Cluster group merges brokerages

Cluster group merges brokerages | Insurance Business

Cluster group merges brokerages

Steadfast Group is in the process of consolidating brokerages in Melbourne and Sydney.

Steadfast CEO and MD Robert Kelly revealed last week that it is merging four brokers in Sydney, and three more in Melbourne but the group declined to name which ones.

The move is part of the cluster group’s ‘hubbing strategy’, whereby it merges certain Steadfast equity brokers or underwriting agencies with other business that have a similar geographic product focus.

Asked where he thought the group’s opportunities lie, Kelly referred to the hubbing process.

“The ability to save some of the expenses across those broking houses is quite exciting. We can help dramatically by bringing a whole series of brokers together and looking at how we can reduce their back office costs.”

He added there is still plenty of opportunity to make further acquisitions. “If you look at the market, there is at least 300 non-aligned brokers that could potentially look at ourselves or others.

“There is also great opportunity from within our group. There are over 220 brokers that have not sold in to Steadfast,” he added.