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Highlights
- Steadfast Group acquires HW Wood and HWI France for £23.5m, funded through corporate debt and cash flow.
- The acquisition is expected to be accretive to earnings per share immediately.
- Steadfast aims to enhance broker support and open up further international growth opportunities.
- The deal positions Steadfast to manage its own insurance binders in London, reducing reliance on third parties.
- The acquisition is part of Steadfast’s FY25 goal of completing AU$300m in acquisitions, with AU$150m already completed.
Steadfast Group (ASX:SDF), Australasia’s largest general insurance broker network and underwriting agency group, has announced a strategic expansion into the London insurance market with the full acquisition of HW Wood and HWI France. Valued at £23.5 million, the deal will be funded through Steadfast’s existing corporate debt facilities and cash flow, with the acquisition expected to immediately contribute positively to earnings per share upon completion.
HW Wood, a Lloyd’s broker established in 2003, specializes in a range of insurance solutions, including wholesale, retail, and reinsurance services. The company is particularly known for its expertise in marine, cargo, property, and fine art insurance. The acquisition also includes more than 75 staff based across the UK, France, and Greece, further expanding Steadfast’s footprint in Europe.
Steadfast Managing Director and CEO, Robert Kelly, emphasized the strategic importance of the acquisition, noting that it would significantly enhance support for Steadfast’s network brokers in Australasia and the US. It also opens up new growth avenues in international markets, particularly within Europe. As part of the acquisition, the Steadfast Placements team, which specializes in complex risk placements in London, will integrate into HW Wood, thereby improving service delivery for Steadfast’s global broker network.
This acquisition is expected to position Steadfast to manage its own insurance binders in London, a key step in reducing reliance on third parties. This move is anticipated to not only streamline operations but also improve revenue generation over the next two years. By taking greater control of its placements in London, Steadfast aims to further strengthen its market position and enhance its operational efficiency.
The acquisition is expected to be completed by December 2, 2024, pending the usual regulatory and commercial approvals. This move is part of Steadfast’s broader expansion strategy for FY25, which includes a goal of AU$300 million in acquisitions. To date, the company has already completed approximately AU$150 million in acquisitions, positioning it well on its way to reaching this target.
The news of the acquisition has had a positive impact on Steadfast’s stock, with shares rising by 0.91%, bringing the share price to AU$5.53.
