AUB Group has appointed former IAG executive Ben Bessell as Austbrokers Chief Broking Officer.

Mr Bessell, who left IAG at the end of last month after 26 years with the group, will take up his new position on July 13.

“Ben brings a wealth of experience to AUB and is highly regarded in the Australian commercial insurance arena,” CEO Mike Emmett said. “He will be a critical addition to the leadership team helping realise our next phase of growth.”

Mr Bessell’s roles at IAG included EGM Business Distribution and he also led the Australian Business Division.

Mr Emmett says AUB has been restructuring some elements of its business and Mr Bessell will play a key role in managing the network as changes are being made.

“We have had a new focus on corporates, and we are creating a new specialty unit,” he told insuranceNEWS.com.au today.

“We have grown fairly significantly, and we feel it is appropriate to have someone of Ben’s experience looking after our broking pieces across the business.”

Mr Emmett has been taking a more hands-on role in the broking operations since the position of Austbrokers Divisional Chief Executive, held by Nigel Thomas, was made redundant last year.

AUB Group has also announced that third quarter adjusted net profit rose 25% to $9.2 million, buoyed by the Australian broking division, which has performed ahead of forecasts at the start of the fiscal year. The year-to-date result reached $30.5 million, also up 25%.

Premium rates increased 6.3% in the March quarter, when business activity was only starting to see effects from the coronavirus outbreak. Brokers are now looking toward the key June renewal period.

“That is the challenge for all of the brokers. None of us really have an idea of what is going to happen in June, which is such an important month for us, but we were pleased with the Q3 results,” Mr Emmett said.

New Zealand’s important March renewal period was “broadly on target” with premium rates remaining flat as forecast.

AUB last month said it would suspend the planned $140 million acquisition of Adelaide-based MGA Whittles and would defer payment of the interim dividend as it conserved liquidity amid coronavirus uncertainty. It also withdrew earnings guidance.

The company’s latest update says it had “cash and debt headroom" of $82 million as of March 31 and it is working with partners, insurers and the broader industry as it addressed the virus situation.

“We recognise the difficulties some of our clients are facing and will work with them closely as they navigate the coming months,” Mr Emmett said.

“AUB’s financial strength and liquidity positions it well for these difficult times.”