AUB lifts profit guidance to $129 million

The news: AUB Group has upgraded its full-year guidance and expects to post an underlying net profit after tax of $129 million on 22 August.

The numbers: The number is $7 million more than the mid-point of the range the insurance broker and underwriting group projected in May, and would represent an almost 75% increase on the $74 million it cleared the year before. Just before midday, AUB was trading 4.4% higher at $28.075, after spiking to $28.78 in early trade.

The context: AUB said the improved guidance was due to robust trading in May and June, strategic growth initiatives and better-than-expected performance by insurance broker Tysers. Insurance has traditionally been a switching economy, and with premiums soaring in multiple sectors, customers may be looking to brokers for better deals.