Steadfast Group vs AUB Group shares: Which insurance broker offers better value?

Choosing between Steadfast Group Ltd (ASX: SDF) and AUB Group Ltd (ASX: AUB) can be a tough ask for investors focused on Australia’s bustling insurance broking industry. Both are heavyweights with strong broker networks, proud dividend histories, and a growing international presence. But when it comes to value for your investment dollar, how do these two stack up? Here’s my take, with a focus on the numbers that really set them apart.

The case for Steadfast

Steadfast is the largest general insurance broker network and group of underwriting agencies in Australia and New Zealand, with a footprint spanning more than 430 brokers and around 2,000 offices according to its most recent public description. The company’s reach extends to Singapore, the UK, Germany, and more recently, the United States – thanks to recent acquisitions and the rollout of the ISU Steadfast brand.

Standout fundamentals for Steadfast Group:

• Market capitalisation sits at $6.38 billion, making it the biggest listed player in its patch.
• P/E ratio of 23.58, which is relatively moderate for the sector.
• Dividend yield of 3.66%, fully franked.
• Year to date return of 12.49%, showing positive momentum in a tough market.

Steadfast also offers 100% franking on all dividends, and its payout has steadily increased over recent years based on the data provided. The group acts not just as a broker but a consolidator, directly owning stakes in a host of its network businesses.

The case for AUB

AUB Group is another major insurance services player, boasting a significant broker network across Australia, New Zealand, the US, the UK, and Europe. According to its most recent profile, the AUB network covers more than 570 locations and writes a substantial amount of gross written premium. Like Steadfast, AUB holds equity stakes in partner brokerages and various underwriting agencies.

Key fundamentals for AUB:

• Market cap of $3.63 billion, about half the size of Steadfast.
• P/E ratio of 36.74 – noticeably higher than Steadfast’s.
• 3.41% fully franked dividend yield.
• Year to date return of -3.51%, marking a negative trend so far this year.

AUB also boasts 100% franking and a long, reliable record of dividend payments, with the most recent full-year payout reaching $0.98 per share.

Valuation comparison

Here’s how these two insurance brokers shake out on the key numbers:

Metric	Steadfast Group	AUB Group
Market Cap	$6.38 billion	$3.63 billion
P/E Ratio	23.58	36.74
EPS	0.243	0.782
Dividend Yield	3.66% (100% franked)	3.41% (100% franked)
Dividend per share	$0.21	$0.98
YTD Return	12.5%	-3.5%

A few things stand out: Steadfast trades at a significantly lower P/E ratio than AUB. Both companies’ dividends are fully franked, though AUB pays out a higher absolute amount per share, likely due to its higher share price. The dividend yields are similar, but Steadfast edges slightly higher.

Note: AUB Group’s reported P/E ratio (36.74) and EPS (0.782) suggest a price much higher than the current trading level. Steadfast’s P/E and EPS also don’t exactly align. The disparity could be due to differences in the way the earnings figure is calculated for each ratio (for example, normalised or forward earnings).

Recent share price performance

Comparing recent share price activity up to 24 September 2026:

• Steadfast Group closed at $5.74, up 12.5% for the year to date, with steady, gentle gains through September and limited volatility.
• AUB Group finished at $27.81, down 3.5% YTD, and experienced more price swings, including a notable -3.24% drop on the last trading day.

Which is the better buy?

If I’m focused on value – especially relative to fundamentals and recent performance – my pick would be Steadfast. The company is larger, has positive momentum (up 12.5% YTD), and trades on a much lower P/E ratio than AUB Group. While AUB pays out a larger absolute dividend per share, Steadfast actually offers a higher yield based on the current share price, and both are 100% franked.

I like that Steadfast is not only maintaining but steadily increasing its dividend, and its international expansion appears to be gaining traction. On the flip side, AUB is a high-quality business but, at the time of writing, seems to be priced at a premium and has lagged on recent performance. Unless you have a strong reason to pay up for AUB’s earnings growth or international footprint, I’d lean towards Steadfast as offering better bang for your investment buck right now.

The post Steadfast vs AUB: Which insurance broker offers better value? appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Aub Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial draft. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

The Pinnacle Investment Management Group Ltd (ASX: PNI) share price may be in focus today as the company reported an NPAT of $176.7 million for the financial year ended 30 June 2026, with its stake in Metrics Credit Holdings contributing $12.6 million to the result.

