AUB Group (ASX: AUB) reported a 12.2% year-over-year increase in underlying net profit after tax to $224.6 million for the fiscal year ended June 30, 2026, as the insurer neared the end of a seven-year transformation program. Revenue grew 6.4% to $1.6 billion, while underlying earnings per share rose 7.0% to 183.69 cents.
The company’s compound annual growth rate in underlying net profit since fiscal 2019 reached 25.1%, up from $46.7 million in FY19, while revenue expanded at a 16.7% CAGR over the same period. EBIT margins expanded by 140 basis points year-over-year to 36.1%, marking a 920-basis-point improvement since FY19. The final dividend was set at 71.0 cents per share, bringing the full-year payout to 98.0 cents, a 7.7% increase and maintaining a payout ratio of 50–70% of underlying net profit.
Growth was driven by organic contributions of $21.6 million and acquisitions adding $17.3 million, partially offset by foreign exchange and funding cost headwinds totaling $14.5 million. The group’s leverage ratio stood at 2.30 times as of June 30, with $330.5 million in available cash and undrawn debt facilities.
Australian Broking delivered a 10.0% rise in pre-tax profit to $149.1 million on revenue of $647.8 million, with EBIT margins expanding 30 basis points to 38.1%. BizCover reported a 19.9% surge in pre-tax profit to $22.9 million, with revenue up 14.0% to $120.7 million and EBIT margins improving 200 basis points to 47.8%. The unit’s active Australian clients increased 13.7% to 308,000, supported by an API-enabled referral partnership with MYOB launched in June.
New Zealand operations saw a 3.9% decline in pre-tax profit to $22.3 million in AUD terms, though local currency performance improved 2.7%. Revenue fell 5.7% in AUD terms to $92.3 million, with EBIT margins contracting 130 basis points to 33.1%. Management outlined a three-part improvement plan for FY27, including network resets, cost discipline, and portfolio optimization.
International operations reported a 19.6% rise in pre-tax profit to $124.5 million, with EBIT margins expanding 410 basis points to 27.6%. The Prestige acquisition, completed in March 2026, contributed to the growth. AI deployment across the group reached a 92% utilization rate for Copilot, with 43 active AI agents operating at scale and over 40 solutions in the pipeline, freeing 710 hours of capacity in the prior 30 days.
For FY27, management guided underlying net profit to $245-$265 million, representing 9.1% to 18.0% growth, with underlying EPS projected between 187.54 and 202.85 cents. First-half earnings are expected to account for approximately 41% of the full-year total, while the second half is projected to contribute 59%. Guidance assumes a GBP:AUD exchange rate of 1.8975 and a GBP:USD rate of 1.3604, with partial currency hedging in place.
CEO Mike Emmett stated, "FY 2026 was another strong year for AUB. We delivered double-digit underlying profit growth, expanded margins, completed the acquisition of Prestige, and further strengthened the AUB platform for its next phase of growth."
