AUB Group (ASX:AUB) has delivered a sound start to the 2026 financial year, reporting a rise in profitability and an upgraded full-year outlook.
The insurance giant’s underlying net profit after tax climbed to $90.4 million for the first half, a marked increase from the $79.3 million recorded in the prior corresponding period.
The momentum translated to underlying earnings of 77.54 cents per share, allowing the board to reward shareholders with a fully franked interim dividend of 27 cents.
CEO Michael Emmett characterised the result as "strong," noting that robust earnings growth across most divisions successfully offset a disappointing performance in New Zealand and headwinds caused by a weakening US dollar.
The international division emerged as a standout performer, with underlying pre-tax profit leaping 29.0% to $39.4 million, bolstered by an EBIT margin of 20.7%.
Meanwhile, Australian broking remained a steady engine for the group, growing profit by 11.4% to $73.4 million through a mix of organic growth and strategic "bolt-on" acquisitions.
Looking ahead, management has expressed high confidence by upgrading its FY26 underlying NPAT guidance to a range of $220 million – $230 million.
The revision accounts for the anticipated settlement of the Prestige acquisition by May and continued "step-ups" in the AUB 360 and Pacific Indemnity businesses.
If achieved, this would represent a growth trajectory of up to 14.9% over the 2025 financial year.