AUB Group expands its Austbrokers network with a 50% acquisition of Queensland broker LEA
Sydney, 21 April, 2017: AUB Group Limited (ASX:AUB) today announced it is expanding its Austbrokers network with a 50% acquisition of Queensland-based broker, LEA Insurance Brokers Pty Limited (LEA).
LEA is a Gold Coast and Brisbane -based founding IBNA broker and a member of the Council of Queensland Insurance Brokers. With more than 4,000 clients across Australia, the business was founded in 1978 and has built a strong reputation among local small- to medium-sized enterprises and insurers. LEA also has a number of authorised representatives and a strong life insurance business which leverages its general insurance client base.
The acquisition forms a fundamental succession plan for LEA and reflects the attraction to AUB Group’s equity partnership model. Long-time shareholders and directors of LEA, Eric Gardner and Colin Irvine, will formally retire on 1 May 2017 and will remain in a consulting capacity with the business until at least 30 April 2018. Troy Jennings will take over the role of managing director from Eric Gardner. Troy has been with LEA for 17 years. He will work closely with the remaining shareholders to seek growth opportunities for the future of the business.
Eric Gardner, retiring managing director, LEA, said, “Colin and I had been considering succession for a little while and, as part of that, we had been talking to AUB Group on and off for some time. This arrangement builds a clear strategy and path for the future of the business. AUB Group give us confidence that our staff and clients will be looked after. The timing is right for Colin and myself to significantly scale back our involvement, and we’re handing over to Troy and a capable leadership team.”
Fabian Pasquini, divisional chief executive, national partners and group acquisitions at AUB Group, said, “AUB Group is thrilled to be a part of LEA’s succession solution. We see significant future potential for the business and we look forward to working with Troy and the team as LEA moves into its next chapter. LEA will operate as a standalone partner business of AUB which now has fifty-one businesses across its broking network.
“Once again, AUB Group has shown that our capability to meet the needs of individuals and the business, together with our proven track record as a partner of choice, provides a compelling proposition for principals considering their future.”
Troy Jennings, incoming managing director, LEA, said, “I’m honoured to be given the opportunity to lead this fantastic business. We have some exciting opportunities ahead. Having AUB Group as a partner will provide additional growth opportunities for the business. AUB Group’s owner-driver model and partnership focus means we can maintain our formula for success and operate in our existing set-up with the added value of having AUB Group as a proactive partner.”
This latest acquisition adds to AUB Group’s, and the Austbrokers network’s expansion in FY17. Already, five bolt-on transactions across the Austbrokers network have been announced or completed.
About AUB Group Limited.AUB Group (ASX:AUB) is the leading equity-based risk management, advice and solutions provider in Australasia. Operating across a broad spectrum of risk and insurance, AUB Group is providing total risk solutions for clients. A top 250 ASX listed company, AUB Group comprises 75 equity businesses that form leading insurance broking networks (Austbrokers and NZbrokers), underwriting agencies (SURA) and specialist risk services. Serviced through partners, the group represents more than 450,000 clients, 3,000 employees, across 220 locations. For more information, visit www.aubgroup.com.au