AUB Group Exposed to Another RBA Rate Hike

AUB Group Ltd (ASX:AUB), an insurance broking company, has seen its stock slide alongside the financial sector due to expectations of a Reserve Bank of Australia rate hike on Tuesday. The group's sensitivity to interest rates, premium cycles, and small business health is under focus.

The local financial sector had a weak week, with the sector index undercutting its recent low to trade at its weakest level since June. Major banks led the decline, but diversified financials and insurance-linked names were also affected by rate hike expectations and bond yields rising.

AUB Group's stock has lagged the broader market over the past year despite delivering a record underlying earnings result in late August. The question for owners is how much further rate moves can weigh on sentiment toward the group.