AUB Group projects underlying net profit will rise 9.5-14% this financial year amid signs “strong momentum” at the close of the past year is continuing.

“We are a fitter and more complete organisation than ever before and are confident that the group is well placed for continued accelerated growth in FY21 and future years,” CEO Mike Emmett told a results briefing last week.

The firming premium rate cycle, cost reductions, take-up of new technology platforms and enhanced insurer agreements provide a base for delivering consistent double-digit underlying growth for the foreseeable future, he says.

Full-year underlying net profit rose 15.2% to $53.4 million for the year ended June 30, with the increase from the previous corresponding period representing the largest jump since 2013.

“Both organic and acquisition growth were strong contributors complemented by the benefits of our profit improvement plan which focused on head office costs,” Mr Emmett said.

The group’s largest division, Australian broking, reported a 14.6% rise in pre-tax earnings to $62.1 million, assisted by an average 6.3% increase in commercial line premiums.

The result was also boosted by the purchase of a 40% stake in online distribution platform Bizcover, while New Zealand results were buoyed by a full-year contribution from the BrokerWeb Risk Services acquisition.

New Zealand profit rose 31.9% to $12.1 million, despite flattening premium rate growth and reduced interest income seen towards the end of the financial year.

Australian underwriting agencies earnings fell 12.2% to $13.6 million, partially due to the impact of COVID-19 on clients in the hospitality industry, as well as ongoing process and pricing challenges in strata.

Health and rehabilitation profit rose to $4.2 million from $1 million on higher revenue, reduced expenses and improvements in the Altius rehabilitation business.

Statutory net profit after tax fell 2.3% to $47.3 million, including acquisition costs, profits on the sale of controlled entities, changes to carrying values of associates and other adjustments.