Steadfast Group has acquired 70% of the share capital of NM Insurance, which owns underwriting agency Nautilus Marine.

The business was bought from NM’s majority shareholders, Hollard Insurance and Ian Frith. It has been a Steadfast strategic partner since 2009 and recorded earnings before interest, tax and amortisation of $1.6 million last financial year.

NM Insurance specialises in pleasurecraft and motorcycle insurance in Australia and Zealand.

Hollard MD Richard Enthoven told insuranceNEWS.com.au Nautilus is “a challenging business with strong competitors, and Steadfast is the best possible owner going forward”.

Mr Frith and Hollard owned 84% of NM Insurance, with the rest held by the company’s key managers. It’s understood a rearrangement of the shareholding was negotiated to allow the management shareholders to take up the 30% Steadfast did not buy under the group’s “co-ownership” model.

Steadfast MD Robert Kelly told insuranceNEWS.com.au the Nautilus business has found it difficult at times to maintain capacity after natural catastrophes, “but they have concentrated on maintaining a profitable performance we can build on. The brand is well-respected in Australia and New Zealand.”

The final purchase price will be based on Nautilus’ performance during the next financial year.

The completion payment is funded with existing cash resources and Steadfast says it will be earnings per share accretive within the first 12 months of ownership.

More details in our regular bulletin on Monday.