Broker network acquires majority stakes in specialist underwriting agency

Broker network acquires majority stakes in specialist underwriting agency | Insurance Business

Broker network acquires majority stakes in specialist underwriting agency
Steadfast Group Limited has acquired a majority interest in the building and construction focused underwriter MECON Winsure Insurance Group.

It now owns 76% of the MECON business and 100% of the Winsure business.

The acquisition meets Steadfast’s strict acquisition criteria including that it be EPS accretive within the first 12 months of ownership. The final purchase price will be determined based on performance for the year ended 30 June 2015.

Robert Kelly, Managing Director & CEO of Steadfast, said: “We are pleased to add another high quality niche business to Steadfast Underwriting Agencies. MECON has been a strategic partner with Steadfast since 2009 and builds on our growing agency offering."

Kelly said Steadfast encourages its underwriting agencies to work with all brokers, adding: “Glenn Ross and his team have built a great business with a strong product and service offering and we are excited to be part of their next growth phase.”

Glenn Ross, CEO of MECON Winsure, said the company expected Steadfast’s ownership in MECON “will ensure that we continue to be a leading supplier in all our products and improve our ability to deliver high quality, innovative products to our business partners”.

He spoke of the company’s delight that Hollard Insurance Group will remain a shareholder of MECON. “They have been the ideal partners in getting MECON to the point where it is today,” he said.

Ross added: “I would like to personally thank our founding equity partner, The Hollard Insurance Group, for their outstanding support throughout the years and I look forward to our ongoing partnership.”

Richard Enthoven, CEO of Hollard in Australia said: “We are really proud of our longstanding partnership with Glenn and Peta Ross. MECON has been a wonderful success story and we are excited to work with Glenn and Peta, as well as our new partners, Steadfast, to take MECON to the next level.”