Austbrokers has forecast “moderate” growth for this financial year after adjusted profit gained 17% in the year to June 30.

“The outlook… is characterised by the expectation of moderate premium rate increases continuing, somewhat uncertain economic conditions, especially affecting SME businesses, and a lower-interest-rate environment,” CEO Mark Searles says in the annual report.

He predicts earnings will benefit from recent acquisitions and expected business growth, which will be partly offset by the lower interest rates.

Austbrokers Holdings reported a 61% rise in full-year net profit after tax to $41.2 million last financial year. Earnings excluding accounting adjustments related to acquisitions increased to $32.1 million from $27.4 million the previous year.

Some 19 acquisitions were made in the year, and the broker group has since bought a 50% interest in WRI Insurance Brokers, based in Parramatta.

Austbrokers says it will continue to make acquisitions and also plans to build its underwriting agency business. “Merger and acquisition activity, and competition, has increased in the past 12 months, with more business owners considering their future and subsequently researching their options,” it says.

Meanwhile, long-serving Austbrokers director and co-founder Phil Shirriff will stand down from the board later this year.

Mr Shirriff, 67, is a former CEO of ING Asia-Pacific and has been on the board since 1986.

He was CEO of Mercantile Mutual when he instructed one of his managers, Lach McKeough, to buy up brokerages to add a distribution channel. Mr McKeough retired on January 1 after 27 years’ service as CEO of Austbrokers.

Chairman Richard Longes says apart from Mr Shirriff’s replacement, an additional director will be appointed to the board.