Steadfast Group Limited · ASX:SDF

Steadfast — Investor Day (June 2017)

60 slides from Steadfast's investor day presentation, Jun 14, 2017

1. Slide 1: Investor Day Presentation

   14 June 2017 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 Company Secretary & Corpo

2. Slide 2: Investor Day

   Investor Day 14 June 2017 — Melbourne 15 June 2017 — Sydney <$> Steadfast STRENGTH WHEN YOU NEED IT

3. Slide 3: Programme

   Steadfast Group investor day Programme Topic Presenter Introduction Robert Kelly Steadfast Network Broker services Nick Cook Marketing and sales initiatives Adrian Humphreys Steadfast Client Trading Platform structure Robert Kelly Lisa Woodley Steadfast Technologies - Insight and Steadfast Virtual V

4. Slide 4: Introduction

   Steadfast Group investor day Introduction  Investor day is focused on strategic initiatives (not on financials or premium pricing commentary) and offers the opportunity to hear from other members of the senior management team  2015 investor day introduced our senior management team  2016 investor

5. Slide 5: Broker services

   Broker services Nick Cook – EGM, partner & broker services

6. Slide 6: Broker services introduction

   Broker services Introduction  Broker services are one of the key differentiators that attract and retain brokers to the Steadfast Network  Steadfast provides 160 services to brokers on the Network  Broker services are refreshed each year through the ‘Your Shout’ broker survey which ensures that s

7. Slide 7: Examples of services

   Broker services Examples of services Professional Helplines Support Triage Product Group buying development Manuals, Claims, ethics, Group Compliance templates & Professional placement & Best in class insurances e-advices development catastrophe wordings days events Broker Contractual compliance Mot

8. Slide 8: Service usage

   Broker services Service usage • 3,000+ requests to broker helplines in the last 12 months Helplines • Contractual and technical helplines account for 60% of Steadfast broker usage • 2,700+ brokers attended professional development days Professional over the last 12 months development • Averaging 700

9. Slide 9: Marketing and sales initiatives

   Marketing and sales initiatives Adrian Humphreys – EGM, business development

10. Slide 10: Sales and marketing priorities

    Marketing and sales initiatives Sales and marketing priorities Our aim Deliver great cover and competitive pricing for the policyholder Customer Experience Our customers Different stakeholder groups including our brokers, their clients, policyholders and insurers Customer experience A single view of

11. Slide 11: Brand and sponsorship

    Marketing and sales initiatives Brand and sponsorship Continuation of our brand and sponsorship activity to deliver brand recognition and drive brand consideration of brokers within the Steadfast Network Steadfast brand recognition has remained strong year on year (2016 v 2017)1  “Always on” digita

12. Slide 12: Customer (broker) delivery enablement

    Marketing and sales initiatives Customer (broker) delivery enablement A focus on providing brokers with tools to support their SME customer outcomes Steadfast Network broker BROKER MARKETING SALES DEVELOPMENT: SUPPORT: SUPPORT: Personal development Broker playbook, Lead generation, days, town halls,

13. Slide 13: Acquisition and lead driving activity to broker

    Marketing and sales initiatives Acquisition and lead driving activity to broker Targeted growth through focused digital activity on priority (SME) customer segments and key strategic partnerships Google search and online banners Strategic partnerships through  Leads delivered to key segment and cat

14. Slide 14: Net promoter score continues to trend upwards

    Marketing and sales initiatives Steadfast net promotor score continues to trend upwards Driving NPS usage across the business to positively impact customer satisfaction, loyalty and advocates 2014 2015 2016 2017 Steadfast Competitor 1 Competitor 2 Source: Brand health study – Bohemia Group, April 20

15. Slide 15: Data and analysis framework

    Marketing and sales initiatives Data and analysis framework Digital offerings / Increased productivity / capabilities reduced cost to serve More relevant tailored offerings More customer insight (data) Data analysis and segmentation Digital service tools / capability improved customer experience Inc

16. Slide 16: Steadfast Client Trading Platform (SCTP)

    Steadfast Client Trading Platform (SCTP) Robert Kelly – Managing Director & CEO

17. Slide 17: End to end platform for brokers and insurers

    Steadfast Client Trading Platform (SCTP) End to end platform for brokers and insurers  Launched in June 2016, exclusive to Steadfast Network brokers, their clients and select insurer partners  Insurer partners contracted to provide one or more insurance class on the SCTP: AIG, Allianz, Allied Worl

18. Slide 18: Technologies

    Steadfast Technologies Lisa Woodley, EGM – Broker Technology Services Vibul Imtarnasan, EGM – Technology Solutions Niels Laaper, EGM – Underwriting Agency Technology Services

19. Slide 19: Insurance is a flow of information

    Steadfast Technologies 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 © 2017 Steadfast Group Limited | 18

20. Slide 20: How to enable our competitive advantage

    Steadfast Technologies 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 © 2017 Steadfast Group Limited | 19

