Steadfast Earnings: Tailwinds Easing, but Earnings Growth Set to Persist

Higher insurance premiums are a tailwind for the insurance broking and underwriting industry but were not the sole driver of Steadfast’s strong fiscal 2024 result. Underlying earnings before interest tax and amortization rose 23% to AUD 529 million, aided by volume growth, new joiners to the network, acquisitions, margin improvement, and higher interest income earned on premium payments. Fiscal 2024 earnings came in at the top end of guidance and broadly aligned with our expectations. Acquisitions remain a core contributor to growth, and Steadfast has a good track record of buying and integrating businesses. Organic and acquired EBITA growth was split roughly 55/44 in the year. At group level, EBITA margins improved by 100 basis points to 31.5%.