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Heartland Bank to sell Autosure insurance through MARAC network

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ASX:TRA      MCAP $381.6M
14 November 2019 17:30 (AEST)

Heartland Bank and Turners Automotive Group have agreed to a distribution agreement between their respective brands, Autosure and MARAC.

Autosure provides automotive-owner protection policies for the New Zealand retail motor vehicle industry.

Also based in New Zealand, is MARAC who is a leading financial services provider. MARAC provides vehicle finance through a select network of authorised motor vehicle dealers.

So far, Autosure has provided MARAC with mechanical breakdown insurance.

This distribution agreement will extend its commercial relationship with Autosure providing payment protection insurance and guaranteed asset protection products throughout the MARAC dealer network.

“This is a major opportunity for Autosure, that builds on the progress made over recent years. We look forward to working closely with MARAC to create a comprehensive product offering and a seamless experience for their customers,” Turners CEO Todd Hunter said.

MARAC’s network comprises over 400 dealers which represents a significant expansion of roughly 20 per cent in Autosure’s distribution network.

As a result, Autosure is expecting a material uplift in policy sales, potentially generating additional revenue of $2 million per year from the financial year 2021.

Autosure’s insurance products will be sold through the MARAC network from mid-December 2019.

Company shares remain flat today and trading for $2.20 each.

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