Steadfast Group, a leading Australian insurance brokerage network, announced a 22.4% increase in unaudited underlying Earnings Before Interest, Taxes, and Amortization (EBITA) for the first quarter of FY24 compared to the same period last year.
The company’s Founder and CEO, Robert Kelly, shared the remarkable performance of the organization during the Steadfast Group Annual General Meeting.
The company also demonstrated robust financial performance with an underlying Net Profit After Tax (NPAT) that surged by 15.3% over the same period in the previous year.
The noteworthy performance was attributed to several factors. Notably, insurers continued to raise premium rates in response to recent catastrophic events and higher claims inflation.
These conditions, coupled with substantial volume growth, emerged as pivotal drivers of the company’s success in the first quarter.
In a strategic move to bolster its market presence in the United States, Steadfast Group completed the acquisition of 100% of ISU Group (ISU) for US$55 million. ISU, one of the largest privately owned independent insurance agency networks in the United States, brings with it a successful business model and a rich history of growth.
Steadfast envisions significant opportunities for expansion by increasing membership and consolidating production under ISU contracts.
Additionally, the acquisition allows for the rollout of Steadfast Network services and the potential to invest in independent agencies within the ISU Network.
The company stands firmly behind its FY24 guidance, anticipating an underlying EBITA in the range of $500 million to $510 million, underpinned by a projected Underlying Net Profit After Tax (NPAT) between $230 million and $240 million.
Additionally, Steadfast anticipates an Underlying Net Profit After Tax and Amortization (NPATA) of $277 million to $287 million, accompanied by a notable 10% to 15% growth in underlying diluted Earnings Per Share (EPS) based on NPAT.
