Calliden Group Chairman Richard Hill has written to shareholders urging support for the proposed takeover by Steadfast Group, telling them: “As a listed company our progress since 2011 has not gone unnoticed.”

Steadfast has bid 46.5 cents per share, which values Calliden at $105 million, and has announced its intention to on-sell the insurance part of the business to Munich Re.

Calliden listed on the Australian Securities Exchange in 2005, then in 2011 decided to restructure from a dedicated general insurer to the current managing general agent model, with two distinct businesses: Calliden Agency Services and Calliden Insurance.

“We are pleased to say the process is now complete and the three-year targets we set back then have been or are well on the way to being achieved.” Mr Hill’s letter says.

Calliden Agency Services has grown its commission and fee income from $8.8 million in 2011 to $39.2 million last year. Full-year agency earnings grew from $1.5 million to $8.2 million in the period.

In first six months of this year agency revenue grew 37% on the corresponding period last year, and profit more than doubled to $4.4 million.

Calliden Insurance has had a more subdued year, with earnings for the first half falling to $800,000 from $2.9 million in the corresponding period last year. “Our insurer… is now a smaller and more focused underwriter than previously,” Mr Hill says.

Steadfast is Calliden’s largest customer group, while Munich Re is Calliden Agency Services’ largest third-party insurer.

The offer for 100% of the company – comprising 41.5 cents in cash and a five-cent fully franked dividend per share – has the support of the board and is now subject to an independent expert’s report, regulatory approvals and shareholder approval at a meeting to be held in November.