Steadfast announces 1H23 results

"Performing in line with expectations," says Robert Kelly

Steadfast announces 1H23 results

Insurance News

By Daniel Wood

Steadfast Group, Australasia’s largest general insurance broking network has announced its financial results for the 1H23. The results show underlying revenue growth of more than 27% and net profits above 18%.

“Our underlying earnings growth for the half year was again driven by sustained organic growth from price and volume increases in the Group’s insurance broking and underwriting agencies, and our prudent acquisition strategy,” said CEO Robert Kelly (pictured above).

Kelly said the IBA acquisition and other network broker initiatives, like the trapped capital project, “are performing in line with expectations.”

More than $200 million in capacity for future projects

Steadfast reported impressive underling EBITA (Earnings before interest, taxes, and amortization) growth of 22.5% to AU$188.6 million.

“The Group has AU$227 million of available capacity to fund future corporate activity, with significant headroom in its debt covenants,” said the market release, issued before the morning’s full presentation to investors.

GWP (gross written premium) was up 14.7% to AU$5.6 billion. The firm’s underwriting agencies generated AU$1 billion of GWP, up almost 19%, said the release.

The firm’s board declared a fully franked interim dividend of AU6.0 cps (cents per share), up 15.4% period-on-period.

Long serving director retires

The firm also announced the retirement of Anne O’Driscoll as a director after 10 years with Steadfast

“The board and management of Steadfast Group have been very fortunate to have had a person of Anne’s calibre for the past 10 years as Steadfast grew from a market capitalisation of AU$535 million to AU$5.8 billion,” said chair Frank O’Halloran.

The company’s trapped capital initiative was launched in 2021 and involves Steadfast approaching network brokers about realising any capital built up in their businesses.

Steadfast was established in 1996 and its broker network operates across Australia, New Zealand and also Asia and London. The Group’s network has more than 420 brokerages and about 30 underwriting agencies.

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