Group stopped (ASX:SDF) announced its expansion into the London insurance market with the acquisition of 100% of HW Wood and HWI France. The acquisition, valued at £23.5 million, will be financed through Steadfast’s corporate debt facilities and cash flow and is expected to be accretive to earnings per share immediately upon completion.
Steadfast Group is the largest general insurance broker network and underwriting agency group in Australasia, with expanding operations across Asia and Europe.
HW Wood, established as a Lloyd’s broker since 2003, provides comprehensive wholesale, retail and reinsurance solutions, particularly in marine, cargo, property and fine art insurance. The acquisition includes more than 75 employees in the UK, France and Greece.
Steadfast managing director and CEO Robert Kelly highlighted the strategic importance of the move, saying it would improve support for Steadfast network brokers in Australasia and the US, while opening up further international growth opportunities. The Steadfast Placements team, which manages complex risk placements in London, will integrate into the newly acquired entity, enhancing service delivery for Steadfast’s extensive broker network.
The deal also allows Steadfast to operate its own insurance binders in London, reducing reliance on third parties and increasing revenue over the next two years.
Settlement of the acquisition is expected by December 2, 2024, pending regulatory and commercial conditions.
This latest move contributes to Steadfast’s broader goals for fiscal year 25, with the company having completed approximately $150 million in acquisitions so far, halfway towards its $300 million target.
The shares are trading up 0.91% at $5.53.