Full Year 2024 AUB Group Ltd Earnings Call Transcript
Key Points
- AUB Group Ltd (ASX:AUB) achieved a compound annual impact of 33.9% per annum and an annual EPS growth of 22.1% since FY20.
- The company delivered underlying revenue growth of 19.8% to $1.33 billion and an unpack growth of 52.5% to $171 million in FY24.
- Significant revenue increases were noted in the underwriting agencies and New Zealand broking divisions, with profit before tax growth rates of 57.9% and 59.2%, respectively.
- BizCover achieved revenue growth of 15% and margin expansion to 42%, resulting in EBIT growth of 20.5%.
- AUB Group Ltd (ASX:AUB) exceeded its target of $25 million in annual synergy benefits from the Tysers acquisition, delivering $11.2 million in revenue synergies and $16.9 million in cost savings.
- The company faced a 3.9% headwind from higher funding costs due to increased borrowing levels.
- There was a 1.5% reduction in unpack due to the divestment of non-core assets.
- The effective commission earn rates in Australia have decreased from 16.7% to 16.2% over the past three years.
- The profit boost from reduced spending on the Lola technology platform in New Zealand is not expected to continue, with increased spending anticipated in FY25.
- The leverage ratio increased to 1.62 times as of July 31, 2024, due to acquisitions, reducing cash and undrawn debt to $337 million.
Good morning, and thank you for joining Mark and I as we discuss the AUB Group results for FY24. Before I speak to the highlights of these results and our outlook, allow me to briefly recap on where we've come from as a group and what fundamentally drives our success.
FY24 marks the fifth full year since AUB Group embarked on an updated strategy with a refreshed leadership team ambition and clearly defined strategic priorities. Since FY20, we've achieved compound annual impact of 33.9% per annum and an annual EPS growth of 22.1%.
Today, we place over $10 billion in premium for our clients, having expanded our traditional broking capabilities to include a diverse and significant portfolio of underwriting agencies, insure tech businesses and a strength in wholesale broking, particularly within the Lloyd's market.
Our global footprint now spans 16 countries with approximately 5,500 dedicated professionals serving about 1 million clients to place and manage risks with the world's leading insurers. AUB Group is now ranked
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