Former QBE CEO Frank O’Halloran’s appointment as the chairman of broker group Steadfast has been welcomed by the investment market and hailed by insurance leaders as a strategic masterstroke.

Industry observers spoken to by insuranceNEWS.com.au say Mr O’Halloran’s market knowledge and business know-how is expected to be a major advantage for Steadfast as it moves closer to an initial public offering (IPO) in May next year.

“Frank’s intimate knowledge of both Steadfast and the general insurance industry will make the transition to an ASX constitution and ultimate listing smooth,” current Executive Chairman Robert Kelly said on Friday. “He will add a wealth of acumen to the Steadfast group’s future direction.”

Mr O’Halloran, 65, retired on August 17 after 14 years running QBE and will join the Steadfast board on October 27.

He had been scheduled to join the QBE board next year, but a statement from QBE shortly after Steadfast announced his appointment noted it would now be “inappropriate for Mr O’Halloran to hold board positions at both Steadfast and QBE”.

Chairman Belinda Hutchinson said the QBE board has “allowed an exception to the arrangements which prevent Mr O’Halloran from acting for an insurance company or insurance-related business for three years after his retirement”.

“Frank is passionate about the insurance industry, and feels that his expertise would add a great deal at Steadfast Group with its plans to list on the ASX.”

Under the plan revealed to insuranceNEWS.com.au, the new board will take over from the old member-based board later this month. Mr Kelly said yesterday it will initially comprise only five members.

Mr Kelly will step down as Executive Chairman to become MD and CEO of the company, answering to Mr O’Halloran.

Cameron McCullagh, Steadfast’s Executive Director – Strategy and Corporate Actions, will become the COO. A former CEO of Employers Mutual, he has been working with Steadfast since 2009.

Indemnity Corporation MD and Steadfast Finance Committee Chairman Jonathan Upton, whose company will sell a share of the company into the new Steadfast entity, will continue as a board member representing companies which have sold shareholdings into the group.

Queensland broker Greg Rynenberg, who is Deputy Chairman of Steadfast and Chairman of the Steadfast Virtual Underwriter, will represent other shareholders on the new board.

A number of the present Steadfast board members are expected to continue to work on various subsidiary company boards.

Mr O’Halloran and Mr Kelly will conduct “town hall” meetings around Australia with Steadfast shareholders early next month to welcome the new chairman “and further clarify the group’s pathway to listing”.

There are more than 400 Steadfast brokers’ offices nationally, with sales of $4.1 billion and annual revenues of about $700 million.

While the O’Halloran appointment came as a surprise to members and the market in general, they have been kept closely informed of the progress of the IPO arrangement, with plans to float the group on the Australian Securities Exchange before the end of the year.

Meetings around the country have discussed the complex arrangements needed to progress the flotation, with a new logo and brand awareness campaign already finalised. The rebrand is expected to be in full use across Steadfast member companies by the end of October.

This is accompanied by an “awareness movement”, a marketing strategy to introduce consumers to the Steadfast brand.

The group says the awareness campaign “will provide insights and clarity on the importance of an insurance broker and more importantly, extending this education to the benefits and improved capabilities of a Steadfast broker”.