Steadfast Boosts Gearing to 40% Amid $127.7m Acquisition Spree
Steadfast Group reveals robust acquisition activity and strategic cost optimizations in its latest investor update, signaling strong momentum across its Australasian and international operations.
- Completed $127.7 million in acquisitions year-to-date
- Projected $3.6 million annualized cost savings from efficiency measures
- Average insurance premium increase of 2.4% year-to-date
- Increased maximum gearing ratio to 40% aligned with bank covenants
- Ongoing expansion into New Zealand and international markets
Steadfast’s Strategic Growth and Cost Discipline
Steadfast Group has provided a comprehensive investor update underscoring its continued focus on growth and cost optimisation across its insurance broking networks, underwriting agencies, and international operations. The group reported completing $127.7 million in acquisitions year-to-date, reflecting an aggressive inorganic growth strategy that complements its organic initiatives.
Cost-saving measures are a key highlight, with Steadfast projecting approximately $3.6 million in annualised savings through targeted reductions in non-critical marketing, vendor expenses, and overheads. This disciplined approach aims to enhance margin performance while supporting scalable growth.
Premium Trends and Market Dynamics
Insurance premiums within Steadfast’s network have increased on average by 2.4% year-to-date, with variations across different classes of risk. While some segments experienced modest decreases, the overall trend points to a cautiously improving pricing environment. This premium growth supports revenue stability amid evolving market conditions.
Capital Structure and Regulatory Engagement
Reflecting confidence in its financial position, Steadfast has increased its maximum gearing ratio to 40%, up from 35%, aligning with existing bank covenants. This adjustment provides the group with greater flexibility to fund acquisitions and strategic initiatives. Additionally, Steadfast continues to work cooperatively with the Australian Competition and Consumer Commission (ACCC) ahead of the new merger control framework commencing in 2026, with most recent acquisition applications cleared without objection.
Expanding Footprint and Technology Investments
Geographic expansion remains a priority, particularly in New Zealand where the acquisition of Folio adds $20.7 million in gross written premium and broadens the broker network. Internationally, Steadfast’s presence spans the United States, United Kingdom, France, and Greece, supported by recent acquisitions such as ISU Group and H.W. Wood. The group is also investing in technology upgrades, including underwriting system modernisation and automation, to drive operational efficiencies and unlock new distribution channels.
Steadfast’s strategic integration efforts include consolidating underwriting agencies and broking subsidiaries to streamline operations and reduce duplication. These moves are designed to leverage scale, enhance client outcomes, and position the group for sustained growth in a competitive insurance landscape.
Bottom Line?
Steadfast’s blend of disciplined cost management and strategic acquisitions sets the stage for continued expansion, but investors will watch closely how integration and market conditions unfold in 2026.
Questions in the middle?
- How will Steadfast’s increased gearing impact its financial flexibility and risk profile?
- What are the expected earnings contributions from recent acquisitions in the near term?
- How will the new ACCC merger control framework affect Steadfast’s acquisition strategy?
