AUB Group is seeing a “very strong pipeline” for acquisitions as the market continues to improve.
Mark Searles, CEO and managing director of AUB Group, told Insurance Business that growth through acquisitions is always on the radar and improving market conditions could boost M&A prospects.
“We are seeing a very strong pipeline right now,” Searles said.
“I think as we come out of this current environment, people get their heads up and start thinking about whether they should be partnering so we are seeing a good pipeline developing.”
Earlier this week, AUB Group announced a solid set of results which included growth in all facets of their business and saw the firm boost its profit guidance.
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In insurance broking in Australia, AUB Group saw a 3.8% increase in profit contribution, allowing for the divestment of Strathearn Insurance Group to Arthur J Gallagher in late 2015.
Searles noted that the acquisition outlook over the previous years had been more difficult as brokers were focused on helping clients and navigating one of the worst markets in recent memory.
Conversations between AUB Group and interested parties have continued throughout this time but Searles noted that market improvements allow these discussions to “become more real.”
While acquisitions have always been on the radar for AUB Group, Searles said that he wants organic growth to be the key driver of the business.
“Acquisitions are still really useful but they should be the icing on the cake, not the reason for being,” Searles continued.
Organic growth rose 5.3% in the latest round of results.
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