Steadfast Group Limited · ASX:SDF
Steadfast — Investor Day (June 2016)
55 slides from Steadfast's investor day presentation, Jun 16, 2016
Slide 1: Investor Day Presentation cover letter to ASX
For personal use only 16 June 2016 Market Announcements Office ASX Limited Exchange Centre 20 Bridge Street SYDNEY NSW 2000 Dear Sir INVESTOR DAY PRESENTATION Please see attached the Investor Day slides being presented today in Melbourne and tomorrow in Sydney. Yours faithfully Linda Ellis Group Com
Slide 2: Gaining Insight - Investor Day
For personal use only Gaining Insight Investor Day 16 June 2016 – Melbourne 17 June 2016 – Sydney
Slide 3: Important notice
For personal use only Important notice This presentation has been prepared by Steadfast Group Limited (“Steadfast”). This presentation contains general information in summary form which is current as at 16 June 2016. This presentation is not a recommendation or advice in relation to Steadfast or any
Slide 4: Agenda
For personal use only Agenda Time Topic Presenter 9.00am – 9.10am Introduction, Steadfast Technologies Robert Kelly 9.10am – 9.30am Virtual Underwriter (including demo*) Vibul Imtarnasan 9.30am – 9.45am INSIGHT (including demo*) Lisa Woodley 9.45am – 10.00am UnderwriterCENTRAL Niels Laaper 10.00am –
Slide 5: Introduction
For personal use only Introduction 2015 Investor Day introduced our senior management team 2016 Investor Day to introduce our technology and underwriting agency leadership teams Steadfast Investor Days are focused on strategic initiatives (not on numbers, not on market pricing commentary) Re
Slide 6: Steadfast Technologies
For personal use only Steadfast Technologies Robert Kelly – Managing Director & CEO
Slide 7: IT is core to our business
For personal use only IT is core to our business Built our own IT systems – third parties controlling our destiny or our data is not in our DNA IT is a key competitive advantage Steadfast Technologies provides IT to the Group and to the market generally Team of 50+ people, split into 3 busin
Slide 8: Steadfast IT world
Steadfast IT world Insurers Steadfast Brokers & Agencies Steadfast Head Office For personal use only Broking systems GWP data Monthly for equity brokers, semi annually for other network brokers • WinBEAT • CBS • eGlobal • iBAIS • others Accounting Month end systems reporting Group (equity brokers •
Slide 9: IT systems @ Steadfast
IT systems @ Steadfast Easy access and scalability due to web-based, cloud-based, .NET platform For personal use only • broker quoting, bind and placement solution, also known as SVU • full cycle policy management with only one data input • available to Steadfast brokers only (formerly known as eCli
Slide 10: Steadfast Technologies - Vibul Imtarnasan
For personal use only Steadfast Technologies Vibul Imtarnasan, EGM – Technology Solutions
Slide 11: IT as a competitive advantage
For personal use only IT as a competitive advantage IT often seen as a commodity for businesses, especially in the insurance industry At Steadfast, we see IT as a value proposition that enables a competitive advantage for our network brokers and underwriting agencies Proven global technology l
Slide 12: Insurance is a flow of information
For personal use only Insurance is a flow of information Underwriting Brokers agencies Insurers Re-insurers AJ Gallaghers Aon AUB Group Consumer IBNA SURA JLT Non-affiliated Marsh agencies Willis Non-affiliated brokers © 2016 Steadfast Group Limited | 11
Slide 13: How to enable our competitive advantage
For personal use only How to enable our competitive advantage Compared to other industry solutions, we want to: CAPTURE more data ANALYSE more data DELIVER more data FASTER Do it more COST EFFECTIVELY and CONSISTENTLY © 2016 Steadfast Group Limited | 12
Slide 14: Steadfast technology solutions
For personal use only Steadfast technology solutions Underwriting Brokers Insurers Re-insurers Agencies Consumer © 2016 Steadfast Group Limited | 13
Slide 15: A virtual marketplace for brokers and insurers
A virtual marketplace for brokers and insurers For personal use only Other options for brokers managing policies with insurers: Connects brokers with underwriting agencies / insurers’ products Email Quotes and manages policies more Insurer’s web portal efficiently than other industry solutio
Slide 16: Virtual Underwriter benefits
Virtual Underwriter benefits Other industry solutions: you need to enter data for each quote For personal use only Virtual Underwriter: you only need to enter data once © 2016 Steadfast Group Limited | 15
Slide 17: Virtual Underwriter demonstration
For personal use only Virtual Underwriter demonstration Simple, three step process: 1) broker enters data once; multiple auto-rated quotes from multiple insurers are returned within seconds 2) policies are issued in real time 3) full policy life cycle management in real time © 2016 Steadfast Group L
Slide 18: Virtual Underwriter – strategic advantages
