AUB Group announces FY22 results

"Australian Broking continued to grow strongly"

AUB Group announces FY22 results

Insurance News

By Daniel Wood

AUB Group Limited has released its FY2022 results. The ASX200 listed company that operates a network of brokers and underwriters across Australia and New Zealand reported a net profit after tax (NPAT) of $74 million from continuing operations, up 22%. The company said the profit came primarily from strong organic growth in Australian Broking and Agencies. However, profits in NZ were down 15%.

“FY22 has been a challenging year for our partners and clients with the ongoing COVID-19 pandemic, major flooding events in Australia and uncertain geopolitical and macroeconomic environments,” said CEO Michael Emmett (pictured above). “This performance underlines the strength and resilience of the business and a commitment to deliver on our shareholders’ growth ambitions.”

The company’s media release said AUB Group acquired the firm 360 Underwriting and restructured the agencies division and reported a more than 40% growth in underlying revenue.

“Australian Broking continued to grow strongly,” said Emmett. “BizCover performed well, growing pre-tax profit by 24.7%.”

The release said international expansion and below expectation performance in intermediated channels meant overall growth was slower.

Emmett said in New Zealand, “the majority of our businesses” performed in-line with expectation.

“However, under-performance in BWRS, our largest equity broker and ongoing investment in our core New Zealand technology project led to a 15.3% decrease in pre-tax profit for the division,” he said

AUB Group’s underlying earnings per share (EPS) increased to 96.70 cents, up 21%. The board announced a fully franked final dividend of 38 cents per share, a slight decrease.

The release said the firm expects to deliver FY23 net profits in the range of $86 million to $91 million, or between 16.2% and 23% growth. This outlook excluded Tysers and the cost of any debt funding from this acquisition.

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