AUB Group has raised the lower end of its earnings guidance range following a positive start to the financial year.

The group expects underlying net profit after tax of $250-$265 million, with the midpoint representing growth of 14.6% over last year. Previously, the lower end was $245 million, putting midpoint growth at about 13.5%.

CEO Michael Emmett told the annual general meeting this morning that priorities are delivering organic growth, integrating the Prestige acquisition and scaling the UK retail platform, addressing performance in New Zealand and strata, and expanding margins.

He said the One Underwriting business, which AUB is buying from Aon pending regulatory approval, manages about $72 million of gross written premium. 

“It adds further scale and capability to our agencies portfolio, while creating opportunities to broaden distribution, deepen capacity relationships and leverage the existing 360 [Underwriting] platform,” Mr Emmett said.

AUB also recently agreed to the sale of claims handling operation Procare, subject to regulatory approval.

In future financial reporting, the company proposes to group Australian broking, BizCover and New Zealand within a new A/NZ retail segment, sitting alongside agencies and international.

Mr Emmett said AUB has added group level capability with the appointment of Tanya Dawson as chief people officer.

“As AUB grows, leadership development, succession and access to talent are becoming even more important sources of competitive advantage,” he said.

Chairman Peter Harmer told the meeting the board is responding to feedback in recent months from shareholders and proxy advisers, and intends to formally share with investors its approach to capital management.

“The board is committed to maintaining prudent leverage and balance sheet flexibility and to assessing acquisitions against alternative uses of capital,” he said. “We also recognise the benefit of providing shareholders with greater transparency around this framework.”

AUB expects to hold a general meeting in March for shareholders to approve the fiscal 2027 long-term incentive award for the CEO. The board is reviewing the current framework and will also increase executive remuneration transparency.

Mr Harmer said AUB enters this financial year with a stronger portfolio, broader international platform and clear opportunities to improve returns from the scale already built. “The board’s priority is to ensure that opportunity is converted into durable shareholder value through disciplined execution, sound governance and prudent capital allocation.”

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From the latest Insurance News magazine: Why another of Australia's broking giants is in line to leave the sharemarket, as a $7.7 billion buyout nears completion

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