AUB Group Acquires UK Insurance Platform Prestige in Landmark Offshore Expansion

About AUB Group Limited

AUB Group Limited (ASX: AUB) is an ASX 200-listed insurance intermediary group comprising insurance broking, underwriting agencies and risk-advisory businesses across Australia, New Zealand and international markets. Through a decentralised operating model, AUB partners with entrepreneurial insurance businesses, providing capital, operational support and access to scale while allowing management teams to retain autonomy and customer focus.

Over the past decade, AUB has built one of the largest insurance distribution platforms in the region, placing more than $11 billion in insurance premiums annually and serving approximately 1.2 million clients through a network of nearly 580 locations. The group’s disciplined acquisition strategy and long-term ownership approach have underpinned consistent earnings growth and strong shareholder returns.

The acquisition of Prestige represents AUB’s most significant offshore transaction to date and a pivotal milestone in its ambition to replicate its successful Australian model within the UK insurance market.

Strategic Rationale for the Prestige Acquisition

Prestige is a UK-based insurance broking and underwriting platform founded in 1973, integrating a substantial retail broking portfolio with multiple specialist managing general agencies (MGAs). The business employs around 650 people and operates across the UK and Ireland, including 18 retail broking branches.

AUB described Prestige as a high-quality platform asset with a scalable operating model, strong management team and a proven track record of bolt-on acquisitions. The acquisition materially accelerates AUB’s presence in the UK retail insurance market, significantly expanding scale, product capability and distribution reach.

Critically, the transaction also marks AUB’s formal entry into the UK MGA segment, a market that management views as a largely untapped growth opportunity. By combining Prestige’s MGA capability with AUB’s existing wholesale and retail operations, the group expects to unlock meaningful cross-sell and efficiency benefits over time.

Financial Terms and Synergies

The acquisition values Prestige at an enterprise value multiple of 12.9 times calendar year 2025 EBITDA on a pre-synergy basis, reducing to approximately 10.0 times after incorporating identified cost synergies. AUB has quantified run-rate cost synergies of more than A$10 million per annum, expected to be delivered by the end of FY27, with additional revenue upside potential through cross-selling.

On a pro-forma basis, the acquisition and recent step-up transactions are expected to be earnings per share neutral before synergies and low to mid single-digit EPS accretive after synergies for CY25. AUB noted that further deployment of available capital over time is expected to deliver incremental EPS accretion.

Equity Raising and Balance Sheet Position

To fund the transaction and maintain balance-sheet flexibility, AUB has launched a fully underwritten A$400 million institutional placement, issuing approximately 13.6 million new shares at an offer price of A$29.40 per share. The placement price represents a discount of 7.9 per cent to the last traded price prior to the trading halt.

In addition, AUB will offer eligible Australian and New Zealand shareholders the opportunity to participate in a non-underwritten share purchase plan targeting up to A$40 million. The SPP allows applications of up to A$30,000 per shareholder and is scheduled to close in late February 2026.

Alongside the equity raising, AUB has secured a new A$200 million debt facility with Macquarie Bank on improved pricing terms relative to its existing syndicated facility. Pro-forma leverage following the transaction is expected to be approximately 2.47 times EBITDA, supported by strong ongoing cash generation.

Continued Acquisition Momentum

Beyond the Prestige transaction, AUB reaffirmed that business-as-usual acquisition activity remains a core pillar of its strategy. During 1H26, the group completed approximately 30 transactions with total M&A spend of around A$200 million. This included the acquisition of the remaining 30 per cent interest in Pacific Indemnity and an additional six per cent stake in AUB 360 for A$96 million in December 2025.

These step-up acquisitions further consolidate AUB’s ownership of high-performing portfolio businesses and enhance earnings visibility across the group.

UK Market Opportunity and Platform Expansion

The UK insurance market is one of the largest and most sophisticated globally, characterised by fragmented retail distribution and growing demand for specialist risk solutions. AUB believes the Prestige platform provides an ideal foundation to scale organically and through bolt-on acquisitions, leveraging its proven operating model.

Management highlighted that integrating the Tysers UK Retail business into Prestige will create a unified platform with enhanced distribution, MGA capability and technology infrastructure. This is expected to support long-term growth and position AUB as a leading consolidator in the UK retail and underwriting market.

Outlook

Subject to regulatory approvals, the Prestige acquisition is expected to complete before 30 June 2026. AUB has reiterated confidence in its FY26 earnings outlook, with the group well positioned to absorb the transaction while maintaining financial discipline.

The combination of a strengthened UK platform, robust balance sheet and active acquisition pipeline positions AUB to continue delivering sustainable earnings growth and shareholder value across market cycles.