Sources pointed to NYSE-listed Arthur J. Gallagher and the United Kingdom’s Ardonagh Group – both prolific deal doers in Australia – as PSC’s would-be dance partners. But Robinson and his Paul Dwyer-chaired board are seeking a price-tag of about $2.3 billion, and it was unclear whether the suitors’ interest would progress, the sources said.
The $US55 billion ($83 billion) Gallagher’s inorganic growth story is particularly impressive. The insurance broker acquired 37 entities in the first nine months of 2023 that contributed about $475.3 million to annualised revenues. It finished the year by snapping up Cobram, Victoria-based Edgar Insurance Brokers for an undisclosed sum,
Ardonagh Group has also kept a close watch on the local sector’s burgeoning growth, acquiring Queensland-headquartered Envest a year ago. Envest is an insurance investment and distribution group with more than 31 financial services businesses under its belt and a footprint across Australia.
The monthly CPI indicator rose 3.4 per cent in the 12-months to January. The strongest price rises were seen in insurance and financial services, up 8.2 per cent, which fits with what QBE, Suncorp and IAG told their investors in February’s reporting season. The three big insurers have creamed it over the past 18-months, able to pass on premium increases well in excess of claims inflation.
Shares in PSC Insurance last closed at $4.85.