For personal use only Virtual Underwriter – strategic advantages Key advantages of Virtual Underwriter: 1) no re-keying required to re-market renewals 2) access to ALL data 3) reducing third party vendor costs in the value chain © 2016 Steadfast Group Limited | 17
Slide 19: Virtual Underwriter – cost competitive
For personal use only Virtual Underwriter – cost competitive How are we more cost effective than the competition? 1) we have a proven track record in building Insurance B2B Exchanges 2) we use cloud services (security, economies of scale) 3) we use quality offshore resources (managed from Sydney) ©
Slide 20: Steadfast Technologies - Lisa Woodley
For personal use only Steadfast Technologies Lisa Woodley, EGM – Broker Technology Services
Slide 21: A next generation broking platform
For personal use only A next generation broking platform Existing market systems are broking platform for Gen-Y ageing and intuitive, real time, accessible anywhere limited. from any device © 2016 Steadfast Group Limited | 20
Slide 22: INSIGHT – everything you'd expect and more
For personal use only INSIGHT – everything you’d expect and more What you’d expect… …and more full cycle policy management and performance dashboards trust account management powerful search engine integrated with Virtual Underwriter, other underwriting and banking disaster recovery and in
Slide 23: INSIGHT demonstration
For personal use only INSIGHT demonstration © 2016 Steadfast Group Limited | 22
Slide 24: INSIGHT – strategic advantages
For personal use only INSIGHT – strategic advantages Key advantages of INSIGHT: 1) platform to introduce more innovative features 2) ability to control our destiny and our data 3) facilitates further back office cost savings initiatives 4) ease of training for staff 5) automated data recovery and ba
Slide 25: INSIGHT – cost competitive
For personal use only INSIGHT – cost competitive How are we more cost effective than the competition? 1) economies of scale and portability across jurisdictions 310 Australian brokers 33 NZ brokers growth into Asia 2) use of cloud-based services © 2016 Steadfast Group Limited | 24
Slide 26: Steadfast Technologies - Niels Laaper
For personal use only Steadfast Technologies Niels Laaper, EGM – Underwriting Agency Technology Services
Slide 27: What IT systems do underwriting agencies need?
What IT systems do underwriting agencies need? For personal use only Same systems as insurers but: 1) must be delivered at a much lower cost 2) must be agile to support the pace of change in agency business 3) must align with insurers’ reporting protocols © 2016 Steadfast Group Limited | 26
Slide 28: What back office systems are in the market?
For personal use only What back office systems are in the market? Limited choice and features available across most current systems: 1) limited number of agency systems vendors in the Australian market – Ebix, iBAIS and a number of bespoke solutions 2) most systems are over 10 years old, some are st
Slide 29: A next generation underwriting agency platform
For personal use only A next generation underwriting agency platform UnderwriterCENTRAL’s differentiator: turnkey solutions for: acquired in April 2016 to provide best-in- client, policy and claims class for Steadfast agencies administration supports multiple auto-rated first agency system
Slide 30: UnderwriterCENTRAL – strategic initiatives
For personal use only UnderwriterCENTRAL – strategic initiatives Strategic initiatives include: standardising UnderwriterCENTRAL across Steadfast agencies achieving straight through processing creating business intelligence through data mining © 2016 Steadfast Group Limited | 29
Slide 31: UnderwriterCENTRAL – strategic advantages
For personal use only UnderwriterCENTRAL – strategic advantages Key advantages of UnderwriterCENTRAL: 1) ability to control our destiny and our data 2) a platform for innovation 3) paves the way for greater efficiency 4) reduces the cost of doing business © 2016 Steadfast Group Limited | 30
Slide 32: Group reporting systems
For personal use only Group reporting systems Stephen Humphrys – Chief Financial Officer
Slide 33: Steadfast IT world
Steadfast IT world Insurers Steadfast Brokers & Agencies Steadfast Head Office For personal use only Broking systems GWP data Monthly for equity brokers, semi annually for other network brokers • WinBEAT • CBS • eGlobal • iBAIS • others Accounting Month end systems reporting Group (equity brokers •
Slide 34: One view, many parts
One view, many parts Steadfast’s group reporting systems enables management to monitor For personal use only the performance of the group Corporate Office Equity brokers Agencies Complementary 54 22 businesses © 2016 Steadfast Group Limited | 33
Slide 35: Current group reporting systems
For personal use only Current group reporting systems Timely trend analysis and insight into actual performance KPI REPORTS COLLATE ANALYSE for management / COLLECT GWP, fees & by broker / agency, the Board from any general commissions, bottom class, size, cash flow, BENCHMARK ledger / CRM line prof
