Steadfast’s underlying net profit has risen 17.2% to $295.5 million, underpinned by Australian and New Zealand broking and agencies as the business expands its US operations. 

Australasian network gross written premium grew 6% to $12.5 billion last financial year, 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.

As reported in a Breaking News story last night, Steadfast has acquired a majority stake in US specialty underwriting agency and wholesale brokerage Novum Underwriting Partners, which provides a technology platform for agency growth. The move comes as the company builds on its ISU acquisition in October 2023.

“[Novum] is a strong and fast-growing business today, but I emphasise it is the runway of additional growth opportunities to come we are excited about,” CEO of international Samantha Hollman said today. 

ISU Steadfast exceeded budgeted profit in the year and agency member numbers have increased a net 7% since the acquisition. A new membership tier will open the door to smaller agencies, which are a growing segment, Ms Hollman says.

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

The group says chairman Frank O’Halloran will retire at the annual meeting on October 31, having led the board since 2012 – before its listing in 2013.

He will be succeeded by non-executive director Vicki Allen.

Mr O’Halloran says the board is conscious of the need for an orderly transition of the chair and CEO roles, with a preference to appoint from within.

The board has previously said CEO Robert Kelly will not retire before December 31 next year.

Mr O’Halloran says several Steadfast executives have experience running insurance businesses and could be CEO candidates.

“Subject to Robert not wishing to extend his tenure as MD and CEO, the board anticipates being in a position to announce any changes at the senior executive level in mid-2026 and confirm Robert’s ongoing role at Steadfast,” he says in the annual report.

At a results briefing, Mr Kelly highlighted the strength of the leadership team and said he will look to “probably over the next 12 months” relinquish some executive duties while possibly remaining on the board after December next year.

He said: “My wife did complain the other night when I got home and she said, ‘How come you’ve got all these really good people working in the organisation and you just worked 13 and a half hours?’

“I think what I’d like to do, by this time next year, is probably work 40 hours a week and maybe go to the gym and maybe have a swim at lunchtime and still maintain my position as managing director of the public company. 

“That would allow a transition on an executive basis from, I believe, the ranks contained within.”

The results today were the last presented by CFO Stephen Humphrys, who is retiring for health reasons after joining the group in 2013. Hannah Lee has been appointed acting CFO.

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