Cre8 integrated into the Guardrisk Group

Alexander Forbes Cre8 – the specialist short-term insurance underwriting manager and product supplier – was fully integrated in the Guardrisk Group on 1 October 2009. While the Cre8 brand will be absorbed into the well-known Guardrisk brand, Cre8’s product brands will continue. Cre8’s name will change to Guardrisk Allied Products and Services.

“Bringing Cre8 into the Guardrisk fold makes good business sense: effectively combining Guardrisk’s ‘wholesale’ and Cre8’s ‘retail’ business cultures, and harnessing product development synergies in order to continue providing our clients with state-of-the-art insurance and risk financing solutions,” says Herman Schoeman, managing director of Guardrisk.

But he emphasises: “the primary driver for this strategic decision was to enhance our solution driven service and product offerings to both companies’ clients and to ensure sustainable growth opportunities for both entities”.

Schoeman also points out that the integration of the two companies does not mean that Guardrisk is simply becoming a traditional insurer, “our business model is not changing and we remain predominantly a cell captive insurer”.

“At a time when financial services companies around the globe are looking to cut costs, we believe that the integration will streamline both businesses; reduce costs, increase productivity, eliminate duplication and increase skills and resources – all for the benefit our clients.

“And, in many ways, the integration is just the formalisation of ‘business as usual’: Cre8 has reported to Guardrisk for the past two years.”

Within the new structure, Guardrisk’s expertise in actuarial and insurance underwriting will benefit both Cre8’s facilities and external underwriting managers, while the Cre8 distribution network will be leveraged for the benefit of external underwriting managers.