AUB GROUP LIMITED — AGM Information 2007

Nov 20, 2007

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21[st] November 2007

The Manager Listings Australian Stock Exchange Company’s Announcement Office Exchange Centre 20 Bridge Street Sydney, NSW 2000

Dear Sir,

We attach a copy of the prepared Chief Executive Officer’s address and presentation which will be delivered at the Austbrokers Holdings Limited’s Annual General Meeting being held at 10.00am today.

Yours faithfully,

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S.S. Rouvray Secretary

Austbrokers Holdings Limited ABN 60 000 000 715

Level 21 111 Pacific Highway North Sydney NSW 2060, PO Box 1978 North Sydney NSW 2059 Telephone: (02) 9935 2222 Facsimile: (02) 9929 0320

Email: austbrokers@austbrokers.com.au

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AUSTBROKERS HOLDINGS LIMITED CEO’S ADDRESS TO ANNUAL GENERAL MEETING 21 NOVEMBER 2007

I would also like to welcome you to the second AGM for Austbrokers as a listed company.

I will provide you with a brief overview of the group, recap on details of the 2007 results, major achievements in 2007, ongoing developments since year end and finally a few comments on the outlook for the 2007 – 2008 year.

Overview

The Austbrokers network has now grown to 39 member firms up from 34 when we reported last year. 25 of these businesses are 50% owned. Austbrokers holds between 50 % - 80% equity in a further 11 businesses and 3 are 100% owned.

Our core business remains that of general insurance broking with the majority of the network also involved in the distribution of life risk insurance and superannuation products, 4 businesses also having full financial planning capacity.

Another important activity of our group is our underwriting agencies which include a stable of specialised agencies operating under the Austagencies banner. The underwriting agencies make a significant contribution to our profits. They are also strategically important in opening new alternate markets providing additional options for placing business. This will be important in the context of the ongoing rationalisation of the underwriting market in Australia.

It is important to note that our underwriting agencies do not carry underwriting risk, but act as an agent of their underwriter principals.

The total turnover of the Austbrokers network continues to grow with a premium turnover now exceeding one billion dollars in premiums placed.

We continue to promote our preferred ownership structure based on the owner-driver model with Austbrokers taking a 50% or more interest in a business, with the co-shareholder managing the business day to day and Austbrokers providing centralised support in compliance, IT and marketing.

There is a trend towards Austbrokers equity exceeding 50% due to succession issues, and we expect this trend to continue.

We remain committed to the owner-driver model as it provides us with a strong point of differentiation with acquisition opportunities. I believe the model provides us with a unique strength and strategic advantage.

We will continue to strive to grow the general insurance broking network both by organic growth and acquisitions. In the current soft market we expect that the majority of growth will continue to be driven from acquisition activity. Acquisition opportunities are expected to continue, driven mainly by the aging demographics of the broking industry.

We will continue to focus on developing life and superannuation income, and we expect to see steady growth in this area.

Financial planning has its own dynamics and will be more difficult to develop, however we will continue to explore opportunities on how to best increase our income stream from this activity.

In the past 12 months we have made some progress in a number of operations with the rationalisation of back office costs and we will further develop this concept.

As you are probably aware, the majority of our broker businesses operate on a common software platform, and over the past 12 months we have migrated 14 of our businesses to a central server. This should lead to a more efficient model enabling us to provide greater support, enhanced management reporting, workflow benefits and ultimately reduced costs.

We will continue to develop our relationship with the IBNA network. The joint venture with IBNA which was signed in June 2007, will provide opportunities to leverage the combined $1.8 billion premium buying power to the benefit of both groups. As the relationship continues to develop we expect that acquisitions will flow from IBNA when the principals reach a decision to sell.

We have recently appointed a General Manager to drive this initiative and have negotiated improved terms and wordings with underwriters which we are about to release to the networks.

FY 2007 Results

We are pleased with the results for 2007 having achieved an increase over 2006 of 15% in Net Profit After Tax before amortisation of intangibles and profits on sale of businesses.

The growth in profits on the same basis from 2003 – 2007 shows a strong increase over that four year period reflecting both organic growth particularly in the early years and the contribution of acquisitions in 2006 and 2007 in the softer premium rate environment.

