Steadfast has acquired a 30% stake in New Zealand’s fourth-largest brokerage, Rothbury.

It is the first New Zealand brokerage to join the Sydney-based national broker group, which plans to list later this year.

Rothbury, which is the largest independently owned brokerage in New Zealand, has 15 branches nationwide and 50,000 clients serviced by 190 staff. 

MD Roger Abel told insuranceNEWS.com.au the Canterbury earthquakes have made “well-priced” insurance cover harder to get and Rothbury decided it needed an international partner.

Steadfast’s 30% cornerstone shareholding comprises 17% cash and 13% Steadfast shares, conditional on the company listing.

CEO Robert Kelly says Rothbury “is the perfect vehicle to get us into the New Zealand market”.

“We’ve had lots of approaches from New Zealand brokers,” he told insuranceNEWS.com.au. “This is our first move into the trans-Tasman market, but I’m sure it won’t be our last.”

Mr Abel says more New Zealand brokers will probably follow Rothbury’s example and move to join Steadfast, because it offers greater benefits than the three New Zealand broker groups.

He says the alliance will give Rothbury access to Steadfast’s broker assistance facilities, policy wordings and professional development programs, enabling the Auckland-based company to provide better technical support and resources to its brokers.

Mr Kelly told insuranceNEWS.com.au Steadfast’s connections in the London market and in local underwriting will also be valuable to Rothbury and its clients.

Although the policy wordings between the two countries vary greatly, Mr Abel says Steadfast is committed to working with Rothbury on “best-in-class” policy wordings for New Zealand.

He says Rothbury has no designs on moving into the Australian market as there are enough growth opportunities at home.

“We can double or triple our size here over time,” he said.

More details in our regular bulletin on Monday.