AUB Group Limited delivered a robust FY25 performance, with underlying NPAT rising 17.1% to AUD 200.2 million, driven by strategic acquisitions and margin improvements. The company’s aggressive UK retail expansion and diversified portfolio underpin a confident FY26 outlook.
- Underlying NPAT up 17.1% to AUD 200.2 million, exceeding guidance
- Revenue growth of 12.7% to AUD 1.5 billion with margin expansion to 34.7%
- Significant UK Retail gross written premium growth from £110m to £340m
- Strong divisional performances across Australian Broking, BizCover, Agencies, New Zealand, and International
- FY26 guidance projects 7.4% to 13.4% underlying NPAT growth amid ongoing portfolio optimisation
Robust Financial Growth Amid Strategic Acquisitions
AUB Group Limited, a leading ASX200-listed insurance broker and underwriting agency group, has reported a strong FY25 financial year, showcasing a 17.1% increase in underlying net profit after tax (NPAT) to AUD 200.2 million. This performance not only surpassed the upper end of management’s guidance but also reflected a 12.7% rise in revenue to AUD 1.5 billion, alongside a margin expansion to 34.7%.
The company’s growth was underpinned by a series of strategic acquisitions, including Pacific Indemnity, Momentum, and Movo Group, complemented by sixteen smaller bolt-ons. These moves notably bolstered AUB’s footprint, particularly in the UK retail market, where gross written premium (GWP) surged from £110 million in FY24 to £340 million in FY25, marking a significant leap in scale and capability.
Diverse Divisional Strengths Drive Group Performance
Across its diversified portfolio, AUB’s divisions delivered solid results. Australian Broking saw revenue growth of 8.4% and improved EBIT margins to 37.8%, driven by ongoing portfolio optimisation and acquisitions. BizCover, the digital SME insurance platform, reported a 15% revenue increase and margin uplift to 45.8%, benefiting from scale efficiencies and international expansion.
The Agencies segment excelled with a 25.1% revenue increase and margin expansion to 44.2%, supported by investments in specialty areas and the integration of Pacific Indemnity. New Zealand Broking grew revenue by 10.3%, investing strategically in growth teams despite a slight margin dip due to resource expansion. International operations, including Tysers, achieved 13.3% revenue growth, though margin compression occurred due to a one-off bonus period realignment.
Balance Sheet Strength and ESG Commitments
AUB’s balance sheet remains robust, with debt facilities increased by AUD 250 million to support ongoing acquisitions and general corporate purposes. The leverage ratio stood at a manageable 1.97x, with AUD 375 million in cash and undrawn debt available as of June 30, 2025.
On the environmental, social, and governance (ESG) front, AUB maintained its MSCI AA rating and was recertified as a “Great Place to Work.” The group reported progress in climate-related risk assessments and opportunities, workforce diversity with 53% women employees, and enhanced governance practices, including board diversity and risk management frameworks.
Outlook, Confident Growth with Strategic Focus
Looking ahead to FY26, AUB projects underlying NPAT growth between 7.4% and 13.4%, targeting AUD 215 million to AUD 227 million. The company plans to continue portfolio optimisation in Australia and New Zealand, scale new agencies, accelerate BizCover’s momentum, and expand UK retail operations leveraging recent acquisitions. The international segment will focus on building specialty capabilities and further developing Tysers.
While foreign exchange fluctuations and funding costs present manageable headwinds, AUB’s strategic acquisitions and operational efficiencies position it well for sustained growth and margin enhancement.
Bottom Line?
AUB Group’s FY25 results affirm its strategic expansion and margin discipline, setting the stage for continued growth amid evolving global insurance markets.
Questions in the middle?
- How will AUB manage integration risks from its aggressive acquisition strategy, especially in the UK?
- What impact might foreign exchange volatility have on AUB’s international earnings in FY26?
- Can AUB sustain margin improvements across all divisions while investing in growth initiatives?