AUB Group's International division - the segment housing Lloyd's wholesale broker Tysers and the group's expanding UK retail operations - was the standout performer in FY26 results released to the Australian Securities Exchange (ASX) today, lifting underlying net profit before tax 19.6% to A$124.5 million and expanding EBIT margin by 410 basis points to 27.6%.
"AUB Group begins FY27 with greater scale, a stronger portfolio and clear opportunities to lift returns for shareholders," said AUB Group CEO Michael Emmett (pictured). "In FY26, we delivered record earnings and higher margins, despite moderating insurance markets, while continuing to invest for long-term growth."
He said the performance reflected the breadth of the Group and was led by the strong progress internationally.
At group level, AUB reported underlying net profit after tax of A$224.6 million, up 12.2%, on revenue of A$1,596.6 million. Statutory net profit fell to A$96.0 million from A$180.1 million, reflecting A$62.7 million of impairment charges and A$48.8 million of amortisation on customer and servicing contracts. Guidance for FY27 is underlying NPAT of A$245 million to A$265 million.
The International result was the largest single contributor to group margin improvement, with divisional EBIT rising 24.5% to A$136.4 million. AUB credited profit growth at Tysers to revenue growth in marine and aviation, alongside disciplined expense management despite currency headwinds - and noted in its investor presentation that the division benefited from elevated war rates.
That reference is significant for London market brokers. Marine war and related lines have been repriced sharply through the current period of geopolitical disruption and AUB's disclosure is a rare instance of a listed distribution group explicitly attributing margin gain to that rate movement rather than to volume or synergy capture.
The bridge AUB provided shows how the 24.5% EBIT uplift was assembled: a negative A$11.4 million currency impact, then A$13.8 million of organic growth, A$6.0 million from the non-recurrence of a Tysers bonus period re-alignment in the prior year, and A$18.4 million from acquisitions.
Tysers, founded in 1820 and operating from the Lloyd's market, sits within an International segment that now spans approximately 61 locations, around 1,800 staff and roughly A$5.1 billion in premium, contributing 31% of group revenue excluding corporate.
The acquisition of Prestige Insurance completed in March 2026 and is now the primary brand for AUB's UK retail operations, with Tysers' retail portfolios being consolidated into it. AUB also completed an investment in Ronesans, strengthening Tysers' capability in Turkey.
The FY27 execution priorities put UK integration at the top of the list: complete UK retail integration and realise identified scale benefits, and expand Tysers' wholesale and specialty capabilities. The group has set a medium-term EBIT margin target of 32% for International, against 27.6% delivered in FY26 - the second-widest gap of any division.
Currency remains the structural complication in the UK business and AUB set it out plainly. On indicative FY27 figures, 53% of International revenue is earned in sterling and 36% in US dollars, while 88% of expenses are paid in sterling. To manage the mismatch, AUB runs a monthly hedging programme selling US dollars for sterling through to December 2027, with approximately 47% of forecast FY27 US dollar brokerage income hedged at an average GBP:USD rate of 1.3337. Around US$75 million of brokerage income for the 12 months to 30 June 2027 remains unhedged.
The FY27 guidance assumes GBP:AUD of 1.8975 and GBP:USD of 1.3604, and a UK central bank rate of 4.00% by 30 June 2027. A 1% strengthening of the Australian dollar against the US dollar would reduce FY27 underlying NPAT by roughly 0.3% at the guidance midpoint.
Elsewhere in the group, Australian Broking lifted underlying pre-tax profit 10.0% to A$149.1 million and BizCover rose 19.9% to A$22.9 million, while New Zealand broking declined 3.9% in Australian dollar terms to A$22.3 million. AUB finished the year with a leverage ratio of 2.30 times and A$330.5 million in cash and undrawn facilities, having refinanced a A$1,097 million syndicated facility in June 2026 and established a A$200 million bilateral facility to support the Prestige acquisition.
The results land in a week when Australia's two largest broker networks report back to back. Steadfast Group, which owns London market broker HWS Specialty, releases its FY26 numbers on Wednesday, having entered a scheme implementation deed with a consortium of Amwins, Dragoneer and KKR in a transaction implying an enterprise value of approximately A$7.7 billion.
AUB separately announced a board change with direct UK relevance. Andrew Kendrick will retire from the AUB Group board at the conclusion of the annual general meeting on 12 November 2026, after almost four years of service but will continue to chair the board of Tysers.
"Andrew has been an outstanding contributor during his tenure on the Board," said AUB chair Peter Harmer. "On behalf of my fellow directors, I want to thank Andrew sincerely for his service and wish him all the very best in his continuing role with the AUB Group."
