Austbrokers ((AUB)) has added another bunch of acquisitions to its stable of insurance broking businesses, contributing to the scale of the company’s Austagencies division. Total gross written premium for the insurance underwriting agency business is now expected to be over $210 million on an annualised basis.
Insurance broker Austbrokers Holdings (AUB) delivered what the market viewed as a high quality result yesterday, UBS pointing out every financial metric it measures continues to point in the right direction as organic growth is accelerating and cash flows and ancillary revenue streams both increased.
The company has reaffirmed its FY20 guidance. Credit Suisse was encouraged by the update and notes the share price has underperformed the market by around -30% over the last 12 months following a series of earnings downgrades.
AUB has downgraded FY19 profit growth guidance to 3-5% growth from a prior 7-12%, citing substantially lower NSW workers comp case volumes and an over-run in the cost of a new underwriting agency IT system