Steadfast Posts Record Profit Amid CEO Investigation and Leadership Change

Strong Financial Performance Continues

Steadfast Group Limited has delivered another year of robust financial results, reporting a 17.2% increase in underlying net profit after tax (NPAT) to $295.5 million for the fiscal year ended June 30, 2025. This marks the company’s twelfth consecutive year of profit growth since its ASX listing in 2013, underscoring the resilience and effectiveness of its business model.

Underlying earnings per share rose 14.2% to 26.7 cents, while statutory NPAT, which includes non-trading items, surged to $334.9 million from $228 million the previous year. The Board declared a fully franked final dividend of 11.7 cents per share, up 14%, bringing total dividends for FY25 to 19.5 cents per share; a continuation of Steadfast’s impressive record of 25 consecutive dividend increases.

Leadership Transition and Governance Challenges

Amid these strong results, Steadfast faces a notable governance challenge. Managing Director and CEO Robert Kelly has voluntarily stepped aside pending the outcome of an external investigation into a complaint made by an employee. The Board has appointed Tim Mathieson, previously CEO of Australasian Broking, as Acting CEO during this period. The company has called for shareholder patience as it undertakes a thorough and fair process.

In a significant leadership change, long-serving Chair Frank O’Halloran announced his retirement after more than a decade at the helm. Vicki Allen, a non-executive director since 2021 and Chair of the Remuneration & Performance Committee, will assume the Chair role immediately following the AGM. Allen brings over 30 years of experience in financial services and property sectors, positioning her well to guide Steadfast through its next growth phase.

Strategic Acquisitions Expand Global Reach

Steadfast continued its disciplined acquisition strategy in FY25, adding valuable assets to its portfolio. Notable deals include HWS Specialty, a London-based independent insurance broker specializing in marine, cargo, and fine art insurance; an increased stake in New Zealand’s Rothbury Group Limited, with plans to acquire a further 42.8% by 2029; and a majority stake in Novum Underwriting Partners LLC, a US-based specialty underwriting agency focused on digital insurance delivery.

These acquisitions align with Steadfast’s strategy to diversify geographically and enhance its specialty insurance offerings, positioning the group for sustainable long-term growth.

Outlook and Market Conditions

Looking ahead to FY26, Steadfast has revised its premium rate increase expectations downward to between 1% and 2%, from an earlier forecast of 3% to 5%. This reflects softer market conditions in Australia during the first quarter. In response, management is focusing on acquisition opportunities and expense management to maintain profitability. Despite these headwinds, the company reaffirmed its FY26 guidance range, signaling confidence in its strategic initiatives and operational resilience.

Steadfast also emphasized its ongoing commitment to strong corporate governance, risk management, and delivering shareholder value through consistent dividends and capital growth.