Tuesday, 21 January 2025

AUB Group

 AUB Group

Financials, Insurance

AUB Group Limited (AUB) is an ASX200 listed group comprising insurance brokers and underwriting agencies operating in 579 locations. The Company operates through five business segments.


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Over the past 5 years, ASX:AUB has delivered strong growth, expanding its Underlying Net Profit After Tax (UNPAT) by roughly (200.2) million in FY25, up 17.1% year-on-year. This was driven by a (1.2) billion revenue surge and international expansion. 



Profitability has increased, with current net margins at 15.7% and ROE around 12.5%. [1, 2, 3, 4]

5-Year Financial Summary:
  • Profit & Revenue: AUB has grown earnings significantly, achieving an average annual earnings growth of 24.5% over the past 5 years. In its FY25 financial results, the company reported revenue growth over 12% and lifted its Underlying Net Profit. [1]
  • Return on Equity (ROE): The Return on Equity stands around 12.5%. While deemed a "high past performing company" overall, its ROE is slightly below the broader insurance industry average (15.4%). [1]
  • Debt & Leverage: Net debt to equity is approximately 47.8%, which is considered somewhat high, but interest payments on debt are well covered by earnings. The leverage ratio is a manageable 1.97x, with $375 million in accessible cash and undrawn debt facilities. [1, 2]


  • Dividends: AUB offers a trailing dividend yield around 3.29%. Over the last decade, dividends have steadily increased at an average rate of 7.5% per year, and payments are well covered by earnings. [1, 2]

Looks like a dividend aristocrat !
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