By Ryan Hewlett

Feb 25 - (The Insurer) - AUB Group on Tuesday reported a 13% increase in underlying net profit after tax (NPAT) to A$79.3 million ($50.3 million) for the first half of its 2025 fiscal year, broadly in line with analyst expectations despite a one-off hit within its international unit from restructuring charges related to Tysers.

• Underlying NPAT of A$79.3 million (H1 2024: A$70.2 million)

• Pre-tax profit increased by 11.5% to A$65.9 million

• International (Tysers) pre-tax profit up 18.2% on normalised basis

• FY 2025 underlying NPAT guidance reaffirmed

The Australian broking house, which places more than A$10 billion in insurance premiums, reported a 12.1% increase in revenue to A$712.6 million, with growth achieved across almost all parts of the business.

ASX-listed AUB posted underlying earnings per share of 68.07 cents, up 5.1% compared with the same half-year period in 2024.

The company also declared an interim dividend of 25 cents per share, up from 20 cents a year ago.

Shares in AUB rose 3.51% on Tuesday to close at A$29.50. The intermediary's share price climbed around 15% in 2024 but is currently trading at a 5.1% discount in the year to date.

Pre-tax profit in AUB’s main Australian broking business increased by 11.5% to A$65.9 million on the back of organic growth as well as acquisitions. The group’s underwriting and agency business reported a 32.3% increase in pre-tax profit to A$32.9 million.

AUB’s international unit, formerly the Tysers segment which has been renamed to accommodate future acquisitions and intentional expansion, posted revenue growth of 10.4% to A$204.2 million after normalising for bonus cycle realignment and legacy team restructures.

Normalised pre-tax profit in the international segment rose 18.2% to A$38.6 million, while EBIT increased by 19.8% to A$39.9 million.

Including one-off items, including the impacts of previously departed or newly restructured teams and a one-off bonus period realignment, pre-tax profit for the period decreased by 20% year on year to A$30.5 million.

Sydney-headquartered AUB acquired Tysers in May 2022 for around 500 million pounds ($558 million). Under AUB ownership, Lloyd’s oldest broker has undergone a significant restructure

Following the Tysers acquisition, AUB acquired a number of UK broking entities, as well as an 80% stake in UK broking business Movo Group and a 40% equity stake in authorised representative network Momentum Broker Solutions.

Looking ahead, AUB confirmed its profit expectations for the full year to 30 June 2025. The firm expects to post full-year underlying NPAT of A$190.0 million to A$200.0 million, representing growth of 11.1% to 16.9% year on year.

Group CEO and managing director Michael Emmett said: “We have constructed a portfolio of complementary businesses that enhance both performance and value across the AUB family.

“While our individual divisions continue to deliver strong results, our investment in Tysers has already driven a substantial uplift in the value of retail broking and underwriting agencies. Additionally, our expanding portfolio of agencies is creating significant synergies and enhancing the value of our broking network.”

Emmett added: “Although we are still in the early stages of replicating our successful Australian model internationally, we now have a diverse set of strategic levers to drive revenue, margin expansion and sustained earnings growth for AUB Group shareholders.”