A new reinsurance brokerage has been launched in Australia, with a capital markets focus on securing the best terms for its clients. Steadfast Re has launched after a management buyout led by Simon Cloney of Beach & Associates Pty Ltd. (Beach Sydney).
Prior to the management buyout, Steadfast Re in its former guise as Beach & Associates Sydney, had been established as a reinsurance broker since 2004. The firm is seen as a pioneer in the casualty facultative broking market as well as being credited with pioneering the offering of insurance-linked securities (ILS) and collateralized reinsurance to Australian and New Zealand cedents.
Steadfast Re aims to continue its analytical and innovative approach to reinsurance broking, with a capital agnostic source to delivering client solutions based on its strong relationships with both rated paper and ILS capital.
The Australian and New Zealand market will benefit from an independent broker with established access to large collateralized markets. This will also benefit the ILS markets who may find their access to business in Australia and New Zealand grows through relationships with Steadfast Re.
CEO of Steadfast Re Simon Cloney told Artemis; “Joining with Steadfast delivers both offensive and defensive benefits to our business. We have always been innovators and created new reinsurance programs rather than be part of the endless tender game. However sadly some clients give in to the relentless politicking of the big three. With Robert Kelly and his team in our corner we can protect our flank. On the offensive side we are going to be about adding value to the sizable premium pool the Steadfast network has developed.”
Steadfast Group Limited, an insurance broker network and consolidator operation listed on the ASX, will take a 50% equity interest in Steadfast Re Pty Limited.
Robert Kelly, Managing Director & CEO of Steadfast said; “Steadfast Re will be the only Australian owned reinsurance broker supporting Australian and New Zealand insurers, and it will have the endorsement of Steadfast and an international reinsurer broker Beach & Associates.”
Mr Kelly continued; “Our joint venture with Steadfast Re introduces a further complementary business to our distribution channel of insurance products and services. We plan to help Simon and his team develop the business by providing them with access to our network of 311 broker businesses and enhancing their relationships with our Strategic Partners.”
Simon Cloney added; “I would like to thank Beach for their tremendous support over the last ten years. Working with Beach professionals around the world we have been able to develop a dynamic reinsurance brokerage. Our leadership team looks forward to working with Steadfast as we continue to deliver first class reinsurance solutions to our existing and future clients.”
Beach & Associates Limited and Steadfast Re will continue to work together via a formalised wholesaling agreement. Beach & Associates will provide a full suite of back office support through the transition and will continue to be responsible for all business incepting prior to the 31st of July 2014.
Grahame Millwater, CEO Beach Capital Holdings Limited, commented; “After ten years of providing independent reinsurance solutions to the Australia and New Zealand market, Simon and his team are keen to develop the business further. Working with Steadfast’s executive team and their significant network of independent insurance brokers will enable them to take the next step in the evolution of the business. We look forward to working with Steadfast Re Pty Limited for many years to come.”
Simon Cloney said; “I would like to thank Jonathan Beach, Grahame Millwater, Michel de Lecq Marguerie and John Cartwright for providing tremendous support over the last ten years. Working with Beach professionals around the world we have been able to develop a dynamic reinsurance brokerage. Our leadership team of John Palmer (Head of Treaty), Ingrid Anderson (Head of Fac) and Clayton Kasmar (Head of Client Management) looks forward to working with Steadfast as we continue to deliver first class reinsurance solutions to our existing and future clients. For us reinsurance broking has always been about Clients and Markets and we are very grateful for their continued support.”