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#Business Model/Strategy
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Notes from November Monthly Meeting with the Founder

Provide underwriting services on behalf of large insurers

  • Cashflow positive 
  • High margin Low risk 
  • Strong partnership with broker networks
  • Established position in the growth market 


Waht is Managing General Agent(MGA)

They provide insurers with access to new geo's for products that are emerging or too small 

  • Underwrite products on behalf of the large insurer
  • Paid commission by insurer for management of portfolio 
  • No payment liabilities in case of claims 
  • UK business established in 2017 
  • AU business established in 2021 
  • Shares held by management and board - 30.72% 
  • Shares held by top 20 shareholders - 69.85% 
  • Shares on the issue - 89Mil 
  • UK - Looking for 20% YoY growth 
  • Building for scale 
  • Loylds major partner 


September 2021 Qtr Results: 

  • Cashflow positive 
  • Revenue up 131.9% PCP 
  • The insurance premium under management up by 43.6% PCP 
  • Gross underwritten Premium (GWP): 12.8 mil 
  • TAM/Market Size: 6.8b AUD 
  • Three types are MGA's" 
  • Independent MGA's
  • Own by Insurer
  • Within Insurer


In Australia 50+ MGA's such as ENA, Steadfast 

  • The lifespan of 7-14 years, there is a need for an exit strategy
  • Brooklyn was acquired by Axa when they were 30 million in GWP
  • Aim is to have a number of BU's to complement each other - multiple revenue streams
  • insurance is cyclical in nature 


Global partnerships with Axa, Lloyds, MGAM, CFC, Beazley, Axa XL, British Engg services 

  • Attracting talent is critical for the business 
  • Key hire did from Axa in Australia 
  • Looking for skin in-game from management hires 
  • Relationships with brokers are key for the business 
  • New trading partners were identified to manage more portfolios 
  • partner needs to be the right fit for them to work with them 
  • Diversity in partnership to manage risks 


Q: what's the long term exit strategy? 

  • File for APRA regulation - carry risk ourselves - need 20 mill in the bank - 110k fees 
  • The distribution model will be through brokers 
  • Can look at Hybrid structure - work with Axa to partner 
  • Can move to be an Insurance company - similar to TWR- TOWER Limited


Q: Product lines or industries next target

  • environment 
  • terrorism 
  • intellectual-property
  • Services Economy


Q: Capital Raising:

  • Recently did 2 mill raise - 50% subscribed from existing investors
  • May do another raise for an acquisition
  • Will make an acquisition 40x EBITDA? - No looking at 6-8 times for smaller companies
  • PSC insurance - a good example of how to grow with M&A