Acquisitions enabled Austbrokers to more than double its profit to $24.5 million in the six months to December 31.

The result, up from $11.2 million in the previous corresponding period, was made on a 36.7% increase in revenue to $80.7 million.

Austbrokers made acquisitions worth $15.5 million in the half, and new CEO and MD Mark Searles says he is seeking further additions.

“We’re staying true to the owner-driver model,” he told insuranceNEWS.com.au. “Our long-term ambition is 50/50 ownership.”

The group has also increased its equity in some businesses “for tactical reasons, like individuals wanting to exit”.

Mr Searles has announced a review of the business’ strategy and operations.

He expects this to be complete by the end of the financial year, but will not specify when resulting changes will be made.

“The review is already revealing areas where we can improve, but the core foundations are extremely solid,” he said.

Austbrokers’ profit includes a net $12.2 million benefit from adjustments relating to acquisitions.

After removing such one-off items, the company’s underlying profit increased 20% to $13.76 million.

The group also attributes its increased profit to growth in the broking business assisted by rate increases and development of the Austagencies underwriting agency operation.

Broking operations increased pre-tax profits by 14.1% to $22 million on increased equity, acquisitions and moderate rate increases. Revenue for the division was $131.3 million.

Underwriting agencies’ net income was $13 million, up 42%, and net profit was $3 million, up 57%.

The group has also been improving its information technology, to enable efficient business transactions.

It expects continuing rate increases in property classes and a further contribution from acquisitions in the second half.

It says current profit growth will moderate in the second half and adjusted net profit is expected to be 10%-15% higher this financial year.