Insurance v. brokers stocks

Hi Adel,

Thanks for the appreciation in these both volatile times, Trumps second presidency is already an enigma unto itself and it’s only a few weeks old!

A few questions wrapped into one, we’ve answered individually for clarity:

• Steadfast Group (SDF): Steadfast itself does not take on major claims risk like a traditional insurer, their main risk is indirect, through underwriting agencies and market conditions affecting broker commissions. However,mSDF was in the news for the wrong reasons in September following a Four Corners story with the CEO coming over badly and the stock hasn’t recovered since, it’s not on our radar as other alternatives come into view as the market retreats.
• AUB Group Ltd (AUB): – This group of insurance brokers and underwriters is an interesting business which has traded well from its 2022 low. AUB reported strong financial results for 1H25, reflecting growth across its operations – revenue was up 8.4% YoY and NPAT up 13% YoY, although ~1% below consensus. The result saw upgrades from Morgan Stanley and Macquarie. We like AUB around $29.50 only 1-2% lower.
• Goodman Group (GMG): We allocated an additional 1% of our Active Growth Portfolio into GMG on Wednesday, around $31.70, we see no reason to change this holding with the stock still trading above $31, even as the ASX200 slips below the psychological 8000 area.
• HUB24 Ltd (HUB): We allocated 3% of our Active Growth Portfolio into HUB on Wednesday, with the intention of increasing the position if we see further weakness, this plan hasn’t changed.

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HUB24 Ltd (HUB)

LAST UPDATED 07/03/2025 12:21

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HUB24 Ltd (HUB)

LAST UPDATED 07/03/2025 12:21