Insurance broker AUB Group (ASX:AUB) will acquire UK insurance broker and underwriting platform PIHL Holdings (Prestige) for $432 million, with the deal funded through an institutional placement and a share purchase plan.
The fully underwritten institutional placement aims to raise $400 million, while the non-underwritten share purchase plan targets $40 million, with new shares priced at $29.40—a 7.9% discount to the last close.
The share purchase plan will run from Feb. 4-26 for shareholders on the register as of Jan. 23, while the institutional placement results will be announced on Jan. 28.
AUB has also secured an additional $200 million debt facility with Macquarie Bank at improved pricing. The acquisition values Prestige at 12.9 times its 2025 adjusted EBITDA.
Prestige, which has a gross written premium of more than £300 million, is expected to expand AUB’s UK retail gross written premium to £720 million.
AUB expects underlying net profit after tax for H1 FY26 to be $90–91 million and reaffirmed its FY26 guidance before the Prestige acquisition and recent increases in its stakes in Pacific Indemnity and AUB 360.
Over the first half of FY26, AUB completed 30 M&A transactions worth around $200 million, including acquiring the remaining 30% of Pacific Indemnity and an additional 6% of AUB 360.
CEO Mike Emmett said, "Finding the platform business to expand our UK retail operations has been a key strategic focus as we look to replicate our highly successful Australian model in one of the largest insurance markets globally. Prestige comes with a high-quality management team with a proven track record, and importantly, strong MGA capabilities."