Technical services for the global insurance market Stockdale Growth Companies Seminar Presentation by David Marock, Group CEO Mark Keogh, Group CFO 30 November 2017
Delivering unrivalled service breadth, technical expertise and geographic reach to global insurance markets Service breadth Technical expertise Geographic reach The only major insurance 2,000 76 29 service provider to: • Support every stage of People, covering every area of Offices Countries the insurance lifecycle expertise relevant to insurance • Provide insurance • Actuaries • Surveyors 24/7 06 services and technology • Adjusters • Lawyers solutions • Compliance • Claims Continents Service • Delivered by dedicated experts experts availability • Doctors • Underwriters teams covering life, • Engineers • Mediators property & casualty and • Software • And many health markets. more…… developers …all delivered with a 100% focus on insurance 1 Charles Taylor plc Stockdale Growth Companies Seminar 30 November 2017
Serving a huge range of the world’s leading insurers A selection of our global client base: 2 Charles Taylor plc Stockdale Growth Companies Seminar 30 November 2017
Achieving excellent returns for a blue chip shareholder register Major shareholders 2012 1 Total shareholder return % 3 Major shareholders 2016 2 1. Delta Lloyd 12% 1. Miton Asset Management 12% 2012-2016 2. Invesco Trimark 8% 2. Delta Lloyd 12% 3. Columbia Wanger 7% 3. The Standard Club 9% 117% 4. Kabouter 5% 4. Legal & General 9% 5. Ruffer Inv Management 5% 5. Kabouter Management 8% 6. Legal & General 4% 6. Artemis Inv Management 6% ~25% Percentile 7. Private shareholder 3% 7. Majedie Asset Management 6% FTSE Small Cap index 8. Schroder Inv Management 3% 8. Soros Fund Management 3% 9. Mawer Inv Management 3% 9. BlackRock 3% 10. Columbia Management 3% 10. Fidelity International 3% Revenue, £m Dividend, p Adjusted earnings, £m 2017: £200m* 10.5 +58% 2012-16 +90% 2012-16 +19% 2012-16 169 14.8 10.0 13.0 143 122 9.4 113 10.1 107 8.5 7.8 8.8 8.8 2012 2013 2014 2015 2016 2012 2016 2012 2013 2014 2015 2016 2013 2014 2015 Note: Small rounding differences arise in the total amounts above. * Market expectations 1. As at 29-07-11. 2. As at 31-10-17. 3. As at 31-10-17 Charles Taylor plc Stockdale Growth Companies Seminar 30 November 2017 3
Offering a uniquely broad range of technical services to enable our clients to address their challenges Claims Specialist Programme Insurance Loss Outsourced Management Management Services Adjusting Specialist, high- End-to-end Tailored, high-quality underwriting, broking, Specialist, high- management of quality third party risk & compliance, administration & quality loss claims administration insurers & insurance adjusting & related investment management services & related services programmes under services across all Solutions for releasing capital from legacy across the full a long-term model major lines and non-life & life portfolios via outsourced of “partnership” claims lifecycle geographies management or sale Insurance Technology Services Technology-related solutions and services to help insurance businesses drive change 4 Charles Taylor plc Stockdale Growth Companies Seminar 30 November 2017
Meeting the demands of a changing insurance world Global market themes Implications Charles Taylor advantages Consolidation across all Migration to suppliers that Strong reputation as a supplier of areas of insurance market can be strategic partners wide range of high quality services Growing but more volatile Our insurance services are in Insurance demand growing world economy demand in all market conditions Growth of emerging markets’ Offering global network of local Globalisation of insurance insurance demand offices, where clients need us most Volume claims unaffected Protracted benign claims Proven volume claims capability Insurers anticipate increase in market for larger claims Resourced to manage larger claims larger claims Ability to offer blended technology Disruptive and enabling Increased client demand solutions emerging technology New markets entrants Embedding technology in services 5 Charles Taylor plc Stockdale Growth Companies Seminar 30 November 2017
Delivering a clear growth strategy • Vision: To become the professional services provider of choice to the global insurance markets Business Vision model • Business model: Our relationships with our clients and colleagues underpin our business model • Growth priorities: Growth Focused on building a larger, more capable, more profitable professional services business priorities Charles Taylor plc Stockdale Growth Companies Seminar 30 November 2017 6
