Ardonagh’s A$2.3bn PSC deal clears key hurdle

Ardonagh Group has received shareholder approval to acquire PSC Insurance Group Limited for A$2.3 billion, bringing both companies closer to completing the transaction.

The acquisition, announced in May 2024, was approved by PSC shareholders following a vote and is expected to strengthen Ardonagh’s retail, specialist and wholesale businesses.

Commenting on the shareholder support, Ardonagh Group CEO David Ross said the support of PSC shareholders confirmed the soundness of the combination of the two businesses.

“PSC’s history and strategy mirrors our own history in many ways. Like Ardonagh, it is a business built on entrepreneurial spirit and high-quality teams moving in formation together, and we will soon have much to build together,” he said.

He noted that the combined businesses create growth opportunities in Australia and globally, particularly in specialist markets.

PSC CEO Paul Dwyer summed up the company’s history, noting its development from a small company to a significant player in the insurance market.

“PSC was founded 18 years ago with just five people. We are proud to have reached this milestone and grateful to our colleagues who have accompanied us on this extraordinary journey as we have built trust and capital in the market,” he said.

He added that the acquisition offers PSC shareholders, employees and customers a solid platform for future growth.

PSC delivers strong financial results in fiscal year 2024

As the acquisition progressed, PSC announced solid financial results for the fiscal year ending 2024.

The company’s fiscal 2024 performance also included strategic highlights such as achieving record earnings, making significant investments in start-ups and continuing to transition towards independence in its insurance business.

PSC completed 14 acquisitions during the year, investing around A$50 million in smaller deals that boosted profits.

The Scheme Implementation Agreement with Ardonagh was signed in May 2024 and the PSC issued a Scheme Brochure on the ASX in August, providing shareholders with details of the transaction. As part of the agreement, the PSC did not declare a dividend for the 2024 financial year because any dividend would reduce the consideration payable to shareholders under the Scheme of Arrangement.