A combination of mature and start-up businesses have helped PSC Insurance Group report a half-year profit rise of 30% to $3.7 million, according to COO Rohan Stewart.

The insurance broker’s underlying revenue was up 36% to $27.6 million and above prospectus expectations of $27 million.

Mr Stewart told insuranceNEWS.com.au PSC has stayed profitable in a tough market partly thanks to a strategy of small bolt-on acquisitions that bring instant revenue without the overheads of rent and utilities.

PSC’s acquisitions of Hamilton Brokers, David Denson Insurance and TA Management in the second half of last year contributed about $500,000 in revenue for the period.

“Bolt-ons add to the branch network and help with organic growth, and bring a lot of profit,” Mr Stewart said.

He says PSC has “an extremely strong focus” on organic growth.

“[Our success] is a combination of both mature business, which brings organic incremental growth, and start-up businesses, which are attracting new markets.”

PSC bought about 10-12 start-ups about eight years ago, which are now bearing fruit, Mr Stewart says.

Last month PSC announced a conditional agreement to buy the Reliance corporate broking business and Reliance Partners insurance adviser network for $31.57 million.

Mr Stewart believes the acquisition will strengthen the company’s Australian footprint.

Currently about two-thirds of the business is in Australia and one-third in the UK, but the Reliance acquisition will make it more like three-quarters to a quarter.

Last week PSC agreed to acquire EIB Insurance Brokers in Adelaide, which is expected to bring approximately $670,000 revenue a year.