Ashurst, HSF headline insurance firm acquisition

Australian banks have recently been increasing focus on core offerings, one of the firms says

Ashurst, HSF headline insurance firm acquisition

Ashurst and Herbert Smith Freehills (HSF) are playing key roles in the acquisition of St. Andrew’s Insurance.

Ashurst acts for Freedom Insurance Group (FIG), which entered into a share-sale agreement to acquire the insurer from Bank of Queensland Limited (BOQ) for $65m. HSF advises BOQ.

The acquisition is expected to grow FIG’s manufacturing and distribution network while establishing its underwriting capability, Ashurst said. FIG has agreed to a three-year distribution agreement with BOQ for St Andrew’s products.

The Ashurst team is led by partner Phil Breden of the firm’s corporate group. He was supported by partners Con Tzerefos (regulatory), Rehana Box (insurance), Barbara Phair and  Peter McCullough (tax), Kenneth Tang (banking and finance), Jane Harvey (employment), Jason Cornwall-Jones (property), and Kellech Smith (IP).

FIG is funding about $35m of the consideration through a reinsurance agreement. The rest will be paid in cash, said HSF. The deal, which requires regulatory approvals including from the Australian Prudential Regulation Authority, is expected to close in the second half of the year.

“The sale is consistent with the recent market trend of Australian banks increasingly focusing on their core offerings in the retail and business banking sectors,” said Peter Dunne, HSF partner.

Along with Dunne, partner Michael Vrisakis, special counsel Philip Hopley and Yuban Moodley, senior associate Wendy Tian, and solicitors Liz McKinstry and Rebekah Lam are part of the HSF team.

Aura Capital is the financial adviser to FIG. Deloitte is the actuarial, tax, and accounting adviser to FIG. Citi is the financial adviser to BOQ.

Free newsletter

Subscribe to our FREE newsletter service and we’ll keep you up-to-date with the latest breaking news, cutting edge opinion, and expert analysis affecting both your business and the industry as whole.

Please enter your email address below and click on Sign Up for daily newsletters from Australasian Lawyer.

Recent articles & video

Allens assists on $1.4bn capital raising applying ASX temporary class waiver

Hall & Wilcox plays major role in assets acquisition by fintech investor

CEO and managing partner parts ways with DWF

Authenticity and trustworthiness are critical to professional success, says G+T partner

Global healthcare company receives $1.2bn equity boost with HSF’s help

US bar comments on nationwide protests after George Floyd death

Most Read Articles

Lander & Rogers beefs up technology and digital practice with new partner

COVID-19 and Australian courts and legal bodies updates: 1 June

KWM helps industrial chemicals manufacturer cook up $600m in capital raising under COVID-19

Baker McKenzie’s IPTech team gets an upgrade with new partner