Attached files
| file | filename |
|---|---|
| 8-K/A - 8-K/A - Arthur J. Gallagher & Co. | d782280d8ka.htm |
| EX-23 - EX-23 - Arthur J. Gallagher & Co. | d782280dex23.htm |
| EX-99.1 - EX-99.1 - Arthur J. Gallagher & Co. | d782280dex991.htm |
| EX-99.3 - EX-99.3 - Arthur J. Gallagher & Co. | d782280dex993.htm |
Exhibit 99.2
Broking Division
Interim Combined Financial Report
31 December 2013
Contents
| Page | ||||
| Combined Statement of Comprehensive Income |
1 | |||
| Combined Statement of Financial Position |
2 | |||
| Combined Statement of Changes in Equity |
3 | |||
| Combined Statement of Cash Flows |
4 | |||
| Notes to the Interim Combined Financial Statements |
5 | |||
Broking Division
Combined Statement of Comprehensive Income1
For the interim period ended 31 December 2013
| Note | Interim period | Interim | ||||||||||
| ended 31 | period ended | |||||||||||
| December | 31 December | |||||||||||
| 2013 | 2012 | |||||||||||
| ‘000 | ‘000 | |||||||||||
| Revenue |
5 | 174,406 | 160,004 | |||||||||
|
|
|
|
|
|||||||||
| Employee benefits expense |
77,688 | 71,586 | ||||||||||
| Depreciation expense |
3,146 | 2,443 | ||||||||||
| Amortisation expense |
6,976 | 6,024 | ||||||||||
| Marketing expenses |
2,394 | 2,367 | ||||||||||
| Occupancy and office expenses |
10,213 | 9,684 | ||||||||||
| Commission expense |
12,664 | 10,701 | ||||||||||
| Finance expenses |
10,529 | 9,869 | ||||||||||
| Other expenses |
17,059 | 15,479 | ||||||||||
|
|
|
|
|
|||||||||
| Profit before income tax |
33,737 | 31,851 | ||||||||||
|
|
|
|
|
|||||||||
| Income tax expense |
10,124 | 9,626 | ||||||||||
|
|
|
|
|
|||||||||
| Profit after income tax |
23,613 | 22,225 | ||||||||||
|
|
|
|
|
|||||||||
| Net profit for the period |
23,613 | 22,225 | ||||||||||
|
|
|
|
|
|||||||||
| Other comprehensive income |
||||||||||||
| Items that may be subsequently reclassified to profit and loss |
||||||||||||
| Exchange differences on translation of foreign operations |
14,666 | 542 | ||||||||||
|
|
|
|
|
|||||||||
| Total comprehensive income |
38,279 | 22,767 | ||||||||||
|
|
|
|
|
|||||||||
| 1 | The Combined Statement of Comprehensive Income comprises the combination of the entities listed at note 1. |
The notes are an integral part of these interim combined financial statements.
1
Broking Division
Combined Statement of Financial Position1
As at 31 December 2013
| Note | 2013 | 2013 | ||||||||||
| ‘000 | ‘000 | |||||||||||
| Dec | Jun | |||||||||||
| Assets |
||||||||||||
| Current assets |
||||||||||||
| Cash and cash equivalents |
6a | 280,753 | 297,725 | |||||||||
| Trade and other receivables |
7 | 549,152 | 570,332 | |||||||||
| Other current assets |
5,283 | 4,090 | ||||||||||
|
|
|
|
|
|||||||||
| Total current assets |
835,188 | 872,147 | ||||||||||
|
|
|
|
|
|||||||||
| Non-current assets |
||||||||||||
| Property, plant and equipment |
18,481 | 17,785 | ||||||||||
| Identifiable intangible assets |
8 | 55,178 | 58,358 | |||||||||
| Goodwill |
8 | 523,498 | 491,275 | |||||||||
| Receivables |
7 | 49,889 | 49,909 | |||||||||
|
|
|
|
|
|||||||||
| Total non-current assets |
647,046 | 617,327 | ||||||||||
|
|
|
|
|
|||||||||
| Total assets |
1,482,234 | 1,489,474 | ||||||||||
