AUB has moved to plug a gap in its underwriting agencies portfolio by buying a 70% stake in Australian financial lines business Pacific Indemnity.

“This is an important acquisition for us in terms of that specialty area,” the listed intermediary group's CEO and MD Mike Emmett said.

Pacific, which had gross written premium of $177 million last financial year, has operations across Australia specialising in professional indemnity, directors’ and officers’, and general liability insurance products. In professional indemnity, it has binders with Lloyd’s syndicates and local carriers.

“The acquisition is firmly in line with our strategy to build scale in agencies and in financial lines products in particular,” Mr Emmett said.

AUB will pay $105 million upon completion of the deal – expected on July 1 – and the balance is payable 18 months later on a sliding scale subject to Pacific Indemnity’s 2024-25 performance.

Pacific Indemnity has an enterprise value of $192 million based on the financial terms of the acquisition.