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Insurance Council of Australia
Insurance Council of Australia

Steadfast to buy Whitbread Insurance Group

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Steadfast says it will buy Whitbread Insurance Group for $95 million and complete an equity raising to fund the deal and provide proceeds for future growth.

Whitbread Insurance Brokers (WIB) is a member of the Steadfast network and focuses on the SME market, with offices in Melbourne, Sydney and Brisbane. The group also comprises Axis Underwriting Services, which specialises in niche areas of property and liability.

Steadfast CEO Robert Kelly says Whitbread offers an excellent strategic and cultural alignment and is a well-established business with a long track record of financial performance and a strong reputation in the market.

“We have a close, long-term relationship with WIB which we look forward to building upon following this transaction,” he said.

“Axis will complement our existing agency portfolio. It has performed strongly while showing pricing and underwriting discipline to build long-term relationships in their market.”

Steadfast plans to fund the acquisition through an underwritten institutional placement of $100 million to existing and new shareholders.

The group also intends to raise up to $25 million through a share purchase plan open to all eligible existing shareholders.

Steadfast said the acquisition is expected to be earnings accretive in the current financial year, excluding transaction costs.

More details in our regular bulletin this afternoon.