The Australian Financial Review has reported that Steadfast has bought out Macquarie Group’s premium funding business Macquarie Pacific Funding for an undisclosed sum.
Macquarie launched Macquarie Pacific Funding 16 years ago as a joint venture with Steadfast to fund the payment of insurance premiums for businesses that could not or did not want to pay their premiums in one go. With he acquisition Steadfast lift its 50 per cent stake in the niche lending business to 100 per cent, and has rebranded it as IQumulate Premium Funding.
Last year Macquarie Pacific Funding funded $1.5 billion worth of premiums for more than 60,000 customers. Steadfast chief executive Robert Kelly said this made it one of the biggest premium funders in Australia. About 55 per cent of those customers were through Steadfast brokers. He also stated that Macquarie Pacific Funding CEO Raj Nanra would remain in charge of the newly acquired business.
Under Steadfast’s ownership, it would remain an open-market product, selling to brokers who are outside the Steadfast network. AFR reported that a spokesman for Macquarie said the bank would remain committed to the insurance broking sector and would continue to support IQumulate Premium Funding.