Steadfast strata agency CHU has reached agreement with QBE on a long-term deal for the insurer to continue providing underwriting capacity.

CHU says the agreement secures QBE as the capacity provider over the next decade, underscoring “mutual trust and a shared dedication” to meeting strata customers’ evolving needs.

“We are proud to continue our long-standing relationship with QBE,” CHU CEO Kimberley Jonsson said today. “Its support as our insurer has been instrumental in our ability to deliver stability and exceptional service to our customers.”

CHU was formed in Sydney in 1978, wrote Australia’s first strata policy, and remained the sole strata insurer until 1999, before burgeoning growth in the sector. Steadfast acquired the business from QBE in February 2015, with the deal including an initial 10-year capacity agreement.

The new agreement’s start date is April 1 next year.

Steadfast CEO Robert Kelly says the agreement is a milestone in CHU and QBE’s collaborative history. 

“Strong and strategic partnerships have always been instrumental to Steadfast Group and the wider insurance industry,” he said.

“We’re pleased to see the continuation of this successful relationship enabling CHU to continue providing its superior and award-winning insurance services within the strata sector.”  

The agency now covers more than 1.2 million units, and the overall sector is expected to continue expanding. It is estimated about 3 million people live in strata properties and the number as a percentage of the population is forecast to increase.

QBE Australia Pacific CEO Sue Houghton says the company is pleased to continue as CHU’s insurance provider.

“We remain committed to working collaboratively with CHU to ensure a sustainable and successful relationship,” she said.

A recent report by Macquarie Equity Research highlighted CHU’s significance as a contributor to Steadfast group net profit, and the importance of renegotiating arrangements with QBE.

Steadfast is hosting investor day events in Sydney on Monday and in Melbourne on Tuesday.

From Insurance News magazine: Steadfast’s revamped top team discuss the broker group’s American dream