AUB Group earnings have jumped as increases in commercial line premiums contributed to a stronger result from the key Australian broking division.

Reported net profit rose 50.3% to $70.6 million for the year to June 30, also boosted by proceeds from the divestment of Altius as the company completed its exit from health and rehabilitation services.

On an underlying basis, revenue rose 11.6% to $651.8 million and profit increased 25.7% to $67.1 million, excluding an accounting change for Software as a Service (SaaS), topping half-year guidance.

CEO Mike Emmett said the very strong result was achieved during a year of “extraordinary ups and downs”.

“Our clients and our teams continued, as they do today, to face significant personal and commercial stresses given the range of COVID-19 consequences and interventions,” he said today.

“I am very proud of the way in which the AUB family has dealt with this. The business continues to demonstrate a remarkable resilience although one we do not take for granted.”

Australian broking underlying revenue rose 8.7% to $429.2 million, while pre-tax profit increased 21.8% to $72 million.

Bizcover, broken out separately in the results for the first time, delivered revenues of $58.7 million and profit of $8.9 million. AUB invested in the online platform targeting small business in February last year.

AUB says the restructure and improved performance of its underwriting agencies business is showing early promise and remains a priority this financial year.

The group acquired 360 Underwriting during the year and TLC Underwriting in New Zealand and has flagged continued strategic consolidation to create scale and to realign capability and expertise.

Australian agencies revenue rose 24% to $73.5 million and underlying profit before tax grew 15% to $15.6 million.

Mr Emmett says the New Zealand operations are still in the early stages of a transformation running until fiscal 2023.

“We have restructured key elements of the New Zealand business, have a technology investment underway and plan a series of acquisitions to grow scale in agencies and enhance broking product and geographic capability,” he said.

New Zealand revenue was little changed at $58.6 million, while earnings rose 3.6% to $12.5 million, excluding the SaaS accounting change.

Mr Emmett says AUB is continuing to support its teams through the pandemic with measures such as financial assistance to improve home-work environments and technology tools.

“We have added flexibility to leave policies including providing bonus leave for team members that have used all their leave and offering bonus leave to those that are fully vaccinated,” he said.

AUB expects underlying net profit this financial year will rise to $70-$73 million, representing growth on continuing operations of 15.7-20.7%.

“We do not know whether the current Delta outbreak will have a meaningfully different impact on the Australian economy than was the case with previous outbreaks,” Mr Emmett said.

“We do know the business was resilient last year so we’ve assumed operating conditions in FY22 similar to last year.”