28 November 2011
National Australia Bank’s Asset Servicing business has been appointed to provide custodial services to RAC Insurance, the first custody contract RAC Insurance has issued in its own right.
RAC Insurance is a regional insurer operating exclusively in Western Australia, specialising in motor and householder’s insurance, and has the leading market share in the state.
The appointment, effective from December 1, follows a three month tender process.
The custody and reporting needs of RAC Insurance were previously provided by Suncorp as part of a joint venture relationship that ended in 2008. The dissolution of the JV necessitated the need for RAC Insurance to appoint a new master custodian.
Brian Keogh, General Manager, Sales, Relationships & Financial Market Services, Asset Servicing, National Australia Bank, said that the key factors influencing the custody win were the ability to transition RAC Insurance’s assets within a short timeframe, being a local player backed by the strength of National Australia Bank and our track record in the insurance market.
“All these proved critical given the time constraints and overlaying this were RAC Insurance’s complex insurance service requirements,” Mr Keogh said.
“The depth of expertise within our relationship team and partnering approach to servicing proved to be a winning combination,” he said.
Mary Anne Stephens, chief financial officer of RAC Insurance, said the agreement followed a competitive tender process and in-depth discussions with NAB and other custodians over a three month period.
“A transparent and open tender process was important to ensure RAC Insurance ended up with the right custodial solution,” Mrs Stephens said.
“NAB’s understanding of our industry, its detailed response to the submission process and its ability to start the transition process quickly were key aspects of our decision.
“We are looking forward to working with them,” Mrs Stephens said.
This custody win follows last week’s announcement on Asset Servicing’s strategic alliance with MMc Limited, a specialist funds and administration business, to complement its existing custody services in New Zealand.
Asset Servicing, part of NAB’s Wholesale banking business, is the largest custodian in the Australian market with $550 billion in assets under custody for Australian investors.
It provides custody, master custody, investment administration and other related services to a range of locally and internationally domiciled clients. These include government agencies, investment managers, superannuation funds, insurance companies and banks.
NAB has provided domestic custody services since 1950 and global custody and investment administration services since 1975.
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