Good returns continue to keep the broking sector in fine health, with Austbrokers last week reporting a 7% increase in half-year net profit to $7.2 million.

CEO Lach McKeough says the company’s 40 broking firms performed well during the period despite losing a significant amount of income due to lower interest rates.

Acquisitions, premium funding initiatives and the A&I Member Services (AIMS) joint venture with cluster group IBNA all supplemented growth in commission and fee income.

Austbrokers’ total revenue also climbed 7%, to $49.2 million, with gross profit rising 15% to $10.6 million.

CFO Steve Rouvray told insuranceNEWS.com.au broking sector resilience to the financial downturn has helped insulate company revenue.

“The slowdown in Australia hasn’t been that bad for insurance broking,” he said. “People need to maintain their insurance so it hasn’t had a great impact.”

But Mr Rouvray says the downturn may have contributed to a slowdown in available acquisition opportunities as reduced superannuation funds combine with good profits to encourage principals to reconsider their succession plans.