21. Slide 21: Our core IT systems

    Steadfast Technologies Our core IT systems Real-time marketplace for general insurance – facilitates SCTP Broking back office and CRM system – seamlessly interfaces with SCTP Electronic product distribution and core system for underwriting agencies © 2017 Steadfast Group Limited | 20

22. Slide 22: Our core IT systems

    Steadfast Technologies Our core IT systems Underwriting Brokers Insurers Re-insurers Agencies Customer © 2017 Steadfast Group Limited | 21

23. Slide 23: Core system ownership – strategic advantages

    Steadfast Technologies Core system ownership – strategic advantages Key advantages of owning of core technology: 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

24. Slide 24: Too many forms…

    Steadfast Technologies Too many forms… Steadfast Virtual Underwriter rationalises forms into one front-end interface for each insurance product © 2017 Steadfast Group Limited | 23

25. Slide 25: Steadfast Virtual Underwriter

    Steadfast Technologies Steadfast Virtual Underwriter: drives and delivers Steadfast Client Trading Platform (SCTP) 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

26. Slide 26: Insight

    Steadfast Technologies Insight 1) Simple 2) Searchable 3) Open – designed for efficiency © 2017 Steadfast Group Limited | 25

27. Slide 27: UnderwriterCENTRAL

    Steadfast Technologies UnderwriterCENTRAL Strategic initiatives:  Implementing UnderwriterCENTRAL across Steadfast Underwriting Agencies  Achieving straight through processing  Creating business intelligence through data mining © 2017 Steadfast Group Limited | 26

28. Slide 28: General insurance industry's risk data problem

    Steadfast Technologies General insurance industry’s RISK data problem 1) Islands • Steadfast Virtual Underwriter, broking system, insurers’ systems, Sunrise, etc. 2) No consistency in format • XML, JSON, Database, CSV, MS Word documents, PDF etc. 3) No consistency in terminology • No standard indust

29. Slide 29: Steadfast's business intelligence

    Steadfast Technologies Steadfast’s business intelligence Steadfast data analytics Steadfast Clean & consistent data press data Other data sources Other insurance (like ABS, motor vehicles, GNAF) systems © 2017 Steadfast Group Limited | 28

30. Slide 30: Steadfast data press features

    Steadfast Technologies Steadfast data press features 1) Structured data format conversion  What you expect from any data aggregation tool  XML, JSON, CSV, Database, etc. 2) Non-structured data format conversion  Teach a computer to read policy schedules in order to extract data from MS Word Docum

31. Slide 31: Steadfast's data analytics capability

    Steadfast Technologies Steadfast’s data analytics capability © 2017 Steadfast Group Limited | 30

32. Slide 32: New Zealand and Asia rollout

    New Zealand and Asia rollout Allan Reynolds – EGM, New Zealand & Direct

33. Slide 33: Steadfast into New Zealand

    New Zealand and Asia rollout Steadfast into New Zealand Roll out strategy  Replicate Steadfast Network model  Technology  Improved policy wordings  Build revenue streams  M&A fees and brokerage  Strong buy-in from insurer partners  Equity investment in 3 brokers  Steadfast Underwriting Agenc

34. Slide 34: Steadfast into Asia

    New Zealand and Asia rollout Steadfast into Asia Roll out strategy  Target Singapore  Replicate Steadfast Network model  Build revenue streams  M&A fees and brokerage  10 brokers have signed  5 brokers have agreed to sign  5 underwriters have agreed to:  Pay M&A fees  Issue improved policy

35. Slide 35: unisonsteadfast

    unisonsteadfast Robert Kelly – Managing Director & CEO

36. Slide 36: About the transaction and unisonBrokers

    unisonsteadfast About the transaction and unisonBrokers  Steadfast has acquired a non-controlling stake in unisonBrokers which will be renamed unisonsteadfast  Robert Kelly (Steadfast Managing Director & CEO), Samantha Hollman (Steadfast COO) and Heinrich Eder (former Managing Director of Munich R

37. Slide 37: Access to new global markets

    unisonsteadfast Access to new global markets unisonBrokers network unisonBrokers global network  Similar structure and management culture to Steadfast Network  Central coordination supporting seamless transactions, compliance and reporting across borders  Provides some products and services to br

38. Slide 38: Acquisition and integration strategy

    Acquisition and integration strategy Jeff Papps – EGM, operations & acquisitions

39. Slide 39: Role of team

    Acquisition and integration strategy Role of team  Source and perform due diligence on potential acquisitions of brokers and underwriting agencies both inside and outside the network using our in-house team  Transition new entities into the Steadfast operating group  Support mergers, hubbing and

40. Slide 40: Disciplined process and criteria

    Acquisition and integration strategy Disciplined process and criteria (1) Meet with potential partners to evaluate cultural and strategic fit (2) Discuss the principals’ vision, motivation to sell and timing (3) Consider how can Steadfast as a partner add value to the business (4) Is combining with

