Company Introduction May 2006. Copyright 2006, Alliant Resources Group, Inc. - Confidential, not for...
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Transcript of Company Introduction May 2006. Copyright 2006, Alliant Resources Group, Inc. - Confidential, not for...
Copyright 2006, Alliant Resources Group, Inc. - Confidential, not for distribution
Corporate Profile 2006Corporate Profile 2006
Revenues $200,000,000+
Employees 700+
Offices 21 offices in 8 States
Industry Rank: 14th largest in U.S.
Market Identity Specialty Focus
Middle Market
ServicesRetail Brokerage
Co-Brokerage
Risk Management Consulting
Benefits Consulting
Underwriting
Claims & Loss Control
Human Resources Consulting
Copyright 2006, Alliant Resources Group, Inc. - Confidential, not for distribution
OfficesOffices
Driver-Alliant
Kelter-Alliant
Franey Muha-Alliant
Copyright 2006, Alliant Resources Group, Inc. - Confidential, not for distribution
Revenue by LineRevenue by Line
Employee Benefits22%
Other4%
Commercial P&C35%
Other3%Law Firms
4%
Public Entity22%
Indian Nations10%
Specialty P&C40%
Copyright 2006, Alliant Resources Group, Inc. - Confidential, not for distribution
OrganizationOrganization
Mike SimmonsVice Chairman
Tom CorbettChairman, CEO
ARG
Greg ZimmerCFO - ARG
Jerry HallCOO - ARG
Jerry HallPresident
Driver CommercialIns Group
Ralph HurstPresident
Driver SpecialtyIns Group
Greg ZimmerPresident
Alliant RiskServices
Michael KelterPresident
Kelter CommercialIns Group
Sean McConloguePresident
Alliant SpecialtyInsurance Services
Bill FraneyPresident
Franey MuhaComml Ins Group
StewartManaging Director -
Sales
KiehlManaging Director -
Service
Corporate Services Team
Sales
ServiceService
Sales Sales
Service
Corporate Operations Production Operations
Alliant UnderwritingServices
Alliant BusinessServices
Sales Sales
Service Service
Mike SimmonsVice Chairman
Tom CorbettChairman, CEO
ARG
Greg ZimmerCFO - ARG
Jerry HallCOO - ARG
Jerry HallPresident
Driver CommercialIns Group
Ralph HurstPresident
Driver SpecialtyIns Group
Greg ZimmerPresident
Alliant RiskServices
Michael KelterPresident
Kelter CommercialIns Group
Sean McConloguePresident
Alliant SpecialtyInsurance Services
Bill FraneyPresident
Franey MuhaComml Ins Group
StewartManaging Director -
Sales
KiehlManaging Director -
Service
Corporate Services Team
Sales
ServiceService
Sales Sales
Service
Corporate Operations Production Operations
Alliant UnderwritingServices
Alliant BusinessServices
Sales Sales
Service Service
Copyright 2006, Alliant Resources Group, Inc. - Confidential, not for distribution
Driver CommercialDriver Commercial
Overview Overview
2005 business mix by operating revenue2005 business mix by operating revenue
Alliant RevenueAlliant Revenue
Founded in 1925, forms Alliant’s West Coast operating platform, specializing in middle market retail distribution.
Largest independent insurance broker in California
Dominant position in San Diego, Riverside, & San Bernardino markets
Operates out of 10 offices in California, Arizona, and Washington.
