Broker group Steadfast has announced plans to buy listed insurer Calliden.

But it will immediately sell the general insurance operations and part of the agency operations to Munich Re Australian subsidiary, Munich Holdings.

Steadfast will be left with eight Calliden agency businesses, including ARGIS Farmpack, builders’ warranty, Calliden Home, Dawesmotor, IUA business interruption, Mansions and Accident and Health, plus 50% of QUS Strata.

The purchase price under a proposed scheme of arrangement is $94.1 million cash and an $11.3 million special dividend from Calliden.

Steadfast says the net acquisition price of around $55 million will be funded by debt.

Steadfast CEO and MD Robert Kelly says Calliden’s eight agencies complement Steadfast’s existing mix of niche and specialised agencies and the acquisition will make Steadfast one of the largest agency groups in the country with annual gross written premium of around $300 million.

Meanwhile, Steadfast today reported a 2013/14 net profit after tax of $32.4 million – a 15.5% rise on its pro-forma 2012/13 result.

MD and CEO Robert Kelly says the result was helped by solid growth in marketing and administration fees and higher profit margins for equity brokers. 

The group’s revenue for the financial year was $403.8 million. Gross written premium from Steadfast network brokers was up 4.7% to $4.1 billion.

“We have made strong headway with our strategic initiatives focused on creating synergies and growth through acquisitions,” Mr Kelly said.

Pro-forma revenue from consolidated entities increased by 11.2%, based on organic growth of 2.7% and 8.5% growth from acquisitions and hubbing.

Since the company was listed in August last year Steadfast has purchased equity interests in businesses which, on a full-year basis, are expected to contribute around $450 million in gross written premium.

“We continue to work on acquisition opportunities as they arise,” Mr Kelly said.

The balance sheet as at 30 June 2014 had net assets of more than $525 million and debt of $21 million.

More details later in the General Insurance section of Life+Health insuranceNEWS.com.au at noon.