A year of positive achievement Annual Results for the year to 31 - PowerPoint PPT Presentation

A year of positive achievement Annual Results for the year to 31 December 2013 Charles Taylor plc 19 March 2014 Charles Taylor plc Investor Presentation 2013 Results 19 March 2014

Charles Taylor – continued positive outlook Strong fundamentals Consistently profitable • Well established in the global insurance • Positive prospects Reliable revenue market. • Long-standing, loyal streams. • • Diversified business. client relationships. Optimising business • • Well supported Highly skilled, operations. • dividend. technically excellent Actively managing staff. financing. • Implementing strategic growth plan. Charles Taylor plc Investor Presentation 2013 Results 19 March 2014 2 2

Good progress – driven by growth in Professional Services • Increased Group revenues. • Increased Group adjusted profit before tax and statutory profit before tax. • Delivered higher Professional Services profit, largely driven by strong Adjusting Services growth. • Increased net debt due to growth-related increase in Adjusting Services working capital, restructuring costs and acquisitions. • Renewed the Group’s senior banking facilities for a five year term • Progressed growth initiatives. • Final dividend of 6.75p, maintaining the full year dividend at 10.00p. Charles Taylor plc Investor Presentation 2013 Results 19 March 2014 3 3

Focused on delivering Professional Services to the global insurance market Professional Services – revenue principally from fees Run-off Management Adjusting Insurance Support Owns and runs off closed insurance companies. End to end insurance Loss adjusting for larger and Stand alone professional company management. more complex losses. insurance support services. Run-off 13% Revenue 2013 1 Insurance 14% Support Management 37% Adjusted EPS 2013 2 Professional 49% Adjusting Services Staff breakdown 2013 87% Insurance support 16% Management • • • • • • 27% • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 57% Adjusting • • • • We have around 1,000 staff in 50 offices in 25 countries worldwide 3. Charles Taylor plc Investor Presentation 2013 Results 19 March 2014 1. Stated before inter-segment eliminations. 2. Excludes acquired intangible amortisation of £1.2m and non-recurring costs of £1.6m. 4 3. As at 31 December 2013.

Good overall progress from Professional Services Results 2013 £m Revenue Operating segment profit Group 2013 2012 2013 2012 2013 2012 Management 41.1 39.0 6.6 6.5 Adjusted 10.0 9.1 Adjusting 54.9 50.3 4.8 2.7 PBT (£m) Insurance 15.9 16.7 (0.9) 0.2 Support Statutory 6.9 6.6 PBT (£m) Unallocated - - (0.2) (0.1) Adjusted 20.05 18.33 Professional 111.9 106.1 10.4 9.3 EPS (p) Services 1, 2 Statutory 14.22 15.14 EPS (p) Run-off 5.0 5.4 0.8 0.3 Dividend [10.00] 10.00 Eliminations (3.3) (3.3) - - per share (p) 9.6 Group 1, 2 113.6 108.2 11.2 Charles Taylor plc Investor Presentation 2013 Results 19 March 2014 1 Small rounding differences arise in the total amounts above 5 2 2012 figures have been restated for IAS19 (Revised 2011)

Continued focus on financing Senior banking facilities renewed for five year term Senior term loan: £10m Revolving credit facility: £30m At 31 Dec 2013 At 31 Dec 2012 Net debt rose due to increase in working capital, acquisitions Net debt (£m) and restructuring costs. 32.4 29.5 Adjusting Services working Adjusting Services working capital (months) capital months rose due to WIP 5.2 5.1 slightly slower cash collections. Debtors 4.9 4.3 Pension liabilities reduced due Working capital months 10.1 9.4 to improved market conditions, employer Retirement benefit obligation (£m) contributions, investment 26.7 31.6 returns and specific provisions. Charles Taylor plc Investor Presentation 2013 Results 19 March 2014 6