2005 Revenue of $57 MM
$57.5
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Jerry Hall, President
Copyright 2006, Alliant Resources Group, Inc. - Confidential, not for distribution
Driver SpecialtyDriver Specialty
OverviewOverview
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Founded in 1977 and primarily serving the public sector
Provides clients with proprietary programs distributed on a retail basis
The company’s largest client (CSAC) and largest program (PEPIP) both reside in this operation
Heavy concentration in California but now doing retail business in 30+ states
Current Revenue of $52.5 MM
Ralph Hurst, President
Alliant RevenueAlliant Revenue
$52.5
$57.5
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2005 business mix by operating revenue2005 business mix by operating revenue
Copyright 2006, Alliant Resources Group, Inc. - Confidential, not for distribution
Alliant SpecialtyAlliant Specialty
OverviewOverview
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Alliant Specialty is the primary platform for program based co-broker distribution
Primary component of the operation today is ‘Tribal First’ which provides advantaged programs to Indian Nations across the country
Major initiative for this operation is expanding the reach of our public sector business via co-brokerage distribution
Current revenue is $30.5 MM
Alliant RevenueAlliant Revenue
Sean McConlogue, President
$52.5
$30.5
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2005 business mix by operating revenue2005 business mix by operating revenue
Copyright 2006, Alliant Resources Group, Inc. - Confidential, not for distribution
Alliant Risk ServicesAlliant Risk Services
OverviewOverview
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Formed in 2000 to provide non-brokerage services to clients and programs
Two primary groups: Underwriting Services and Business Services
Underwriting Services creates greater control and additional revenue for program-based business
Business Services (including Strategic HR) enhances the relationship between our firm and the client by providing best-in-class services
Current Revenue of $13.4 MM
Greg Zimmer, President
2005 business mix by operating revenue2005 business mix by operating revenue
Alliant RevenueAlliant Revenue
$52.5
$30.5
$13.4
$57.5
$0
$50
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$150
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$250
Copyright 2006, Alliant Resources Group, Inc. - Confidential, not for distribution
OverviewOverview
Kelter CommercialKelter Commercial
Founded in 1930, forms Alliant’s Midwest regional operating platform
Operates primarily in Michigan, Illinois and Ohio through 40+ employees
One of the largest insurance agencies in the greater Detroit metropolitan area
Specializes in lawyers’ professional liability through its ProQuest program sold on both a retail and co-brokered basis with clients including 30 of top 200 U.S. law firms
Current Revenue of $20.7 MM
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Michael Kelter, President
2005 business mix by operating revenue2005 business mix by operating revenue
Alliant RevenueAlliant Revenue
$52.5
$30.5
$13.4
$20.7
$57.5
$0
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Copyright 2006, Alliant Resources Group, Inc. - Confidential, not for distribution
OverviewOverview
Franey Muha CommercialFraney Muha Commercial
Founded in 1973, forms Alliant’s Mid-Atlantic regional operating platform
Operates primarily in Maryland, Pennsylvania, Virginia and DC through 100+ employees
Distributes both Property & Casualty and Benefits products on a retail basis
Largest distributor of insurance for land conservation and preservation-related exposures in the U.S.
Current Revenue of $22.4 MM
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Bill Franey, President
2005 business mix by operating revenue2005 business mix by operating revenue
Alliant RevenueAlliant Revenue
$52.5
$30.5
$13.4
$20.7
$22.4
$57.5
$0
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Copyright 2006, Alliant Resources Group, Inc. - Confidential, not for distribution
Alliant - Corporate ServicesAlliant - Corporate Services
OverviewOverview
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Responsible for all corporate functions including:• Mergers & Acquisitions• Corporate Finance• Accounting• Human Resources• Information Technology• Legal Affairs • Risk Management• Carrier Relations
The plan is to consolidate non-client related activities within Corporate Services and maintain client activities in the local operations.
Alliant RevenueAlliant Revenue
$52.5
$30.5
$13.4
$20.7
$22.4
$57.5
$11.8
$0
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Driver Comm’l
Kelter Comm’l
Franey Muha
Alliant Risk
Alliant Specialty
Corporate
Driver Specialty
Copyright 2006, Alliant Resources Group, Inc. - Confidential, not for distribution
Alliant - Corporate ServicesAlliant - Corporate Services
OverviewOverview
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Responsible for all corporate functions including:• Mergers & Acquisitions• Corporate Finance• Accounting• Human Resources• Information Technology• Legal Affairs • Risk Management• Carrier Relations
The plan is to consolidate non-client related activities within Corporate Services and maintain client activities in the local operations.
