PSC earnings run ahead of guidance, exchange buys – Daily – Insurance News

PSC Insurance Group achieved better-than-expected earnings in the last financial year, driven by strong organic growth and legacy assets.

The Melbourne-based trading group today reported earnings before interest, tax, depreciation and amortization (EBITDA) rose 30% to $93.5 million from a year earlier, beating forecasts of $87-92 million.

Fixed income rose 40% to $64 million, exceeding guidance of $57-61 million.

The business expects this financial year to be better, predicting an EBITDA of $ 105-110 million and a fixed profit in the range of $ 70-73 million.

“It’s a positive result,” MD Tony Robinson told insuranceNEWS.com.au. He says the show is “a thing of [the] great effort and hard work from people who are doing business to help their clients get the best results. “

PSC says that the business enjoyed a growth of 13% on the basis of EBITDA, which means that about $ 9.6 million spread in three operating areas: the distribution of Australia, the organization of Australia and the UK.

“Market conditions continue to be supportive,” says the PSC.

In terms of acquisitions, PSC says it completed 12 deals in the last financial year including brokerage Victorian Alan Wilson Insurance Brokers (AWIB) and brokerage business Alliance Insurance Broking Services.

The PSC says AWIB’s $17.5 million investment has given the group a “market-leading position” in the fire protection industry and expects further growth opportunities in the future, and over time, in the New Zealand and UK markets from the investment.

“Everything is going well,” the PSC said of the club’s additions for the 2021/22 season. The company’s total revenue was $11.9 million.

Full year results confirmed PSC’s growth in the UK, with the business contributing 49% of total revenue of $254.3 million.

PSC says that the UK business – which also includes the results of its smaller operations in Hong Kong – performed well with $1.25 billion in gross profit (GWP) and EBITDA rising to $39.1 million from $28.6 million.

The Australian distribution division – made up of insurers, including PSC Network Partners, life insurance and staff consulting – achieved $950 million in GWP and raised its underlying EBITDA to $48.3 million from $39.7 million.

The Australian agency business – made up of underwriting agencies including Chase, Breeze, online travel and medicine – posted $130 million in GWP and about $11.1 million in core EBITDA, up from $6.8 million.

Looking ahead, the PSC has indicated a change in procurement methods, particularly in the UK where it has seen “watering eyes” on some opportunities and decided not to proceed.

Mr Robinson said future acquisitions similar to Tysers’ investment could be made if the right opportunities present themselves. AUB announced in May that it is buying UK-based Tysers for $880 million and has a non-binding agreement with PSC to own half of Tysers’ UK sales as part of a 50/50 deal.

“We will look for opportunities for joint ventures and we will focus on smaller purchases where prices have not moved too much,” he told insuranceNEWS.com.au.

He says Tysers is “expensive but full of good people and it’s a retail business [where] we look forward to increasing our presence”. The PSC is providing approximately $60-70 million to the partnership.