EPI has a strong reputation for managing complex risks, particularly in the areas of boarding houses and low-cost accommodations.
Meanwhile, PSC had continued to solidify its position in various markets and began laying the foundation for future expansion in global insurance markets throughout the financial year ending June 30, 2023 (FY23).
In its FY23 financial report, the group reported a 17% rise in underlying revenue, reaching $298.6 million. Underlying EBITDA grew by 19% to $111.0 million, while underlying NPATA increased by 23% to $78.4 million. Earnings per share were also up by 15%, reaching 22.2 cents per share. The company also launched APEX, an insurance trading platform designed to support its growth initiatives.
In a LinkedIn post, PSC said its acquisition of EPI aligns with its broader strategy to enhance its service offerings and deliver increased value to its client base. The EPI team will join PSC as part of this integration.
“Known for their extensive experience in managing complex risks for boarding houses and low-cost accommodations, Eastern Prudential has built a stellar reputation for tailored solutions and personalised service. This exciting acquisition represents a major leap forward in enhancing our capabilities and underscores our commitment to delivering top-notch insurance solutions,” it said.
See LinkedIn post here.
The acquisition of EPI has been revealed after The Ardonagh Group (Ardonagh) confirmed its intention to acquire PSC in a deal valued at approximately$2.3 billion.
According to the Scheme Implementation Deed, Ardonagh will purchase all PSC shares at$6.19 each through a scheme of arrangement. The acquisition will merge PSC’s operations in Australia and New Zealand with Envest Pty Ltd (Envest), which Ardonagh acquired last year.
The combined entity is expected to become one of the largest private insurance distribution networks in the region, handling $3.3 billion in gross written premiums annually.
However, PSC’s proposed joint venture with AUB Group in the UK has been called off. The venture, which would have seen PSC acquire a 50% stake in the UK retail division of Tysers, a London-based brokerage owned by AUB, will not proceed.
PSC has indicated that its acquisition pipeline remains robust, and the company plans to continue its selective and disciplined approach to mergers and acquisitions, supported by a strong balance sheet.
