PSC Insurance Earnings and Corporate Action: Vote in Favor of Acquisition by Ardonagh

PSC Insurance reported a solid fiscal 2024 result in what is likely a curtain call on an impressive growth track record. EBITDA increased by 15% to AUD 127 million with underlying earnings per share up 8% to AUD 0.24, beating our forecasts by around 7%. With the resiliency of insurance broking demand, combined with organic growth from premium increases and efficiency improvements, plus revenue and cost synergies from acquisitions, it is no wonder Ardonagh Group was willing to cough up an almost 20% premium to our fair value to acquire PSC Insurance. Our unchanged fair value estimate of AUD 6.19 assumes PSC Insurance is acquired by Ardonagh Group, with the two parties having entered a scheme implementation deed in May 2024.