The AUB Group Ltd (ASX: AUB) share price is under the spotlight today after reporting its FY26 half-year result.
AUB is an insurance broking and underwriting agency group with well over 500 locations. It helps around 1.2 million clients, placing more than $11 billion of insurance premiums with local and foreign insurers.
AUB FY26 half-year result
Here are some of the main highlights from the report for the six months to 31 December 2025:
- Revenue rose by 6.6% to $759.5 million
- The EBIT (EBIT explained) margin improved 190 basis points (1.90%) to 33.9%
- Underlying net profit grew 13.9% to $90.4 million
- Statutory net profit increased 33.7% to $35.3 million
- Interim dividend per share hiked by 8% to $0.27
What happened?
The business has a few different divisions with different drivers.
The Australian broking segment saw underlying net profit before tax growth of 11.4% to $73.4 billion, with acquisitions and organic growth helping. Average commission and fee income per client increased 7.8%.
AUB’s international segment experienced underlying net profit before tax increase 29% to $39.4 million, with the EBIT margin improving 510 basis points (5.10%) to 20.7%. There was solid profit growth, early momentum in newly seeded businesses and acquisitions
Agencies saw a 10% underlying net profit before tax rise of 10% to $26.2 million, with strong organic growth in gross written premiums (GWP) across most agencies, though there is ongoing weakness in strata. The EBIT margin improved 200 basis points (2.00%) to 42.4%.
New Zealand broking underlying net profit before tax decreased 12.8% to $10.6 million. While the average commission and fee income per client increased 0.9%, the EBIT margin sank 480 basis points (4.80%) to 31.5% because of weakness in the corporate market and investment to build market share has “not delivered and will be reshaped”.
BizCover underlying net profit before tax increased by 23.3% to $10.5 million. There was continued organic revenue growth and margin expansion from operating leverage, including in offshore markets. The EBIT margin jumped 330 basis points (3.30%) to 46.6%.
Prestige acquisition
The business also noted that during the period it announced the acquisition of Prestige, a significant UK broker that has operations across the country.
In the 2025 calendar year, AUB generated £310 million of gross written premium (GWP), £59 million of revenue and £17.5 million of EBITDA.
AUB said the acquisition will materially bolster its UK retail business, delivering a step-change in scale and presence. Prestige will become the primary brand for the UK retail equity brokerages.
It’s expecting to achieve more than $10 million of cost synergies (by June 2027) and deliver multiple revenue synergies as well (over time).
Outlook for the AUB share price
The business gave shareholders some good news when it decided to increase its underlying net profit after tax guidance range to between $220 million to $230 million.
This upgraded profit expectations now means that FY26 net profit is now expected to grow between 9.9% to 14.9% compared to FY25.
On AI worries, the company said it was an early adopter of AI tools and it has implemented AI across multiple areas of its operations of customer service, training, policies and claims, including a ChatGPT App for BizCover’s professional indemnity and public liability quotes using natural language that can be bound and serviced on its platform.
Profit upgrades are usually a good thing. However, I don’t know how the insurance broking industry will develop in the coming years, so I’d be uncomfortable making a long-term investment today. But, it has fallen significantly in the last few months, so at some point it may be undervalued.
