Steadfast has raised its earnings guidance after its first-half result was boosted by pricing increases and acquisitions as the group continues to expand.

Full-year underlying net profit is expected to reach $163-170 million, compared to the original range of $159-166 million, while the earnings before interest, tax and amortisation range was lifted to $330-340 million.

CFO Stephen Humphrys says a small amount of flagged acquisition growth is factored into the guidance, while it’s assumed premium rate rises of around 5-7% will continue.

“We are not seeing at this stage any softness on those numbers, if anything the momentum continues to be stronger,” he told the financial results briefing.

Steadfast underlying net profit increased 26.4% to $76.3 million in the six months to December 31, while revenue rose 19% to $520.9 million.

The company bought Coverforce during the half and completed 18 acquisitions under a program targeted at network brokers seeking to sell equity.

“Our underlying earnings growth for the period was again driven by sustained organic growth in the group’s insurance broking and underwriting agencies and our prudent acquisition strategy,” CEO Robert Kelly said.

“The Coverforce acquisition in late August and other network broker acquisitions, including those from our trapped capital project, are performing in line with expectations.”

Steadfast says the group’s balance sheet remains well positioned to fund future corporate activity, and there remains strong interest from brokers looking to participate in the trapped capital project.

Steadfast network brokers delivered gross written premium (GWP) of $5.2 billion, up 15.6% in the half, while underwriting agencies GWP rose 16.3% to $852 million, supported by pricing and volume.

Underlying earnings before interest, tax and amortisation for the agencies rose 21.5% to $68.9 million as the division exceeded expectations.

Mr Kelly says $458 million in GWP was transacted through the Steadfast Client Trading Platform, as the total trends towards an annual $1 billion.

Steadfast statutory net profit rose from $73.4 million to $104.9 million including a boost from its investment in Johns Lyng Group.