A new insurance broking business Founded by Paul Dickson and Howard Pearson 1 I
WHO ARE WE WHAT DO WE DO THE GROWTH OPPORTUNITY 2
ü A new insurance broking company led by Paul Dickson and Howard Pearson. An independent commercial and personal insurance broking company ü New business launched April 2015. Since that date appointed to around 100 corporate clients and secured control over 2.5m in insurance premiums ü Dickson Financial Services Ltd, an employee benefits consultancy (key man, group life, medical, income protecwon and pensions products) is the corporate vehicle for Innova&on Broking ü The business of Innova&on Broking will focus on the provision of full service corporate insurance broking for mid-sized companies 3 I
The Albion Investment and Business Model Investment up to 2m to support the crea&on of an industry leading SME Insurance Broker with a focus on fast growth companies requiring high quality board level advice. - 300,000 share subscripwon for 30% of ordinary shares (current fee income 1m) - Loan Stock facility of 1.7m at 5% interest 4
FCII - CEO InnovaWon Broking Founded Dickson Insurance Brokers in 1986. 2008 sold to Giles Insurance now part of Arthur J. Gallagher Insurance - Regional MD for London and the South, managed 14 offices and c. 70m GWP Career began at the NaWonal Coal Board s pension fund - CIN ProperWes. Then Towry Law in 1977 responsible for the Southern Region's Commercial Division 11 years the principal general insurance contributor to the Daily Mail s "Ask the Experts" column Sits on BIBA s Large Brokers Advisory Board, an Board member of broker associawon TechAssure. 5
HOWARD PEARSON FCII - 02 Chief ExecuWve of OAMPS (UK), 2011 2013, top 50 UK broker, Lloyd s broker MD Miller Insurance Services (UK) 2005 and Board Director Giles Insurance 2009 Past board member and senior commiiee member at BIBA Founder of internawonal broker networks based in Europe/USA Established first European insurance broking pracwce for mid-size Life Science cos Managed programs for iconic names such as: Pearl & Dean, Lloyd s of London, Standard Fireworks and Lotus cars. 6
ü The business is based in Wanord (offices of Dickson Financial Services Limited). A second office will be set up in the City of London later in Q1 2016 for approx. 6 people. 7
WHAT WE DO ü Corporate insurance broking for mid-sized companies (UK based nawonal or global) focusing on boardroom level services ü Commercial and personal insurance broking in addiwon to life and pensions, and employee benefits services ü We are a large regional London based commercial broker ü Typical clients would rely on the company for Property, Liability, Package, Professional Indemnity, Fleet, Directors and Officers and related insurance, and personal insurance for home, property owners, vehicle and travel insurance. 8
MAJOR INSURER PARTNERSHIPS Leveraging the principals standing in the insurance profession, the company has established agency and distribuwon agreements with all leading global insurers relevant to the company s posiwoning. insurers we act for include household names such as RSA, Aviva, Zurich, Allianz, in addiwon to more specialist providers such as Travelers, AIG, Chubb, Ace and others including Lloyd s. 9
THE GREAT FIRE OF LONDON 1666 10
WORLDWIDE INSURANCE PREMIUMS Source: Swiss Re. Sigma No 2/2010. 11
THE UK INSURANCE MARKET AT A GLANCE The UK insurance industry is the third largest in the world and the largest in Europe. Employing some 315,000 people in the UK alone, the insurance industry is also one of this country s major exporters, with almost 30% of its net premium income coming from overseas business. In 2013 total worldwide insurance premiums amounted to c. $5tn (UK $330bn). The UK insurance industry s net general insurance premium income ater reinsurance for 2013 was 50.2bn. The UK s total net premium income including long term savings and life insurance for 2013 totalled approx. 240bn. 12
INSURANCE BROKING ü General insurance brokers contribute 1% of GDP to the UK economy and BIBA brokers employ more than 100,000 staff. ü 54% of all general insurance is sold by an insurance broker and they arrange 80% of all commercial insurance business. ü Insurance brokers put the client's interests first, providing advice, access to suitable insurance protecwon and risk management. ü The largest commercial lines brokers in the UK are Towergate ( 350m), Arthur J. Gallagher ( 200m), and Bluefin ( 125m). 13
THE GROWTH OPPORTUNITY Digital Economy The core experwse of the company s founders is high quality advice for mid-sized Tech and VC companies (UK based nawonal or global). Cyber Liability Hackers, data breach, privacy laws and the Internet risks Insurance RegulaJon The Insurance Act 2015 14 I
CYBERSECURITY Data Breach and Privacy TalkTalk, Home Depot, JP Morgan Growth in market, a runaway train? PotenWal premium size for UK cyber insurance- 1bn +? 80% of UK business remain uninsured The bigger threat 15
FORMER US SECRETARY OF STATE GENERAL COLIN POWELL: QUOTE 2 NOVEMBER 2015 Leadership and innovawon are keys to success as the world moves from analogue to digital 16
17 EMERGING RISKS The digital revoluwon Sharing Economy Mobile ApplicaWon Sector IntersecWng and interacwon of risks create complexity requires expert advice
EMERGING RISKS - EXAMPLE UmoWf 3 year old start up HIT sector Helps pawents with Parkinsons to self manage progress Sotware controlling drug dosage and use Combines Tech with Drug use 18
THE INSURANCE ACT 2015 o Statutory DuWes imposed on Businesses o Changes Duty of Disclosure, more structured o Important and relevant and ought to know o EffecWve 12 August 2016 o Replaces the Marine Insurance Act 2006! o Fair representawon concept o Broker role o D&O risk! 19
WRAP UP o In summary IB is a commercial insurance broking business o We offer a one stop shop capability o Backed by Albion our plan is to grow through hires and acquisiwons, propagawng our board level advice model, capitalising on our niche skills and growing to c. 4m in commissions, quadrupling where we are now, within 5 years 20
THANK YOU 21