The acquisition is expected to strengthen AUB and expand the scale of agencies that support Austbrokers network and other broking clients
Australian equity-based insurance broker AUB Group has acquired 360 Underwriting Solutions, a group of ten underwriting agencies providing specialist insurance solutions, for an undisclosed amount.
The acquisition is expected to strengthen AUB and expand the scale of agencies that support Austbrokers network and other broking clients.
AUB said that the transaction is in line with its growth plans and will support the restructuring of its underwriting agencies division to expand the scale of its offerings.
AUB CEO and MD Mike Emmett said: “360 Underwriting Solutions is highly regarded for its underwriting expertise and insurance servicing capabilities in the Australian market. They have a strong presence across SME general insurance and enjoy a leading position in key market segments.
“The acquisition is aligned to the Group’s disciplined approach to M&A in acquiring businesses that accelerate our portfolio scale and growth, whilst adding to our core capabilities.
“I’d like to welcome Denis, Chris and the rest of the 360 team to the AUB family and look forward to enabling the accelerated growth of 360 as well as delivering synergy benefits across the broader Underwriting Agencies division.”
As part of the restructuring, the company’s underwriting agencies division will form a new subdivision, dubbed General Commercial Underwriting, with a total GWP of A$270m ($198.5m).
The new entity will completely acquire 360 Underwriting Solutions, along with equity stakes in four of its existing agencies including Fleetsure, SURA Hospitality, SURA Bus and Coach and SURA Plant and Equipment.
The equity interests acquired from 360 Underwriting Solutions, along with equity transferred into new entity from the existing AUB agencies is valued at a total of A$127m ($93.3m). AUB would make A$25m ($18.3m) cash payment along with issuing shares in the new entity.
360 Underwriting founders and vendors Denis Morrissey and Chris Lynch will become shareholders in the new entity and undertake the responsibility of the business.
Furthermore, AUB will establish two new subdivisions, Strata Agencies to co-ordinate the existing Strata agencies, and SURA Specialty, which will include the remainder of the current agencies.