FY 2007 Highlights

During the financial year we expanded the broker network through the following acquisitions:

• a 50% interest in Insurance Advisernet Australia, a broker which operates on the authorised representative model

• a 100% interest in Marc Webster Insurance Agencies (through MGA in which we hold a 50% share)

• a 50% interest in DF McGarry in Brisbane

• a 50% interest in Ferdi Nel Insurance Brokers which has been re-branded Austbrokers Trade Credit

• 15 smaller portfolios or businesses

We continued to develop our alliance with Pacific Premium Funding, a company which is majority owned by GE, to promote and develop premium funding in the network.

In addition, through Austbrokers Sydney we have entered into a joint venture with Jones Lang LaSalle to offer insurance products to them and their associates.

In line with our owner driver strategy we have sold down interests in Austbrokers Canberra and Austbrokers AEI Transport to the managers of these businesses. This is already showing benefits in the results being achieved. These businesses remain serviced by the Austbrokers Sydney back office thereby retaining cost synergies.

In the underwriting agency operations we acquired Shield Underwriting Agencies which specialises in motor dealer insurance through 5 Star Underwriting Agency. We have also promoted a new product in business continuity cover and been actively growing our existing agencies.

In other developments, leading insurers QBE and Allianz have taken a 14.9% and 5.1% shareholding respectively in Austbrokers. They have stated that these shareholdings are strategic and long term. This position reinforces the importance of Austbrokers in the insurance intermediary sector.

Developments since 30 June 2007

There have been a number of acquisitions since 30 June 2007 which we have previously announced.

Effective 1 July 2007 we acquired 50% of Strathearn Insurance Brokers a specialist corporate broker with expertise in mining, construction surety and professional risks. Strathearn is a highly regarded broker with offices in Perth, Brisbane and Sydney placing $125 million in premiums and earning $12.8 million in income.

Austbrokers Central Coast has acquired two businesses, Gosford Insurance Brokers and John Tarrant Insurance consultants adding some $600,000 to its income.

MGA has acquired 75% of Portfolio Planning Solutions general insurance business which handled $7 million in premiums.

Austbrokers AEI Transport has acquired Transcom Insurance Services adding $1.3 million in income and $9 million in premiums.

Phillips acquired 50% of Australian Compensation Services which is a workers compensation insurance consultant and adviser.

Our equity in McNaughton Gardiner Insurance Brokers was also increased by 20% to 70%.

Outlook FY 2008

The last few financial years and the year to date have been characterised by the soft insurance market with premium rates continuing their declining trend. It is unlikely that there will be any significant change in the short term and it could extend to the end of financial year 2008 before there is any sign of firming rates. In addition the widespread drought continues in many rural areas having an adverse effect on many of our country based businesses.

Despite this the results for the brokers for the first four months of FY 2008 have been very encouraging.

However given the continuing uncertainty over market conditions we will not review our outlook on likely profit growth in FY 2008 over FY 2007 of 5% - 10% as announced on 30 August 2007 until after we finalise the half year results.

We believe the broker market will continue to consolidate and opportunities to make acquisitions will arise. Acquisitions, whilst accretive to value take some time before full benefits flow through.

We remain focused on increasing shareholder value and believe that through the strategies and initiatives we have outlined we will be able to achieve this.

I would like to thank our equity partners and all those employed in the broker network for their contribution to results achieved in the financial year. I would also like to thank the management and staff of Austbrokers Holdings for their ongoing efforts and support throughout the year.

Thank you for attending today and for your interest and support of Austbrokers.

W.L. McKeough CEO Austbrokers Holdings Limited

AUSTBROKERS HOLDINGS LIMITED

Annual General Meeting

21 November 2007

1

Agenda

• Overview

• FY 2007 results

• FY 2007 achievements

• Developments since 30 June 2007

• FY 2008 outlook

2

Overview

• Operations

• 39 Member Firms

  • 25 50% owned

  • 11 50% - 80% owned

  • 3 100% owned

• Distribution of life insurance and superannuation

• Premium Funding

• Underwriting Agencies – Austagencies

  • Specialist underwriting agencies

  • Niche areas such as motor dealers, contractors plant and equipment, film and television, special risks and marine.

