AUB Group (ASX:AUB) confirms talk with Tysers, posts gains on ASX - Kalkine Media

April 04, 2022 01:03 PM AEST | By Sonal Goyal
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Highlights

  • AUB Group has verified that it is in discussions with Tysers to acquire the firm.
  • AUB will be distributing dividend of AU$0.17 today.
  • The 1HFY22 report indicates that AUB is focused on mergers and acquisition.

Insurance broker, AUB Group Limited (ASX:AUB), has confirmed on Monday that it is in talk with Odyssey Investment Partners, owner of Tysers, and senior management of Tysers, for acquiring the firm. The announcement came as a response to the media speculation.

ASX listed insurance company informed that both parties have not reached acceptable terms during the discussion; as a result, no transaction has taken place as of now. 

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Everything you need to know about Tysers

Image source: © Cammeraydave | Megapixl.com

Tysers is a London-based Lloyd’s insurance broker. The company has been in the insurance business for over 200 years. It is currently operational in 140 countries.

Lloyd’s of London can be described as a British marketplace where its members operate as syndicates to help people or businesses manage risk or insure unusual and different products and businesses. There are different syndicates with specialisation in different risk types. The syndicates decide the type of risk they want to manage.

Tysers deals in wholesale, corporate & commercial, entertainment & sport insurance solutions and solutions to private clients for high-net-worth products.

AUB Group to pay dividend today

As per the ASX announcement dated 22 February 2022, AUB Group is set to distribute a dividend of AU$0.17 per share today (4 April 2022). The dividend is fully franked, and the dividend reinvestment plan has been suspended. Those investors who purchased shares of AUB Group before 1 March would receive dividends today. 

The dividend amount represents 54% of the company’s profit, a payout level used by majority of companies. Notably, the dividend has increased by 6.3% on the prior corresponding period.

Related reading: AUB Group (ASX:AUB) hikes dividend by over 6% on profit surge

How AUB performed in the first half of 2022?

During the first half of the financial year 2022 (1HFY22), the underlying net profit after tax increased by 16.7% on pcp to AU$30.6 million. AUB said that acquisitions in Australian agencies and broking contributed to its growth. Organic growth was also seen as a major contributor to the growth.

The 1HFY22 report highlighted that the company is focused on mergers and acquisitions as it acquired Vaughan & Monaghan and GibbsCorp during these six months.

Moreover, managing director and CEO of AUB, Michael Emmett stated that

Performance of AUB shares

On the ASX, AUB shares are trading 1.86% high at AU$22.96 at 11:06 AM AEDT. From the beginning of 2022 until now, the shares of AUB have been struggling as they have declined by over 12%. In the past year, the shares of AUB have generated a return of 17%.


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