Steadfast Group, a leading Australian insurance brokerage network, announced a 21.4% increase in unaudited underlying Earnings Before Interest, Taxes, and Amortization (EBITA) for 1H24 compared to the same period last year.
The underlying EBITA was $229 million in 1H24, driven by organic growth of 13.4% from the continued uplift in premiums by insurers and increased volume and supported by acquisition growth of 8.0%.
The company also demonstrated robust financial performance with an underlying Net Profit After Tax (NPAT) that surged by 17.5% to $106 million over the same period in the previous year.
Managing Director & CEO Robert Kelly commented “Once again, our underlying earnings growth for the half year was driven by sustained organic growth from higher prices from insurers and volume increases in the Group’s insurance broking and underwriting agencies, and continued delivery of our acquisition strategy.”
“Consistent with our growth strategy, Steadfast Group acquired Sure Insurance, a business that is complementary to the existing portfolio. This acquisition, together with our Trapped Capital acquisitions made during the half year, further enhances Steadfast Group as the largest general insurance broker network and the largest group of insurance underwriting agencies in Australasia.”
“Additionally, we are progressing well with the implementation of our US expansion strategy with the acquisition of ISU Group with its established and trusted network and experienced management team.”
The company upgraded its FY24 guidance range to reflect current positive trading results, the Sure Insurance acquisition and equity raise. It anticipates an underlying EBITA in the range of $520 million to $530 million, underpinned by a projected Underlying NPAT between $240 million and $250 million.
Additionally, Steadfast anticipates an Underlying Net Profit After Tax and Amortization (NPATA) of $290 million to $300 million, accompanied by a notable 11% to 16% growth in underlying diluted Earnings Per Share (EPS) based on NPAT.
