Steadfast has forecast underlying net profit this year will rise to $290-$300 million as it targets about $300 million of acquisitions and sees further premium increases.

CEO Robert Kelly said last week the company continues to see opportunity in its “trapped capital” program, and the guidance also reflects expected rate increases of 7%-9% from insurer partners.

Mr Kelly says the pricing environment remains strong, particularly in property, where underwriters are dealing with inflationary pressures. 

“[Of] the main nine insurers we deal with, not one, not one has said to us that they are going to reduce prices; they have actually said the complete reverse, that they have to keep driving rate,” he told an earnings briefing.

Steadfast reported that underlying net profit rose 21.8% last financial year to $252.2 million, with revenue up 18.9% to $1.68 billion. On a statutory basis, net profit was $228 million.

The company completed 48 “earnings-accretive investments” for a total of $457.8 million, including ISU Group in the US and underwriting agency Sure Insurance. 

ISU, which has 228 members across 40 US states, exceeded the profit that was expected at the time of purchase. The business has been renamed ISU Steadfast. 

“It is a long-term strategy for Steadfast, but we are pleased with how things are going both strategically, financially and operationally in the first 10 months of ownership,” international CEO Samantha Hollman said.

Gross written premium in the Australasian broker networks rose 12.1% to $13 billion, with organic growth supported by price rises and volume increases of about 3%. Underlying earnings before interest, tax and amortisation (EBITA) grew 19.6% from equity brokers. 

The group’s underwriting agencies generated GWP of $2.3 billion, up 13.4% on the previous year, with underlying EBITA growth of 18.9%. 

GWP transacted on the Steadfast Client Trading Platform rose 20% to $1.4 billion, with 19 insurer and underwriting agency partners currently trading there.

Steadfast will hold its annual general meeting on November 1.