Delivered progress in strategy for growth Optimise business Create growth in the core Professional Services operations Broaden offering Extend reach • Refinanced debt. • Launched new covers for • Secured OPOL contact. • Restructured to focus on • Opened new loss adjusting mutual insurance clients. • Launched workers’ growth areas. offices in Saudi Arabia. • Developing new IT systems. • Recruited senior adjusting compensation claims service • Introduced new Adjusting in US. staff to further strengthen • Developed new ISS services: management structure. existing areas and develop • Completed integration of Taylored Claims Management, new specialist areas. • Registered new office in GLA life business. MGA Service, TPA database • Reduced facilities costs. for Lloyd’s and onshore Brazil, which will be • Recruited Vietnam IT team. captive offering. developed in 2014. Explore strategic options Acquired business and assets of KnowledgeCenter Charles Taylor plc Investor Presentation 2013 Results 19 March 2014 7

Positive start to 2014 • Satisfactory Standard Club and strong Signal Management Mutual renewals. Services • Positive outlook in UK, Americas and ROW. Professional • Adjusting Claims volumes being maintained. Services • Services New senior staff and offices bedding-in. Insurance Support • Slow but steady progress continues. Services • Driving promising initiatives. Insurers in • Non-life claims experience satisfactory. Run-off • Positive prospects for life business. We are enthusiastic about the potential for growth in the market for insurance services Charles Taylor plc Investor Presentation 2013 Results 19 March 2014 8

Appendices Charles Taylor plc Investor Presentation 2013 Results 19 March 2014 9

Consistent performance by Management Services business Management Services profile 2013 key points • Increased revenue to £41.1m (2012: £39.0m). • Provides end-to-end management of • Delivered consistent Standard Club insurance companies. performance. • Delivers a complete outsourced • Launched Hull and D&O covers. management service covering every aspect • Achieved strong Signal performance. of the companies’ operations. • Created North America marine claims adjusting services. Growth opportunities • Extended safety management services. • Won OPOL administration contract. • Grow membership of client mutuals. • Introduce new products and services for Clients clients of mutuals. • Seek new management contracts. • Identify opportunities for new mutuals, group captives and buying groups. Charles Taylor plc Investor Presentation 2013 Results 19 March 2014 10

Strong performance by Adjusting Services Adjusting Services profile 2013 key points • • Increased revenue to £54.9m (2012: Provides loss adjusting services across £50.3m). four main sectors: energy, marine, • Appointed on a steady volume of larger aviation property and casualty along and more complex claims. with marine average adjusting and • Established offices in Saudi Arabia. technical support services. • • Appointed new senior adjusters. Primarily focuses on larger and more • Progressed development of a new complex commercial losses arising from adjusting claims management system. major insured incidents. • Enhanced management structure. Growth opportunities Key business lines • Expand network into new territories. • Extend service offering in each office. Marine • Energy Recruit and retain top producing adjusters in existing offices. P&C Aviation • Develop and retain next generation. Charles Taylor plc Investor Presentation 2013 Results 19 March 2014 11

Challenging year for Insurance Support Services Insurance Support Services profile 2013 key points • • Delivered revenue of £15.9m (2012: Provides stand-alone professional services £16.7m). which enable our clients to select the specific • Appointed new head of non-life ISS. services they require. • Acquired business of KnowledgeCenter. • Won Lloyd’s TPA database contact and new Growth opportunities clients for TCM and MGA services. • • Launched workers’ comp claims service. Expand claims management services. • • Seek additional investment management Developed new insurance covers. • mandates. Won new captive management contracts. • Develop MGA services. Key business lines • Develop additional technology solutions for the insurance sector. Niche insurance solutions Broking and underwriting services • Secure more run-off servicing contracts. Specialist IT consultancy services Captive management • Seek new captive management mandates. Investment management services Risk consulting services • Develop risk consulting services. • Explore niche insurance opportunities. MGA services Run-off services Claims management and technology solutions Document and workflow management solutions Charles Taylor plc Investor Presentation 2013 Results 19 March 2014 12