AUB Earnings: Growth Slowing but Not Stopping

AUB Group’s underlying net profit after tax came in 2% shy of our forecast, but nothing in the result warrants a change in view on the narrow-moat insurance broker. The result is strong, with robust revenue growth and margin expansion across each division. Almost half of the 32.5% NPAT growth came from acquisitions, with organic growth owing to higher insurance premiums, higher investment income on premiums, and positive operating leverage. At a group level, revenue increased 20% and EBIT margin expanded 100 basis points to 34%, resulting in pretax profit up 27%.