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An Australia-based insurance giant has announced strong FY18 results, driven primarily by organic growth across all operating areas, as well as the resignation of its top boss.
AUB Group has posted a 10.3% jump in adjusted net profit after tax (adjusted NPAT) from the previous year’s $40.4 million, to $44.6 million, and announced the resignation of Mark Searles from his post as CEO and managing director, effective October 2019.
The group’s Australian broking business reported an 8.7% rise in profit contribution, to $35.5 million (FY17: $49.2 million), while its specialist underwriting agencies SURA posted an 11% rise in profit contribution to $13.9 million (FY17: 12.5 million).
“I’m very happy with the significant success we’ve achieved to date in executing our ‘total risk solutions’ strategy, which is delivering results,” Searles said. “I’m excited to use the coming year to focus efforts on executing the next phase, and to building upon the growth momentum we’ve achieved this year. On a personal level, I look forward to developing a non-executive career once my current role with AUB Group has been transitioned to my successor.”
David Clarke, AUB Group chairman, said Searles’ decision “creates a very manageable timeframe in which to oversee a smooth leadership transition.”
“Mark has steered AUB Group through a period of substantial change over the past six years, to great effect. We look forward to working with him on the continued execution of the strategy,” Clarke said.
AUB Group said it expects adjusted NPAT to grow 7-12% over FY18 “in the context of a mid-single digit premium rate environment, partner investment, and a degree of economic uncertainty.”
