Steadfast is on course to meet the top end of its earnings forecast for this financial year after first-half earnings surged, driven in part by the addition of Insurance Brokers Network Australia (IBNA) member companies.

The business expects to achieve full-year underlying net profit after tax of $100-110 million and underlying earnings before interest, tax and amortisation (EBITA) of $215-225 million.

CEO and MD Robert Kelly is equally upbeat on the Australian rate cycle, with the months-long bushfire disasters and recent catastrophes expected to underpin rising premiums for the next two years.

In the six months to December 31, underlying net profit after tax grew 39.1% to $53.2 million and EBITA, also on an underlying basis, increased 27.5% to $108.9 million.

The Steadfast Network’s gross written premium (GWP) improved 32% to $3.9 billion, driven by the addition of IBNA, growth in authorised representative networks and organic growth of 6.5%.

Acquisition-linked growth contributed $16.3 million to underlying EBITA including $4.3 million from IBNA, which joined the Steadfast group in the second-half of last year.

The IBNA transaction is about $72.7 million post-tax after every shareholder in the independently owned group voted to accept the takeover, adding another $1.25 billion in annual GWP to the Steadfast business.

With the 100% acceptance rate, underlying EBITA contribution from IBNA for this financial year has been raised to $8.3 million from $4.8 million, which was made partially based on an 80% take-up rate.

“We are very pleased with the strong growth in underlying revenue and underlying net profit before tax,” Mr Kelly said.

“The acquisitions made during the first-half, continued price increases by insurers, our loyal and growing network and a strong pipeline of opportunities gives us confidence in further increasing shareholder value over the long-term.”

The Steadfast Underwriting Agencies business increased its GWP 21% to $673 million and underlying EBITA advanced 13.4% to $49.1 million.