What did Pinnacle Investment Management report?

• Net profit after tax (NPAT) of $176.7 million for FY26
• Approximately $12.6 million contributed to NPAT from Metrics Credit Holdings
• Pinnacle holds a 35% equity interest in Metrics Credit Holdings Pty Limited
• The Metrics funds—MXT, MOT, and MRE—have paused trading temporarily

What else do investors need to know?

The three Metrics-managed funds—Metrics Master Income Trust (ASX: MXT), Metrics Income Opportunities Trust (ASX: MOT), and Metrics Real Estate Multi-Strategy Fund (ASX: MRE)—have temporarily paused trading on the ASX, pending further announcements. This move has placed a spotlight on both the funds and their manager, Metrics Credit Partners, an affiliate of Pinnacle.

Investors should note that Pinnacle’s exposure to Metrics Credit Holdings represents a significant portion of its earnings, and any updates to the Metrics funds could impact Pinnacle’s reported results or future distributions.

What’s next for Pinnacle Investment Management Group?

Investors will be watching for further details on the reason for the trading pause in the Metrics funds and how any developments might affect Pinnacle’s future income from Metrics. The company continues to benefit from its diversified investment management affiliates, and maintaining strong relationships with its managers may remain a strategic focus.

Looking forward, any resolutions related to the paused funds, and further growth in affiliated manager platforms, could shape Pinnacle’s earnings profile for the coming year.

Pinnacle Investment Management share price snapshot

Over the past 12 months, Pinnacle Investment Management shares have declined 31%, trailing the S&P/ASX 200 Index (ASX: XJO), which has declined 2% over the same period.

View Original Announcement

The post Pinnacle Investment Management reports FY26 profit and Metrics funds update appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Pinnacle Investment Management Group. The Motley Fool Australia has positions in and has recommended Pinnacle Investment Management Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

Karoon Energy Ltd (ASX: KAR) shares are taking a hit on Monday morning, and investors have another setback to digest.

The oil and gas producer’s shares are currently down 12.04% to $1.57, after finishing Friday’s session at $1.785.

It’s another frustrating development for shareholders, particularly after the stock had started to recover some ground over the past month.

So, what’s happened this time?

Why are Karoon shares crashing 12%?

In its announcement, Karoon revealed another operational setback at its Bauna oil project offshore Brazil.

The company identified an electrical fault at its SPS-92 well on 21 September, shutting down production the following day to investigate.

It turns out that one of the three electrical phases supplying power to the well’s downhole pump was faulty.

Production has since resumed using the remaining two phases, although the pump is operating at reduced capacity.

Unfortunately, getting the well back to full production won’t be a quick fix.

Karoon will need a drilling rig to replace the faulty cable system and is already working to secure the necessary permits and services.

Until then, it’s expecting to lose around 3,500 barrels of oil per day.

And with production taking another hit, Karoon has had to lower its expectations for the year.

The company now expects Bauna to produce between 5.4 million and 5.7 million barrels in 2026, down from 6 million to 6.7 million barrels previously.

Who Dat guidance remains unchanged. Karoon now expects total production of 6.6 to 7.2 million barrels of oil equivalent in 2026.

That’s compared with its previous forecast of 7.2 to 8.2 million barrels.

Unit production costs are also expected to increase from US$12 to 15 to US$15 to 16 per barrel.

What about the financial impact?

The good news is that Karoon is expecting its insurance to cover much of the financial damage.

The company anticipates to recover almost all lost production revenue and repair costs, subject to the terms of its insurance policies.

However, the cause of the failure remains under investigation. This means it’s still unclear when any insurance payments will be received.

CEO Carri Lockhart said the fault as disappointing, particularly as the new pump and cable system have been operating for less than 3 months.

Management is now focused on restoring SPS-92 to full production while also looking to increase production from Bauna’s other wells.

Foolish takeaway

I think today’s announcement adds to Karoon’s challenges, especially with the company already dealing with production issues at Who Dat.

The question now is how long it will take to complete the repairs and get production back on track.

I’ll be watching next month’s quarterly update for details on when Karoon expects to restore full production.

The post This ASX energy stock just crashed 12%. Here’s what’s gone wrong appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.