AUB Group Surges 14% in 1H26, Upgrades Full-Year Profit Forecast

Strong Half-Year Performance Amid Currency Challenges

AUB Group Limited, a leading player in insurance broking and underwriting, has delivered a solid financial performance for the first half of fiscal 2026. Underlying net profit after tax (NPAT) rose 14% to AUD 90.4 million, up from AUD 79.3 million in the same period last year. This growth was achieved despite headwinds from a weakening US dollar and a disappointing showing in the New Zealand broking segment.

The company’s reported net profit after tax also improved significantly to AUD 35.3 million, compared to AUD 26.4 million in 1H25. Earnings per share increased to 77.54 cents, reflecting both operational strength and effective cost management. AUB declared a fully franked interim dividend of 27 cents per share, up from 25 cents a year earlier, signalling confidence in ongoing cash flow generation.

Diverse Divisional Outcomes Drive Growth

The Australian Broking division was a key contributor, with underlying net profit before tax rising 11.4% to AUD 73.4 million. Growth was driven by a combination of organic expansion and bolt-on acquisitions, alongside a 7.8% increase in average commission and fee income per client. However, this was partially offset by reduced interest income and challenging conditions in the larger corporate market.

International operations posted an impressive 29% profit increase to AUD 39.4 million, supported by early momentum in new ventures and recent acquisitions. The division’s EBIT margin improved by 510 basis points to 20.7%, underscoring operational leverage and efficiency gains.

The Agencies segment also showed solid progress, with a 10% rise in underlying profit to AUD 36.2 million and a 200 basis point margin expansion. Growth in gross written premiums was strong across most agencies, though the strata market remained weak. BizCover, the company’s digital insurance platform, delivered a 23.3% profit increase to AUD 10.5 million, benefiting from organic revenue growth and margin improvements driven by operating leverage, including offshore markets.

Challenges in New Zealand and Strategic Outlook

Contrasting with other divisions, New Zealand Broking experienced a 12.8% decline in underlying profit before tax to AUD 10.6 million. The segment faced a tough corporate market and investments in new market share that have yet to yield returns, prompting plans for reshaping the business. The EBIT margin fell by 480 basis points to 31.5%, highlighting the need for strategic adjustments.

Looking ahead, AUB Group upgraded its full-year underlying NPAT guidance to a range of AUD 220 million to AUD 230 million, representing growth of 9.9% to 14.9% over FY25. This forecast incorporates the expected acquisition of Prestige by May 2026 and anticipated step-ups in AUB 360 and Pacific Indemnity. The company also outlined assumptions around foreign exchange rates and hedging strategies, reflecting sensitivity to currency fluctuations.

Leadership Update

In a key leadership development, AUB appointed Nick Dryden as Chief Financial Officer effective 24 February 2026. Dryden, who has served as Deputy CFO since June 2023 and Interim CFO since September 2025, has been instrumental in managing the group’s finance function and delivering recent financial closes. CEO Michael Emmett expressed confidence in Dryden’s ability to support AUB’s growth ambitions going forward.