Steadfast Group (ASX:SDF) has announced its expansion in the London insurance market with the 100% acquisition of HW Wood and HWI France. The acquisition, valued at £23.5m, is set to be funded 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 in 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 over 75 staff across the UK, France and Greece.
Steadfast Managing Director and CEO Robert Kelly highlighted the strategic importance of the move, stating that it would enhance support for Steadfast’s network brokers in Australasia and the US, while opening up further international growth opportunities. The Steadfast Placements team, which handles complex risk placements in London, will integrate into the newly acquired entity, improving service delivery for Steadfast’s extensive broker network.
The deal also positions Steadfast to manage its own insurance binders in London, reducing reliance on third parties and enhancing revenue over the next two years.
Settlement of the acquisition is anticipated by 2 December 2024, pending regulatory and commercial conditions.
This latest move contributes to Steadfast’s broader FY25 goals, with the company having completed around $150m in acquisitions to date, halfway towards its $300m target.
Shares are trading 0.91% higher at $5.53.