New PSC chairman to ‘find acquisitions’ after Honan, Tysers snags
Incoming PSC Insurance Group non-executive Chairman Paul Dwyer will support the broker’s search for potential investment opportunities when he takes over from Brian Austin after the annual general meeting in November.
PSC announced the changes last week after it lost out this month to US broking giant Marsh in the bidding race to acquire Honan Insurance Group and scrapped a proposed Tysers UK retail joint venture with AUB Group in May.
Mr Dwyer, presently non-executive Deputy Chairman, founded the group in 2006 and was MD until 2019. Mr Austin will remain on the board, taking over Mr Dwyer’s current position and he will also be Chair of the PSC Asian businesses.
MD Tony Robinson says Mr Dwyer as Chairman will use his network “to find other acquisitions and seeding opportunities” for PSC.
“We want to be a globally significant broker,” Mr Robinson said in an earnings call where he revealed PSC was among the bidders for Honan.
“It’s been an interesting year for us. We had a go at a couple of big steps. One was Tysers and the second was Honan. Unfortunately, neither of those came off.”
Despite the Tysers and Honan setbacks, Mr Robinson says PSC will continue with its acquisition strategy, one that has paid off in the form of strong earnings contributions to the business.
“As a group we continue to focus on organic growth and that’s made a great contribution to the result this year and will certainly do so going forward and we’ve got a strong acquisition pipeline,” he said.
The business invested more than $50 million acquiring businesses in the financial year and completed 13 deals during the period including Ensurance UK.
PSC’s full year underlying earnings before interest, tax, depreciation and amortisation (EBITDA) rose 19% to $111 million from a year earlier, in line with PSC’s revised guidance at the start of the month.
Net profit after tax and amortisation, also on an underlying basis, gained 23% to $78.4 million for the year to June 30.
PSC’s Distribution business – which comprises of insurance broking including PSC Network Partners, life broking and workers’ compensation consulting – recorded $1.15 billion in gross written premium (GWP).
The division’s underlying revenue rose to $128.2 million from $108.3 million a year earlier and underlying EBITDA increased, to $56.4 million from $48.3 million.
The Agency business, made up of underwriting agencies including Chase and Breeze, achieved GWP of $140 million. Underlying revenue improved to $23.7 million from $20.8 million and underlying EBITDA to $13 million from $11.1 million.
Results for the UK business, which also includes its growing Hong Kong operations, performed well. Underlying revenue grew 15% to $142.3 million and underlying EBITDA 18.1% to $46.2 million.
For this financial year PSC is still aiming for an underlying EBITDA of $122-127 million, as flagged earlier this month, and an underlying net profit after tax of $82-86 million.