AUB says this financial year has started well and a “range of levers” will ensure the group is well placed to deliver stronger earnings.

Underlying net profit increased 17.1% to $200.2 million in the year to June 30, lifted by acquisitions and existing businesses. The company expects the result will increase to $215-$227 million this year.

“While premium rates have moderated in some markets, AUB remains confident in its ability to manage pricing dynamics through a range of strategic levers and does not consider premium rates to be a material factor to achieve the financial forecasts,” CEO Michael Emmett says in the annual report.

Australian broking profit before tax increased 12.8% to $135.6 million amid bolt-on acquisitions and other portfolio changes.

International earnings rose 7.6% to $104.1 million, supported by Tysers and UK retail, where the Momentum and Movo acquisitions lifted premium.

Agencies profit rose 30% to $72 million, New Zealand broking grew 2.2% to $23.2 million and Bizcover jumped 26.8% to $19.1 million.

The merger and acquisition focus this year includes UK retail expansion, both in broking and managing general agencies, and adding to Tysers’ wholesale expertise. In Australia, AUB is focused on “bolt-ons” and in New Zealand on equity in the network.

Morningstar says it is positive on AUB’s earnings outlook, while the analyst assumes low single digit premium growth and modest margin improvement in all divisions except agencies.

“The market was sceptical of the Tysers’ acquisition, a substantial bet in 2022, but with the benefit of hindsight it looks opportunistic,” the analyst’s report says.