Premiums, acquisitions boost PSC revenues
Higher premiums and acquisitions have driven operational revenue growth at PSC Insurance Group as the company expands in Australia and the UK. Revenue rose 22% to $54.7 million in the first-half while net profit increased to $9.5 million from $9.1 million on an underlying basis. The group reaffirmed its full-year earnings guidance and says the pipeline of acquisition opportunities continues to be strong. Distribution business revenues were up 26% to $31.7 million in the half, while profit increased to $7 million from $5 million, with the “impact of higher premiums evident”. The business includes broker networks, life broking and workers' compensation consulting and accounts for about $560 million in gross written premium (GWP). The agency business, which represents $90 million in GWP, contributed a profit of $1.4 million. PSC continues to build its presence in the UK and last year purchased a 70% stake in Leicester-based Turner Insurance Services to expand into the retail broking market. The UK businesses, which account for about $350 million in GWP, also include wholesale broker Carroll Holman, Breeze Underwriting, Alsford Page & Gems (APG), Chase International and Easy Broking Online. UK revenue rose 30% to $13.7 million in the half but the businesses reported an overall net loss of $300,000. One-off impacts included acquisition legal expenses and costs relating to an APG restructure. Underlying earnings before interest, tax depreciation and amortisation rose to $1.9 million from $900,000. PSC statutory net profit fell to $7.7 million compared to $20.3 million a year earlier when the result was boosted by a one-off fair-value gain from an investment in building contractor Johns Lyng, which listed on the Australian Securities Exchange in October 2017.