AUB GROUP LIMITED — Capital/Financing Update 2020

Nov 30, 2020

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1 December 2020

The Manager Market Announcements Office Australian Securities Exchange Ltd Level 6, Exchange Centre 20 Bridge Street Sydney NSW 2000

FOR RELEASE TO THE MARKET

AUB Group announces acquisition of 360 Underwriting Solutions and restructure of Underwriting Agencies

AUB Group Limited ( ASX: AUB ), Australasia’s largest equity-based insurance broker network, today announced it has acquired 360 Underwriting Solutions.

360 Underwriting Solutions is a group of ten leading underwriting agencies dedicated to the provision of specialist Insurance solutions for Brokers and their customers, driving a combined annual GWP of $170mn. 360 Underwriting Solutions is an established partner of Austbrokers and the acquisition allows AUB Group to strengthen and expand the scale and role of our Agencies to better support the Austbrokers network and other broking clients.

The acquisition is aligned with AUB Group’s growth agenda and facilitates a significant restructure of the Underwriting Agencies division to expand our scale, expertise and market share. As part of the restructure, our Underwriting Agencies division will establish a ‘ General Commercial Underwriting’ subdivision within which a new entity will acquire 100% of 360 Underwriting Solutions, as well as equity stakes in four existing AUB Group agencies namely Fleetsure, SURA Hospitality, SURA Bus and Coach and SURA Plant and Equipment. The new entity will have a total GWP of $270mn and commence operation from 1 December 2020.

The total value of the equity interests acquired in 360 Underwriting Solutions together with the value of equity in existing AUB Group agencies transferred into General Commercial Underwriting is $127mn. This is being facilitated by cash payments of $25mn as well as shares in the new entity.

The founders and vendors of 360 Underwriting, Denis Morrissey and Chris Lynch, will become shareholders in the new General Commercial entity and be responsible for leading the business with the same passion for service, culture and growth that have underpinned the success of 360 Underwriting.

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The acquisition of 360 Underwriting Solutions and benefits from the restructure of the Underwriting Agencies division will be marginally accretive to EPS in FY21 with increased benefits in FY22.

As part of the restructure, AUB will also:

• establish a new ‘Strata Agencies’ subdivision to co-ordinate existing Strata agencies and increase the scale and focus on Strata; and

• establish the ‘SURA Specialty’ subdivision comprising the remainder of the current agencies.

Following these changes, the Underwriting Agencies division will comprise three subdivisions:

• General Commercial Underwriting, comprising fourteen agencies with a total GWP of $270mn operating primarily under the 360 Underwriting Solutions brand;

• SURA Specialty, comprising thirteen agencies and providing specialty insurance products targeted at specific industries or risk classes with a total GWP of $112mn; and

• Strata Agencies, comprising a collection of current Strata agencies including Longitude, SURA Strata and Expert Strata with a total GWP of $82mn.

Mike Emmett, AUB Group CEO and MD said, “360 Underwriting Solutions is highly regarded for its underwriting expertise and insurance servicing capabilities in the Australian market. They have a strong presence across SME general insurance and enjoy a leading position in key market segments. The acquisition is aligned to the Group’s disciplined approach to M&A in acquiring businesses that accelerate our portfolio scale and growth, whilst adding to our core capabilities. I’d like to welcome Denis, Chris and the rest of the 360 team to the AUB family and look forward to enabling the accelerated growth of 360 as well as delivering synergy benefits across the broader Underwriting Agencies division.”

ENDS

This release has been authorised by the AUB Board.

For further information, contact David Franks, Joint Company Secretary, on +61 2 8098 1169 or davidf@aubgroup.com.au

About AUB Group

AUB Group Limited is Australasia’s largest equity-based insurance broker network driving approximately A$3.4 billion GWP across its network of 94 businesses, servicing 700,000 clients and over one million policies across more than 450 locations.