Lloyd’s broker Tysers to be sold for £500m to Australian firm

Global insurance broker with A$3.6 billion annual gross premiums and direct access to the Lloyd’s market  Tysers is to be acquired by Sydney-headquartered AUB Group for A$880 million (£500 million).

AUB has entered into a binding agreement with sellers Odyssey Investment Partners to purchase 100% of Tysers, and is undertaking an equity capital raising to provide funding towards the acquisition.

Tysers is a specialist international insurance broker based in London and the sixth-largest wholesale broker in the Lloyd’s marketplace. The business operates across three segments: wholesale, managing general agents (MGA), and retail. The company has over 1,100 employees with the significant majority based in the UK.

Following the deal, Tysers will receive A$880 million (purchase price on a debt free basis) with potential additional deferred consideration of up to A$176 million (£100 million) based on the achievement of revenue targets with an upper bound of £220 million.

Separately, AUB has entered into a non-binding term sheet with PSC, an Australian listed insurance broking and insurance intermediary business with existing UK retail broking capability. Under the term sheet, PSC will acquire a 50% stake in Tysers’ UK Retail division (Tysers UK Retail) as part of a 50/50 joint venture with AUB, using the same multiple and commercial terms as the overall deal.

Tysers will provide AUB with specialist capabilities, direct access to the Lloyd’s market, as well as additional capacity to write new business with enhanced margins. The transaction will allow AUB to direct A$200 million of gross written premium (GWP) to Tysers from existing and future placements within broking and agency networks.

“AUB is the perfect partner to allow Tysers to continue our proud history and support our growth ambitions,” said Tysers CEO Clive Buesnel (pictured). “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.”

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.”

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, commented: “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.”

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