Tysers’ owner cancels UK joint venture

AUB Group completed the £500m purchase of Lloyd’s wholesale broker Tysers from private equity house Odyssey Investment Partners last September.

In March, Tysers Retail Limited was set up as a separate entity, with AUB detailing that it would bring greater focus to Tysers’ retail business.

[Tysers] is a high-performance business, which continues to demonstrate attractive profitability, and it is strategically aligned with AUB’s Retail broking expertise.

Mike Emmett

Following the launch, Tysers’ parent company entered into discussions about a possible joint venture for Tysers Retail with PSC. PSC works across distribution, specialty and investments with operations in Australia, New Zealand, Hong Kong and the UK.

In the UK, its offering includes retail brokers Turner Insurance Group, Trust Insurance, Abaco Insurance Brokers and Absolute Insurance Brokers.

It also has wholesale Lloyd’s and London Markets broker Carrolls, Lloyd’s wholesale broker Paragon and managing general agents Breeze Underwriting and Chase Global.

According to AUB, the process has ended after “extensive discussions”. AUB still owns 100% of Tysers, including Tysers UK Retail.

The outcome

Mike Emmett, AUB Group CEO and managing director, said: “The business is pleased to be retaining 100% of Tysers UK Retail. It is a high-performance business, which continues to demonstrate attractive profitability, and it is strategically aligned with AUB’s Retail broking expertise.

“I would also like to compliment PSC for the professional and accommodating approach it has adopted throughout the process, respecting that the parties have been unable to reach an outcome that aligns to each group’s strategic objectives.”

In addition, AUB reported it was undertaking a AU$150m (£80.1m) raise to replace the money it would have got from the joint venture. The funds will also be used for M&A bolt-ons.

For all the latest industry news direct to your inbox, sign up for our daily newsletter.