AUB Group reports half-year results

Here’s how the insurance group, which consists of retail & wholesale insurance brokers and underwriting agencies, performed in 1H23:

Metric

1H23

1H22

Underlying revenue

$466 million

$327.2 million

Net profit after tax (NPAT)

$364,000

$29.7 million

Underlying NPAT

$46.7 million

$30.6 million

According to AUB’s investor presentation, underlying revenue in all divisions – Australian Broking, BizCover, Agencies, New Zealand Broking, and Tysers – went up. In terms of underlying pre-tax profit, Tysers contributed $18 million; Australian Broking, $49.9 million; Agencies, $12.3 million; New Zealand Broking, $4.8 million; and BizCover, $5.7 million.

The reported NPAT, said AUB, was impacted by acquisition expenses.

“All parts of AUB Group performed strongly during 1H23 with momentum continuing into the second half,” commented chief executive and managing director Michael Emmett. “As a result, we have upgraded the outlook for the full year.

“Tysers performance for the three months since acquisition on October 1 has exceeded our forecasts. Australian Broking and Agencies continue to grow delivering healthy expansion of underlying margins while in New Zealand our new broking platform is live at the first brokerage.”

The group boss highlighted that AUB has made better progress against medium-term margin targets than originally anticipated, thanks to its various portfolio consolidation and optimisation strategies and the deployment of technologies and enhanced insurer arrangements and products.

The AUB board, meanwhile, has determined a fully franked dividend of 17¢ per share.