AUB Group says UK-based Tysers has been performing ahead of expectations held when it announced the $880 million acquisition of the Lloyd’s wholesale broker, while existing operations have achieved a strong first quarter.

The company said in an update delivered at the annual general meeting last week that underlying net profit after tax, including Tysers and group debt costs, is expected to be $107.5-115 million this financial year, representing growth of 45.2-55.4%.

The acquisition by AUB was completed at the end of the last quarter and the group expects Tysers will contribute underlying earnings of $45-52.5 million for the nine months to June 30.

“Tysers is a high-quality business and is performing ahead of the expectations we had when we first announced the transaction in May,” CEO Mike Emmett said.

Tysers revenue for the nine months to September grew 9% compared with the prior period, with about 5% of the growth supported by exchange rate movements.

Most parts of Tysers experienced strong growth, with weaker performance in Specialty, particularly in management risk and bloodstock, and International Property and Casualty, mainly due to the withdrawal from jurisdictions like Colombia and Ecuador and sanctions towards Russia.

AUB Group says full-year underlying earnings excluding Tysers and group debt costs are expected to reach $90-92 million, up from August 24 guidance of $86-91 million and representing growth of 21.6-24.3% on last year.

Mr Emmett told the annual general meeting that AUB continued to invest in Project Lola, involving a New Zealand broking and insurance platform, while other company priorities for this financial year included optimising the network and making strategically aligned acquisitions.

“I would like to highlight the key role that Project Lola in New Zealand will play in transforming our proposition to members of our broking network and our engagement with insurers,” he said.