Premium rates during the rest of the financial year will be “relatively stable with moderate increases”, according to Austbrokers CEO Lach McKeough.

Speaking at the group’s AGM in Sydney last week, he said Austbrokers isn’t expecting a major lift in commission earnings from its broking operations and also “hasn’t seen the level of uplift in overall commissions that we were expecting”.

While the market has hardened slightly this year in personal lines and low-end commercial products, Mr McKeough says it remains soft in larger property, liability and professional indemnity business.

“Underwriters continue to press to increase rates,” he said. “However, there is a lack of consistency.

“The results in the broker network for the four months to date have been encouraging, but we are facing a number of unknown factors for the remainder of the financial year.”

While he says acquisition activity remains subdued, Austbrokers is “very active in this space” and opportunities will arise. “These may be more the portfolio or bolt-on business for existing members than stand-alone, and the timing of the opportunities cannot be reliably predicted.”

Austbrokers Chairman Richard Longes said Mr McKeough’s contract term as CEO has been extended a further two years to November 16 2012.