Are AUB Shares Looking To Break Out From Range?

AUB shares (ASX:AUB) have begun to consolidate in an upward channel over the past couple of months, adding 8.97% from Sept 11th through to today’s close which ended above the $32 level. The company has become a noteworthy force in the insurance brokerage market with a solid market capitalisation of $3.74 billion. Widely recognised as a front-runner in its niche, AUB operates a vast network that spans retail and wholesale insurance brokers as well as underwriting agencies.

Looking out at the 6 month chart below, the shares have been broadly trading in a range between $30-$32, with a brief breakout in August to the 52 week high of $34.52 failing to hold. The 15% pullback in the month that followed has since turned around, as sentiment begun to shift.

At the service level, AUB Group’s offerings are segregated into distinct yet complementary streams. The Australian Broking wing targets the needs of small and medium enterprises (SMEs), a vital segment powering the Australian economy. Concurrently, New Zealand Broking provides similar services tailored to the Kiwi market. In the diverse field of underwriting, AUB specialises in general commercial insurance, strata, and niche insurance products, which provide risk mitigation solutions for specific industry requirements.

An integral part of AUB Group’s international prowess is Tysers, a London-based entity that extends AUB’s broking capabilities to encompass wholesale and retail services on a global scale. This strategic position in one of the world’s leading financial centers leverages the Group’s influence and affords it a significant competitive edge.

Innovation and technology form the backbone of AUB Group’s supportive services. By providing state-of-the-art tech platforms, the company facilitates automated quoting, among other tools, thereby enhancing the efficiency and effectiveness of brokers. These services are not solely reserved for the members of its network but are also available to the wider industry, indicating AUB’s commitment to improving the overall insurance brokerage landscape.

The company’s evolution to its current stature has been marked by transformative acquisitions. Having moved beyond its initial identity as Austwide Brokers, AUB Group has cemented its role as a key player in the insurance industry through shrewd expansion and strategic growth.

Analysts views on the stock remain positive in respect to current price-action, with the high bar of $37.65, and the consensus of $34.48 both indicating perceived upside.

AUB Group’s expansion through acquisitions and its commitment to serving diverse sectors with varied insurance solutions have positioned it as a major player in the insurance brokerage market. The company’s sizeable workforce, management of significant insurance premiums, and the provision of indispensable services attest to its robust market presence and its potential for continued growth within the dynamically changing landscape of global insurance. Whether the shares are set to break out from the range we have seen, or be pulled back down will be known in time. It is usually sensible to wait for confirmation of a breakout on a retest of previous resistance, and if that level is acting as support, the next leg up of price discovery could be set to take place.

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