UK markets close in 6 hours 42 minutes
  • FTSE 100

    7,510.92
    -7.43 (-0.10%)
     
  • FTSE 250

    20,085.74
    +20.15 (+0.10%)
     
  • AIM

    960.72
    -1.00 (-0.10%)
     
  • GBP/EUR

    1.1786
    -0.0048 (-0.41%)
     
  • GBP/USD

    1.2382
    -0.0111 (-0.89%)
     
  • BTC-GBP

    24,062.02
    -806.80 (-3.24%)
     
  • CMC Crypto 200

    669.13
    +426.45 (+175.72%)
     
  • S&P 500

    4,088.85
    +80.84 (+2.02%)
     
  • DOW

    32,654.59
    +431.17 (+1.34%)
     
  • CRUDE OIL

    114.51
    +2.11 (+1.88%)
     
  • GOLD FUTURES

    1,812.50
    -6.40 (-0.35%)
     
  • NIKKEI 225

    26,911.20
    +251.45 (+0.94%)
     
  • HANG SENG

    20,644.28
    +41.76 (+0.20%)
     
  • DAX

    14,173.96
    -11.98 (-0.08%)
     
  • CAC 40

    6,415.75
    -14.44 (-0.22%)
     

Australia's AUB to buy UK wholesale insurance broker Tysers for $620 million

  • Oops!
    Something went wrong.
    Please try again later.
·1-min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

(Reuters) -Australian insurance broker AUB Group said on Monday it would buy London-based Lloyd's wholesale insurer broker Tysers for A$880 million ($620.5 million) to expand the range of its products.

Tysers, the sixth largest wholesale broker in the Lloyd's marketplace, has about 1,100 employees and writes annual gross premiums of A$3.6 billion.

"Tysers provides AUB Group the ability to access a diverse range of risks and insurance types for our clients and broker networks in Australia and New Zealand," AUB Chief Executive Mike Emmett said in a statement.

The deal is expected to increase AUB's underlying proforma earnings per share by 30% and is expected to be completed in the first half of 2023, AUB said.

The acquisition will be funded using a A$350 million equity raising, a placement of shares worth A$176 million, and a new A$675 million multi-currency debt facility, the company added.

Separately, the company entered a non-binding term sheet with PSC Insurance under which the insurance intermediary business will buy a 50% stake in Tysers' UK retail arm as a part of a 50:50 joint venture with AUB.

AUB also reaffirmed its fiscal 2022 financial forecast and said it continues to target a dividend payout ratio in line with its current range of 50-70%.

($1 = 1.4176 Australian dollars)

(Reporting by Navya Mittal in Bengaluru; Editing by Leslie Adler and Muralikumar Anantharaman)

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting