Austbrokers increases profits 14.4%

Email Print

30 August 2010

Austbrokers Holdings has reported solid growth this year, with consolidated net profit after tax rising 14.4% to $18.2 million.

Net profit after tax but before profits on sale of equity interests and amortisation of intangibles rose 12.1% for the period to $20.2 million.

Revenue rose 8.8% from the previous year to $105.6 million, while profit before tax was $27.2 million.

Profit from broking operations rose 8.9% during the year to $58.8 million, while profit from underwriting agencies achieved a 21.7% increase to $3.15 million.

The Austbrokers network now places more than $1.3 billion in gross written premium.

CEO Lach McKeough says business growth initiatives and bolt-on acquisitions helped drive increased profits, although direct acquisitions only contributed 3.1% of growth.

“The results were excellent given the economic conditions during the period and considering that any premium rate rises were limited,” he said. “Also the decline in interest rates in the first half of the year reduced interest earnings significantly.

“In this context and without any major acquisitions during the year the results were all the more pleasing.”