Australasia’s largest general insurance broker network Steadfast Group is set to enhance its London Market footprint through the acquisition of H.W. Wood and HWI France. The deal is anticipated to close on Dec. 2, pending regulatory and commercial approvals.
The transaction will cost £23.5 mn, financed through Steadfast’s corporate debt and free cash flow. The acquisition is expected to positively impact earnings per share from day one, excluding potential synergies.
Robert Kelly, Steadfast’s Managing Director and CEO, highlighted that the expansion into the London Market aims to strengthen support for network brokers in Australasia, UnisonSteadfast, and the U.S. while opening up further international growth opportunities. H.W. Wood will remain under the leadership of Managing Director Steve Rudduck.
Additionally, the Steadfast Placements team, which assists Australasia network brokers with challenging risks in London, will become part of this new structure.
Steadfast noted that the acquisition will bolster services across its networks. H.W. Wood’s established relationships in the London Market will provide a strategic advantage.
It will also enable Steadfast to extend the reach of Steadfast Placements and enhance its wholesale broking services for the ISU Steadfast network in the U.S., as well as improve inbound service from the UnisonSteadfast network.
Steadfast will bring the management of its binders in-house within the next two years, optimizing expenses and boosting revenue. H.W. Wood, a Lloyd’s broker since 2003, was founded in 1982 and offers solutions across marine and cargo, property, fine art, specie, and other areas.
The combined workforce of the two acquired firms includes over 75 employees across the UK, France, and Greece.
Steadfast Group, established in 1996, is a prominent general insurance broker network and underwriting agency group in Australasia, with expanding operations in Asia, Europe, and the United States.
The company supports over 418 brokerages and 29 underwriting agencies, providing them with access to a wide range of insurance products and services.
In the fiscal year ending June 30, 2024, Steadfast reported an underlying net profit after tax of AUD 252.2 mn, marking a nearly 22% increase from the previous year. The company’s underlying revenue reached approximately AUD 1.7 bn, reflecting an almost 19% growth.
The company’s business model focuses on providing superior market access, exclusive products, and technological support to its network members. This approach enables brokers to deliver tailored insurance solutions to clients, leveraging Steadfast’s extensive resources and industry expertise.
Steadfast also holds a 60% equity stake in UnisonSteadfast, a global general insurance broker referral network comprising 294 brokers across 110 countries. This partnership further extends Steadfast’s international reach and capabilities.
Overall, Steadfast Group continues to strengthen its position in the global insurance industry through strategic acquisitions, robust financial performance, and a commitment to supporting its extensive network of brokers and agencies.
