Australian insurance coverage dealer Steadfast Group has signed a deal to purchase a 70% fairness stake in Mixed Company Group, which trades as Positive Insurance coverage.

Beneath the settlement, Steadfast pays A$148.8m ($96.41m) in money upfront to Positive Insurance coverage.

The transaction consists of two potential earn-out funds of A$28.8m and A$102.5m primarily based on Positive Insurance coverage’s efficiency in FY24 and FY25, to be paid on the finish of every yr.

A put and name possibility settlement was additionally signed between the businesses for as much as two-thirds of the remaining 30% stake in Positive Insurance coverage, with an train date between September and October 2026.

Positive Insurance coverage is an underwriting company engaged in providing house and contents insurance coverage in Queensland.

Via this deal, Steadfast goals to bolster and diversify its place as an underwriting company in Australasia.

Presently, Positive Insurance coverage is binding greater than 52,000 insurance policies, with a virtually 85% retention charge and vital room for development, it added.

Steadfast Group managing director and CEO Robert Kelly stated: “In keeping with our development technique, Steadfast Group continues to pursue extremely enticing acquisitions which might be complementary to the prevailing portfolio and proceed to additional improve Steadfast Group as the most important normal insurance coverage dealer community and largest group of insurance coverage underwriting businesses in Australasia.

“Positive Insurance coverage is a extremely compelling acquisition alternative, and there’s robust cultural alignment between the 2 organisations. We stay up for partnering with the Positive Insurance coverage workforce to proceed offering distinctive options to the market in regional Queensland and help Positive Insurance coverage’s continued development.”

Positive Insurance coverage managing director Bradley Heath stated: “We’re delighted to be working with Steadfast Group, an organisation aligned with our philosophy at Positive Insurance coverage. We’re significantly excited by the potential alternatives Steadfast can present to help our development and enlargement.”

The transaction is predicted to be accomplished by 30 November 2023.

In October, Steadfast forayed into the US market with the acquisition of ISU Group, a privately owned unbiased insurance coverage company community.

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