PSC Insurance Group says its business in the December half performed “ahead of budget” from strong organic growth and contributions from recent acquisitions. 

The Melbourne-based broker now expects underlying earnings before interest, tax, depreciation and amortisation (EBITDA) to be about 18-20% higher than the prior corresponding period. 

PSC previously said it was aiming for underlying EBITDA of $105-110 million and underlying net profit after-tax of $70-73 million for this financial year. 

“The result reflects solid results across all parts the Group and a product of recent acquisitions, annualisation of prior period acquisitions and strong organic growth,” PSC said in a trading update. 

PSC also provided an update on its Tysers joint venture agreement with AUB Group. 

It says trading for the retail business continues to be strong and the contribution to PSC for the three month period from April to June this year is expected to be in the EBITDA range of $2-2.5 million. 

However, it is “taking longer than initially anticipated” for the steps needed to establish the joint venture vehicle and separate the business into the vehicle, PSC said. 

“That coupled with the timeframes for UK regulatory approval means that the commencement of the [joint venture] is now targeted for April 1 2023,” PSC said. 

“We remain excited about the significant step forward this provides for our presence in the SME/Retail broking market in the UK and look forward to completing the necessary work to achieve the above goal.” 

PSC will own half of Tysers’ UK retail division as part of the 50/50 joint venture with AUB. The joint venture follows AUB’s purchase last year of Tysers for $880 million.