AUB Group has reported a 13.9% rise in first-half earnings and upgraded its guidance, while its BizCover division had developed a ChatGPT app as part of a wider AI program.

Underlying net profit increased to $90.4 million, underpinned by Australian broking and agencies, international operations and BizCover. New Zealand earnings fell.

“This performance spans a range of market environments in which premium and interest rates have moved up and down and currency has fluctuated, and through all of this, our portfolio has delivered strong, steady growth,” CEO Mike Emmett told a briefing.

Full-year underlying net profit guidance has been raised to $220-$230 million, reflecting performance to date and acquisitions. The previous forecast was $215-227 million.

AUB says the UK regulator has cleared its acquisition of broking and agency business Prestige and the deal should be completed by May 1.

Australian broking’s first-half underlying profit before tax rose 11.4% to $73.4 million, with average commission and fee income per client increasing 7.8%.

Mr Emmett says while rate gains have moderated, the company has focused on other elements.

“It’s just not a key driver of the way in which we run and manage the business, but unquestionably rates are low single digits,” he said.

“It feels that probably for at least another six to 12 months, that will persist, but it feels like the tension in the system is more for the rates to move up than move down in the medium term.”

Agencies profit was up 10% to $36.2 million as mostly strong growth offset strata weakness. International rose 29% to $39.4 million and BizCover increased 23.3% to $10.5 million.

New Zealand profit fell 12.8% to $10.6 million amid corporate weakness and after an unsuccessful drive for new market share.  

Mr Emmett says AUB is implementing more than 35 AI solutions to improve service speed and quality, and it views the technology as a “growth enabler”.

“Within AUB, we see AI as a capability multiplier – a superpower that amplifies the expertise already in the group,” he said.

BizCover has developed a ChatGPT app for professional indemnity and public liability, aimed at small clients that would not typically seek advice.

“The app has been lodged for review and approval, and we are currently awaiting what we hope will be imminent approval from OpenAI for release,” Mr Emmett said.

The company has also confirmed Nick Dryden’s appointment as CFO, after he took the role on an interim basis.

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