Slide 1: Cover letter to ASX Company Announcements
24rd November 2011 The Manager Company Announcements Platform Australian Securities Exchange Exchange Centre 20 Bridge Street Sydney, NSW 2000 Dear Sir, We attached a copy of the prepared Chief Executive Officer’s address and presentation which will be delivered at the Austbrokers Holdings Limited’s
Slide 2: CEO's Address to Annual General Meeting
AUSTBROKERS HOLDINGS LIMITED CEO’S ADDRESS TO ANNUAL GENERAL MEETING 24 NOVEMBER 2011 Good morning Ladies and Gentlemen. I would also like to add my welcome to our sixth AGM since Austbrokers listed on the ASX. Once again I am pleased to report that the company has had another very successful year a
Slide 3: Insurance Broking Operations and Underwriting Agencies FY2011
Total Shareholder Return was 33.6% for the year compared to the All Ordinaries Index return of 12.2%. Austbrokers return over the five years to 30th June 2011 was 26.2% per annum. Insurance Broking Operations FY 2011 The broker network performed well increasing revenue by 9.4% while our share of the
Slide 4: Developments since 30 June 2011 and outlook
Developments since 30th June 2011 Since the end of the financial year two bolt-on acquisitions have been made and we are continuing discussions in relation to a number of further acquisitions of portfolios and businesses. Austbrokers, along with its technical partners Ebix, LMI and insurers Allianz,
Slide 5: Closing remarks and thanks
also like to thank the management and staff of Austbrokers Holdings for their ongoing efforts and support. Thank you for attending today and thank you for your ongoing interest and support of Austbrokers. W.L. McKeough CEO Austbrokers Holdings Limited
Slide 6: Presentation to Annual General Meeting
Austbrokers Holdings Limited Presentation to Annual General Meeting 24th November 2011 Lachlan McKeough - CEO
Slide 7: Agenda
Agenda • Review of FY 2011 – Market conditions – FY 2011 results – Insurance broking operations – Underwriting agencies – Funding • Developments since 30th June 2011 • FY 2012 outlook – Market conditions – Earnings outlook – Earnings guidance 1
Slide 8: Market Conditions FY2011
Market Conditions FY2011 • Premium rates environment – Moderate increases – Private motor and householders insurance increases flowing through – Smaller business also seeing increases – Underwriters still seeking increases – Volume of premiums also driven by factors other than rates • Economic condi
Slide 9: FY2011 Results
FY2011 Results Actual Actual % Change 2011 2010 on $’000 $’000 2010 Reported Net profit after tax 21,365 18,189 17.5% Profits on sale of business (105) (572) 21,260 17,617 20.7% Amortisation of intangibles 2,553 2,548 NPAT before amortisation of intangibles and profit on sale of businesses 23,813 20
Slide 10: Profit Growth 2007 – 2011
Profit Growth 2007 – 2011 25 Reported NPAT Adjusted NPAT $M 20 $23,813 $21,365 15 10 5 0 2007 2008 2009 2010 2011 Increase N/A 15.3% 13.7% 18.5% 11% 14.7% 11.5% 12.1% 17.5% 18.1% Adjusted NPAT – Net profit after tax before amortisation of intangibles and profits on businesses / portfolios sold 4
Slide 11: Earnings Per Share FY 2007 - 2011
Earnings Per Share FY 2007 - 2011 Cents 45 40 44.18 cents 35 39.64 cents 30 25 Reported NPAT Adjusted NPAT 20 15 10 5 0 2007 2008 2009 2010 2011 Increase N/A 15.1% 13.6% 18.4% 11.0% 14.5% 11.5% 9.2% 12.2% 12.8% 5
Slide 12: Financial Highlights
Financial Highlights • Dividend – Full year dividend 25.5 cents per share up 13.3% on FY 2010 – Payout ratio on NPAT 65% (58% on Adjusted NPAT) • Total shareholder return – FY 2011 – 33.6% versus ASX All Ordinaries Index 12.2% – 5 years to 30th June 2011 – 26.2% p.a. (ASX All Ordinaries 2.6%) • Earn
Slide 13: Insurance Broking Operations
Insurance Broking Operations FY2011 Financial Performance $’000 Actual Actual 2011 2010 % change Broker Revenue (net of commission paid) 225,470 9.4% 206,114 Brokers / Pre Tax Profit 39,048 34,610 12.8% (AHL share) 7
Slide 14: Insurance Broking Operations
Insurance Broking Operations • Share of broker and agencies profits increased by almost $5.2 million or 13.7% over FY2010 largely from growth in existing business • Continued strategy of growth through acquisition and developing existing businesses • Acquisition Direct – 50% of Countrywide Insurance
Slide 15: Insurance Broking Operations (cont'd)
Insurance Broking Operations (cont’d) • Premium Funding – Continuing promotion and development of Joint Venture with Pacific Premium Funding (GE Company) – $297 million funded with Pacific during the year – Contributed $11.7 million in income to Broker Network – up 6% • Synergies / Efficiencies – Ce
Slide 16: Underwriting Agencies
Underwriting Agencies • Achieved 26.2% income growth, 17.5% excluding acquisitions • Premiums written in 2011 - $100 million (excluding taxes and charges) • Acquired a 50% interest in Celestial Underwriting Agency • Acquired CEMAC a contractors plant and equipment underwriting agency which writes $8
Slide 17: Funding – Current Position
Funding – Current Position • Bank Facility with St George $44 million – term five years to August 2013 • At 31 October facility is drawn to $33 million • Availability for future draw downs is $11 million • $3 million in earn out payments remain at 30th June • Total funds currently available for acqu
Slide 18: Developments Since June 2011
Developments Since 30 June 2011 • Insurance Broking Acquisitions – Austbrokers Countrywide (50% owned) acquired 80% of Hamilton & Hamilton on 1st October - $0.7 million in income – Austbrokers RWA (60% owned) acquired Barry Taylor Insurance Brokers in Tamworth - $0.5 million in income • iClose Syste
Slide 19: Market Conditions FY2012
Market Conditions FY2012 • Market conditions unlikely to change significantly in immediate future – moderate rate increases likely in SME sector • Consolidation of insurance broker market to continue and provide acquisition opportunities over longer term • Economic conditions somewhat uncertain • Po
Slide 20: Earnings Outlook
Earnings Outlook • Brokers’ results for the first four months of FY2012 have been good • Broker profit commission income uncertain and will not be known until April / May 2012 • Significant proportion of earnings is in later months of the year • The start to FY2012 has been positive and we are maint
Slide 21: Forward looking statements disclaimer
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 Group to be materially dif