Elders has “re-acquired” 10% of Elders Insurance Underwriting Agency (EIUA) from QBE.

It sold the final tranche of its investment in EIUA to QBE in June 2014 to retire debt, and has now purchased the holding for the same net-profit-after-tax multiple.

The cash price has not been disclosed.

EIUA is the vehicle through which Elders Insurance-branded cover, underwritten by QBE, is distributed in rural and regional Australia through Elders Insurance franchisees. There are franchisees in 150-plus locations nationally.

Elders CEO Mark Allison says the re-investment in the underwriting agency is “a further step in the implementation of our eight-point plan”.

“This purchase is a clear demonstration of our commitment to growing our financial services businesses,” he said.

“An equity stake in EIUA improves the alignment between its franchise network and Elders’ branch network by delivering a share of EIUA’s earnings to Elders.”