It will be business as usual for the Whitbread Insurance Group following its
purchase by Steadfast announced this week.
Robert Kelly, CEO and managing director of
Steadfast, said that the firm “were the obvious acquirer” of the Whitbread Insurance Group thanks to decade long links between the firms.
“It really appealed to us because we felt that we knew the business, the people and the ethics of the people involved in the business,” Kelly told Insurance Business. “What they wanted to do for their staff and the business absolutely fits our game plan. We didn’t have to modify what we want to do and how we want to go about doing it, it will be business as usual.”
Kelly noted that Angela and Claire Whitbread, both senior managers at the firm, would step down but John Paul Whitbread – currently director and joint CEO of the business – will remain with the firm and take up a board position.
“We will be able to put a lot of our resources behind his talent,” Kelly continued.
The $95 million deal will see both Whitbread Insurance Brokers and
Axis Underwriting fall under the Steadfast banner, but Kelly noted each will maintain its own identity, including names and locations.
The deal to bring Axis into the Steadfast Underwriting stable will see the firm boost its underwriting capabilities in areas it already works in, but branch out into other lines, Kelly said.
“It [Axis] also brings into our suite of underwriting agencies a different perspective in certain sectors,” Kelly continued. “More particularly in regards to strata plans where it has developed some unique products for certain areas we are probably not servicing under our other two underwriting agencies.
“Now, with three underwriting agencies together, we’ve got a broad spectrum of offerings which are very comfortable for us in all markets in their own right.”
Kelly also noted that Steadfast will look to nationally expand Resolute Property Protect, part of the Whitbread Insurance Group, aimed at body corporate managers, to work “alongside and as an alternate to our current offerings in the strata area.”
Steadfast announced yesterday that it had successfully completed a $100 million institutional share placement to pay for the acquisition.
“The placement was oversubscribed and very well supported by our existing institutional shareholders, with strong demand also coming from new institutional shareholders,” Kelly said.
The firm will complete the share purchase plan component of the offer, which opens on December 13.
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