Steadfast has responded to media reports that it is “weighing the future” of its IQumulate premium funding business.

The listed insurance group acquired 100% of what was previously called Macquarie Pacific Funding in 2019.

The Australian Financial Review this week reported several players had tried to acquire IQumulate’s $700 million book, and that a combination with Clearmatch was being considered.

“Should talks between the two culminate in a deal, it would be likely to involve Clearmatch buying out a sizeable stake in IQumulate,” the newspaper said, citing sources.

Steadfast told insuranceNEWS.com.au it was approached by Pemba Capital Partners, which owns rival funder Arteva, last year but it “did not proceed with the offer”.

Pemba acquired Hunter Premium Funding from Allianz instead.

Steadfast adds it is currently in negotiations for Clearmatch to join the Steadfast premium funding panel.

“Steadfast ... sells its assets from time to time and always acts in the best interests of shareholders in any of these transactions,” a spokesperson said.

CEO Robert Kelly was asked about the issue at yesterday’s results briefing.

“Well, Sarah Thompson from the AFR considers IQumulate to be non-core and not really germane to our income,” he said. “So I guess I’ll reflect on that statement and see whether she’s right or not.

“But in reality, what I’m looking at is businesses that we’ve got and developed that are making profit, and if we think there are other businesses that we could buy that would make more profit ... we would probably look to consider restructuring those businesses by amalgamating them or, indeed, ultimately, maybe sell them and see what we could do with the capital in another area.” 

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