Steadfast remains bullish that earnings this financial year will come in at the top end of its forecast after a strong first-half performance, lifted in part by contributions from Insurance Brokers Network Australia (IBNA) and other acquisitions.

CEO and MD Robert Kelly is similarly 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.

“I said in January last year that I thought it had 18 months to run,” he told an earnings call this morning.

“I’m saying now looking at the working losses that insurers have had to sustain and how they have hit their cat programs and how they are out in the market rebuying and refilling their cat programs [that] it has got at least two years to run.”

The listed broker network announced its December half results yesterday after the markets closed.

Underlying net profit after tax grew 39.1% to $53.2 million and earnings before interest, tax and amortisation (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 representatives 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.

Steadfast says the business remains on track to perform at the top end of its earnings forecast for this financial year as previously announced. The business expects underlying net profit after tax of $100-110 million and underlying EBITA of $215-225 million.