The Hayne royal commission’s findings and the upcoming federal election will contribute to a volatile 2019, AUB Group Chairman David Clarke warned today.

“The royal commission … has shocked all those who have had even a passing interest in this topic,” Mr Clarke told AUB’s AGM in Sydney.

“The year ahead as we can see already will be dominated by volatility.”

He says there have been no adverse findings by the royal commission in relation to brokers, but the proposed extension of the ban on conflicted remuneration could have an impact.

“Part of the way insurance brokers are remunerated is through commission, and although it is too early to predict, commission payments in any part of financial services may be considered inappropriate by the commissioner.”

But Mr Clarke finds an upside to all this for AUB’s Austbrokers arm. “Our brokers have been over many years moving to at least in part being remunerated on a fee basis, so this trend may quicken.”

He says the search for a CEO to replace Mark Searles, who will leave in October next year, is “well advanced”.

“The list of candidates who have indicated interest in the role allows your board to be confident that we will have a suitable successor for Mark.”

AUB yesterday announced a $116 million capital-raising to support acquisitions, organic growth and debt repayment.

The group’s first equity capital raising since its 2005 listing will underpin the deal to take a majority interest in Adroit Insurance & Risk, plus future acquisitions.

“Availability of insurance in some sub-sectors is proving hard to find and therefore the reputation for writing good business is becoming a more valued asset,” Mr Clarke told the AGM.

“We continue to look for opportunities to expand and believe that with a strong balance sheet in what may be volatile markets there should be attractive opportunities.”