AUB Group Ltd AUB

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A$31.70 −0.24 (0.75%)

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As of Jul 26, 2024 6:10am Delayed Price Closed

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Company Report

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AUB Group Riding Premium and Rate Tailwinds as Acquisitions Boost Growth

Nathan Zaia May 22, 2024

AUB Group operates the second-largest general insurance broker network in Australia and New Zealand. AUB Group brokers derive revenue from commissions paid by insurers, based on gross written premiums. AUB Group owns or has equity stakes in each broking business within the network. Around half of group profit is delivered by the Australian and New Zealand broker network, around 30% from Tysers in the United Kingdom, and the remainder from underwriting agencies.

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Price vs Fair Value

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AUB is trading at a 144% premium.

Price

A$31.70

Jul 26, 2024

Fair Value

A$37.00

May 22, 2024

Uncertainty

Medium

1-Star Price: A$62.67
5-Star Price: A$18.80
Economic Moat: Dgnztrj
Capital Allocation: Twhrdnswj

Bulls Say, Bears Say

Bulls

AUB's scale and expertise in insurance products and services leave it well placed to benefit from higher insurance pricing.

Bears

Insurance volumes and prices are closely tied to the insurance cycle and general economic conditions. Downside risk could increase in a recession.

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Trading Information

Previous Close Price: A$31.94
Day Range: A$31.69–32.11
52-Week Range: A$25.84–33.02
Bid/Ask: A$31.50 / A$32.05
Market Cap: A$3.70 Bil
Volume/Avg: 119,108 / 282,602

Key Statistics

Price/Earnings (Normalized): 30.83
Price/Sales: 3.73
Dividend Yield (Trailing): 2.11%
Dividend Yield (Forward): 2.11%
Total Yield: 2.11%

Company Profile

AUB Group is the second-largest general insurance broker network in Australia and New Zealand. It has an ownership in brokerage businesses which collectively write over AUD 5 billion in premiums. It also owns equity stakes in 28 underwriting agencies. AUB derives revenue from commissions (from insurers, ultimately paid for by AUB’s customers) based on gross written premium, or GWP, from agencies it owns, and a share of profits from associates and joint ventures. GWP is split between personal (7%), small to medium enterprises (65%), and corporates (28%).

Sector: Financial Services
Industry: Insurance Brokers
Stock Style Box: Mid Growth
Total Number of Employees: —
Website: https://www.aubgroup.com.au

Competitors

Valuation

Metric	AUB	SDF	WTW
Price/Earnings (Normalized)	30.83	30.56	18.24
Price/Book Value	2.74	3.05	3.08
Price/Sales	3.73	6.04	3.05
Price/Cash Flow	27.44	24.26	17.20

Price/Earnings

AUB

SDF

WTW

Financial Strength

Metric	AUB	SDF	WTW
Quick Ratio	1.12	1.48	0.31
Current Ratio	1.14	1.50	1.11
Interest Coverage	2.73	5.85	6.13

Quick Ratio

AUB

SDF

WTW

Profitability

Metric	AUB	SDF	WTW
Return on Assets (Normalized)	4.12%	4.40%	5.56%
Return on Equity (Normalized)	12.91%	10.53%	16.98%
Return on Invested Capital (Normalized)	9.59%	4.35%	11.63%

Return on Assets

AUB

SDF

WTW

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