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JUNE/JULY 2022 - Insurance News magazine
Written on 9 May, 2022
AUB Group Limited (AUB) today announces it has entered into a binding agreement to purchase Tysers, a leading Lloyd’s wholesale broker and is undertaking an equity capital raising to provide funding towards the acquisition.
AUB today announces it has entered into an agreement with sellers Odyssey Investment Partners to acquire 100% of Tysers for AUD880 million (GBP500 million) (the Acquisition).
Tysers is a leading specialist international insurance broker and the 6th largest wholesale broker in the Lloyd’s marketplace, the largest insurance market globally. With 200 years of expertise, it is differentiated by its strong specialty focus, market knowledge, experience and placement capabilities as well as exceptional client and market relationships. The business has a robust track record of growth and profitability with strong cash conversion.
The business operates across three segments:
Tysers has ~1,100 employees with the significant majority based in the UK.
Tysers has in place a strong management team which will continue to manage day to day operations. To facilitate integration into the broader AUB group, Mike Emmett (AUB Group CEO) and Peter Harmer (Current AUB Non-Executive Director) will be appointed to the Tysers Board.
Acquisition in line with stated strategy to build scale in Lloyds’ wholesale broking
Tysers will provide AUB with specialist capabilities, direct access to the Lloyd’s market and allows AUB to capture further economics in the insurance broking value chain. In the short term, this will allow AUB to direct AUD200 million of gross written premium (GWP) to Tysers from existing and future placements within broking and agency networks, creating an uplift in margin and revenue for AUB. Direct access to Lloyd’s and international markets is expected to also provide AUB’s broking networks and underwriting agencies in Australia and New Zealand with capacity to write additional new business and deliver differentiated exclusive products to AUB’s network.
The broader and enhanced product offering is expected to be well received by AUB’s client base, assisting our brokers to attract new clients.
JV with PSC to acquire 50% of Tysers UK Retail business
AUB and PSC have entered into a Term Sheet under which it is intended that PSC will acquire a 50% stake in Tysers UK Retail as part of a 50/50 joint venture with AUB as soon as practicable after completion of the Acquisition. PSC’s acquisition of the 50% stake is intended to be at the same multiple and on the same commercial terms as the Acquisition. PSC expects to fund its equity contribution from existing resources.
PSC is an Australian listed insurance broking and insurance intermediary business with existing UK retail broking capability and with a similar culture and values to AUB. They have a strong track record of acquiring, owning and operating insurance intermediary businesses outside the Australia New Zealand region.
Commenting on the transaction, Mike Emmett, AUB Group CEO said: “The acquisition represents an important next step in the AUB Strategy to build out our client offering and risk expertise. Lloyd’s is the largest insurance market in the world. 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 whilst also gaining the capability to accelerate the establishment of new agencies in these markets. Clive Buesnel, Tysers CEO, is a highly respected insurance executive in the Lloyds and London market, and we are delighted to welcome him and the Tysers team to the AUB family as we embark on a new chapter for both AUB Group and Tysers.”
Clive Buesnel, Tysers CEO said: “AUB is the perfect partner to allow Tysers to continue our proud history and support our growth ambitions. The strategic and cultural alignment is clear, and we are excited about executing on future opportunities together. We are proud of our culture and track record and look forward to working collaboratively and innovatively with AUB.”
Jeff McKibben, Odyssey Senior Managing Principal said: “Tysers is a high quality leading independent Lloyd’s broker. We believe AUB Group will be a very good strategic partner for the business as it continues its post-COVID earnings recovery. We look forward to retaining ongoing exposure to Tysers through our investment in AUB and participating in the growth trajectory of the merged Group.”
Tony Robinson, PSC CEO said: “We are excited at the opportunity to partner with AUB for the proposed JV of the Tysers UK Retail business. It presents an opportunity for us to secure 50% of a meaningful UK Retail broker which is in line with our strategy to grow in the UK and diversify our insurance intermediary business.”
 Tysers CY21 gross written premium was AUD3.6 billion.
 Being 100% of the shares in each of: (i) Galileo Insurance Services LLC; (ii) Integro Insurance Brokerage Services LLC; (iii) Integro Insurance Brokers Holdings Ltd and (iv) Tysers (Bermuda) Ltd and their respective subsidiaries.
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