Austbrokers has reported net profit after tax of $13.9 million for the six months to December 31, up 8.3% on the corresponding period in 2013.

Results were hit by falling premium rates in the broking sector, but this was offset by other income and growth in new business.

Broking revenue increased 1.4% to $149.47 million, while underwriting agency revenue was up 26% to $22.39 million.

CEO Mark Searles told insuranceNEWS.com.au the rate of underwriting agency growth does not mean it will eclipse broking as a focus for future acquisitions.

“Each area stands on its own two feet – we don’t prefer one over the other,” he said.

Broking client numbers grew 4.3% in the half, although Mr Searles says this brought increased expenses.

“The good news is, as and when the market turns and rates go back up, we’ll be working off a bigger client base. We are still in a very soft environment and won’t see rate remediation until financial year 2016.”

Austbrokers continued to make acquisitions and expects them to generate profitable growth in the second half.

The group has also announced that CFO Steve Rouvray is to retire. His replacement will be Jodie Blackledge, previously CFO of The Trust Company, who will join in April and take over as CFO from July 1.