AUB Group says its strata practices are in line with the code of practice and transparent, and the company is a much smaller participant in the sector’s broker and agency market than Steadfast.

Chairman David Clarke was asked at the annual general meeting this morning whether AUB has dug into its operations to ensure there are no improper remuneration practices. The question followed a recent Four Corners program in which Steadfast came under fire.  

“We have made extensive inquiries, and we had a discussion about this as a board two years ago,” Mr Clarke said.

AUB has one broker that is a majority owner of a strata management business that facilitates broking of insurance with clients, he said.

“The arrangement between the broker and the strata management company is completely transparent and that is put in front of the strata committees on an annual basis to be refreshed,” he said. 

“It is a commercial arrangement, not a joint venture, which was part of the problem that Steadfast encountered. So we believe that our practices are, firstly, in accordance with the code of practice, and secondly, it’s highly transparent, therefore open to challenge.”

AUB announced at the meeting that it has appointed Gurbaj Pawar as group chief strategy officer and that he will join the group executive team. 

“Gurbaj has been an important part of the transformation of AUB Group over the past five years and I’m pleased to be able to recognise his contribution and potential with this promotion,” CEO Mike Emmett said. 

Mr Pawar previously worked at Deloitte, QBE, Emerge Capital and Accenture, according to his LinkedIn page. 

AUB reaffirmed its full-year guidance for underlying net profit after tax of $190-$200 million, representing growth of 11.1%-16.9% on the previous period. The profit split is expected to be 39% in the first half and 61% in the second. 

Mr Emmett said the company has completed five years under an ambitious strategic plan and its global reach now spans 16 countries, with about 5500 professionals serving about 1 million clients. 

“Over the past five years, AUB Group has been one of the fastest-growing broking groups globally and is currently ranked as the 18th-largest insurance broking group in the world,” he said. 

The company bought UK-based Tysers in September 2022 and has created an AUB international division due to its overseas expansion. 

The division includes Tysers, UK retail operations and the Miami-based Mexbrit/Forte brokerage and managing general agency acquired last year. It will also house other acquisitions the company anticipates making outside Australia and New Zealand, Mr Emmett said. 

The company confirmed non-executive director Peter Harmer, a former IAG CEO, takes over today as chairman from Mr Clarke, whose retirement was announced at the annual results in August. 

Tonianne Dwyer, a board member at listed companies ALS, Growthpoint Properties Australia and Incitec Pivot, joins as a non-executive director. 

During a 23-year executive career in investment banking and real estate, Ms Dwyer held senior management roles with Hambros Bank and Societe Generale in the UK and was head of funds management of Quintain Estates and Development.

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