PSC Insurance Group says London-based Paragon International, the Lloyd’s broker it acquired last year for a base consideration of £42 million ($78 million), has achieved revenue growth of 27% so far.

The growth has been driven by new client acquisition, improved rates in its key professional and financial lines specialties plus the strength of its underlying client base, the Melbourne-based listed broker says in an investor update.

While growth is tipped to moderate this calendar year, PSC remains confident that Paragon will still be able to record strong growth in the medium term.

The confidence stems from Paragon’s “skills in the business, its credibility in the London underwriting markets and US broker market, the classes of insurance they specialise in and the quality of the business leadership,” PSC says.

The second tranche of payment for the Paragon acquisition, which is due in June, will come up to about £24.17 million ($44.9 million) in cash and £20.67 million ($38.4 million) in PSC shares.

The £42 million acquisition price is subject to adjustment based on Paragon’s earnings for last year and this year.