Steadfast has delivered an 8.2% earnings rise in annual results reported before its expected acquisition by a private equity consortium.

Revenue grew 15.3% to $2.1 billion and net profit increased to $319.5 million, on an underlying basis.

Group CEO Robert Kelly said the market has reached “the bottom of the barrel” after a rate slide and the group expects a 2%-3% increase in Australian premium pricing this fiscal year.

“My feeling is that there was a lot of competition for June, and some insurers made some silly mistakes about how they were going to price their product and there was an overreaction to losing business,” he said. “I don’t think that will continue.”

Steadfast’s board has recommended a $6-per-share offer from Dragoneer, Kohlberg Kravis Roberts and Amwins that values the company at $7.7 billion.

The board had expected to announce a new CEO before the results, with Mr Kelly to retire, but plans changed after the consortium’s approach.

Chair Vicki Allen said in the annual report that the board has agreed to pause the CEO search, and Mr Kelly will be “overseeing the potential change-of-control transaction”.

Steadfast’s Australasian network brokers delivered a GWP increase of 6.2% to $13.2 billion last year, while underlying earnings before interest, tax and amortisation (EBITA) grew 13.2%.

Mr Kelly said agencies GWP grew 2.3% to $2.5 billion and EBITA increased 5.2% while the market was the softest he has seen “in probably 30 years”.

He denied CHU is driving irrational strata pricing after a questioner at the results briefing said competitors are suggesting it is undercutting the market to pick up share.

“That’s an erroneous, stupid statement for anybody to make,” he said. “Anybody who makes a statement like that doesn’t understand the strata market, has no understanding of the competitive nature of it, and no understanding about who’s actually creating the price drop.”

International earnings rose to $29.8 million from $5.9 million in the previous financial year, including stronger HWS Specialty and ISU Steadfast contributions.

Steadfast statutory net profit fell 19.6% to $269.1 million.

Ms Allen also gave an update on a cultural review, announced in February and undertaken by Elizabeth Broderick’s EB&Co.

“The report identified a number of cultural strengths as well as highlighting areas where we can improve,” she said. “The recommendations have been integrated into culture action plans and the people strategy for FY27.”

The company has forecast underlying net profit of $333-$343 million, based on continuing in its current form.

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