|
|
|
|
|
|||||||||
| Liabilities |
||||||||||||
| Current Liabilities |
||||||||||||
| Trade and other payables |
9 | 433,600 | 526,581 | |||||||||
| Borrowings |
10 | 516,186 | 448,383 | |||||||||
| Current tax liabilities |
2,787 | 6,410 | ||||||||||
| Provisions |
16,470 | 23,883 | ||||||||||
| Other current liabilities |
3,575 | 4,830 | ||||||||||
|
|
|
|
|
|||||||||
| Total current liabilities |
972,618 | 1,010,087 | ||||||||||
|
|
|
|
|
|||||||||
| Non-current liabilities |
||||||||||||
| Provisions |
716 | 697 | ||||||||||
| Deferred tax liabilities |
11,790 | 14,394 | ||||||||||
| Other non-current liabilities |
3,478 | 3,274 | ||||||||||
|
|
|
|
|
|||||||||
| Total non-current liabilities |
15,984 | 18,365 | ||||||||||
|
|
|
|
|
|||||||||
| Total liabilities |
988,602 | 1,028,452 | ||||||||||
|
|
|
|
|
|||||||||
| Net assets |
493,632 | 461,022 | ||||||||||
|
|
|
|
|
|||||||||
| Equity |
||||||||||||
| Owner’s net investment |
403,549 | 385,605 | ||||||||||
| Accumulated other comprehensive income |
90,083 | 75,417 | ||||||||||
|
|
|
|
|
|||||||||
| Total equity |
493,632 | 461,022 | ||||||||||
|
|
|
|
|
|||||||||
| 1 | The Combined Statement of Financial Position comprises the combination of the entities listed at note 1. |
The notes are an integral part of these interim combined financial statements.
2
Broking Division
Combined Statement of Changes in Equity1
For the interim period ended 31 December 2013
| Accumulated other | ||||||||||||
| comprehensive | Owner’s net | |||||||||||
| income | investment | Total equity | ||||||||||
| ‘000 | ‘000 | ‘000 | ||||||||||
| Balance at 1 July 2013 |
75,417 | 385,605 | 461,022 | |||||||||
| Comprehensive income for the period |
||||||||||||
| Profit for the period |
— | 23,613 | 23,613 | |||||||||
| Other comprehensive income |
||||||||||||
| Exchange differences on translation of foreign operations |
14,666 | — | 14,666 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total comprehensive income for the period |
14,666 | 23,613 | 38,279 | |||||||||
|
|
|
|
|
|
|
|||||||
| Transactions with owners, recorded directly in equity |
||||||||||||
| Dividends to equity holders |
— | (5,669 | ) | (5,669 | ) | |||||||
|
|
|
|
|
|
|
|||||||
| Balance at 31 December 2013 |
90,083 | 403,549 | 493,632 | |||||||||
|
|
|
|
|
|
|
|||||||
| Balance at 1 July 2012 |
67,815 | 335,731 | 403,546 | |||||||||
| Comprehensive income for the period |
||||||||||||
| Profit for the period |
— | 22,225 | 22,225 | |||||||||
| Other comprehensive income |
||||||||||||
| Exchange differences on translation of foreign operations |
542 | — | 542 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total comprehensive income for the period |
542 | 22,225 | 22,767 | |||||||||
|
|
|
|
|
|
|
|||||||
| Transactions with owners, recorded directly in equity |
||||||||||||
| Dividends to equity holders |
— | (1,273 | ) | (1,273 | ) | |||||||
|
|
|
|
|
|
|
|||||||
| Balance at 31 December 2012 |
68,357 | 356,683 | 425,040 | |||||||||
|
|
|
|
|
|
|
|||||||
| 1 | The Combined Statement of Changes in Equity comprises the combination of the entities listed at note 1. |
The notes are an integral part of these interim combined financial statements.
