Competition in the broking market is becoming more intense, with broking behemoth the OAMPS Group saying it’s stepping off the acquisition trail to concentrate on growing its business organically. The group is oozing confidence after recording a 26.9% increase in net profit for 2004/05 to $31.3 million.

MD and CEO Tony Robinson says the group’s successful acquisition strategy again assisted the group in achieving strong results.

“Key acquisitions such as ZIB Insurance Brokers, the full-year effect of last year’s acquisitions such as Chambers Gallop McMahon, and another successful year in our UK operations have produced a significant step-up in our market position in the insurance broking divisions,” he said.

“Our insurance underwriting and agency business continue to achieve strong premium growth and deliver healthy profits to OAMPS.”

The only smudge on the group’s impressive results is a one-off payment of $2.9 million to settle long-running legal proceedings with the National Bank.

Mr Robinson says the group expects to achieve sound profit growth during the current financial year, with an increase in earnings per share of 5-10%.  And after several years of seemingly endless brokerage acquisitions, OAMPS is switching its attention to “service and internal issues” – although it won’t pass up the odd acquisition that “presents value for stakeholders”.

“We will build and evolve our systems and processes to achieve increasing value in our existing client relationships… and increase the overall number of clients,” an OAMPS statement said.