Steadfast says its first quarter was in line with budget and the company is well placed to seize on improved market conditions next year.

The broker network expects flat trading conditions will give way to price increases and further signs of a hardening market around the June renewal period next year.

“Steadfast will be in a strong position to benefit from this cyclical change,” CEO Robert Kelly told the annual general meeting in Sydney last Thursday.

“In the meantime, we continue to benefit from a defensive SME customer base and only a 2% exposure to the high-end corporate market that is more susceptible to pricing pressure.”

The group will also benefit from its diversified business model and a strategy that includes growth by acquisition, he says.

Steadfast has reaffirmed its August forecast for underlying net profit after tax and before amortisation of $85-90 million this financial year.

Mr Kelly says the company is investing in IT systems and has a team of more than 50 people working on the development and rollout of its Virtual Underwriter, Insight and InsuranceConnect platforms.

Other initiatives include offshoring more non-client administrative tasks and increasing Steadfast’s international footprint, with a growing network in New Zealand and a presence in Asia.

Chairman Frank O’Halloran says Steadfast made a number of bolt-on and small strategic acquisitions last financial year, while deciding against pursuing some larger deals.

“A number of large acquisition opportunities did not materialise because they did not fit our strict acquisition criteria based on culture, strategic fit and price,” he said.