Steadfast Group has overshadowed its solid FY26 results with a far more significant announcement, entering into a Scheme Implementation Deed with Amwins Australasia Group and Starboard BidCo on 21 August 2026. The scheme represents a transformational event for shareholders and transforms how investors should interpret the financial performance underlying today’s announcement.
Stripping away the scheme backdrop, Steadfast delivered respectable financial results. Underlying revenue climbed 15.3% to $2,104.7 million, while underlying EBITA grew 13.8% to $669.8 million. The earnings growth was more modest, with underlying NPATA rising 7.1% to $366.3 million and underlying diluted EPS advancing 7.7% to 28.8 cents per share. The variance between revenue growth and earnings growth reflects the business mix and cost pressures typical of the insurance broking and underwriting sector, where premium volumes are growing faster than margins can expand organically.
The company’s three operating divisions contributed to the growth profile. The Australasian Networks segment delivered gross written premium growth of 6.2% to $13.2 billion and underlying EBITA expansion of 13.2%, benefiting from 10.5% acquisition-led growth. Underwriting Agencies generated $2.5 billion in gross written premium, up 2.3%, while the International business rebounded sharply, delivering underlying EBITA of $29.8 million against $5.9 million in the prior year. This turnaround was driven by profit sharing growth from ISU Steadfast, continued expansion in HWS Specialty, and the contributions from Novum, acquired during the year.
The board’s decision to increase the final dividend by 9.0% to 12.75 cents per share, fully franked, represents a vote of confidence in the business and signals capital management discipline. Total FY26 dividends reached 20.95 cents per share, an increase of 7.4% year-on-year. Notably, the Dividend Reinvestment Plan will not apply to this final dividend, a standard measure ahead of significant corporate events.
Looking ahead, Steadfast has provided FY27 guidance with underlying EBITA expected to reach $700 million to $715 million and diluted EPS growth projected at 4 percent to 8 percent. This relatively conservative range hints at operational headwinds or perhaps reflects management’s reluctance to commit to aggressive targets whilst the scheme undergoes shareholder and regulatory scrutiny. The guidance assumes the business continues on a standalone basis.
Investors should note the board’s unanimous recommendation that shareholders vote in favour of the scheme, subject to an independent expert confirming the arrangement remains in the best interests of shareholders. This announcement is price sensitive and has been declared material by the ASX.
View the full ASX announcement (PDF)
About Steadfast Group Limited (ASX: SDF)
Steadfast Group Limited is a general insurance brokerage services provider operating across Australasia, Asia, and Europe. The company offers a comprehensive range of business and personal insurance products, including professional indemnity, cyber, trade credit, workers compensation, home and contents, and motor insurance. It operates through a network of general insurance brokers and underwriting agencies that distribute these insurance products to corporate and individual customers.
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