Steadfast expands its agency business
Steadfast expands its agency business with the acquisition of 70% of Nautilus Marine
Steadfast Group Limited (‘Steadfast’) (ASX: SDF) today announced that it has acquired 70% of the share capital of NM Insurance (Nautilus Marine), a Steadfast strategic partner with an EBITA of $1.6 million for the year ended 30 June 2013.
NM Insurance, established in 2005, is a leading underwriting agency operating across Australia and New Zealand that specialises in marine and motorcycle insurance. It offers, through a number of brands and corporate partners, insurance for a full range of marine private pleasure craft, commercial craft and commercial insurance products for the marine industry. Motorcycle insurance is an established feature of its New Zealand operations and a key growth area in Australia.
The completion payment is funded with existing cash resources and meets Steadfast’s strict
acquisition criteria including that it be EPS accretive within the first 12 months of ownership. The
final purchase price will be determined based on performance for the year ended 30 June 2015.
The remaining 30% equity will be owned by key management personnel at NM Insurance.
Mr Robert Kelly, Managing Director & CEO of
Steadfast, said: “We are pleased to add another high
quality business to Steadfast Underwriting Agencies. NM
Insurance has been a strategic partner with Steadfast since
2009 and complements our underwriting agency offerings. The
business is run by a group of young, ambitious and energetic
people who have the innovation and drive in keeping with the
Steadfast culture. We are thrilled to be able to support
growth and add value to the Steadfast Network.”
Lyndon Turner, CEO of NM Insurance, commented, “We look forward to continue working with Steadfast now as an equity partner, as well as growing with our other partners across Australia and New Zealand. Our business has been built on solid relationships held with our intermediaries supporting our market leading products, and our underwriting partners. We expect Steadfast’s ownership in NM Insurance will ensure we continue to be a leading supplier in all the products
we offer under our various brands, including our most prominent, Nautilus Marine.”
Mr Turner added, “I would like to personally thank our founding equity partners, The Hollard Insurance Group and Ian Frith, also founder of a Steadfast Network broker IC Frith Insurance.
From day one, the professionalism and support of our founding equity partners and our staff has been instrumental in the success of NM Insurance.”