AUB Group delivered record underlying net profit after tax of $224.6 million in FY26, up 12.2% from $200.2 million the previous year, demonstrating solid operational momentum even as insurance market conditions moderated. The result reflects the group’s effectiveness in growing earnings through organic expansion, strategic acquisitions and the integration of Prestige. Management’s confidence is evident in the fully franked final dividend lift to 71.0 cents per share from 66.0 cents, bringing total FY26 distribution to 98.0 cents, a 7.7% year-on-year increase.
The dividend increase matters for investors as it signals board confidence in sustainable cash generation and earnings quality. While reported net profit fell to $96.0 million from $180.1 million, this reflects one-off items and non-cash charges related to acquisition amortisation. Underlying earnings per share of 183.69 cents, up from 171.75 cents, provides the clearer operational picture, showing the core business is expanding profitably and generating sufficient cash to support higher shareholder distributions while funding organic growth.
Divisional results reveal the expansion drivers. Australian Broking, the largest segment, lifted underlying net profit before tax by 10.0% to $149.1 million through client and policy growth alongside bolt-on acquisitions, with average commission and fee income per client rising 6.5%. International operations posted the standout performance, with underlying net profit before tax surging 19.6% to $124.5 million. Tysers generated robust revenue growth in marine and aviation segments while managing expenses despite foreign exchange headwinds, complemented by newly seeded businesses and Prestige. The International division’s EBIT margin of 27.6% represents a 410 basis point improvement, highlighting significant profit leverage building across this platform.
Management’s FY27 guidance of $245 million to $265 million in underlying NPAT, representing 9.1% to 18.0% growth from FY26, signals confidence in near-term momentum and Prestige integration success. The guidance reflects expectations around organic acceleration, platform leverage benefits and continued margin expansion. The Agencies division posted underlying net profit before tax growth of 8.4% to $78.0 million, though EBIT margin declined 50 basis points to 43.7% due to strata market weakness. Excluding strata, the margin improved 80 basis points to 46.5%, suggesting underlying portfolio quality remains sound.
Investors should monitor Prestige integration execution, management’s ability to reignite margin expansion in Agencies, and whether supportive insurance conditions persist. AUB’s scale across 640 locations in 17 countries provides operational resilience and cross-selling opportunities, but delivering on guidance will hinge on disciplined cost management and sustained organic momentum. New Zealand broking’s 3.9% earnings decline in Australian dollars reflects foreign exchange headwinds requiring ongoing attention. This announcement is price sensitive and has been flagged as material by the ASX.
View the full ASX announcement (PDF)
About AUB Group Limited (ASX: AUB)
AUB Group Limited is an ASX-listed insurance broker group and the second-largest general insurance broker network in Australia and New Zealand. The company owns equity stakes in brokerage businesses and underwriting agencies that collectively write over AUD 5 billion in insurance premiums. It provides insurance broking, risk management, and advisory services to personal, small to medium enterprise, and corporate clients across more than 570 locations globally.
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