US plans under spotlight ahead of Steadfast strategy update
Steadfast will provide an update on its strategy and the operating environment later this month at investor days in Sydney and Melbourne.
Executives outlining plans include CEO Robert Kelly, CFO Stephen Humphrys, CEO International Samantha Hollman and COO Nigel Fitzgerald. Also participating will be EGM partners, broker services and agencies Nick Cook, GM operations, compliance and customer experience Helen Tebelopoulos, Sure Insurance MD Bradley Heath and IQumulate Premium Funding CEO Wayne Tower.
The company acquired US network ISU Group and northern Queensland’s Sure Insurance during its financial first half, while continuing with its “trapped capital” program.
US growth plans following the ISU acquisition are among areas of interest for analysts, with Steadfast previously highlighting opportunities to purchase equity stakes in businesses and to gain benefits through technology.
Macquarie Equity Research says the ability to provide differentiated technology in the US will go a long way to answering whether the strategy in that market will add to group earnings growth.
It suggests rolling out Insight or the Steadfast Client Trading Platform to the US would be too costly, there are providers already in the market struggling to find strategic distribution partners, and the company may be better off acquiring existing platforms.
“We believe [Steadfast] can thread the needle with its US strategy, but we don’t think rolling out the Australian technology is the answer,” Macquarie said.
Steadfast in February reiterated full-year guidance for underlying earnings before interest, tax and amortisation of $520-$530 million and net profit after tax of $240-$250 million.
The investor days will be in Sydney on June 24 and Melbourne on June 25. Results for the year ending June 30 will be released on August 28.