlined process for clients with one point of contact for all of their insurance requirements."
Both companies underwrite on behalf of Compass Insurance Company Limited (Compass Insurance) and so the merger does not trigger additional changes in this regard. The new entity, which will be known as Firedart Engineering & Construction Guarantee Underwriting Managers (Pty) Ltd, have moved into new offices in Meyersdal in Johannesburg.
Tandy will be managing director of Firedart Engineering & Construction Guarantee Underwriting Managers, with current Firedart director Ian van Loggerenberg and Construction Guarantee managing director, Agrella, both becoming directors of the merged group.