41. Slide 41: Mergers and bolt-ons – broker examples

    Acquisition and integration strategy Mergers and bolt-ons – broker examples  2 brokers into 1  5 brokers into 1  5 brokers into 1  2 brokers into 1  Includes RuralCo joint-venture  2 brokers into 1  6 brokers into 1  4 brokers into 1  2 brokers into 1  3 brokers into 1  6 brokers into 1 

42. Slide 42: Blend insurance solutions

    Blend insurance solutions Chris Newing, CEO

43. Slide 43: Accident and health underwriting agency

    Blend insurance solutions Accident and health underwriting agency  Launched in May 2017  50:50 joint venture between Steadfast Underwriting Agencies and Advent  Secured renewal rights to Beazley’s local accident and health portfolio  Key staff from Beazley have joined Blend to facilitate renewal

44. Slide 44: Driven by technology and analytics

    Blend insurance solutions Driven by technology and analytics Blend will be an ‘Insight-Driven Organisation’ (Deloitte IDO Form Insight to Action, April 2015) by implementing an analytics function that will support our decisions and what we do © 2017 Steadfast Group Limited | 43

45. Slide 45: UAA update and international strategy

    UAA update and international strategy Michael Murphy, CEO

46. Slide 46: Company history

    UAA update and international strategy Company history  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 agen

47. Slide 47: International expansion

    UAA update and international strategy International expansion  Services and expertise across several international markets  Expanding agency network off the back of established QBE relationships and Steadfast distribution = office = expansion opportunity = QBE branded products supported by UAA IP

48. Slide 48: Current trading

    UAA update and international strategy Current trading  International expansion continues with New Zealand business particularly strong  Australian business receiving commercially responsible rate increases  Policy count continues to grow  Infrastructure spend on the east coast, notably NSW, with

49. Slide 49: London binder

    London binder Simon Lightbody – CEO, Steadfast Underwriting Agencies

50. Slide 50: Main objectives

    London binder Main objectives Consolidate existing London placements • 16 binders into 1 super binder SME products across property, liability & professional indemnity Create a platform for London to take part in the Steadfast Client Trading Platform (SCTP) • Capacity • Product • Commission © 2017 St

51. Slide 51: SCTP opportunity

    London binder SCTP opportunity London binder is available Client benefits Insurer benefits on SCTP portfolios • Business pack • Price • Risk diversity • More competitive premiums • Access to portfolios with • Professional indemnity through portfolio pricing diverse risk characteristics across indust

52. Slide 52: Multi-jurisdictional opportunities

    London binder Multi-jurisdictional opportunities London binder World Singapore broker network New Zealand broker network Lloyd’s Asia Pacific GWP for Lloyd’s New Zealand GWP for property and casualty market property and casualty market = GBP c.1.2bn1 = GBP c.0.2bn2 unisonsteadfast Lloyd’s European G

53. Slide 53: Premium % placed into Lloyd's Asian hubs

    London binder Premium % placed into Lloyd’s Asian hubs1 Focused on Singapore as it’s an important underwriting hub for Lloyd’s 1Source: 2016 Risk Registration, Lloyd’s. © 2017 Steadfast Group Limited | 52

54. Slide 54: Steadfast Re

    Steadfast Re Simon Cloney – CEO, Steadfast Re

55. Slide 55: Background

    Steadfast Re Background About us  Steadfast Re launched in August 2014 as a 50/50 joint venture between the Steadfast Group, Simon Cloney and the ex-Management team of Beach Sydney Office (Beach was a Canadian reinsurance broker)  Team of 20 specialising in treaty and facultative reinsurance, whol

56. Slide 56: Reinsurance solutions for SCTP

    Steadfast Re Reinsurance solutions for SCTP SCTP product SCTP Reinsurance solutions classes Insurers Faculty Increases risk tolerances for the insurers of Property a facility Steadfast broker customers Enabling insurers to write more risks north of the CAT b treaty 26th parallel bringing more compet

57. Slide 57: London office

    Steadfast Re London office Why have we opened a London office?  Access to the Lloyd’s London and European insurance and reinsurance markets  Significant number of Steadfast members use Lloyd’s – we provide a home-from-home and an in-house Lloyd’s broker option  Part of our international growth st

58. Slide 58: Steadfast Placement Solutions

    Steadfast Re Steadfast Placement Solutions  Steadfast Placement Solutions (SPS) deliver exclusive tailored wholesale insurance solutions to both Steadfast insurance brokers and underwriting agencies  Assist in complex and harder to place risks, alongside schemes and facilities  A large portion of

59. Slide 59: Key points

    Steadfast Group investor day Key points 1. Broker services  Brokers are joining the Steadfast Network as it has over 160 services available  Marketing and administration support is helping them sell 2. Steadfast Client Trading Platform  Steadfast Client Trading Platform is improving product offer

60. Slide 60: Q&A

    Q&A “. <¢ a > wy o rad ue) © oO ~ n & a 2 3 g 5 2 3 z 5 Fl

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