AUB Group Limited is welcoming December with a slew of changes, including the acquisition of 360 Underwriting Solutions.
In its announcement this morning, the largest equity-based insurance broker network in Australasia said it has created a general commercial underwriting subunit within the group’s underwriting agencies division. Part of the subdivision is a new entity that is snapping up 100% of 360 Underwriting Solutions.
Additionally, also being acquired are equity stakes in existing AUB Group agencies Fleetsure, SURA Hospitality, SURA Bus and Coach, and SURA Plant and Equipment. The new entity commences operation from today (December 01), with gross written premium (GWP) of $270 million.
“The total value of the equity interests acquired in 360 Underwriting Solutions together with the value of equity in existing AUB Group agencies transferred into general commercial underwriting is $127 million,” noted the group. “This is being facilitated by cash payments of $25 million as well as shares in the new entity.”
A group of 10 underwriting agencies and an established partner of Austbrokers, 360 Underwriting Solutions drives a combined annual GWP of $170 million. As part of the deal, founders and vendors Denis Morrissey and Chris Lynch will become shareholders in the new entity while remaining in charge of the business.
“360 Underwriting Solutions is highly regarded for its underwriting expertise and insurance servicing capabilities in the Australian market,” said AUB Group chief executive and managing director Mike Emmett. “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, while 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.”
Meanwhile AUB Group is also establishing subdivisions strata agencies and SURA specialty. The latter will comprise the remainder of the current agencies, while the other is tasked to coordinate the existing strata agencies with the goal of increasing scale and focus.