Steadfast, Australasia’s largest general insurance broking network has announced its financial results for the year ending December 31 2021. The group delivered an impressive 26.4% increase in net profits after tax (NPAT) with underlying revenue up nearly 20% or $520.9 million.
“Steadfast’s business has grown strongly,” said CEO Robert Kelly.
The Group now has 434 network brokerages, more than 350 in Australia, 54 in New Zealand and 19 in Singapore.
Brokers across the network delivered more than 15% of growth in gross written premium (GWP) or GWP of $5.2 billion in the first half of the 2022 financial year.
“Our underlying earnings growth for the period was again driven by sustained organic growth in the Group’s insurance broking and underwriting agencies and our prudent acquisition strategy,” Kelly said.
The CEO said the Coverforce acquisition in late August at a cost of more than $500 million and other network broker acquisitions were performing “in line with expectations”.
“The cash conversion of earnings continues to be strong, with more than 100% of underlying NPATA converting into cash during the period,” said Kelly.
Earnings before interest, taxes, and amortization (EBITA) was $153.9 million, up nearly 23%. Shareholders received an interim dividend of 5.2 cents per share, up by 18% and statutory net profit after tax was up 43% to $104.9m.
Steadfast announced that it has $315 million of unutilised capacity available to fund future corporate activity.
“There is significant headroom in the debt covenants,” said a news release announcing the results.
Steadfast’s underwriting agencies delivered 16.3% growth in GWP.
The Group also announced the retirement of Philip Purcell as a director after nine years on the Steadfast Board.
“I look forward to continuing our association with Philip. He has accepted our invitation to join two of our major subsidiary boards,” said Kelly.
The Steadfast broking and underwriting network does business across Australia, New Zealand, Asia and London.