3
Broking Division
Combined Statement of Cash Flows1
For the interim period ended 31 December 2013
| Interim period | Interim period | |||||||||||
| Note | ended 31 | ended 31 | ||||||||||
| December | December | |||||||||||
| 2013 | 2012 | |||||||||||
| ‘000 | ‘000 | |||||||||||
| Cash flows from operating activities |
||||||||||||
| Cash receipts from customers |
167,109 | 178,056 | ||||||||||
| Cash paid to underwriters, suppliers and employees |
(133,831 | ) | (125,465 | ) | ||||||||
|
|
|
|
|
|||||||||
| Cash generated from operations |
33,278 | 52,591 | ||||||||||
| Interest received |
10,367 | 9,169 | ||||||||||
| Net premium funding loan advances |
(39,200 | ) | (29,700 | ) | ||||||||
| Net premium funding borrowings |
30,073 | 23,605 | ||||||||||
| Borrowings costs |
(1,413 | ) | (1,896 | ) | ||||||||
| Income tax paid |
(16,351 | ) | (20,963 | ) | ||||||||
|
|
|
|
|
|||||||||
| Net cash from operating activities |
6b | 16,754 | 32,806 | |||||||||
|
|
|
|
|
|||||||||
| Cash flows from investing activities |
||||||||||||
| Purchase of property, plant and equipment and intangibles |
(4,444 | ) | (4,110 | ) | ||||||||
| Investment with subsidiaries of Wesfarmers Ltd |
(35,539 | ) | (8,080 | ) | ||||||||
|
|
|
|
|
|||||||||
| Net cash used in investing activities |
(39,983 | ) | (12,190 | ) | ||||||||
|
|
|
|
|
|||||||||
| Cash flows from financing activities |
||||||||||||
| Proceeds from borrowings |
193 | 2,481 | ||||||||||
| Distributions |
(5,669 | ) | (1,273 | ) | ||||||||
|
|
|
|
|
|||||||||
| Net cash (used in)/from financing activities |
(5,476 | ) | 1,208 | |||||||||
|
|
|
|
|
|||||||||
| Net increase/(decrease) in cash and cash equivalents |
(28,705 | ) | 21,824 | |||||||||
| Net foreign exchange difference |
11,733 | 941 | ||||||||||
| Cash and cash equivalents at 1 July |
297,725 | 255,563 | ||||||||||
|
|
|
|
|
|||||||||
| Cash and cash equivalents at 31 December |
6a | 280,753 | 278,328 | |||||||||
|
|
|
|
|
|||||||||
| 1 | The Combined Statement of Cash Flows comprises the combination of the entities listed at note 1. |
The notes are an integral part of these interim combined financial statements.
4
Broking Division
Notes to the Interim Combined Financial Statements
For the interim period ended 31 December 2013
| 1. | Reporting entity |
The Interim Combined Financial Report comprises the combination of the following entities on 100 per cent terms (together “the Group” or “the Broking Division”):
| Crombie Lockwood (NZ) Limited |
OAMPS Gault Armstrong Pty Ltd | |
| Monument Finance Limited |
OAMPS Insurance Brokers Ltd | |
| Monument Insurance (NZ) Limited |
OAMPS Sports Services Pty Limited | |
| Offshore Market Placements Limited |
OMP Insurance Brokers Ltd | |
| OAMPS Life Solutions Ltd |
Wideland Insurance Brokers Pty Ltd | |
| Australian Taxi Insurance Underwriting Agency Pty Ltd |
Hill’s Environmental Limited | |
| Idobent Pty Ltd |
ZIB Group Holdings Company Limited | |
| Bakop Pty Ltd |
ZIB Holdings Pty Limited | |
| MIB Insurance Brokers Pty Ltd |
ZIB Insurance Brokers Holding Limited | |
| Fraser MacAndrew Ryan Limited |
ZIB Trust | |
| Gault Armstrong Kemble Pty Ltd |
QRL Insurance Finance Agency Pty Ltd | |
| Gault Armstrong SARL (Noumea) |
OAMPS (UK) Limited | |
| OAMPS Ltd |
OAMPS Special Risks Ltd | |
| Arthur J. Gallagher Broking (NZ) Limited (formerly Wesfarmers Broking (NZ) Limited) |
OHES Environmental Limited | |
| Elantis Premium Funding (NZ) Limited (formerly WI Premium Funding Limited) |
OAMPS Credit Pty Ltd | |
| Elantis Premium Funding Limited (formerly Lumley Finance (NZ) Limited) |
Ronell Pty Ltd | |
| Eskdale Holding Pty Ltd |
OAMPS Consulting Pty Ltd |
The ultimate parent company of the Group at 30 June 2013 was Wesfarmers Limited (“Wesfarmers”), a listed company on the Australian Securities Exchange (“ASX”). All entities making up the Broking Division were wholly owned by Wesfarmers for the period presented. The Broking Division has not in the past formed a separate legal group. On 16 June 2014, all entities were purchased (the “Purchase Transaction”) by wholly owned subsidiaries of Arthur J. Gallagher & Co (“AJG”), a company listed on the New York Stock Exchange.
