Strong figures boost Austbrokers confidence

IAG

A ninth straight year of double-digit profit growth has Austbrokers confident about its future prospects, believing it has never been more attractive to potential business partners.

In financial results released yesterday, the broker network posted a net profit of $35.5 million, up 11% year-on-year.

Acquisitions contributed 6% to that growth, with the rest coming from organic growth in a soft market.

Managing Director and CEO Mark Searles says the efficiencies of the shared-services model is allowing individual brokers to grow their profits.

“We have demonstrated that our group services model can significantly reduce partner back office administration and technology costs,” he says.

“The investment we have made in the overall Austbrokers value proposition has meant we are becoming an increasingly attractive proposition to potential business partners.

“This in turn is helping grow our acquisition pipeline.”

The group’s biggest percentage growth in revenue came from the Austagencies underwriting division, which lifted its profits by a full third.