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AUB 'performs strongly' in third quarter

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AUB Group says it performed strongly in the third quarter with Austbrokers premium rate increases of 5.9% at the top end of its estimated range and margin improvements flowing from the network consolidation strategy.

The company says acquisitions last financial year have also contributed, while Austagencies’ financial performance is improving with growth in revenue and margin compared with the prior period.

Head office cost reductions at the end of the quarter had reached $2.3 million, compared with a full-year target of $2.4 million.

“While still in the early stages, there is no evidence to indicate that the removal of JobKeeper benefits is impacting the placement of insurance by clients,” AUB says in a presentation to the Macquarie Conference.

AUB Group says, as foreshadowed, its own insurances renewing in the third and fourth quarters are about 20% more expensive than the prior year.

The company maintained its full-year guidance for underlying net profit of $63-65 million, given the historical significance of June as well as the unknown impacts on the broader economy from the end of JobKeeper.