Steadfast to buy Whitbread Insurance for US$72m

December 5 2017 by InsuranceAsia News Staff

Steadfast Group, which claims to be the largest network of insurance brokers and advisers in Australia, is set to acquire Whitbread Insurance Group, a broker and strata-focused underwriting agency, for A$95 million (US$72 million).

Steadfast officials said the company would also launch an underwritten institutional placement of A$100 million to finance the acquisition.

Whitbread, a family-run business, has two business units: Whitbread Insurance Brokers, a general insurance broker, and Axis Underwriting Services, an underwriting agency specialising in niche areas of property and liability.

According to Robert Kelly, chief executive of Steadfast, Whitbread was a “long-standing member” of the A$2.2 billion general insurance broker’s network.

The acquisition is said to match Steadfast’s existing agency portfolio.

Whitbread is said to have performed impressively while showing pricing and underwriting discipline to build long-term relationships in the market.

Hence the acquisition, according to Kelly, would be a boost to Steadfast’s earnings.