Steadfast Group (ASX: SDF) today announced that it has entered into an agreement to acquire Whitbread Insurance Group, a leading general insurance broker and strata-focused underwriting agency, for a price of $95 million.
Whitbread Insurance Group
WIB, established in 1978, is focused on the small-to-medium enterprise general insurance market with offices in Melbourne, Sydney and Brisbane. Axis, established in 1999, is a specialist underwriting agency focusing on niche areas of property and liability. The broking operation will join Steadfast Group’s existing portfolio of equity-owned brokers while Axis will become the 25th member of the Steadfast Underwriting Agencies portfolio.
The acquisition is expected to be earnings accretive in FY181. Underlying EPS (NPAT) accretion is expected to be ~3% in FY18 on an annualised basis, assuming that the acquisition is fully funded by equity.
Cultural and strategic alignment
Managing Director & CEO Robert Kelly commented “Steadfast Group was the natural acquirer of Whitbread Insurance Group with an excellent strategic and cultural alignment. It is a well-established business with a long track record of financial performance and a strong reputation in the market.
“As a long standing member of the Steadfast Network, we have a close, long-term relationship with WIB which we look forward to building upon following this transaction.
“Axis will complement our existing agency portfolio. It has performed strongly while showing pricing and underwriting discipline to build long-term relationships in their market.”
Chair of Whitbread Angela Whitbread, speaking on behalf of the Whitbread family, commented “We are delighted that Steadfast Group has acquired Whitbread given our many years of working together. Our family is pleased to transition ownership to Steadfast which ensures the longevity of the company started by my father nearly 40 years ago and secures the future of our staff and client relationships.”
Steadfast Group, established in 1996, is the largest general insurance broker network and the largest underwriting agency group in Australasia. Our network provides products and services to over 360 insurance broker businesses across Australia, New Zealand and Asia. Steadfast Network brokers and Steadfast Underwriting Agencies generated billings of more than $6.5 billion for the 12 months ended 30 June 2017. Steadfast Group operates as a co-owner and consolidator through its equity interests in a number of broker businesses, underwriting agencies and other complementary businesses. Steadfast Group also has an equity stake in unisonSteadfast, a global general insurance broker network with over 200 brokers in 130 countries generating US$17 billion of GWP.
For further information, please visit investor.steadfast.com.au
Please note Quotesonline Insurance News is an information service provided by third parties Insure 247 Australia doesn’t warrant the accuracy of any information contained there in, readers should make their own enquiry’s before relying on information in the stories Terms of Service