AUB makes Tysers changes, hones Australia and NZ focus

AUB Group says it has already made changes at the UK Tysers business that it acquired last year, simplifying the wholesale structure and honing its focus on the Australia and New Zealand market.

Group CEO Mike Emmett said yesterday the wholesale business now comprised marine, non-marine and AUB units, while retention and incentive initiatives had been introduced and all key brokers had been retained since the acquisition. Tysers began contributing to AUB earnings in October.

“A small team with a specialised focus on Australia and New Zealand has been recruited to support the placement of AUB Group business and the expansion of Tysers market share in this region,” he said.

In other portfolio optimisation changes, it earlier this month sold Tysers bloodstock interests to Howden.

“The opportunity at Tysers is very much like the journey we have been on with AUB Group,” Mr Emmett said. “There are opportunities to reduce complexity and cost, to optimise the portfolio of broking teams and businesses, to enhance revenue growth and margins, to acquire bolt on businesses and teams and to work with insurer partners to improve the partnership terms.”

The company announced in January it has appointed Andrew Kendrick a well-known UK insurance industry executive as Tysers Chairman and a non-executive director of the AUB Board.

The company also remains in the process of separating out the Tysers retail business, which it has previously said will become part of a joint venture with PSC Insurance Group.

Mr Emmett says AUB is “more confident than ever” about the strength of Tysers, and its performance had exceeded expectations in the first quarter of ownership.

AUB also highlighted the benefits for its agencies business as pursuit of scale “continues at pace”. The division wrote $830 million of gross written premium in calendar 2022, as the company targets an ambition for the amount to top $1 billion. The business acquired Strata Unit Underwriters (SUU) during the half.

“Our growth in general commercial has been excellent, while our recent acquisition of SUU will accelerate growth and scale in strata,” Mr Emmett said. “We anticipate a strong lift in the scale of our specialty agencies over the next 12 months in part due to the access and capability within Tysers.”

AUB underlying profit rose to $46.7 million in the December half from $30.6 million a year earlier, with a positive contribution from existing operations and the first addition of earnings from Tysers.

Australian Broking underlying pre-tax profit rose 30.3% to $49.9 million as revenue increased and margins expanded as growth in existing operations was supplemented by bolt-on acquisitions and equity step-ups.