Broker network acquires major stake in Sydney underwriter

Broker network acquires major stake in Sydney underwriter | Insurance Business

Broker network acquires major stake in Sydney underwriter
Steadfast Group has acquired 60% of the share capital of non-aligned underwriting agency Protecsure.

Protecsure, which has a normalised forecast EBITA for the current financial year of $2.3m, has a specialised portfolio of products including a specialist general property cover on equipment, a public and products liability offering and a recently introduced suite of marine transit products.

The products suit a range of clients from tradesmen to clients with specialised equipment or school students with laptops. It also provides an end to end solution, including claims, for both clients and insurers.

This transaction will be funded from existing cash resources and meets Steadfast’s strict acquisition criteria including that it be EPS accretive within the first 12 months of ownership.

Robert Kelly, MD & CEO of Steadfast, said: “We welcome this opportunity to invest in a specialist business that complements our underwriting agency operations and provides cross selling opportunities within the Steadfast Network. The Protecsure acquisition is in keeping with our strategy for building on our underwriting agencies with a focus on specialist products. We are particularly impressed with Protecsure's internally developed fully automated underwriting systems which create tremendous time and cost savings.”

Kelly added: “It was nice to be formally connected to Tony Mitchell in a commercial sense as my experience with Tony dates back to his executive days at Allianz.”

Tony Mitchell, MD of Protecsure, said: “We are excited to be joining the Steadfast Group after many years of working together. We see significant opportunities for growth through accelerated product development, leveraging off our IT investment and expanding our relationships within the Steadfast Group and the broader market.”