This Interim Combined Financial Report was authorised for issue by the Chief Financial and Operating Officer of Arthur J. Gallagher Australia and New Zealand on 29 August 2014.
The Interim Combined Financial Report has been prepared in accordance with the basis of preparation set out below.
Because of the conventions used to prepare the Interim Combined Financial Report as described below, the Interim Combined Financial Report is not necessarily identical to consolidated financial statements that would have been had the Broking Division formed a separate legal group in the past and may not necessarily reflect the Broking Division’s results of operations, financial position and cash flows in the future. Further, they do not take into account the consequences of the Purchase Transaction.
The Broking Division is primarily involved in the provision of insurance broker and premium funding services.
5
Broking Division
Notes to the Interim Combined Financial Statements
For the interim period ended 31 December 2013
| 2. | Basis of preparation |
This half year financial report has been prepared in accordance with International Financial Reporting Standard IAS 34 Interim Financial Reporting, except that the Broking Division does not constitute a group as defined in IAS 27 Consolidated and Separate Financial Statements.
The half year report does not include all notes of the type normally included in an annual financial report and therefore cannot be expected to provide as full an understanding of the financial performance, financial position and financing and investing activities of the Combined Group as the full financial report.
It is recommended that the half year report be read in conjunction with the combined financial report for the year ended 30 June 2013.
The accounting policies and methods of computation adopted in the preparation of the half year financial report are consistent with those adopted and disclosed in the combined financial report for the year ended 30 June 2013 except as noted below.
| 3. | Significant accounting policies |
| (a) | New standards and interpretations |
| (i) | New and revised Accounting Standards and Interpretations |
All new and amended International Accounting Standards and Interpretations, issued by the International Accounting Standards Board (‘the IASB’), mandatory as of 1 July 2013 have been adopted. The adoption of new standards and interpretations has not resulted in a material change to the financial performance or position of the Broking Division.
| (ii) | Accounting Standards and Interpretations issued but not yet effective |
The following standards, amendments to standards and interpretations have been identified as those which may impact the Broking Division in the period of initial application:
| Reference |
Title |
Application date for Broking Division | ||
| IFRS 9 | Financial Instruments | 1 July 2018 | ||
| On 24 July 2014 The IASB issued the final version of IFRS 9 which replaces IAS 39 and includes a logical model for classification and measurement, a single, forward-looking ‘expected loss’ impairment model and a substantially-reformed approach to hedge accounting.
IFRS 9 is effective for annual periods beginning on or after 1 January 2018. However, the Standard is available for early application. The own credit changes can be early applied in isolation without otherwise changing the accounting for financial instruments.
The final version of IFRS 9 introduces a new expected-loss impairment model that will require more timely recognition of expected credit losses. Specifically, the new Standard requires entities to account for expected credit losses from when financial instruments are first recognised and to recognise full lifetime expected losses on a more timely basis. |
||||
| IFRS 15 | Revenue from Contracts with Customers | 1 July 2017 | ||
| The core principle of IFRS 15 is that an entity recognises revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. | ||||
The Broking Division has yet to assess the impact of these new standards and interpretations.
6
Broking Division
Notes to the Interim Combined Financial Statements
For the interim period ended 31 December 2013
| 4. | Changes in Accounting Policies |
There have been no changes in accounting policies and all policies have been applied on a consistent basis across the periods presented.
| 5. | Revenue and expenses |
| 2013 | 2012 | |||||||
| Dec | Dec | |||||||
| ‘000 | ‘000 | |||||||
| Revenue |
||||||||
| Interest |
37,663 | 34,400 | ||||||
| Commission and fees |
131,916 | 122,067 | ||||||
| Other revenue |
4,827 | 3,537 | ||||||
|
|
|
|
|
|||||
| 174,406 | 160,004 | |||||||
|
|
|
|
|
|||||
| 6a. | Cash and cash equivalents |
| 2013 | 2013 | |||||||
| Dec | June | |||||||
| ‘000 | ‘000 | |||||||
| Cash at bank and on deposit |
92,984 | 99,353 | ||||||
| Broking trust accounts |
187,769 | 198,372 | ||||||
|
|
|
|
|
|||||
| 280,753 | 297,725 | |||||||
|
|
|
|
|
|||||
The cash held in the broking trust accounts is subject to trust account rules. It is used for the collection and dissemination of client monies to third parties and is not available for the Broking Division to fund general everyday operations. The balance includes undrawn fees and commission.
