Steadfast Group Surges 17% NPAT, Accelerates US and UK Expansion
Steadfast Group reported a robust FY25 with underlying NPAT rising 17.2% to $295.5 million, driven by strong organic growth and strategic acquisitions in the US and UK. The insurer broker continues to invest in technology and international expansion while raising dividends.
- Underlying NPAT up 17.2% to $295.5 million
- Australasian broking network GWP grows 6.0% to $12.5 billion
- Underwriting agencies GWP increases 5.9% to $2.5 billion
- Strategic acquisitions in USA (Novum) and UK (H.W. Wood)
- Technology investments include Insurebot acquisition and Steadfast Apps launch
Strong Financial Momentum
Steadfast Group has delivered a compelling FY25 performance, with underlying net profit after tax (NPAT) soaring 17.2% to $295.5 million. This growth was underpinned by an 11.9% rise in underlying EBITA to $591.4 million and a 14.2% increase in diluted earnings per share to 26.7 cents. The company’s disciplined approach to organic growth, bolstered by strategic acquisitions, has reinforced its position as a leading player in the insurance broking and underwriting sector.
Australasian Network Expansion
The Australasian broking network remains a cornerstone of Steadfast’s success, with gross written premium (GWP) climbing 6.0% to $12.5 billion. The network now comprises 402 brokers, reflecting ongoing consolidation and new broker additions. Growth was driven by moderate premium price increases and operational improvements across subsidiaries. Steadfast holds equity interests in 68 brokers, representing a significant share of the network’s premium volume.
Underwriting Agencies and International Growth
Steadfast’s underwriting agencies also posted solid results, with GWP rising 5.9% to $2.5 billion. The group continues to focus on underwriting discipline and retention, while selectively expanding its product offerings. Internationally, Steadfast has accelerated its footprint with the acquisition of H.W. Wood Limited in London, rebranded as HWS Specialty, and a majority stake in Novum Underwriting Partners in the USA. These moves enhance Steadfast’s capabilities in specialty underwriting and wholesale brokerage, positioning it strongly in key global markets.
Technology as a Growth Enabler
Technology remains a strategic priority, with Steadfast acquiring Insurebot, an online quoting platform that streamlines broker workflows and accelerates client service. The launch of Steadfast Apps further integrates broker management and automates administrative processes, enhancing efficiency and client engagement. The Steadfast Client Trading Platform (SCTP) continues to expand, facilitating $1.4 billion in GWP transactions and offering brokers and insurers a seamless digital marketplace.
Outlook and Dividend
Looking ahead, Steadfast has provided FY26 guidance projecting underlying NPAT between $315 million and $325 million, with expected earnings per share growth of 6% to 10%. The company anticipates moderate premium price increases in the Australian market. Reflecting confidence in its financial strength, Steadfast declared a final fully franked dividend of 11.7 cents per share, up 14% on the prior year, with a dividend reinvestment plan offering a 2.5% discount.
Bottom Line?
Steadfast’s FY25 results underscore its successful blend of organic growth, strategic acquisitions, and technology investment, setting the stage for continued expansion and shareholder returns.
Questions in the middle?
- How will Steadfast integrate Novum’s technology platform into its existing US operations?
- What impact will evolving insurance market conditions have on premium pricing and growth?
- How quickly can Steadfast scale its international underwriting agencies to match Australasian success?
