Austbrokers banks 14% profit increase
Austbrokers has reported an increase in net profit of 14%, helped along by the contribution of major brokers Rivers and Strathearn.
The broking cluster group earned $14.3 million in net profit during fiscal year 2008, as gross written premium across the network climbed above $1.2 billion.
CEO Lach McKeough says despite a flat premium rate environment the group has recorded an excellent performance.
“We were particularly pleased that substantial organic growth has been achieved across the network,” he said.
The business achieved 29% growth in its share of brokers’ pre-tax profit due mostly to the contribution of major Austbrokers acquisitions.
Revenue climbed 15% from $72.6 million to $83.6 million.
Mr McKeough paid tribute to the “exceptional growth” achieved by one of its latest acquisitions, Insurance Advisernet Australia, in which Austbrokers bought a 50% stake in 2006.
He says Austbrokers intends to continue a strategy of growth by acquisition, and is currently eyeing “a number” of opportunities.
But the present financial year isn’t expected to be so positive. Net profit is projected to be a modest 5-10% as market and wider economic conditions look set to offset continued growth.
The broking cluster group earned $14.3 million in net profit during fiscal year 2008, as gross written premium across the network climbed above $1.2 billion.
CEO Lach McKeough says despite a flat premium rate environment the group has recorded an excellent performance.
“We were particularly pleased that substantial organic growth has been achieved across the network,” he said.
The business achieved 29% growth in its share of brokers’ pre-tax profit due mostly to the contribution of major Austbrokers acquisitions.
Revenue climbed 15% from $72.6 million to $83.6 million.
Mr McKeough paid tribute to the “exceptional growth” achieved by one of its latest acquisitions, Insurance Advisernet Australia, in which Austbrokers bought a 50% stake in 2006.
He says Austbrokers intends to continue a strategy of growth by acquisition, and is currently eyeing “a number” of opportunities.
But the present financial year isn’t expected to be so positive. Net profit is projected to be a modest 5-10% as market and wider economic conditions look set to offset continued growth.