Steadfast Group has flagged actions to address “changing market conditions” after lowering its premium rate outlook for this financial year. 

The revised rate growth forecast, announced at Friday morning’s annual general meeting, continues to dull investor appetite for the listed intermediary group’s shares. 

Equity analysts say the fallout from an ongoing investigation into CEO and MD Robert Kelly, triggered by a workplace complaint against him, is also weighing on the stock.

The share price was down about 6.5% today from Friday’s close of $5.60. It was above $6 last week until Steadfast asked for a trading halt last Thursday and announced the external investigation. 

Jarden analysts say Steadfast “has substantially downgraded its premium rate expectations ... although in the near-term [it] is able to hold guidance by lifting acquisitions and tighter cost control”.

Steadfast has cut its 2025-26 premium rate rise forecast to 1%-2% from 3%-5%. But it has kept its forecast for an underlying net profit of $315-$325 million.

Jarden says the revised premium forecast follows a change last financial year, when Steadfast trimmed its initial 2024-25 expectation of 5%-7% to “mid single digit”.

“While [Steadfast] has underestimated the pace of premium rate declines for two successive years, it does maintain a strong track record of delivering against guidance,” the analyst said.

“From a governance point of view, while recent management developments pose near-term execution headwinds, it could solidify succession plans that have long been an overhang on the stock.”

Morningstar says the “market has over-reacted” to the news Mr Kelly has chosen to stand aside on a temporary basis while the investigation is conducted.

“Granted, it’s an unwanted distraction, but we are not expecting operational hiccups. It should still be business as usual. Steadfast is made up of many broker and underwriter businesses, with individuals financially incentivised to retain and increase their customers,” Morningstar said.