Why a 50 year old brokerage sold to BMS
However, Robin Nisbet (pictured above), the director and founder, emphasized to Insurance Business that he’s not about to go anywhere.
“Our clients are basically accepting the changeover because they accept that Belinda [Belinda Nisbet] and I will continue to manage their accounts as BMS,” said Nisbet. “One of the motivating reasons for us to sell was that the business has grown to the point that we needed a global partner who was going to be there for our major corporate clients.”
“I’m not hanging up my shingle” says Nisbet
Nisbet, whose previous industry roles include directing the National Insurance Brokers Association (NIBA) and arranging insurance for the construction of the Sydney Opera House, said he sees himself as part of a growth strategy with BMS.
“I still have a wide range of potential corporate clients in various different specialist sectors,” he said. “So I’m not hanging up my shingle and stopping work – I’m actually proposing to work with the BMS team to develop new corporate business, particularly in the emerging risk sector.”
Nisbet said that, given his firm’s long history, he’s had acquisition discussions before. However, he suggested that he particularly liked what BMS Australia CEO Andrew Godden was able to offer.
“When I met Andrew Godden it was in September and by March we had concluded the very mutually satisfactory deal with BMS,” he said. “All I can say is that it’s been an exemplary negotiation as far as we’re concerned.”
Insurance Business asked if there were any challenges from the perspective of a family run business merging with a much larger business?
Key considerations in the BMS deal
“Obviously, there were key considerations, one of which was the fact that my daughter, Belinda, is very experienced in evaluating and managing risk for major corporate clients which are now global,” said Nisbet. “Our primary concern was the wellbeing of our clients and the high level of personal service that we provide as a company.”
He said his daughter Belinda is joining BMS in a senior role which will ensure that continuity with these clients. Nisbet said his clients are “particularly supportive’” of the BMS deal.
“We’ve explained to them the benefits of the global BMS group and every client basically has agreed to sign the letter of appointment and move across to BMS,” he said.
Nisbet said, from the family perspective, it’s business as usual. He said the firm will transition to using the BMS name.
“BMS is held in high regard globally and is an excellent name to promote so we’re very comfortable with the transition from Armstrong Nisbet to BMS,” he said. “Importantly, we share the same values and culture.”
When the deal was announced in a BMS media release, Godden said: “It is an honour to join forces.”
The BMS CEO credited Armstrong Nisbet with “a wealth of knowledge and market-leading expertise in ESG advisory and renewable energy, which will strengthen and deepen our client offering in this space.”
On its website, the Sydney brokerage describes itself as a family-owned business with more than 50 years’ experience. The firm was founded, says the website, as an insurance specialist for civil engineering, building construction, mining and resources and information technology.
Insuring the construction of a world famous landmark
One of Armstrong Nisbet’s early insurance projects included finding coverages for the third stage of the construction of the Sydney Opera House.
“Stage Three presented a formidable challenge for the architects and engineers involved,” says an article about the construction on the Sydney Opera House website. “It included revisions to the major hall along with the need to find solutions to the interiors across the Opera House.”
Other challenging insurance projects included Sydney’s Eastern Suburbs Railway, Robe River Iron Ore mine and the Queensland Sugar Cane Growers Scheme.
Armstrong Nisbet Insurance Brokers is part of the Armstrong Nisbet group, which includes Armstrong Nisbet Consulting and Armstrong Nisbet Capital. Under the deal, only the Insurance Broking business will be transferred to BMS.
