PSC Insurance Group sees strong 2024 financial gains
PSC Insurance Group sees strong 2024 financial gains | Insurance Business Australia
Insurance News
PSC Insurance Group sees strong 2024 financial gains
Company advances strategic plans, eyes major merger
Insurance News
By
Roxanne Libatique
PSC Insurance Group Limited (PSC) has released its financial results for the fiscal year ending 2024 (FY24), highlighting growth across key financial indicators.
The company reported a 16% increase in underlying revenue, reaching $343.6 million. Underlying EBITDA rose by 15% to $127.1 million, and underlying NPATA increased by 11% to $87 million. Earnings per share grew by 8% to 24 cents.
The company has also advanced its strategic goals by investing in start-up businesses, completing its transition to full independence in insurer dealings, and identifying a merger partner to enhance its global insurance broking operations.
PSC Insurance Group segments’ 2024 performance
PSC’s various business segments experienced differing outcomes amidst challenging market conditions:
Australian broking
This segment maintained its position as a key player in the SME market.
The company emphasised the complexity of managing large-scale operations, citing the commitment of its workforce and leadership in achieving its goals.
“It requires commitment from all individuals in that business and an ability of the leaders to respond and support the front of the business to ensure we continue to provide our clients with fantastic outcomes,” the company said.
PSC Network
The network business successfully navigated significant system changes, achieving strong financial results, with substantial contributions from its authorized representatives.
“Our PSC Network business worked through the difficulties and complexities of needing to guide its authorised representatives (ARs) through a period of significant systems change and to help develop those replacement systems,” the company said.
Underwriting agencies
The segment saw growth through the acquisition of early-stage businesses and the launch of new ventures. Despite facing challenging market conditions, the segment retained key clients and broker relationships.
“This is an area of the group that has strong and capable leadership in each of its core pieces and the segment as a whole,” PSC said.
Paragon
The specialty insurance business grew despite facing challenges from fluctuating rates and market conditions in both local and London markets.
Carrolls
The business continued to expand, increasing the number of brokers it supports and diversifying its offerings, setting the stage for further growth.
“The business has a strength and ability to continue to grow significantly over the next few years as it successfully and capably continues to pull both those levers,” the group said.
UK commercial broking
This segment reported strong growth, supported by leadership changes and strategic restructuring, with a positive outlook for the upcoming fiscal year.
PSC Insurance Group’s growth and outlook
PSC achieved 8% organic EBITDA growth, totalling $9.1 million, driven primarily by the distribution and UK segments. The company maintained steady EBITDA margins at 37%.
Throughout the year, PSC completed 14 acquisitions, investing approximately $50 million, with a focus on smaller, accretive deals.
Due to the ongoing scheme of arrangement with Ardonagh, PSC has not declared a dividend for FY24. This decision aligns with the scheme terms, which stipulate that any dividend would reduce the consideration payable to shareholders.
Looking ahead, PSC’s leadership expressed optimism about the company’s future, particularly in light of the potential completion of the merger with Ardonagh.
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