1. Resilient industry segment with defensive earnings profile
The majority of Steadfast's revenue derives from insurance broking to the small to medium-sized enterprise (SME) segment of the general insurance market in Australia and New Zealand. Fee and commission income from this segment has exhibited healthy growth over the past decade. Furthermore, insurance brokers are not exposed to underwriting risk and the volatility that goes with it.
2. Organic growth opportunities
Steadfast is the largest general insurance broker network in Australia and New Zealand. The scale of the network, coupled with the valuable services provided, assists Steadfast Network Brokers in growing their businesses and supports Steadfast in attracting new brokers to the Network.
Steadfast leverages its distribution capability to sell products and services from complementary businesses it owns or co-owns. This strategy has been successfully delivered through the Macquarie Pacific Funding joint venture and Steadfast Underwriting Agencies. Further expansion of this strategy includes the Ausure Group Authorised Rep network, Steadfast Direct, Steadfast Life and Steadfast Re.
Another key element of Steadfast's organic growth revolves around its Strategic Partners (i.e. insurers, underwriting agencies, premium funders) in terms of improving and expanding preferred and strategic products sold by Steadfast Network Brokers.
3. Growth by acquisition
Steadfast has equity ownership in 62 of its 348 network brokers, along with 23 underwriting agencies and six complementary businesses.
Steadfast is the natural acquirer of further equity interests in its broker members along with non-aligned brokers and underwriting agencies. Acquisitions are made based on strict criteria and a comprehensive due diligence process focused on culture, strategic fit and price.
4. Synergies from business combinations and back office strategy
Steadfast will seek to combine the operations of certain equity-owned brokers to enhance scale and improve profitability through eliminating duplicate back office functions. In addition, Steadfast is working with its subsidiary Steadfast Business Solutions and other service partners to develop common back office solutions to increase the efficiency and reduce the operating costs of Steadfast Network Brokers and Steadfast Underwriting Agencies.
5. Experienced leadership team with a proven track record
The Directors and senior management have a broad range of skills and experience. Each of the Directors has at least 30 years' experience in the financial services industry, and all have prior experience in the insurance industry. The senior management team is led by the Managing Director & CEO, Robert Kelly, who co-founded Steadfast in 1996 and has over 45 years' experience in the general insurance and insurance broking industries. The senior management team has extensive corporate experience across the fields of general insurance, insurance broking, professional services and financial management.