Falling premiums and fierce competition have not stopped Austbrokers from booking a 15% increase in adjusted net profit to $13.24 million in its first full year as a listed entity.

CEO Lach McKeough, who announced a 12.2% rise in revenue to $72.5 million, says future growth will stem from bolt-on acquisitions as the market enters its fourth consecutive year of soft rates.

Austbrokers, Australia’s largest broking cluster group, posted a net profit attributable to members of $12.59 million (before divestments and amortisation), compared with $18.11 million previously.

Mr McKeough says about two-thirds of the profit growth came from the company’s numerous purchases in fiscal 2007, including Insurance Advisernet, DF McGarry, Carriers Insurance Brokers and Shield Underwriting Agencies.

He says it’s very pleasing that brokers have expanded their business despite a “prevailing headwind” in the market.

“Our venture with Pacific Premium Funding has been very successful, exceeding budget projections and contributing significantly to the result.

“In 2008 we expect the formalisation of our alliance with IBNA to establish a very substantial presence in the market, with the combined broking groups placing in excess of $1.8 billion in premiums.”