Austbrokers Holdings expects premium rates next year will remain “relatively stable”, with modest increases over the rest of the financial year in the SME sector.

CEO Lach McKeough says in his address to last week’s Austbrokers AGM that underwriters have been pushing for rate increases, but “the market generally remains very competitive”.

He says there have been fewer acquisitions of brokerages over the past few years due to the “uncertain economic environment leading to a lack of significant businesses changing hands”.

“However, there now appears to be more opportunities emerging,” he said. “But as always the timing and success of these can be subject to many variables.”

Mr McKeough says the broker market will continue to consolidate, and some future acquisitions may take the form of “bolt-on” business for existing members.

Austbrokers has achieved good results in the broker network for the four months to the end of October, but Mr McKeough says he will not update the previous profit guidance of a 5-10% increase in net profit after tax at this stage. This will be reviewed in February. 

Phil Shirriff and Ray Carless were re-elected as directors.