Tysers parent publishes half-year results

"All parts" performed strongly, says group boss

Tysers parent publishes half-year results

Insurance News

By Terry Gangcuangco

AUB Group Limited, the new owner of London-based Lloyd’s wholesale broker Tysers, has published its financial results for the half year ended December 31, 2022 (1H23), a period in which “all parts” of the company contributed strongly.

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

Metric

1H23

1H22

Underlying revenue

AU$466 million

AU$327.2 million

Net profit after tax (NPAT)

AU$364,000

AU$29.7 million

Underlying NPAT

AU$46.7 million

AU$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 AU$18 million; Australian Broking, AU$49.9 million; Agencies, AU$12.3 million; New Zealand Broking, AU$4.8 million; and BizCover, AU$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 acquired British business had a total underlying revenue of AU$90.8 million for October to December 2022, with revenue forecasts for its wholesale and retail units both lower than actual numbers in the period. Tysers came under AUB ownership at the end of September 2022 after being sold for AU$880 million.

Emmett highlighted that AUB had 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 AU17¢ per share.

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