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

The company has maintained its full-year guidance, which includes underlying profit of $315-$325 million, assuming 2%-3% gains in local premium pricing.

This assumption compares with 1%-2% anticipated at the November annual general meeting. CEO Robert Kelly says there are signs of strengthening and the market cycle may have bottomed.

“At the moment, it’s trending more towards three, but it’s a volatile period in insurance at the moment,” he told a results briefing today.

Steadfast, which on Tuesday confirmed Mr Kelly’s retirement intentions, says statutory first-half net profit rose 19% to $127 million.

Australasian broking gross written premium gained 4.4% to $6.4 billion and underlying earnings before interest, tax and amortisation (EBITA) increased 13% to $186.8 million, mostly supported by “step-ups and bolt-ons”.

Underwriting agencies EBITA was flat, but division CEO Mark Senkevics says the business is skewed to the second half. Castle Insurance, launched in the first half, is beating expectations, while he has flagged efficiency benefits from a commercial agency consolidation.

“The announcement on the commercial agency side is imminent,” he said. “We’ve already executed this initiative in consumer agencies and the more ambitious project with commercial agencies brings eight underwriting agencies into one.”

International EBITA was $9.5 million compared with a $600,000 loss a year earlier.

The US and the UK remain the focus but Steadfast is looking at an opportunity in India, international CEO Samantha Hollman says.

“It’s such a huge part of the world and the economy and we’ve had interest reach out to us, rather than us to them,” she said. The company will keep its “eyes and ears open to everything and look at everything before a decision is made”.

Steadfast confirmed Hannah Lee has become CFO, effective yesterday, after her appointment on an interim basis last August. Previously she was group financial controller.

The group also announced the board has engaged EB&Co, founded by Elizabeth Broderick, to conduct “an independent and initial culture diagnostic, to understand how the lived experience of culture across the organisation aligns with Steadfast’s values, leadership expectations and policy framework” and to identify opportunities to strengthen culture.

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