Austbrokers Holdings has demonstrated its market strength with a 61% rise in full-year net profit after tax to $41.2 million and a promise by CEO Mark Searles that the broker group is only going to get stronger.

Mr Searles says the group “hasn’t been distracted from the main game” by factors such as the transition in January from long-serving CEO Lach McKeough, the Steadfast float, and recruitment of new managers and a new strategic study.

The company increased sales by 34% to $168 million, expenses grew 37.9% and acquisitions cost $40 million.

Austbrokers has continued to drive compound annual adjusted earnings per share growth of 14% for the past seven years.

Mr Searles told insuranceNEWS.com.au the listed broker group has been building its managerial and technical strength with the appointment of former OAMPS CEO Keith McIvor as Chief Broking Officer and CGU national operations manager Sunil Vohra as COO.

He says Austbrokers needs the right managers and the right competencies in place to help maintain performance in a challenging market.

“For example, I’m not a broker, and Keith is someone who has worked at the top of a big broking company. Part of his job will be acting as an advocate for brokers.”

The adjusted after-tax profit was $32.1 million, up 17% on $27.4 million in the previous financial year.

The insurance broking arm contributed most of the profit growth, while underwriting agencies arm Austagencies achieved a 22.7% profit increase. Mr Searles says Austagencies will keep growing alongside the broking operation through increased business and acquisitions “where they make sense”.

He says the AIMS joint venture with broker group IBNA is “a great operation; it’s a strong partnership that just keeps getting stronger. We’re constantly looking at how we can improve the relationship even further.”

Asked about the likelihood of increased competition for acquisitions from newly listed rival Steadfast, Mr Searles says he expects “normal behaviour” will return to the market. 

“I think competition between listed companies is a good thing. It will promote wider scrutiny of the market and raise understanding of its potential.”

He says Austbrokers will continue to perform well in 2013/14 thanks to flow-on benefits of the past year’s acquisitions, further investment in the operating model and a focus on core business.