Steadfast Group (SDF) Investor Day 2024 summary

Strategic direction and international expansion

• A refreshed three-year strategy prioritizes international growth, with the US market as the main engine via the ISU Group acquisition, supported by a dedicated team and phased market entry.

• The US strategy focuses on growing ISU membership, expanding services (technology, carrier relationships, MGAs), and evolving organizational structure, emphasizing quality and retention.

• London and New Zealand remain important, with London targeted for further expansion and New Zealand and Singapore continuing steady growth, but the US receives the majority of capital and strategic focus.

• The Unison Steadfast network, with a 60% stake, focuses on global broker collaboration for multi-jurisdictional clients and is not being developed like ISU.

• Formalized international executive team with new CEO, COO, and CFO roles to drive global growth.

Financial guidance and capital allocation

• No predefined capital allocation for the US; investments are evaluated case by case, with ISU currently self-funding and not requiring additional capital support.

• US investment currently represents about 2% of group earnings, with further capital deployment contingent on strategic fit and EPS accretion.

• Acquisition multiples have rationalized from previous highs due to rising capital costs, with current domestic acquisitions generally at or below 10x EBITDA.

• The group maintains a strong runway for both organic and inorganic growth, with significant opportunities in broker equity stakes, AR networks, and underwriting agencies.

• Strategy for 2024-2027 centers on organic growth, disciplined acquisitions, and margin improvement, supported by a strong balance sheet.

Business developments and operational initiatives

• Technology leadership is a core differentiator, with plans to introduce the Steadfast Client Trading Platform and Insight agency management system to the US, addressing a significant technology gap.

• Trapped capital (minority equity investments in brokers) is being actively promoted in the US and APAC as a unique, long-term alternative to private equity, with initial member interest already evident.

• Sure Insurance, acquired in Nov 2023, leverages Steadfast’s distribution and technology for national expansion, focusing on pricing excellence, claims management, and binder/reinsurance relationships.

• Accumulate/IQumulate, the group’s lending arm, targets 10%+ annual revenue growth, operational efficiency through automation, and is exploring US market entry.

• Gold Seal/Goldseal provides compliance, HR, audit, and training services, supporting network members in regulatory and operational excellence.