Steadfast Group, the parent company to a range of broking and underwriting operations, including broker Steadfast Re, has reported an underlying revenue of AUS $662.8 million in 1H23, representing growth of more than 27%.
The firm’s statutory net profit after tax for 1H23 was $84.7 million, compared with $104.9 million in 1H22.
The group also saw strong underlying EBITA growth in 1H23, of 22.5% to $188.6 million, which was heavily driven by acquisition growth which contributed +13.2%, as well as organic growth of 9.3% from the continued uplift in premiums by insurers and increased volume.
Additionally, the Steadfast Network delivered a gross written premium (GWP) increase of 14.7% to $5.6 billion in 1H23 on a like-for-like basis.
At the same time, Steadfast Underwriting Agencies performed strongly in 1H23, with sustained organic growth generating $1.0 billion of GWP, representing an increase of 18.8% from 1H22.
In a statement, Steadfast Group stated that its balance sheet remains well positioned, with a consolidated gearing ratio (excluding premium funding borrowings) of 19.1%, which is well below the Board’s maximum of 30%.
As of today, the Group has $227 million of available capacity to fund future corporate activity, with significant headroom in its debt covenants.
Managing Director & CEO Robert Kelly, commented: “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. The IBA acquisition in late August and other Network broker acquisitions, including our Trapped Capital Project, are performing in line with expectations. We are on track to complete our targeted $220m of Trapped Capital acquisitions in FY23.”
