SYDNEY, AUSTRALIA: Steadfast Group, an Australian insurance broker network, has entered the US insurance market by buying ISU Group, a private independent insurance agency network, for US $55 million.
The deal, which was announced on Thursday, will be funded from Steadfast’s existing corporate debt facilities and free cashflow. It is expected to increase Steadfast’s earnings per share from the date of acquisition.
Steadfast said the acquisition was in line with its successful acquisition strategy and would give it access to the US insurance market, which is the largest in the world. Steadfast also said it had identified significant opportunities to deliver its unique business model to the US market through ISU, which has a similar culture, brand and management team to Steadfast.
Steadfast’s Managing Director and CEO Robert Kelly said: “We are excited to do this through our acquisition of ISU, given their cultural alignment with Steadfast, established and trusted brand and experienced management team. We look forward to working with the ISU team to deliver further value to ISU through implementing, where appropriate, Steadfast business and insurance solutions to support ISU members and their clients.”
ISU Group has more than 200 member agencies across 40 states in the US, with annual premiums of over US $2.5 billion. It provides its members with access to preferred insurance markets, products and services.
Steadfast Group is the largest general insurance broker network in Australia and New Zealand, with more than 500 brokerages across both countries. It also has a growing presence in Asia and Europe.
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