None of the four premium funders that make up the Steadfast broker cluster group’s panel were aware that Steadfast was negotiating with Macquarie Bank to set up a joint venture operation.

No one likes new competition entering the market, but the four are more than a little cheesed off at the Steadfast move, despite the fact that members overwhelmingly approved the formation of the 50/50 joint venture.

Allianz subsidiary Hunter Premium Funding, Lumley Finance, CGU Premium Funding and Pacific Premium Funding weren’t in on the deal.

The premium funders are believed to provide Steadfast with about $2 million a year in the form of distribution payment arrangements. And no matter how upset they may be, none are seriously expected to abandon Steadfast.

CGU Head of Special Markets Tom Brennan told Sunrise Exchange News he had heard rumours about the joint venture but was not aware of the details. “I think you’re always concerned about another entrant in an already overcrowded market,” he said. “But as far as our relationship with Steadfast is concerned, it won’t have an effect.”

Allianz spokesman Nicholas Schofield says the announcement “came as a surprise to everyone.”

Pacific Premium Funding MD Grant Burley says “the ink was not even dry” on a new agreement Pacific signed with Steadfast several weeks ago, which is understood to have contained a mutual support clause.

He says Pacific is writing to Steadfast to “get an understanding of the implications” before formulating its response.

“The Macquarie offering was not outlined to Pacific prior to the announcement, nor was Pacific invited to make any representation to Steadfast – which seems to be contrary to what the members understand to be the case,” Mr Burley said.