Aura Group

AURA GROUP

News and Insights

Freedom Insurance Group To Acquire St. Andrew’s Insurance From Bank of Queensland

 

Aura Group (“Aura”) is pleased to announce ASX-listed life insurance business, Freedom Insurance Group Limited (FIG.ASX or “Freedom”) has entered into an agreement for the acquisition of St. Andrew’s Insurance from Bank of Queensland (BOQ.ASX)[1] (“Acquisition”). Total consideration for the acquisition is $65 million which will be comprised of;

  • approx. $35 million quota reinsurance arrangement from a leading global reinsurer based on the existing St. Andrew’s life insurance in-force policies;

  • $20 million in new debt; and

  • $10 million from existing cash reserves.

BOQ have also agreed to enter into a three-year distribution arrangement (with an option to extend at expiry) with FIG in order to provide life insurance products to BOQ’s clients.

Aura Capital, the corporate advisory division for Aura, acted as the buy-side financial adviser and debt arranger to the Acquisition.

“This is a great acquisition and result for Freedom” says Trent Donnelly, Managing Director of Aura Capital. “It is exciting to see the strong growth of the business since inception, and we would like to congratulate Freedom and its management team on achieving this significant milestone today”.

Historically, Aura has had a long standing relationship with FIG including;

  • Aura’s principals and related parties were one of the first external group to provide seed funding in 2009;

  • across 2013 to 2014 acted as the financial adviser and debt arranger to Freedom’s two debt capital raises; in 2014 acted as the financial adviser to Freedom’s strategic investment into a registered life insurer in Australia;

  • in 2015 acted as the M&A and financial adviser to Freedom’s acquisition of a risk-focussed insurance dealer group and a $6.6m pre-IPO equity capital raise; and

  • in 2016 acted as the financial adviser to Freedom’s $15m Initial Public Offer on the ASX with a market capitalisation of circa $84 million upon listing.

For further details to the Acquisition please see ASX announcement and Company Presentation If you would like to know more about our current projects or have any queries in relation to this update, please do not hesitate to contact:

Trent Donnelly
Managing Director, Aura Capital
Tel: +61 425 214 630
Email: trent.donnelly@aura.co