7
Broking Division
Notes to the Interim Combined Financial Statements
For the interim period ended 31 December 2013
| 6b. | Reconciliation of cash flows from operating activities |
| 2013 | 2012 | |||||||
| ‘000 | ‘000 | |||||||
| Cash flows from operating activities |
||||||||
| Profit after tax for the period |
23,613 | 22,225 | ||||||
| Adjustments for: |
||||||||
| Depreciation and amortisation |
10,122 | 8,467 | ||||||
| Interest on inter-company borrowings |
9,116 | 7,973 | ||||||
|
|
|
|
|
|||||
| (Increase)/decrease in assets: |
||||||||
| Trade and other receivables |
31,851 | 18,980 | ||||||
| Other assets |
(1,193 | ) | 15 | |||||
| Increase/(decrease) in liabilities: |
||||||||
| Trade and other liabilities |
(72,156 | ) | (28,863 | ) | ||||
| Other liabilities |
(1,051 | ) | (1,242 | ) | ||||
| Provisions |
(7,394 | ) | (7,017 | ) | ||||
| Premium funding borrowings |
30,073 | 23,605 | ||||||
| Tax liabilities |
(6,227 | ) | (11,337 | ) | ||||
|
|
|
|
|
|||||
| Cash generated from operating activities |
16,754 | 32,806 | ||||||
|
|
|
|
|
|||||
| 7. | Trade and other receivables |
| 2013 | 2013 | |||||||
| Dec | June | |||||||
| ‘000 | ‘000 | |||||||
| Current |
||||||||
| Trade receivables |
164,287 | 253,824 | ||||||
| Allowance for doubtful debts |
(1,388 | ) | (1,283 | ) | ||||
| Deposits with subsidiaries of Wesfarmers Ltd |
35,559 | — | ||||||
| Other receivables |
11,794 | 10,048 | ||||||
|
|
|
|
|
|||||
| 210,252 | 262,589 | |||||||
|
|
|
|
|
|||||
| Finance advances |
339,450 | 308,296 | ||||||
| Allowance for impairment |
(550 | ) | (553 | ) | ||||
|
|
|
|
|
|||||
| 549,152 | 570,332 | |||||||
|
|
|
|
|
|||||
| 2013 | 2013 | |||||||
| Dec | June | |||||||
| ‘000 | ‘000 | |||||||
| Non - current |
||||||||
| Amounts receivable from subsidiaries of Wesfarmers Ltd |
49,889 | 49,909 | ||||||
|
|
|
|
|
|||||
| 49,889 | 49,909 | |||||||
|
|
|
|
|
|||||
The amounts receivable from subsidiaries of Wesfarmers Ltd are non-interest bearing and are repayable on demand.
8
Broking Division
Notes to the Interim Combined Financial Statements
For the interim period ended 31 December 2013
| 8. | Intangible assets |
| Goodwill | Customer relationships |
Total | ||||||||||
| ‘000 | ‘000 | ‘000 | ||||||||||
| 2013 |
||||||||||||
| Cost |
523,498 | 130,511 | 654,009 | |||||||||
| Accumulated Amortisation |
— | (75,333 | ) | (75,333 | ) | |||||||
|
|
|
|
|
|
|
|||||||
| Carrying amount at 31 December 2013 |
523,498 | 55,178 | 578,676 | |||||||||
|
|
|
|
|
|
|
|||||||
| 2013 |
||||||||||||
| Cost |
491,275 | 122,738 | 614,013 | |||||||||
| Accumulated Amortisation |
— | (64,380 | ) | (64,380 | ) | |||||||
|
|
|
|
|
|
|
|||||||
| Carrying amount at 30 June 2013 |
491,275 | 58,358 | 549,633 | |||||||||
|
|
|
|
|
|
|
|||||||
| 9. | Trade and other payables |
| 2013 | 2013 | |||||||
| Dec | June | |||||||
| ‘000 | ‘000 | |||||||
| Current |
||||||||
| Trade payables |
398,498 | 486,887 | ||||||
| Amounts payable to subsidiaries of Wesfarmers Ltd |
35,102 | 39,694 | ||||||
|
|
|
|
|
|||||
| 433,600 | 526,581 | |||||||
|
|
|
|
|
|||||
The amounts payable to subsidiaries of Wesfarmers Ltd are non-interest bearing and are repayable on demand.
