PSC Insurance Group has posted a rise in full-year earnings, supported by strong results across its distribution and agency businesses in Australia as well as its UK operations.

Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) for the year to June 30 rose 19% to $111 million from a year earlier, in line with PSC’s revised guidance at the start of the month.

Net profit after tax and amortisation, also on an underlying basis, gained 23% to $78.4 million.

The Melbourne-based broker in its earnings release today also announced Deputy Chairman Paul Dwyer, who founded the group in 2006 and was MD until 2019, will succeed Brian Austin as Non-Executive Chairman. 

The changes will take effect after the annual general meeting in November and Mr Austin will remain on the board as Deputy Chairman and Chair of the PSC Asian businesses.

MD Tony Robinson says with Mr Dwyer as Chairman he will use his network “to find other acquisitions and seeding opportunities” for PSC.

In the earnings call this morning Mr Robinson revealed PSC was among the bidders for Honan Insurance Group, losing eventually to US broking giant Marsh in the race to acquire the Melbourne-headquartered broker.

The Honan setback came after PSC and AUB Group scrapped a proposed Tysers UK retail joint venture in May.

“It’s been an interesting year for us. We had a go at a couple of big steps. One was Tysers and the second was Honan. Unfortunately, neither of those came off,” Mr Robinson said.

“We remain disciplined in how we want to invest our money. Once again that discipline saw us not able to get to the finish line, being first to the finish line in the race for Honan.”

Despite the Tysers and Honan setbacks, Mr Robinson says PSC will continue with its acquisition strategy, one that has paid off in the form of strong earnings contributions to the business.

“As a group we continue to focus on organic growth and that’s made a great contribution to the result this year and will certainly do so going forward and we’ve got a strong acquisition pipeline,” he said.

The business invested more than $50 million acquiring businesses in the financial year and completed 13 deals during the period including Ensurance UK.

PSC’s Distribution business – which comprises of insurance broking including PSC Network Partners, life broking and workers’ compensation consulting – recorded $1.15 billion in gross written premium in the last financial year.

Underlying revenue rose to $128.2 million from $108.3 million a year earlier and underlying EBITDA increased, to $56.4 million from $48.3 million.

The Agency business, made up of underwriting agencies including Chase and Breeze, achieved GWP of $140 million. Underlying revenue improved to $23.7 million from $20.8 million and underlying EBITDA to $13 million from $11.1 million.

PSC says results for the UK business, which also includes its growing Hong Kong operations, performed well. Underlying revenue grew 15% to $142.3 million and underlying EBITDA 18.1% to $46.2 million.

For this financial year PSC is still aiming for an underlying EBITDA of $122-127 million, as flagged earlier this month, and an underlying net profit after tax of $82-86 million.