AUB Group delivered a robust FY26 with 12.2% underlying NPAT growth to $224.6 million, driven by strong international and domestic performances, and completed its strategic UK Prestige acquisition. The company declared a fully franked 71-cent final dividend and provided positive FY27 profit guidance.
- 12.2% underlying NPAT growth to $224.6 million
- Completed $432 million UK Prestige acquisition
- International division EBIT up 24.5% with margin expansion
- New Zealand segment underperforms, prompting restructuring
- FY27 underlying NPAT guidance raised to $245–265 million
Record Earnings and Margin Expansion Drive Strong FY26 Performance
AUB Group (ASX:AUB) has posted a standout FY26, with underlying net profit after tax (NPAT) rising 12.2% to $224.6 million, despite a 6% revenue increase to $1.24 billion against moderating insurance markets. The group's EBIT margin expanded by 140 basis points to 36.1%, underscoring operational leverage and disciplined cost management across its diversified portfolio.
CEO Michael Emmett attributed the results to the collective strength of AUB's partner network and operating businesses, highlighting robust organic growth complemented by strategic acquisitions. Earnings per share grew 7% to 183.69 cents, while the company declared a fully franked final dividend of 71 cents per share, lifting total FY26 dividends to 98 cents, up 7.7% year-on-year.
International and Domestic Divisions Fuel Growth, New Zealand Faces Challenges
The International segment was the standout contributor, delivering a 24.5% EBIT increase to $136.4 million and margin expansion of 410 basis points to 27.6%. Growth was driven by strong performances in marine and aviation broking at Tysers, disciplined expense control, and the recently completed acquisition of Prestige, which significantly scaled AUB's UK retail operations.
Australian Broking also recorded solid results, with EBIT up 6.8% to $246.7 million on 6% revenue growth, supported by increased average commission per client and client and policy count expansion. BizCover, the group’s digital SME insurance platform, posted 19.9% pre-tax profit growth alongside margin improvement, benefiting from operating leverage and offshore market expansion.
Conversely, New Zealand Broking underperformed, with EBIT declining 9.4% and margin contracting 130 basis points to 33.1%, impacted by FX headwinds, a challenging corporate market, and an unsuccessful market share initiative. Management has initiated restructuring, cost discipline, and portfolio optimisation measures to restore profitability in FY27.
Strategic UK Acquisition and Capital Management Strengthen Growth Platform
AUB completed its acquisition of a 95.9% stake in UK-based Prestige for AUD 432 million in March 2026, funded through a $400 million institutional placement, an $11 million Share Purchase Plan, and a $200 million debt facility. Prestige broadens AUB's UK retail footprint and underwriting capabilities, providing a platform for further expansion in one of the world's largest insurance markets.
The group's balance sheet remains robust with a net debt position of $1.099 billion and a leverage ratio of 2.30x, supported by $330.5 million in available liquidity. FX hedging strategies mitigate currency risk, particularly in the International division, where 47% of USD brokerage income is hedged against GBP exposure. Funding costs increased modestly, factored into FY27 guidance assumptions.
FY27 Guidance and Growth Priorities Focus on Integration and Performance Improvement
For FY27, AUB projects underlying NPAT between $245 million and $265 million, implying 9.1% to 18.0% growth over FY26, with a midpoint of $255 million. The guidance incorporates contributions from known acquisitions, including Prestige, and assumes stable FX rates and interest costs.
Execution priorities include completing integration of Prestige to realise scale benefits, expanding Tysers’ wholesale and specialty capabilities, optimising the Australian and New Zealand portfolio with a focus on New Zealand turnaround, and accelerating growth in the Agencies segment. BizCover will continue investing in AI and technology to enhance customer experience and operational efficiency.
Executive Remuneration and Governance Reflect Strong Performance and Strategic Focus
AUB’s Remuneration Report reveals no increase in fixed pay for executives in FY26, with variable pay closely tied to financial and non-financial KPIs. The CEO’s FY27 long-term incentive opportunity will be restructured to increase alignment with shareholder interests, subject to shareholder approval. The Board welcomed Gary Lennon as a new Non-Executive Director and acknowledged retirements of Cath Rogers and Richard Deutsch.
Sustainability and ESG Integration Advance with Inaugural AASB S2 Report
AUB published its first Sustainability Report aligned with AASB S2 Climate-related Disclosures, highlighting governance frameworks, risk management processes, and climate scenario analysis. While direct exposure to climate risks is limited, the group identifies transition and physical risks, alongside opportunities in insurance product innovation and advisory services. The Group has not set formal emissions reduction targets but is advancing data capabilities and embedding ESG considerations into strategy and risk management.
Employee engagement remains high, with women representing 55% of the workforce and 56% of new hires in FY26. The Group was certified a Great Place to Work for the fifth consecutive year, reflecting a strong culture of inclusion and development.
What to Watch Next
Investors should monitor the integration progress of the Prestige acquisition, particularly its impact on UK retail broking and underwriting margins. The New Zealand business turnaround will be a key execution test in FY27. Additionally, the market will be watching how AUB leverages AI and digital innovation through BizCover and other platforms to sustain growth and operational efficiency. The upcoming shareholder vote on executive incentive restructuring may also signal management’s alignment with long-term value creation.
Bottom Line?
AUB Group’s FY26 results demonstrate resilience and strategic progress, but execution risks in New Zealand and integration of Prestige will shape its FY27 trajectory.
Questions in the middle?
- How effectively will AUB integrate Prestige and capture UK retail scale benefits?
- Can the New Zealand broking segment reverse its recent underperformance in FY27?
- What impact will AI and digital investments have on AUB’s competitive positioning and margin expansion?