Non-bank lender Liberty Financial has made a significant investment in a major mortgage protection insurance provider with a network of more than 4,500 accredited brokers.
Liberty revealed on 24 November that it has expanded its ability to help business partners serve more customers by becoming a strategic partner to Australia’s leader in providing mortgage protection to the broking channel, ALI Group, through a significant investment.
Liberty CEO James Boyle said that ALI was aligned strategically with Liberty’s vision of providing home owners and mortgage brokers with innovative and valued financial solutions.
“Brokers know us as a leading lender to everyday Australians and families, and along with that comes a responsibility to help customers understand how they can protect themselves and their families from unforeseen circumstances,” Mr Boyle said.
“We are looking forward to partnering with ALI, which is the market leader in distributing mortgage protection insurance through the broker channel. While ALI has done a tremendous job in educating and motivating thousands of brokers to provide customers with risk-protection alternatives, we believe there is significant opportunity for further growth.”
Major banks routinely offer protection to customers, and Mr Boyle believes that it is an area where “savvy brokers are closing the gap”.
“I am confident that by partnering with the ALI team, we can bring this important service to more customers,” the Liberty CEO said.
ALI Group chief executive Huy Truong said that he was excited by the opportunities presented by the partnership with Liberty.
“ALI is proud of the market leadership we have achieved. Introducing a new strategic partner with extensive third-party industry experience, industry commitment and shared values gives us the platform to consolidate our leadership and pursue the next phase of growth.
“As both CEO and shareholder, it was important to me that our strategic partner not only added expertise but was culturally aligned. Liberty fits that brief perfectly.”
In addition to its long history in working with the third-party channel, Liberty is an innovator and a believer in risk protection, Mr Truong noted.
The ALI Group CEO added: “It is widely understood that Australia is underinsured. This is especially true of young families and mortgage holders with significant debt. ALI has dedicated itself to protecting this market where financial vulnerability resulting from serious illness or involuntary unemployment can be severe.
“Through this partnership, we want to support more brokers to help their customers make an informed decision around risk and mortgage protection.
“I am looking forward to continuing our mission of protecting Australian home and property buyers, and by working closely with the Liberty team, I believe we can achieve our mission even faster.”
ALI was established in 2003 and has helped to protect more than 175,000 Australian home and property buyers with almost $48 billion in cover. ALI’s mortgage protection products are distributed by over 4,500 authorised brokers, with premiums and payout ratios comparing favourably with leading life insurers.
James Mitchell has over eight years’ experience as a financial reporter and is the editor of Wealth and Wellness at Momentum Media.
He has a sound pedigree to cover the business of mortgages and the converging financial services sector having reported for leading finance titles InvestorDaily, InvestorWeekly, Accountants Daily, ifa, Mortgage Business, Residential Property Manager, Real Estate Business, SMSF Adviser, Smart Property Investment, and The Adviser.
He has also been published in The Daily Telegraph and contributed online to FST Media and Mergermarket, part of the Financial Times Group.
James holds a BA (Hons) in English Literature and an MA in Journalism.
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