AUB to acquire UK broker Prestige for $432m, funded by share issuance
Make us a preferred source
Make us a preferred source on Google
More news: Insurance broker AUB Group will acquire UK insurance broker and underwriting platform PIHL Holdings (Prestige) for $432 million, funded by an institutional placement and share purchase plan.
The fully underwritten institutional placement aims to raise $400 million while the non-underwritten share purchase plan aims to raise $40 million. New shares will be issued at $29.40, a 7.9% discount to the last close price.
The share purchase plan will commence on 4 February and close on 26 February for shareholders that were on the register on 23 January. The result of the institutional placement will be announced on 28 January.
An additional $200 million debt facility has also been entered into with Macquarie Bank at improved pricing relative to its existing syndicated facility agreement.
The acquisition values the privately owned Prestige at an equity value 12.9x higher than Prestige's 2025 adjusted EBITDA, according to AUB. Prestige has a gross written premium of more than GBP300 million ($593.49 million), with the deal expected to expand AUB’s UK retail gross written premium to GBP720 million.
AUB announced its underlying net profit after tax for the first half of FY26 is expected to be in the range of $90 million and $91 million.
It reaffirmed its FY26 guidance before the impact of Prestige and recent increases in shareholding of Pacific Indemnity and AUB 360.
Over the first half of FY26, AUB completed 30 business as usual M&A transactions worth about $200 million. This includes the remaining 30% interest in Pacific Indemnity it didn’t already own and an additional 6% in AUB 360.
What they said: “Finding the platform business to expand our UK Retail business has been a key strategic focus for AUB as we look to replicate our highly successful Australian model in one of the largest insurance markets globally,” AUB Group CEO Mike Emmett said.
“Prestige comes with a high quality management team who have a strong track record of growing and managing the business effectively and, importantly, MGA capabilities.”
AUB enters trading halt ahead of capital raise announcement
The news: Insurance broker AUB Group has entered a trading halt ahead of an announcement regarding an institutional placement and a share purchase plan, which comes nearly two months after a $45 per share acquisition offer was withdrawn.
The numbers: AUB shares last closed at $31.91 on Friday.
The context: Shares will remain in the trading halt until the earlier of when the announcement is made or the start of trading on 28 January.
Following the withdrawal of EQT and CVC Asia Pacific’s offer in December 2025, AUB chief executive and managing director Michael Emmett said the board and management team “are fully focused on advancing our portfolio of organic growth initiatives and acquisition opportunities”.
The company’s last capital raise took place in May 2024 to fund an acquisition of a 70% interest in Melbourne-based speciality underwriting agency Pacific Indemnity.
