Insurance broking network Austbrokers, which listed on the Australian Stock Exchange last November, has announced a profit of $7.2 million for the six months ending December 2005.

The profits were boosted by a $3.9 million one-off payment from the sale of businesses foreshadowed by the prospectus.

While the result only represents 39% of its predicted full year after tax profit of $10.4 million, CEO Lach McKeough says the results are in line with expectations.

The company believes net profit in the second half will be higher because of concentration of renewals around June 30.

Nevertheless, Mr McKeough – who is a founder of the successful company – says he’s pleased with the result.

“The [broking] network has performed steadily with broking profits overall in line with forecasts,” he said. “Broking income has been down on lower premiums placed but expectations have been kept under control.”

Mr McKeough says the group is focused on growing its underwriting business, Austagencies, and other financial services businesses such as premium funding, life and super.

“In the six months to 31 December 2005, the company has made two acquisitions and we will continue to seek greater scale and cost synergies through this strategy.”

He says while the market is likely to remain soft and despite present “difficult trading conditions”, the company is still on track to achieve its predicted full-year profits.