AUB Group Posts AUD 200 Million Underlying NPAT, Raises Dividend 15%

Solid Financial Performance Amid Strategic Expansion

AUB Group Limited, a key player in the insurance broking and underwriting sector, has unveiled a strong set of results for FY25, underscoring its resilience and growth momentum in a competitive market. The group reported an underlying net profit after tax (NPAT) of AUD 200.2 million, marking a 17% increase from the previous year’s AUD 171.0 million. This performance was accompanied by a rise in underlying earnings per share to 171.75 cents, up from 156.78 cents in FY24.

The company’s reported NPAT also saw a significant jump to AUD 180.1 million, compared to AUD 137.1 million the prior year, reflecting both operational strength and effective cost management. Shareholders will benefit from a fully franked final dividend of 66.0 cents per share, a 12% increase from FY24, contributing to a total dividend of 91.0 cents per share for FY25, up 15.2% year-on-year.

Growth Across Divisions Driven by Organic and Acquisition Strategies

The Australian Broking division led with a 12.8% increase in pre-tax profit to AUD 135.6 million, fueled by both organic growth and bolt-on acquisitions. Average commission and fee income per client rose by 9.3%, supported by increased commercial lines premiums. International operations also contributed positively, with a 7.6% rise in pre-tax profit to AUD 104.1 million, bolstered by the Tysers acquisition earn-out reaching 95% of the maximum revenue.

Agencies posted the most impressive growth, with pre-tax profit surging 30% to AUD 72.0 million, aided by the acquisition of Pacific Indemnity and strong organic growth in gross written premiums. BizCover, the group’s digital broking platform, demonstrated a 26.8% increase in pre-tax profit to AUD 19.1 million, driven by revenue growth and margin expansion from operating leverage.

New Zealand Broking showed modest growth, with a 2.2% increase in pre-tax profit to AUD 23.2 million, although its EBIT margin contracted slightly due to investments in future growth initiatives. Overall, the group’s diversified portfolio across geographies and business lines has proven effective in navigating market complexities.

Capital Position and Forward Guidance Signal Confidence

Financial discipline remains a priority, with the group maintaining a leverage ratio of 1.97x and holding AUD 375 million in accessible cash and undrawn debt facilities as of June 30, 2025. This strong capital position supports ongoing strategic investments and acquisitions.

Looking ahead, AUB Group has provided FY26 underlying NPAT guidance in the range of AUD 215 million to AUD 227 million, representing growth of 7.4% to 13.4% over FY25. This outlook assumes continued acquisition activity, stable renewal income, and specific foreign exchange rates, reflecting a cautiously optimistic stance amid global economic uncertainties.

CEO Michael Emmett highlighted the group’s focus on disciplined execution and portfolio optimisation, emphasizing the importance of client trust and team dedication in delivering sustained performance. The suspended Dividend Reinvestment Plan (DRP) remains a notable aspect for shareholders to consider in their investment decisions.