AUB Group has reported adjusted net profit of $14.5 million for the six months to December 31, up 12.7% on the corresponding period in 2015.

MD and CEO Mark Searles told insuranceNEWS.com.au he is particularly pleased because all divisions, including Australian Broking, have recorded growth.

“The synergy between [the divisions] is driving organic growth,” he said. “We are not using acquisitions to prop the result up. We had a 15% increase in revenue.

“You can see the way the market has been, so this is a tremendous result and we are really pleased with the way our strategy is unfolding.”

Australian Broking’s net profit grew 0.4% thanks to a trend towards more stable premiums.

While the rate environment is still highly variable, AUB says there was an average 1-2% increase across the portfolio.

New Zealand Broking profits were up 337.6%, driven by benefits from the Runacres acquisition.

“It is a really strong result and we are now the third-largest broker in New Zealand,” Mr Searles said. “There is a third force in the marketplace.”

Underwriting agencies increased net profit by 20.8%, while risk services was up 11%.

AUB says it now expects full-year net profit growth of 3-8%, compared with previous advice of 0-5%.

Mr Searles says there are plenty more investment opportunities, but AUB will retain firm control of costs.

“There are services I’d like to offer more of, but we are only going to invest in those when we have the income to back it up,” he said.

He says that unlike some of its competitors, AUB is not looking beyond Australia and New Zealand at present.

“Those marketplaces are ones where we are getting very good returns.”