Riverside to buy Australian insurance broker

AUB recently increased its position in the company from 56.9% to 75.4% to facilitate the transaction. Completion of the sale is expected in April, according to a filing.

AUB’s health and rehabilitation portfolio, which includes Altius, “delivered robust growth as a result of transformation efforts to improve efficiency and utilization,” during the 2020 financial year, according to AUB's latest annual report. Pre-tax profit for the division increased 330% year-on-year to A$4.2 million.

Altius markets itself as comprehensive workplace wellbeing and rehabilitation services provider, with separately branded products across physical, mental, and social health coverage areas.

It claims to provide tailored, holistic services in workplace health and safety, claims support, and employment issues such as recruitment and pre-hire screening. This includes psychological reviews to determine fitness for work and services as detailed as home office ergonomic assessments.

The sale of the company completes an exit from the health and rehabilitation services space for AUB, which will now focus on its core insurance brokering and underwriting businesses.

AUB worked with private equity in 2019 when it offered to acquire a 49% stake in Coverforce, Australia’s largest privately-owned insurance broker, from Pemba Capital Partners. The transaction fell through when a due diligence deadline lapsed. Pemba reportedly exited its position to Coverforce management in December.

Pemba and Anacacia Capital were among the parties interested in acquiring Altius in recent months, according to The Australian Financial Review. Pemba invested in a string of workforce services companies in 2019, including one that focuses on disability insurance. Anacacia was active in the local personnel management space as recently as March 2020, when it invested in Sureway Employment & Training.

Riverside has made more than 650 control and minority investments globally since 1998 and currently claims a portfolio of about 110 companies. In Asia, the firm concentrates on family-founded or small corporate carve-outs across healthcare, education, software, specialty manufacturing, and franchise-based companies.

Last year, the firm reached a second close of A$261 million on its third buyout fund dedicated to Australia and New Zealand. The target is A$350 million.

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• Topics
• Australasia
• Buyouts
• Financials
• Healthcare
• Support services
• Australia
• The Riverside Company
• insurance
• professional services