Alliant RevenueAlliant Revenue
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$208MM
Copyright 2006, Alliant Resources Group, Inc. - Confidential, not for distribution
Major ProgramsMajor Programs
Sector Premium ExistenceCSAC Programs Public Entity $75 MM 20 yrsPEPIP Public Entity $70 MM 14 yrsSLIP Public Entity $ 6 MM 8 yrsTribal First WC Indian Nations $50 MM 7 yrsTPIP Indian Nations $15 MM 3 yrsTribal First ALA Indian Nations $15 MM 10 yrsLaw Firms Commercial $50 MM 25 yrsRefuse Haulers Commercial $10 MM 10 yrsConserve-a-Nation Commercial $8 MM 10 yrs Parking Garages Commercial $8 MM 15 yrsEnergy Commercial $8 MM 10 yrs
Copyright 2006, Alliant Resources Group, Inc. - Confidential, not for distribution
Tribal FirstCommercial ProgramsPublic Sector ProgramsProQuestConserve-a-nation
Distribution MapDistribution Map
Copyright 2006, Alliant Resources Group, Inc. - Confidential, not for distribution
Lindsay Goldberg & Bessemer (LGB)Lindsay Goldberg & Bessemer (LGB)
On November 30, 2005 Alliant was purchased from its prior shareholders by a new group comprised primarily of your management team, brokers, and our new financial partner LGB
Management and broker ownership represents just shy of 50%
LGB is a $2.0 billion New York-based private equity fund
LGB partners with:
Well managed businesses committed to growth
Companies that differentiate themselves in their industry
Copyright 2006, Alliant Resources Group, Inc. - Confidential, not for distribution
LGB’s Attraction to AlliantLGB’s Attraction to Alliant
Stable and growing organization
Specialty niche market focus
Highly experienced management team
Best in class organic revenue growth
Strong producer culture
Successful acquisition track record
Committed to our vision
Copyright 2006, Alliant Resources Group, Inc. - Confidential, not for distribution
Our VisionOur Vision
“Alliant will emerge as the premiere U.S. specialty broker providing advantaged, program-based risk solutions for the middle market.”
Copyright 2006, Alliant Resources Group, Inc. - Confidential, not for distribution
Core ValuesCore Values
Quality people Customer focusedEntrepreneurial environmentOpen access to all resourcesTeam environmentFair and equitable compensationSustained growth and profitability Flat management structureContinuous improvementNo politics
Copyright 2006, Alliant Resources Group, Inc. - Confidential, not for distribution
Producer ProfileProducer Profile
Alliant fosters a sales driven, entrepreneurial environment.
Maintaining the flat organizational structure is dependent on hiring producers that are self motivated and do not require a significant amount of management.
The average tenure for Alliant’s producers is 11 years.
Copyright 2006, Alliant Resources Group, Inc. - Confidential, not for distribution
Producer Profile (cont.)Producer Profile (cont.)
Alliant’s producers are under contract which provides the company with protective covenants and the producers with…
35% commission (“new” and “renewal”)
A post separation payment provision that provides the producer with “quasi-equity” in the business originated.
It is Alliant’s philosophy to provide equity opportunities to its brokers. Such opportunities are considered on an individual basis.
Copyright 2006, Alliant Resources Group, Inc. - Confidential, not for distribution
Business PlanBusiness Plan
Organic Growth:Recruitment of quality proven producers (i.e. “leveraged hires”)Creation and expansion of Broker Revenue Groups (BRG’s), broker teams that share personal income Continuation of Broker Development ProgramProviding our producers with differentiated products and programs
Strategic Acquisitions:Builders not Sellers… we will acquire only strategic acquisition (for which there are no geographic bounds)Acquisition candidates will have dynamic sales culture that compliments Alliant’s valuesCandidates will typically be either specialty oriented or have a dominant geographic presence
Copyright 2006, Alliant Resources Group, Inc. - Confidential, not for distribution
18.0%17.0%
15.0%
13.0% 13.0%12.1%
8.8% 8.1%
13.1%
24.4%23.6%
9.4% 10.0%
13.0%12.0%
9.0%
4.7%
15.0%
5.9%5.5%
5.0%
2.3%
4.0%3.6%
14.4%
2.0%
0.0%
4.3%
1.8%(2.0%)
Historical organic revenue growth rateHistorical organic revenue growth rate
Best-in-class organic growthBest-in-class organic growth
’03 ’04’02’03 ’04’02 ’03 ’04’02 ’03 ’04’02 ’03 ’04’02 ’03 ’04’02 ’03 ’04’02 ’03 ’04’02 ’03 ’04’02 ’03 ’04’02Alliant Competitor
averageWillis Marsh &
McLennanHub
InternationalArthur J. Gallagher
Aon Brown & Brown
Hilb Rogal & Hobbs
U.S.I.
Organic growth drives employee opportunities!
Copyright 2006, Alliant Resources Group, Inc. - Confidential, not for distribution
Proven acquisition historyProven acquisition history
“Acquisitions are not the future but the foundation for future growth”
Historical revenue and growthHistorical revenue and growth
0 50 100 150 200 250
Driver
Kelter
Affinity
ACP
Franey
Alliant
Revenue at Acquisition Growth
Copyright 2006, Alliant Resources Group, Inc. - Confidential, not for distribution
Where does this take us?Where does this take us?
2005: $200M Revenue
2010: $500M Revenue
A strategy of “independence” to:Maintain our Culture
Provide Professional Growth Opportunities
Enable an IPO by 2010