Aub Group Limited · ASX:AUB
Aub — Austbrokers Holdings — Shareholder Meeting (November 2009)
23 slides from Aub's shareholder meeting presentation, Nov 19, 2009
Slide 1: ASX cover letter for CEO address and presentation
19th November 2009 For personal use only The Company Announcements Platform Australian Securities Exchange Exchange Centre 20 Bridge Street Sydney, NSW 2000 Dear Sir, We attach a copy of the prepared Chief Executive Officer’s address and presentation which will be delivered at the Austbrokers Holdin
Slide 2: CEO's Address to Annual General Meeting 19 November 2009
AUSTBROKERS HOLDINGS LIMITED CEO’S ADDRESS TO ANNUAL GENERAL MEETING 19 NOVEMBER 2009 For personal use only Good morning ladies and gentlemen, and again welcome to our fourth AGM since Austbrokers listed on the ASX. I will provide you with a brief overview of the market conditions, recap on details
Slide 3: Insurance Broking Operations FY 2009
Direct acquisitions were responsible for only a small proportion of the 17% increase in our share of broker profits. The broker businesses performed well increasing premiums placed by 11% and increasing commission and fee earnings by 8% which exceeded expense increases of 5.9%. Insurance Broking Ope
Slide 4: Management changes and funding
December, having been with Austbrokers for nine years over which time he has made a very valuable contribution. Other changes were internal moves where we have transferred Glenn Lambert from General Manager Austbrokers Sydney to General Manager Operations & Strategic Development. Glenn will have ove
Slide 5: Earnings Guidance and Conclusion
Earnings Guidance Given these factors we have maintained our previous earnings guidance of growth in NPAT (before amortisation of intangibles) of 5% to 10% over FY 2009. This guidance will be reviewed when the FH 2010 results are finalised in February 2010. For personal use only Conclusion I would p
Slide 6: Annual General Meeting 19th November 2009
For personal use only AUSTBROKERS HOLDINGS LIMITED ANNUAL GENERAL MEETING 19th November 2009
Slide 7: Presentation to Annual General Meeting
For personal use only AUSTBROKERS HOLDINGS LIMITED Presentation to Annual General Meeting 19 November 2009 Lach McKeough - CEO
Slide 8: Agenda
Agenda For personal use only • Review of FY 2009 – Market conditions – FY 2009 results – Insurance broking operations – Underwriting agencies – Management Changes – Funding • FY 2010 outlook – Market conditions – Earnings outlook – Earnings guidance
Slide 9: Market Conditions FY 2009
Market Conditions FY 2009 For personal use only • Premium rates environment – Varies across classes of business – More stable than in past years, some increases, particularly commercial motor – Underwriters indicating need for increases and taking action – No significant increases evident up to June
Slide 10: FY 2009 Results
FY 2009 Results For personal use only Actual Actual % Change 2008 2009 on $’000 $’000 2008 Reported Net profit after tax 14,316 15,903 11.1% Profits on sale of business 489 486 13,827 15,417 11.5% Amortisation of intangibles 1,864 2,572 NPAT before amortisation of intangibles and profit on sale of b
Slide 11: Profit Growth 2004 - 2009
Profit Growth 2004 - 2009 For personal use only 18 16 $17.989 $M 14 12 10 8 6 4 2 0 2004* 2005* 2006 2007 2008 2009 Profit – Net profit after tax before amortisation of intangibles before profits on businesses / portfolios sold (Adjusted NPAT) * From Prospectus dated 30 September 2005 adjusted for p
Slide 12: FY 2009 Financial Performance
FY 2009 Financial Performance For personal use only $’000 Actual Actual 2009 2008 % change Broker Revenue (net of 190,335 171,993 10.8% commission paid) Brokers Profit 34,735 17.0% 29,700 (AHL share) Profit (before tax and amortisation of intangibles and sales of 27,011 23,634 14.3% businesses) NPAT
Slide 13: Financial Highlights
Financial Highlights For personal use only • Dividend – Full year dividend 20.5 cents per share 13.9% on FY 2009 – Payout ratio on NPAT 65% (57% on Adjusted NPAT) • Total shareholder return – Marginally negative for FY 2009 at -1.8% – Compared favourably with overall stock market – Earnings per shar
Slide 14: Insurance Broking Operations
Insurance Broking Operations For personal use only • Continued strategy of growth through acquisition and developing existing businesses • Acquisition Direct – 50% of SRG Corporate – Perth and Gold Coast – 50% of Austral Insurance Brokers – Perth (30th June 2009) – FWR business based in Taren Point
Slide 15: Insurance Broking Operations (con't)
Insurance Broking Operations (con’t) For personal use only • Increase in Equity – 10% of SPT (now 60% owned) – 20% of Austbrokers City State (now 100% owned) – 20% of North Cost Insurance Brokers (now 70% owned) – 40% of Dolphin Insurance (now 100% owned) – 16% of Austbrokers Phillips (now 66% owned
Slide 16: Insurance Broking Operations (con't)
Insurance Broking Operations (con’t) For personal use only • Premium Funding – Continuing promotion and development of Joint Venture with Pacific Premium Funding (GE Company) – $200 million funded with Pacific during the year – 11% increase • IBNA Alliance (AIMS) – Launch of improved policy wordings
Slide 17: Underwriting Agencies
Underwriting Agencies For personal use only • Achieved 14.4% income growth for continuing agencies • Premiums written in 2009 - $64 million • Continued development of Latitude – property and liability underwritten by Great Lakes Australia (subsidiary of Munich Re) - $8 million premium • Australian B
Slide 18: Management Changes
Management Changes For personal use only • Craig Patterson taking over Austagencies underwriting agency business on retirement of current manager • Glenn Lambert moves to corporate to take on strategic projects with particular focus on IT area • Jeff Howells moves from AIMS to manage Austbrokers Syd
Slide 19: Funding
Funding For personal use only • Bank Facility with St George $44 million – term five years to August 2013 • At 31 October facility is drawn to $32.7 million • Availability for future draw downs is $11.3 million with $2 million of this committed • DRP instituted and underwritten for final 2009 divide
Slide 20: Market Conditions FY 2010
Market Conditions FY 2009 For personal use only • Market conditions unlikely to change significantly in immediate future – rate increases likely but have been slow to emerge to date • Consolidation of insurance broker market to continue and provide acquisition opportunities over longer term • Econom
Slide 21: Earnings Outlook
Earnings Outlook For personal use only • Brokers’ results for the first four months of FY2010 are encouraging • Broker profit commission income will not be known until April / May 2010 • Impact of lower interest rates on interest earnings on trust funds held • Pace of economic recovery still in ques
Slide 22: Forward looking statements
For personal use only This presentation may contain forward looking statements relating to future matters, which are subject to known and unknown risks, uncertainties and other important factors which could cause the actual results, performance or achievements of Austbrokers and the Austbrokers Grou
Slide 23: Annual General Meeting 19th November 2009
For personal use only AUSTBROKERS HOLDINGS LIMITED ANNUAL GENERAL MEETING 19th November 2009
Austbrokers Holdings — Shareholder Meeting (November 2009) on 6ix