AUB Group has struck an agreement to acquire UK broker and underwriting agency business Prestige for $432 million, furthering its international expansion.

Prestige includes a substantial broking portfolio and specialist managing general agencies providing commercial, specialty and advice-led personal lines products. It also has an insurtech business.

AUB says the investment marks a major strategic step, accelerating its expansion in the UK retail insurance market and positioning it to launch into the nation’s managing general agency segment. 

“Finding the right platform business to expand our UK retail business has been a key strategic focus for AUB as we look to replicate our highly successful Australian model in one of the largest insurance markets globally,” group CEO Mike Emmett said today.

“Prestige comes with a high-quality management team who have a strong track record of growing and managing the business effectively and, importantly, MGA capabilities.”

Under the agreement, AUB will acquire 95.9% of PIHL Holdings, with the deal expected to be completed before June 30, subject to regulatory approval.

The diversified Prestige business, founded in 1973, had more than £310 million ($613 million) gross written premium last year. It has a significant presence across the UK, including 18 retail broking branches and about 650 employees.

AUB today also revealed that first-half underlying net profit after tax is expected to be $90-$91 million, and it has reaffirmed full-year guidance of $215-$227 million, before the impact of Prestige and other shareholding step-ups.