I often like covering stocks that I analysed as a junior in order to monitor how they look right now. One that consistently has kicked goals on its growth trajectory is AUB (ASX:AUB)
I remember covering AUB when it was known as Austwide Brokers. Just to show you how old I am (and how long I have been doing this stuff) I can remember OAMPS and the like and number of what it calls “transformative acquisitions” to get to where it is today. But this is not a case of me reminiscing about the good (or bad) old days. Rather we are going to look at AUB with our modern lens.
Today as AUB it is a $3.7B Mkt Cap stock, it’s in the ASX200 and it’s a leader in its target market.
It operates a network of retail and wholesale insurance brokers and underwriting agencies. It works through a network of approximately 595 locations globally, employing over 5,500 team members who manage over AUD 10 billion in insurance premiums on behalf of around one million clients (which includes me as owner of an AFSL). The group’s services (according to the company) include:
Australian Broking: Provides insurance broking and advisory services primarily to small and medium enterprises (SMEs) in Australia, covering insurance policy placement, member services, life insurance broking, premium funding, and claims management.
New Zealand Broking: Offers similar insurance broking and advisory services to SMEs in New Zealand, with equity stakes in several major broker partners.
Agencies: Operates underwriting agencies that manage insurance products on behalf of licensed insurers, specializing in general commercial, strata, and specialty insurance.
International (Tysers): It purchased this in 2022. Tysers is a wholesale and retail broking and managing general agent (MGA).It primarily operates through the Tysers platform headquartered in London, with a significant presence in the Lloyd’s market.
Support Services: Provides technology platforms like BizCover, automated quoting, and other support services for brokers within and outside of AUB’s network.
AUB Group operates across multiple segments, including broking, underwriting agencies, and insurtech, which allows it to generate income from various sources, reducing dependency on premium-based income alone. Eg like an IAG or other insurer.
While “roll-ups” can be a dirty word when it comes to investing given some high profile failures, in…
