Steadfast says its business is growing beyond its forecasts as it lifted its full-year earnings guidance and prepares to deploy a $227 million acquisition war chest.

July-December revenue was up 27% at $662.8 million, while Steadfast brokers delivered 15% GWP growth to $5.6 billion.

MD and CEO Robert Kelly says the business will do even better in the current half.

“Our organic growth has exceeded our expectations, acquisitions growth is meeting our expectations,” Mr Kelly told analysts in a briefing attended by insuranceNEWS.com.au.

“For us as a hardworking company … it’s wonderful to upgrade the guidance. These are difficult numbers to achieve.

“We’re pretty proud to announce that upgraded guidance … and we think that will continue too, and the business is extremely strong.”

Steadfast, the largest general insurance broker network in Australasia, now expects full-year underlying net profit of $198-208 million, and underlying earnings before interest, tax and amortisation (EBITA) of $420-430 million.

In the first-half, EBITA jumped 23% to $188.6 million. Steadfast says earnings growth is skewed to January-June.

“You're only as good as your performance. It’s a bit like a football game, you can win this week but next week you've got to win as well,” Mr Kelly said. “Our track record is proven, it’s successful. We complete acquisitions accretive to our earnings.”

Steadfast’s earnings and revenue during July-December were boosted by “prudent” acquisitions, including Insurance Brands Australia (IBA). First-half underlying net profit increased 18% to $90.2 million.

Steadfast has spent $177.7 million on acquisitions so far this year, with 27 in the first half and a further five since the start of January. In the first half, acquisitions contributed 13%, while organic growth of 9% was achieved on continued uplift in premiums by insurers and increased volume.

Steadfast bought IBA, owner of Melbourne-based brokerage Insurance House and underwriting agency ProRisk, in August. Acquisitions made to date are forecast to contribute 4% net profit growth in fiscal 2024.

As insurance companies have to raise prices, and have to be more restrictive, Mr Kelly says the number of underwriting agencies and premiums written by that sector has dramatically gained.

“What was a sidebar 15 years ago, is now a mainstream way for general insurance brokers to place a whole range of businesses that will never go back to the insurers,” he said.

It was the first result with no contribution from PSC Insurance Group since it departed the network in July. PSC will remain on the client trading platform until the end of May.