Slide 36: Next steps
Next steps Continue to extract synergies and capitalise on opportunities to For personal use only better service clients CENTRALISE DATA • Common platforms – e.g. INSIGHT and underwriterCENTRAL for CRM, CENTRALISE SYSTEM SAP for general ledger EXTRACT DATA • Further automate PROCESSING • Common proc
Slide 37: Questions
For personal use only Questions
Slide 38: Steadfast Underwriting Agencies
For personal use only Steadfast Underwriting Agencies Robert Kelly – Managing Director & CEO
Slide 39: Steadfast Underwriting Agencies
For personal use only Steadfast Underwriting Agencies Underwriting agencies are complementary What is an agency? to general insurance brokers and help diversify our operating model Agencies act on behalf of general insurers to design, develop and provide specialised Since our ASX listing in Au
Slide 40: Steadfast Underwriting Agencies - Simon Lightbody
For personal use only Steadfast Underwriting Agencies Simon Lightbody – CEO of Steadfast Underwriting Agencies
Slide 41: Steadfast - Michael Murphy
For personal use only Steadfast Investor Presentation – June 2016 Michael Murphy – Chief Executive Officer
Slide 42: Michael Murphy – Bio
MICHAEL MURPHY – BIO For personal use only • 5+ years as CEO of UAA (appointed CEO in January 2011) • Expertise in strategic planning, analytical skills and client relationship management • 35 years in the financial services sector, including: – 10 years at Citigroup, including Head of Sales and Dis
Slide 43: Company history
COMPANY HISTORY For personal use only • Founded in 1972 in Newcastle, NSW • Transformed into an underwriting agency in 1988 • Specialises in mobile plant protection • 1 July 2008, purchased by QBE due to its specialist skills but remained as an independent operating underwriting agency which maintai
Slide 44: About us
ABOUT US For personal use only • Market leading insurance specialists in mobile plant and equipment (cranes, heavy equipment, machinery, etc.) • Products underwritten by QBE • Distribution through insurance brokers and =TBA other intermediaries • 52 staff in offices in Newcastle (head office), Sydne
Slide 45: Post Steadfast acquisition
POST STEADFAST ACQUISTION For personal use only • Clean and smooth transition from QBE to Steadfast Non- Steadfast • Increase in distribution from non-Steadfast brokers Steadfast GWP brokers brokers distribution 40% 60% • Policy count up 7% split • Staff morale at an all time high • UAA Queensland n
Slide 46: CHU Underwriting Agencies
For personal use only CHU Underwriting Agencies Steadfast Investor Presentation – June 2016 Bobby Lehane – Chief Executive Officer
Slide 47: Bobby Lehane – bio
Bobby Lehane – bio For personal use only • Appointed CEO of CHU on 1 April 2015, upon Steadfast acquiring the agency from QBE • Previously Executive General Manager of SME and Commercial Insurance at Zurich Financial Services Australia • 7 years at Zurich, including roles as CIO for Asia Pacific & M
Slide 48: About us
About us For personal use only • Founded in 1978 What is strata? • Market leading strata insurance Strata title allows individual specialist, underwriting more than ownership of part of a property, combined with shared ownership in 100,000 schemes across Australia the remainder through a legal (re
Slide 49: April 2015
1 April 2015 For personal use only Opportunities Threats • Strong brand reputation within strata • Business shrinking (i.e. policy count) due niche to inflexible pricing model • Very loyal authorised representative • Influx of new competitors gaining market network share with lower prices • Skilled
Slide 50: Months later
15 months later For personal use only • Stopped the decline in GWP and started policy • Increased use of brokers as count growth by re-engaging the market distributors of product • Greater autonomy as part of Steadfast to Direct 5% respond to pricing, etc • More customer centric/sales-focused Non-St
Slide 51: Digital Transformation with CHUniverse
Digital Transformation with CHUniverse For personal use only • Fix It allows you to quickly and easily submit a claim without the need to fill out lengthy forms • Snap a few photos or upload them from your gallery • GPS finds your exact location, or you can enter a new one • Submit your report from
Slide 52: Strategic initiatives
Strategic initiatives For personal use only Extend product Deepen Extend digital Complete claims range relationships with footprint remediation key intermediaries Extend Streamline Reclaim lost geographic claims direct business footprint & UW functions
Slide 53: Key takeaways
For personal use only Key takeaways Robert Kelly – Managing Director & CEO
Slide 54: Key takeaways
For personal use only Key takeaways Steadfast owns a market leading technology business that is core to our value proposition Steadfast Underwriting Agencies London Binder is expected to create significant growth opportunities for all parties involved UAA & CHU are both performing ahead of exp
Slide 55: Questions
For personal use only Questions