Steadfast’s Strategic US Play

In a significant move reflecting the ongoing transformation of the global insurance landscape, Australian insurance brokerage powerhouse Steadfast Group has announced the acquisition of a majority stake in Novum Underwriting Partners LLC, a US-based specialty managing general agency (MGA) and wholesale brokerage. The transaction is poised to expand Steadfast’s international footprint and amplify its competitive edge in North America’s dynamic insurance market.

Founded in 2019 and headquartered in Ohio, Novum Underwriting Partners has established a reputation for innovative approaches to specialty risk placement, catering to a diverse base of clients and insurance carriers nationwide. The firm’s expertise in creating tailored insurance solutions makes it a prime acquisition target amid a flurry of M&A activity in the global risk management sector.

Industry Context: Surging M&A in Insurance

Insurance sector M&A volumes have remained robust in 2024 and 2025, driven by a confluence of rising operational costs, digital transformation, and a highly competitive talent landscape. Global data from PwC and EY reveal that first-half 2025 insurance deals are up 14% year-over-year, with much of the activity concentrated in specialty distribution, insurtech, and reinsurance segments. Recent mega-deals, such as Arthur J. Gallagher’s $13.5 billion acquisition of AssuredPartners and Sompo’s $3.5 billion Aspen deal, highlight the imperative for scale, technology enablement, and access to broader geographic markets.

“Specialty MGAs and brokerages like Novum are increasingly coveted for their agility, niche expertise, and ability to connect insurers with profitable new markets,” noted Linda Johnstone, Managing Director at TowerBrook Capital. “Steadfast’s move reflects global ambitions to diversify risk portfolios and accelerate innovation.”

What the Deal Means for Steadfast and Novum

The acquisition marks Steadfast Group’s largest US deal to date. Steadfast, already the largest general insurance broker network and largest group of underwriting agencies in Australia and New Zealand, is leveraging strong financial performance—a reported AUD 1.65 billion ($1.1 billion USD) in revenue for fiscal 2024 and continued double-digit profit growth—to expand internationally.

Robert Kelly, Group CEO of Steadfast, commented: “With Novum, we gain not just market access but also a team that thrives on complex risk and digital distribution. This supports our commitment to delivering superior outcomes for clients and partners globally.”

Novum’s leadership and workforce are expected to remain onboard, driving operational continuity and sustained growth. This approach aligns with recent industry best practices, where cultural integration and employee retention are cited as critical success factors for post-merger performance.

Impact on US and Global Insurance Markets

For US markets, the deal could bolster competition and bring new products to underserved sectors. Novum’s proficiency in specialty lines—ranging from cyber liability to environmental and excess casualty—will complement Steadfast’s depth in commercial, property, and SME coverage. Combined, the firms are better positioned to address evolving client needs, especially amid growing climate, cyber, and supply chain risks.

Globally, Steadfast joins the ranks of international brokers aggressively entering North America through targeted acquisitions. As regulatory environments harmonize and digital platforms proliferate, cross-border consolidation is expected to accelerate. In 2024, North America accounted for over 60% of global insurance M&A by value, according to Bain & Company research.

Drivers of the Deal

• Scale and Efficiency: Amid thin margins and intensifying competition, scale is vital for cost reduction, negotiating leverage, and client service expansion.
• Access to Technology: Novum’s digital distribution and data analytics help Steadfast innovate underwriting and streamline claims management.
• Diversification: Specialty MGAs provide exposure to high-growth, resilient insurance segments—critical amid economic uncertainty.
• Entry into the US Market: By acquiring a respected, established player, Steadfast bypasses many barriers to entry in North America’s mature insurance ecosystem.

M&A Outlook: What’s Ahead?

Industry analysts predict robust M&A activity to persist into 2026. With macroeconomic headwinds and technological disruption, insurance firms globally are expected to make transformational moves—not only for growth but to futureproof operations. Areas to watch include parametric and specialty lines, embedded insurance, and increased cross-border tie-ups between MGAs, insurtechs, and traditional carriers.

“Clients and markets are demanding more tailored, tech-enabled solutions,” notes Johnstone. “The firms that innovate—often through smart acquisitions—will be best positioned for success.”