PSC Insurance Group announced today full-year earnings exceeded expectations on strong organic growth and contributions from its UK acquisitions.

Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) rose 24% to $71.4 million for the 12 months to June 30 from $57.4 million a year earlier. The business previously projected underlying EBITA would come in at the top end of its $65-70 million forecast.

Net profit after tax more than doubled to $40.7 million from $18.7 million.

“The pandemic around the globe has created challenges for our company and customers,” Chairman Brian Austin said. “These challenges that we have faced have been far greater and longer than we first estimated.

“Given the current climate the results achieved have been very satisfying and pleasing for all shareholders.”

PSC says organic growth across the business grew 11% in 2020/21 while acquisitions contributed $8 million in incremental EBITDA.

The strong showing from recently acquired businesses came mainly from the UK, where PSC has expanded significantly and strategically. Its UK brokerages include Paragon, Absolute, Abaco and Trust.

“All acquisitions have performed well, and are largely ahead of expectations,” PSC said. “They have integrated as planned, with the acquisitions of Absolute, Abaco and Trust allowing the scale for a strong UK retail presence.

“Over the next 12 months, these businesses will be closer together for a PSC Insurance Brokers UK strategy, akin to the Australian insurance broking platform.”

PSC says its Australia distribution business achieved about $820 million in gross written premium (GWP) and EBITDA of $39.7 million. The Australia distribution segment is made up of mid-market/corporate broking, broking networks and adjacent services.

The Australia agency business recorded GWP of $130 million and EBITDA of $6.8 million.

The UK business - comprising of wholesale and retail broking plus underwriting agencies - contributed $1.05 billion in GWP and EBITDA of $28.6 million.

For this financial year, PSC is projecting underlying EBITDA of $84-89 million and underlying net profit after tax of $54-58 million.

“We expect organic growth to remain a strong contributor to growth,” PSC said.