Acquisitions helped Austbrokers lift net profit 11% to $15.9 million in the year to June 30.

The broker cluster group expects to improve profit for the current financial year from 5-10%, with organic growth being the prime driver.

The result has been achieved in the face of uncertainty over the pace of anticipated market firming, coupled with the impact of lower interest rates on investment returns.

Austbrokers is taking a longer-term view on further acquisitions. CEO Lach McKeough says synergies and growth in the broker network were achieved with the July 2008 purchase of SRG Corporate in Perth, along with other smaller bolt-on purchases during the year.

Growth from the existing network, including acquisitions made during the year, contributed 17.9% to profit growth.

Austbrokers bought 50% of Perth’s Austral Risk Services on June 30, so its contribution will be off the radar until the next round of reporting.

Premium funding income rose 33%, thanks to the ongoing alliance with Pacific Premium Funding.

Mr McKeough says the joint venture with broker cluster IBNA, operating as A&I Member Services, has continued to cement relationships with major underwriters and develop new products.

“The IBNA network was also the source of a number of the acquisitions made by the network during the year, which reaffirmed the strategy of the joint venture in providing succession solutions for IBNA members,” he said in a statement.

Austbrokers says it now places more than $1.3 billion in gross written premium, and the combined figure with IBNA is over $2 billion.