Steadfast says buying a majority stake in Novum Underwriting Partners is a key step in building global operations following key transactions in the US and London in the past two years.

CEO Robert Kelly says the company needed a platform in North America and the opportunity emerged to acquire the stake in Novum, which specialises in the digital delivery of insurance programs on a wholesale basis.

Steadfast bought UK-based HWS Specialty last year and US network ISU in 2023, and has indicated cyber specialist Emergence is likely to be the first of its underwriting agencies introduced into the US.

“We can bring our [agencies] into North America in an orderly manner, in a simple manner,” Mr Kelly told an analysts’ briefing.

“The day Emergence connects into the [Novum] platform in Cleveland, it will have access to 8000 agents.”

Ohio-based Novum’s technology platform incorporates marketplace, submission and underwriting functions that enable quoting, servicing and renewals, plus policy management for brokers and distribution partners.  

International CEO Samantha Hollman told the briefing the company is excited about “the runway of additional growth opportunities to come” thanks to the acquisition. 

“It will significantly expand market and technology capabilities for our ISU Steadfast network, our underwriting agencies in Australia and HWS Specialty in London,” she said.

Steadfast’s underlying net profit rose 17.2% to $295.5 million last financial year, supported by acquisitions and growth in existing businesses.

Australasian network gross written premium grew 6% to $12.5 billion, driven by increasing volumes and premium rate gains in a moderating insurance market.  

Group broking underlying earnings before interest, tax and amortisation (EBITA) were up 7.1% to $441.2 million, and agencies EBITA increased 10% to $221.7 million.

Steadfast forecasts underlying net profit of $315-$325 million this financial year, based on Australian premium pricing increases of 3%-5%.

Mr Kelly says Steadfast continues to explore options for growth internationally, while the group also highlights opportunities to build equity within the Australasian network.

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