Steadfast expects to announce a new CEO by the release of its full-year results in August, after Robert Kelly confirmed his intention to retire.

The board has engaged executive recruiter Spencer Stuart to support its search, including internal and external candidates.

Mr Kelly is expected to move into a non-executive director role after his retirement.

Morningstar analyst Nathan Zaia says it should be business as usual during the leadership transition.

“We don’t expect operational hiccups,” he said. “Steadfast is made up of many broker and underwriter businesses, with individuals incentivised to increase customers and earnings.”

JP Morgan says internal candidates may include head of broking Tim Mathieson or underwriting agencies head Mark Senkevics.

Mr Kelly’s continued involvement with Steadfast “should help the company given his immense knowledge of the industry” and extensive contacts and reputation.

The current CEO, who co-founded the group in 1996 and led its listing in 2013, flagged a leadership transition at the annual results last year.

Steadfast has also confirmed Hannah Lee as CFO, after her appointment on an interim basis last August following the retirement of Stephen Humphrys. Previously, she was group financial controller.

Steadfast’s first-half underlying net profit grew 7.3% to $137.5 million amid challenging conditions, supported by gains in Australian broking.  

The confirmed full-year guidance, assuming 2%-3% gains in local premium pricing, is for underlying profit of $315-$325 million.

Macquarie Equity Research says positives from the result include the international division’s performance and cost savings, as the company continues to undertake mergers and acquisitions.

Steadfast also last week said the board had engaged EB&Co, founded by Elizabeth Broderick, to conduct a culture review.