Highlights

  • E&P has issued a positive rating on AUB, with a target price of AUD 40.50.
  • The stock has declined 2.91% over the past year, 9.98% in six months, and 6.17% in the last five days.
  • AUB raised AUD 400 million via institutional placement to fund the Prestige acquisition and other growth initiatives.

AUB Group Limited (ASX:AUB) has received a positive rating from E&P, with a target price of AUD 40.50, even as the company’s shares have struggled over recent periods. On 28 January, the stock dropped 4.73% to AUD 30.40, extending losses over the past year, six months, and five days. The rating highlights broker confidence in AUB, despite the short-term share price weakness.

Shares Slide Amid Market Volatility

Over the past 12 months, the stock has dropped 2.91%, with a 9.98% decline over six months and a 6.17% fall in the last five trading days. On 28 January, the stock reached AUD 30.40, down 4.73%, drawing significant market attention.

The recent decline comes even as investors digest the company’s strategic moves to expand its global footprint and strengthen its UK operations.

$400 Million Placement to Fund Growth

On 28 January, AUB completed an AUD 400 million institutional placement, issuing approximately 13.6 million new shares at AUD 29.40 per share. The placement attracted demand from both existing and new shareholders and represents a 7.9% discount to the last traded price prior to the announcement.

In addition to the placement, AUB plans a AUD 40 million non-underwritten share purchase plan (SPP) for eligible shareholders. Proceeds from the capital raising, together with a new AUD 200 million debt facility with Macquarie Bank, will fund the acquisition of Prestige and support other accretive opportunities.

Prestige Acquisition Strengthens UK Presence

AUB recently signed an agreement to acquire 95.9% of PIHL Holdings Limited (Prestige) for AUD 432 million (GBP 219 million). Prestige is a diversified insurance broking and underwriting platform in the UK with over GBP 300 million in gross written premiums (GWP).

The acquisition complements AUB’s UK strategy, increasing its scale to approximately GBP 720 million GWP in UK Retail. It also adds strategic leadership, specialist broking, and MGA capabilities, reinforcing AUB’s position as a leading platform in the UK market.

Operational and Financial Update

Staying active in M&A, AUB completed roughly 30 transactions in the first half of FY26, including step-ups in Pacific Indemnity and AUB 360 totaling AUD 96 million. The company expects 1H26 UNPAT of AUD 90–91 million and reaffirms FY26 guidance of AUD 215–227 million UNPAT, excluding the impact of Prestige and the step-ups.