Steadfast to acquire Queensland specialist Sure Insurance
Steadfast has announced it will acquire a 70% equity interest in Queensland underwriting agency Sure Insurance for a deal including an upfront cash payment of $148.8 million.
Group CEO Robert Kelly says the company is continuing to pursue “highly attractive acquisitions” that are complementary to the existing portfolio and further enhance Steadfast as the largest general insurance broker network and largest group of underwriting agencies in Australasia.
“Sure Insurance is a highly compelling acquisition opportunity and there is strong cultural alignment between the two organisations,” he said.
“We look forward to partnering with the Sure Insurance team to continue providing unique solutions to the market in regional Queensland and Sure Insurance’s continued geographic growth.”
Steadfast today also announced a $280 million fully underwritten institutional placement and upgraded its earnings guidance to reflect current positive trading results, the acquisition of Sure and the equity raising.
The upgraded guidance includes underlying net profit after tax and amortisation for this fiscal year of $290-300 million, up from $277-287 million previously.
Completion of the Sure Insurance acquisition is scheduled to occur by the end of this month.
“We are delighted to be working with Steadfast Group, an organisation aligned with our philosophy at Sure Insurance,” Sure MD Bradley Heath said. “We are particularly excited by the potential opportunities Steadfast can provide to support our growth and expansion.”