Steadfast Group reports major turnaround

Steadfast Group reports major turnaround | Insurance Business

Steadfast Group reports major turnaround

Steadfast Group Limited has bounced back in its financial results for the half year ended December 31, 2020 (1H21).

According to the broker network and underwriting agencies group, its statutory net profit after tax (NPAT) in the period amounted to AU$73.4 million (around NZ$79 million) – a 202% increase from the AU$71.9 million loss posted in the same six-month span in 2019 (1H20). Total comprehensive income attributable to shareholders in the first half stood at AU$73.5 million.

Underlying NPAT, meanwhile, grew 19.3% to AU$60.4 million. Also up 19.3% is Steadfast Group’s underlying EBITA – or earnings before interest (after premium funding interest income and expense), tax, and amortisation – at AU$125.4 million.

Broken down, here’s how the group performed in terms of underlying EBITA:

Segment

Underlying EBITA, 1H21

Growth from 1H20

Broking

AU$106.7 million

22.9%

Underwriting agencies

AU$56.8 million

15.6%


Commenting on the results, managing director and chief executive Robert Kelly (pictured) stated: “I am once again pleased to report that 1H21 continues our record growth since our August 2013 IPO. Our resilient business model and the stability of our executive team have driven Steadfast’s strong financial performance throughout the COVID-19 pandemic.

“Our underlying earnings growth for the period was predominately driven by excellent organic growth in the group’s insurance broking and underwriting agencies and our prudent acquisition strategy.”

Kelly added that cash conversion of earnings remains strong, with the converted cash being utilised not only to fund acquisitions but also to pay increased dividends to shareholders.

The Steadfast Group board has declared a fully franked interim dividend of AU4.4¢ per share.