The meeting revealed the company’s 11th straight year of increased underlying net profit since its ASX listing in 2013.
Steadfast chair Frank O’Halloran AM noted that the company market capitalisation has grown to AU$6 billion, a significant rise from AU$535 million at the time of listing.
For the fiscal year ending June 30, 2024 (FY24), Steadfast achieved a 21.8% increase in underlying net profit after tax (NPAT), reaching AU$252.2 million, with underlying earnings per share climbing by 16.2% to 23.4 cents.
Statutory NPAT, incorporating non-operational items, was AU$228.0 million, up from AU$189.2 million in FY23.
Steadfast’s final dividend of 10.35 cents per share, distributed in September, brought the total fully franked dividend for FY24 to 17.1 cents per share.
The group continued to focus on a conservative capital management approach to underpin its growth through acquisition.
By the end of June 2024, Steadfast’s gearing ratio stood at 20.2%, well within the board-mandated limit of 30%.
During the fiscal year, Steadfast invested AU$457.8 million on 48 acquisitions, including US-based ISU Group and underwriting agency Sure Insurance.
The company plans to complete an additional AU$300 million in acquisitions by the end of the 2025 financial year (FY25), with funding sourced from debt and free cash flow.
The recently proposed Treasury Laws Amendment (Mergers and Acquisitions) Bill 2024 may impact Steadfast’s acquisition processes, particularly in Australia, and the company has signalled ongoing engagement with the Australian Competition and Consumer Commission (ACCC) on compliance with any new regulatory requirements.
Steadfast reaffirmed its commitment to strong corporate governance, highlighting its adherence to ASX Corporate Governance Council standards.
The company has integrated several recommendations from the 2019 Hayne Royal Commission, focusing on transparency and client outcomes, it said.
Following a 2023 review by independent actuary John Trowbridge, Steadfast identified and addressed key transparency issues in the strata insurance sector.
An ongoing internal review, which was initiated in response to recent media reports, is also assessing customer protocols across Steadfast’s strata-focused subsidiaries, it said. Senior executives and external consultants are involved in evaluating practices related to disclosure, conflict management, and compliance.
In Australia and New Zealand, Steadfast’s network brokers reported a 12.1% rise in gross written premium (GWP) to AU$13.0 billion, supported by higher sales volumes and premium rates. The network now spans 418 brokerages across Australia, New Zealand, and Singapore.
Additionally, the Steadfast Client Trading Platform processed AU$1.4 billion in GWP in FY24, representing a 20% increase from the prior year.
The underwriting agencies under Steadfast management also reported strong results, with AU$2.3 billion in GWP, a 13.4% increase over FY23. Organic growth and rising premiums from insurers contributed to this performance, as did preparations for upcoming regulatory requirements under CPS230, effective July 2025.
The AGM provided an update on Steadfast’s first-quarter performance for FY25, showing a 14% increase in underlying revenue, an 18% rise in EBITA, and a 23.3% gain in NPAT.
The company affirmed its FY25 guidance, projecting underlying EBITA between AU$590 million and 600 million and NPAT of AU$290 million and 300 million.