Investing for growth - our investment in insurtech demonstrates our approach to creating long term value Global insurance technology market US$166bn 1 Selected as preferred implementation partner for Lloyd’s DUA solution 2017 Invested in funding round for Fadata 2017 Developed Delegated Underwriting Authority (DUA) solution 2017 Appointed to implement solutions for London market brokers Appointed to implement life system for Peru’s 4 th largest life insurer 2016 Opened Technology Centre of Excellence in LatAm 2016 Acquired sizeable stake in Fadata 2015 Established Charles Taylor InsureTech 2015 Acquired KnowledgeCenter 2013 Developed TRAX London market claims solution 2012 Developed in-house technology capabilities 1. Source: Gartner Charles Taylor plc Stockdale Growth Companies Seminar 30 November 2017 7
Delivering our growth strategy with positive prospects for increased profit and greater shareholder value Solid core insurance management business with deep, Cross-refer, cross-sell, and joint working Insurance long standing lasting client relationships, delivering steady, Management reliable growth Fundamentally strong global loss adjusting business, with Loss leadership positions in key markets and well positioned to Adjusting drive growth and improve profitability Technology, Established and newer businesses with the potential to Claims & drive a material change in earnings longer term Outsourced services Charles Taylor plc Stockdale Growth Companies Seminar 30 November 2017 8
Offering a robust investment case Strong fundamentals Consistently profitable • Unrivalled breadth of Positive prospects insurance-related • Diversified, resilient business professional services • Reliable revenue and profit • Expert knowledge of the • Solid, reliable income from streams insurance market • Solid cashflows Insurance Management • Enormous, worldwide base of • Well-position to improve • Well supported dividend technical resource performance of loss adjusting • Culture of long-term • Huge market for insurance- partnership and service related services* and • Stable, trusted and well- fragmented competitor governed landscape • Track record of innovation • Driving forward strategic initiatives to capture a greater share of the market * US$4.8 trillion global revenues (BusinessWire, 2 February 2017) We aim to deliver reliable income streams, with sustainable year-on-year growth in earnings, while investing to create opportunities to drive higher future earnings growth in the medium to longer term 9 Charles Taylor plc Stockdale Growth Companies Seminar 30 November 2017
Appendices
We performed steadily in H1, continuing our track record of strong revenue growth Charles Taylor Group results H1 2016 H1 2017 % change Revenue (£m) 74.0 100.7 +36.1 Adjusted PBT (£m) 6.0 6.1 +1.2 Statutory PBT (£m) 5.3 3.1* (41.4)* Adjusted earnings (£m) 5.7 6.1 +8.0 Adjusted EPS (p) 8.55 9.04 +5.8 7.19 4.62* (35.8)* Statutory EPS (p) 3.31p• 3.15p +5.0% Dividend per share (p) Note: Small rounding differences arise in the total amounts above * Decrease due to the increase in the amortisation of intangible customer relationship assets following the successful CEGA acquisition and the reorganisation of services provided to a Management Services client Charles Taylor plc Stockdale Growth Companies Seminar 30 November 2017 11
We are investing to extend our capabilities to deliver longer-term growth in profits and shareholder value Segmental results H1 2017 (£m) Revenue Result H1 2016 H1 2017 % change H1 2016 H1 2017 % change 25.4 27.9 +10.0 3.3 3.5 +8.4 Management Adjusting 31.7 35.2 +11.2 1.6 1.7 +6.7 Insurance Support 16.0 37.4 +133.4 2.4 1.4 (41.1) - - n/a (0.3) - n/a Unallocated Professional Services 73.1 100.5 +37.6 6.9 6.6 (4.6) Insurance Companies 2.3 2.2 (5.9) 0.1 0.3 +444.4 (1.4) (2.1) n/a - - n/a Eliminations Group revenue / 74.0 100.7 +36.1 7.0 6.9 (1.1) operating profit Share of associates - - - (0.3) (0.4) -53.2 Investment /other - - - 0.2 0.4 +146.0 income Finance charges - - - (0.6) (0.8) -32.1 NCI before tax - - - (0.2) - n/a Adj. profit before tax - - - 6.0 6.1 1.2 12 Charles Taylor plc Stockdale Growth Companies Seminar 30 November 2017
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