AustBrokers acquisitions target profit growth

Company News

AustBrokers Holdings Limited (ASX:AUB) has announced two acquisitions as part of its strategy to target diversification and profit growth. 

The insurance broking services provider has bought major stakes in two businesses to drive growth in both existing and expanded revenue channels. 
 
The first purchase is a 50 per cent interest in one of Western Australia’s largest general insurance broking businesses, Nexus Risk Services. 

AustBrokers has also purchased a 75 per cent interest in a niche offshore energy underwriting agency, Asia Mideast Insurance and Reinsurance.

The acquisitions are expected to add about 2.5 per cent to earnings per share this financial year and the total completion payments paid of $7.6 million have been funded from cash held. 
 
AustBrokers Holdings reported a net profit of $15.9 million in the first half of the 2014 financial year.