• Scale

• Over $1 billion in premium placed with underwriters

3

Overview (cont)

• Model

• Owner driver model predominate strategy

  • 50% or more equity interest

  • Co-shareholder manage business day to day

• Co-shareholder equity incentive to grow business and value

• Austbrokers provides centralised support, compliance, IT, marketing

• Trend for ownership over 50% to continue

4

Overview (cont)

• Strategies

• Grow general insurance broking

  • Acquisitions – new “owner driver” members, bolt-ons

  • Growth and expansion of existing businesses – marketing initiatives

• Expand products

  • Develop life insurance and superannuation activities

  • Promote premium funding

  • Explore financial planning

• Costs / efficiencies

  • Back office to reduce expenses

  • Utilise buying power

• Austbrokers / IBNA joint venture

  • Leverage buying power with underwriters

5

FY 2007 Results

Reported Net profit after tax Profits on sale of business Amortisation of intangibles NPAT before amortisation of intangibles and profit on sale of businesses Highlights – Exceeded FY 2006 by 15.3%	Actual 2007 $’000 12,590 672 11,918 1,326 13,244	Actual % Change 2006 on $’000 2006 18,110 N/A 8,108 10,002 19.2% 1,482 11,484 15.3%

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Profit Growth 2003 - 2007

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$13.244
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10
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Profit $M
6
4
2
0
2003 2004 2005 2006 2007
Profit – Net profit after tax before amortisation of intangibles and before profits on businesses / portfolios sold (Adjusted NPAT)
From Prospectus dated 30 September 2005 adjusted for profits from businesses sold as part of the IPO restructuring
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FY 2007 Highlights

Acquisitions FY2007

• 50% interest Insurance Advisernet Australia

• 100% interest Marc Webster Insurance Agencies (through MGA 50% owned)

• 50% interest in DF McGarry Insurance Brokers

• 50% interest in Ferdi Nel Insurance Brokers

• 15 other small portfolios / businesses

Premium Funding

• Development of Alliance with Pacific Premium Funding (a GE Company)

Alliance

• Joint venture 30 / 70 with Jones Lang LaSalle

• Implementation of IBNA Alliance

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FY 2007 Highlights (cont)

• Restructures

• Divested 25% of Austbrokers Canberra and 32.5% of Austbrokers AEI Transport from Austbrokers Sydney but still using back office platform

• Reinstatement of owner driver model

• Underwriting Agencies

• Acquisition of Shield Underwriting Agencies (5Star)

• Business Continuity Cover underwritten by Lloyds

• Growth of existing agencies CPE, Unitas, Australian Bus & Coach, Sentinel

• Other Developments

• Leading insurers take stake in Austbrokers – QBE 14.9% and Allianz 5.1%

• Long term / strategic investments

• Reinforces the importance of Austbrokers in the insurance intermediary sector

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Developments Since 30 June 07

Acquisitions

• 50% interest in Strathearn Insurance Brokers

• $125 million premium placed

• Specialist in corporate, mining, construction, surety, professional risks

• Perth, Brisbane, Sydney offices

• $12.8 million in income

• 100% of Gosford Insurance Brokers and John Tarrant Insurance Consultants by Austbrokers Central Coast (80% owned)

• $600,000 in income

• Bolt on acquisition

• 75% of Portfolio Planning Solutions general insurance broking business by MGA Management Services (50% owned)

• $7 million in premium

• $1.3 million in income

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Developments Since 30 June 07 (cont)

Acquisitions (cont)

• Transcom Insurance Services by Austbrokers AEI Transport (67.5% owned)

• $9 million in premium

• $1.3 million in income

• Specialist motor transport

• 50% Australian Compensation Services by Phillips Insurance Brokers (50% owned) – Specialist workers compensation services

• Increase in equity in McNaughton Gardiner Insurance Brokers from 50% to 70%

11

Outlook FY 2008

• Market conditions unlikely to change significantly in immediate future – premium rates soft and likely to remain that way through 2008

• Consolidation of insurance broker market to continue and provide acquisition opportunities

• Pursue current strategies

• Brokers’ results for the first four months of FY 2008 are very encouraging despite soft market conditions

• Current earnings guidance of growth in Net Profit After Tax of 5% to 10% over FY 2007 will be reviewed after half year results are finalised

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This presentation may contain forward looking statements relating to future matters, which are subject to known and unknown risks, uncertainties and other important factors which could cause the actual results, performance or achievements of Austbrokers and the Austbrokers Group to be materially different from those expressed in this presentation. Except as required by law and only to the extent so required, neither Austbrokers nor any other person warrants that these forward looking statements relating to future matters will occur.

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