Travel insurance company, the Cover-More Group Ltd
(ASX:CVO), has entered a strategic underwriting relationship with the Berkshire Hathaway Specialty Insurance Company’s Australian branch.
Currently, Cover-More and Berkshire are working together in the US to market online travel insurance to consumers.
Now that they have signed a binding heads of agreement, both companies need to use their “best endeavours” to negotiate in good faith a new underwriting agreement. Cover-More says the agreement will run for a 5-year term.
The company also says this new agreement will expand their relationship to include appointing Berkshire as its primary underwriter in Australia and New Zealand, and identifying business opportunities in other markets.
Cover-More posted a net profit of $18.7 million at 30 June 2016.