AUB Group has reported a net profit of $23.8 million for the six months to December 31, up 91.5% on the corresponding period in 2016.

Adjusted net profit, seen as a more accurate indicator of business performance, was up 15.1% to $16.7 million.

Group CEO and MD Mark Searles told insuranceNEWS.com.au he is delighted that once again all divisions have grown.

He says AUB is outperforming the hardening market, which is producing low to mid-single-digit rises, and he believes more consistent mid-single-digit increases are expected over the next 2-3 years.

Australian broking profit grew 6.8% to $20.4 million, while underwriting agencies profit increased 5% to $4.6 million. Risk services was up 21% to $4.3 million, and New Zealand operations gained 11% to $2.8 million.

“Risk services has performed particularly well given that we weren’t in that space three years ago,” Mr Searles said. “I expect that division to grow and grow.”

Organic growth is the focus, but AUB has access to a $150 million acquisition fund through a new syndicated loan facility.

“Five or six years ago most of our growth was through acquisitions, but now organic growth is our core reason for being,” Mr Searles said.

“We do have a fighting fund, but we can be quite careful about only acquiring businesses that are a good cultural fit, and not buying for buying’s sake.”

A major investment in technology is taking place via AUB’s strategic partnership with IT provider Interactive. One-off costs will be incurred in the second half, but the deal should ultimately result in savings of more than $1 million per year.

“This is one of our biggest projects and it will make us fit for the future,” Mr Searles said.

“We want to enable technology – it is incredibly important to the industry – but we don’t want to own it.”