SYDNEY: PSC Insurance Group Limited has entered into agreements to acquire two UK based commercial (SME) broking businesses including Trust Insurance Services for a base consideration of £15.5 million and Abaco Insurance Brokers for a base consideration of £21 million.
Managing Director of PSC Tony Robinson said: “These acquisitions are consistent with our goal of building a significant presence in the commercial broking market outside of London. It is an area we understand and believe we can help drive growth.
Both businesses are excellent inclusions into PSC bringing both great people into the Group and generating strong returns. We are very pleased to welcome Geoff and his team at Trust. They have built a wonderful business over the years and PSC has seen this firsthand, having worked with them for many years.
We are also very pleased to welcome John and his team at Abaco into the PSC Group. Their business has grown strongly over recent years and their expertise will greatly add to the Group.
Both businesses have strong expertise in particular areas that we believe we can help grow and that will benefit the wider PSC Group.”
The acquisitions are expected to generate a combined incremental annual EBITDA of approximately £4.0 million for the Group.
Post these acquisitions, UK direct commercial broking operations of the Group will comprise Leicester based brokers Turner Insurance Services and Abaco Insurance Brokers, Croydon based Absolute Insurance Brokers and Northampton based Trust Insurance Services, with a combined GWP of approximately £70 million and revenue of approximately £12 million.
This places the Group well to achieve scale benefits and additional services for our clients in an increasingly integrated offering. Funding for the acquisitions will be via the Group’s existing cash resources. The acquisitions are conditional upon approvals by the UK Financial Conduct Authority
Formed in 1992, Trust Insurance is an independent commercial insurance broker located in Northampton, England. The business services clients in both the United Kingdom and The Republic of Ireland.
Formed in 2011, Abaco Insurance is an independent insurance broker located in Leicester, England with 32 staff. The business is a leading general insurance broker, with a growing focus on insurance services to the property management (strata) industry, alongside some niche offerings that will add opportunity to the wider PSC Group.