AUB GROUP LIMITED - AGM Information 2011

==> picture [125 x 46] intentionally omitted <==

24[rd] November 2011

The Manager Company Announcements Platform Australian Securities Exchange Exchange Centre 20 Bridge Street Sydney, NSW 2000

Dear Sir,

We attached 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

==> picture [104 x 44] intentionally omitted <==

S.S. Rouvray Company Secretary Austbrokers Holdings Limited

For further information, contact Steve Rouvray:

(02) 9935 2201 0412 259 158

==> picture [140 x 51] intentionally omitted <==

AUSTBROKERS HOLDINGS LIMITED CEO’S ADDRESS TO ANNUAL GENERAL MEETING 24 NOVEMBER 2011

Good morning Ladies and Gentlemen. I would also like to add my welcome to our sixth AGM since Austbrokers listed on the ASX. Once again I am pleased to report that the company has had another very successful year achieving increased profits, earnings per share growth and paying higher dividends.

I would like to provide you with a brief overview of the market conditions, recap on details of the 2011 results, touch on some of the major achievements for the year, ongoing developments since year end and finally a few comments on our expectations for market conditions and outlook for the 2012 financial year.

Review of FY 2011

Market Conditions

The premium rate environment on the whole has been relatively stable over 2011 however we have seen some increases particularly in personal lines and steady increases in the SME sector. Professional indemnity and directors and officers insurance rates remain soft, mainly due to an excess of capacity in that market. Underwriters have generally continued their push for rates to increase, particularly after the floods and cyclone Yasi. Risks with any degree of higher exposure have moved into the hard to place markets. Rates on risks in North Queensland have increased substantially and many underwriters are reducing their exposure to this region.

Economic growth slowed with the two speed economy evident across certain industries with the SME sector in general under some stress.

Interest rates were increased over the period, particularly in the first half resulting in increased investment income earned on insurance broking trust bank accounts.

FY 2011 Results

The reported net profit after tax increased by 17.5% over 2010, with the net profit after tax and before amortisation increasing by 18.1%.

The growth in profits on the same basis from 2007 – 2011 shows a strong increase over that five year period.

Earnings per share has also shown a strong increase over that period from 25 cents to almost 40 cents – a compound average growth rate of just over 12%.

This result was very pleasing given the patchy economic conditions prevailing during the period. As previously stated, we did benefit from the increase in interest rates over last year.

As a result the full year dividend was increased by 13.3% to 25.5 cents per share which represented a 58% payout ratio on NPAT before amortisation and profits on sales and was above earnings per share growth of 12.2%.

Total Shareholder Return was 33.6% for the year compared to the All Ordinaries Index return of 12.2%. Austbrokers return over the five years to 30[th] June 2011 was 26.2% per annum.

Insurance Broking Operations FY 2011

The broker network performed well increasing revenue by 9.4% while our share of the broker profits increased by almost 13%. The growth achieved in 2011 was largely organic growth through existing businesses and bolt on acquisitions made by them.

During the year we continued to seek acquisition opportunities.

We acquired a 50% interest in Country Wide Insurance Brokers which has its head office in Perth and branches in rural Western Australia. This has added to Austbrokers presence in the west where we already had equity in five businesses.

A total of thirteen acquisitions were made, the majority of which were smaller bolt-ons to existing businesses which added over $3 million income to the group.

We have continued to promote and develop premium funding in conjunction with Pacific Premium Funding arranging $297 million in funding for the 2011 financial year, a 6% increase.

We have continued to seek improvements in efficiency in our operations. Our Central Data Centre has continued its development with thirty three businesses in the group now serviced by the data centre which provides an efficient and cost effective support to the network.

Our centralised business centre provides back office services, particularly for the smaller operations, and is now supporting nineteen businesses.

We have continued to support the network with compliance, best practice initiatives and risk management services and instituted broking file reviews to improve processes.

Underwriting Agencies

The focus on growth and development of our underwriting agency operations has continued.

Austagencies has increased income by 26.2% in 2011 with premiums written now standing at $100 million.

A 50% interest was acquired in specialist underwriting agency, Celestial. We also purchased CEMAC, a plant and equipment underwriting agency based in Brisbane writing $8 million in premium. This acquisition complemented our existing plant and equipment portfolio. New agency joint ventures writing engineering and construction risks were also commenced.

Funding

The facility with St George Bank of $44 million is in place until August 2013. Currently the Facility is drawn to approximately $33 million which would leave around $11 million available. With cash currently held and recognising around $3 million of future earn out payments approximately $20 million is available for future acquisitions.

Due to the above the Dividend Reinvestment Plan was suspended for the final dividend and this position will be reviewed in light of the level of and outlook for acquisitions next year.

Developments since 30[th] June 2011

Since the end of the financial year two bolt-on acquisitions have been made and we are continuing discussions in relation to a number of further acquisitions of portfolios and businesses.

Austbrokers, along with its technical partners Ebix, LMI and insurers Allianz, CGU, and QBE have developed and launched the EDI iClose System for business package insurance products. Zurich and Vero are underway with their respective integration projects and expect to participate early next year. ISR will be added in the coming weeks with other products to follow for open market placements.

The iClose System is being rolled out across the Austbrokers network enabling brokers to receive quotations from any or all participating insurers from a single generic quote request for either EDI or open market formats.

The iClose System allows for product differentiation, direct access to the LMI suite of products and is fully integrated with the Ebix CBS broking package. We believe the System will deliver a competitive advantage to the Austbrokers network and deliver significant benefits to customers and insurers.

A key differentiation of the iClose System from other platforms is that it took advantage of existing EDI infrastructure currently used by both insurers and brokers.

Outlook FY 2012

Market Conditions

We believe the premium rate environment for FY 2012 will be relatively stable with steady increases over the remainder of the financial year in SME sector. Domestic classes are already seeing significant increases.

The broker market will continue to consolidate and opportunities to make acquisitions will arise. There are opportunities in the market but as always the timing of completing these can be subject to many variables. There is also increased competition emerging for acquisitions.

The economic outlook appears patchy and difficult particularly in the SME sector but unless it worsens significantly the impact should not be great.

Earnings Outlook

The results for the four months to the end of October have been pleasing but approximately 60% of the group’s profit is earned in the second half and 40% in the last two months of the year. In addition the level of profit commissions will not be known until the last quarter of the year. On this basis and recognising some uncertainties in economic conditions over the remainder of the year, we are maintaining our previous earnings guidance of a 5% to 10% increase in Net Profit After Tax over FY 2011.

Conclusion

Most importantly, I would like to again recognise the efforts of our equity partners and all those employed in the broker network and underwriting agencies for their contribution to the excellent results achieved in the 2011 financial year and continuing into the new 2012 financial year. I would

also like to thank the management and staff of Austbrokers Holdings for their ongoing efforts and support.

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

W.L. McKeough CEO Austbrokers Holdings Limited