| 10. | Borrowings |
| 2013 | 2013 | |||||||
| Dec | June | |||||||
| ‘000 | ‘000 | |||||||
| Current: unsecured |
||||||||
| Premium funding borrowings |
171,265 | 137,763 | ||||||
| Other non-interest bearing borrowings |
20,572 | 20,470 | ||||||
| Other interest bearing borrowings (a) |
324,349 | 290,150 | ||||||
|
|
|
|
|
|||||
| 516,186 | 448,383 | |||||||
|
|
|
|
|
|||||
| (a) | This relates to a floating rate loan provided to the Broking Division to fund its acquisition of Crombie Lockwood Holdings in 2007 from a Wesfarmers Ltd subsidiary at a weighted average interest rate of 4.36%. The loan is unsecured with no specific repayment terms. This loan was fully repaid on 23 May 2014 (refer to note 12). |
9
Broking Division
Notes to the Interim Combined Financial Statements
For the interim period ended 31 December 2013
| 11. | Contingencies and commitments |
The directors are of the opinion that provisions are not required in respect of these matters, as it is not probable that a future sacrifice of economic benefits will be required or the amount is not capable of reliable measurement. The Broking Division had contingent liabilities at 31 December 2013 in respect of:
Claims
The Broking Division had various outstanding legal claims in the ordinary course of the business which the Directors have reviewed in detail. Having regard to all known facts at this time and with the necessary insurance policies in place at balance date, the Directors do not anticipate any material losses in respect of these contingent liabilities.
Guarantees
Guarantees given in respect of the performance of its contracts to third parties and leases of rental premises amounting to $852,217 (2012: $852,217).
Operating lease commitments
The Broking Division has entered into commercial leases on office, retail and distribution properties, motor vehicles and office equipment. The lease terms and implicit interest rates vary significantly. For the lease of buildings, the lease terms range from one year to 25 years and have various renewal or purchase options, escalation clauses, termination rights and residual liability clauses.
Future undiscounted minimum rentals payable under non-cancellable operating leases not included within this financial report were as follows:
| 2013 | 2012 | |||||||
| December | December | |||||||
| ‘000 | ‘000 | |||||||
| Within one year |
11,706 | 9,370 | ||||||
| Greater than one year but not more than five years |
29,596 | 24,574 | ||||||
| More than five years |
8,804 | 2,214 | ||||||
|
|
|
|
|
|||||
| 50,106 | 36,158 | |||||||
|
|
|
|
|
|||||
Capital commitments
Commitments arising from contracts for capital expenditure contracted for at balance date not included in this financial report were as follows:
| 2013 | 2012 | |||||||
| December | December | |||||||
| ‘000 | ‘000 | |||||||
| Within one year |
— | 630 | ||||||
|
|
|
|
|
|||||
| — | 630 | |||||||
|
|
|
|
|
|||||
10
Broking Division
Notes to the Interim Combined Financial Statements
For the interim period ended 31 December 2013
| 12. | Subsequent events |
In January 2014 the Broking Division acquired the TCIS business in New Zealand for approximately A$3 million. On 23 May 2014, Arthur J. Gallagher Broking (NZ) Limited (formerly Wesfarmers Broking (NZ) Limited) received a capital injection of NZ$361.4 million from its immediate parent Wesfarmers Insurance Investments Pty Ltd. Arthur J. Gallagher Broking (NZ) Limited used these funds to repay the loan it owed to a Wesfarmers Ltd subsidiary in full (note 10).
On 13 June 2014, OAMPS Limited declared and paid a A$110 million dividend to its immediate parent, Wesfarmers Insurance Investments Pty Ltd.
On 13 June 2014, Arthur J. Gallagher Broking (NZ) Limited (formerly Wesfarmers Broking (NZ) Limited), declared and paid a NZ$25 million dividend to its immediate parent, Wesfarmers Insurance Investments Pty Ltd.
On 16 June 2014, the Broking Division was acquired by subsidiaries owned by Arthur J. Gallagher & Co. On this date, the Premium Funding entities loans owing to Wesfarmers Ltd group subsidiaries were repaid and replaced by external debt facilities.
Other than the matter noted above and throughout these financial statements, there have been no events subsequent to balance date which would have a material effect on the Broking Division’s combined financial report at 31 December 2013.
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