Morningstar keeps fair value estimates on Australia's AUB, Steadfast despite AI threat

AUB

14/04/2026 22:15

** Noting a selloff of Australian insurance brokers AUB Group AUB.AX and Steadfast SDF.AX, and addressing concerns that humans will be cut out of the insurance distribution chain, Morningstar says they offer more than policy comparison and quote generation

** Investment research firm keeps fair value estimates for AUB and SDF at A$39.00 and A$6.20, respectively, saying it doesn't see a clear incentive for mass switching away from brokers, and that ongoing barriers to entry should support pricing

** Notes brokers are regulated and insured, offer protection from poor advice, use scale to secure better terms and prices, support claims resolution and remain advantaged by insurers’ preference for complex, non‑standardised products over price‑sensitive channels

** "To justify AUB's share price, brokers' share of the Australian general insurance market would need to tank from 55% to 25%" - Morningstar

** AUB down 20% YTD, SDF down 19.7%

 (Reporting by Shruti Agarwal in Bengaluru; Editing by Jamie Freed)

 ((Shruti.Agarwal@thomsonreuters.com))