Restructuring and poised for growth Investor Update 6 June 2018 (ASX:ENA)
Disclaimer Summary Information The information provided in this presentation is selective and may not be complete or accurate for your particular purposes and should not be construed as a recommendation to invest. The information is given in good faith and is believed to be accurate at the time of compilation. Neither Ensurance Limited, its subsidiaries nor its directors or employees make any representation or warranty as to the accuracy, reliability, timeliness or completeness of the information. Not financial or product advice This presentation has been prepared for use in conjunction with a verbal presentation and should be read in that context. The purpose of this presentation is to provide information only and the contents of the presentation does not purport to provide investment advice. We suggest that parties consult a financial advisor prior to making any investment decision. The presentation does not take into account the investment objectives, financial situation or particular needs of any person and should not be used as the basis for making investment, financial or other decisions. Forward Looking Statements This presentation includes forward looking statements. The forward looking statements reflect the Company’s views and assumptions with respect to future events as at the date of this presentation. Actual and future results could differ due to various factors, many of which are beyond our control. Given these uncertainties, no one should place undue reliance on any forward looking statements. Disclaimer To the extent permissible by law, Ensurance Limited and its directors and employees disclaim all liability (whether arising in contract, tort, negligence or otherwise) for any error, omission, loss or damage (whether direct, indirect, consequential or otherwise). 2 Investor Update - June 2018
Ensurance Limited (ASX : ENA) Ensurance Limited - an insurance underwriting agency operating in the global insurance market with existing operations in Australia and the UK. Listed ASX - 2015 Bespoke insurance Partnerships Ensurance has evolved into a Predominantly focussed on providing Partnerships with leading global successful wholesale insurance agency coverage for construction and insurance companies, including Lloyds business, driven by established engineering risk. of London, Swiss Re and XL Caitlin, operations as a Managing General provide capacity to underwrite large Agency (MGA) in the UK. wholesale policies globally. Operations in Newly appointed Sydney and London Revised strategic direction board and leadership team Ensurance Limited employs 46 full- Focussed on divesting Australian retail Focussed on restructuring business time staff and services customers in brokerage arm and leveraging global and driving global growth. the UK, the European Union and partnerships to bring new products Australia. and replicate UK wholesale model in Australia. 3 Investor Update - June 2018
Corporate Overview 1 . 3-Year convertible note, right to convert at $0.04 (expiry dates Dec 2019 ASX Ticker ENA and Dec 2020). 52 week high-low $0.14 - $0.039 2. Options: Market cap @ $0.039 (as at 4 June 2018) $6.75m • 2,597,314 options, exercise price $0.08, expiring 31 July 2020. Ordinary Shares on Issue 173,113,862 • 3,500,000 options, exercise price $0.04, expiring 31 July 2020. 3 Year Convertible Note ($3.0m) 1 75,000,000 • 3,000,000 options, exercise price $0.046, expiring 31 July 2020. Options 2 25,497,314 • 1,000,000 options, exercise price $0.12, expiring 31 July 2020. • Partly Paid Shares 3 8,000,000 5,000,000 options, exercise price $0.04, expiring 15 December 2019. Performance Rights 4 1,500,000 • 3,150,000 options, exercise price $0.05, expiring 15 December 2019. Shareholder Composition • 7,250,000 options, exercise price $0.05, expiring 15 December 2020. 3 . 8,000,000 Partly paid shares, $0.199 per share outstanding, expiring 30 8.72% November 2020. Board and Management 4 . Performance Rights: 14.95% Significant Holders > 5% • 1,000,000 Performance Rights Class A, which will convert into Free float Ordinary Shares if the 30 Day VWAP exceeds $0.80 prior to expiring on 30 November 2020. 76.33% • 500,000 Performance Rights Class B, vesting at the Board’s discretion. 4 Investor Update - June 2018
Investment Overview Expert Board and Newly appointed Board and Leadership team driving a restructure of Ensurance’s operations as part of a new strategic direction to drive global growth Management High margin, low risk Managed General Agent (MGA) model delivers high-margin revenue with no on-balance sheet risk for any insurance policies sold model FCA License provides Licence from the UK’s Financial Conduct Authority (FCA) provides the opportunity to generate additional revenue additional revenues from authorised representatives acting under Ensurance’s authority stream Exclusive partnerships Partnerships with leading global insurers provides unique and exclusive capacity to underwrite with leading global construction and engineering lines insurers Large global market High barriers to entry of established partnerships, credible and established underwriting team and investment into IT platforms opportunity UK operations to be UK operations fully-established and poised for ramp up in sales and revenue growth, with cashflow positive from commercial model easily replicated in Australian market March 2019 5 Investor Update - June 2018
Expert Board and Leadership Team Tony Leibowitz Adam Davey Tony Wehby Arjan van Ameyde Tim James Michael Huntly Executive Chairman Non Executive Director Non-Executive Director CFO CEO Ensurance UK CEO Ensurance AU Over 30 years of Over 30 years experience Broad experience across Over 25 years of Former Director at one of Extensive experience corporate finance, in capital raising (both Non-Executive Director experience in senior the world’s largest across underwriting, investment banking and private and public), roles since 2001. finance roles in listed insurers HSB (owned by compliance and portfolio broad commercial mergers and acquisition, companies and SMEs Munich Re). management. Formerly a Partner at PwC experience. ASX listings, asset sales across multiple sectors. for 19 years where he Joined Ensurance in 2017, Previous positions at ASX and purchases, Proven track record of managed its Corporate Chartered Accountant bringing a team of listed companies transaction due diligence generating significant Finance business. (South Africa) from KPMG underwriters with Austagencies, Calliden and director duties. shareholder value, most and a fellow of CPA significant credibility and and Vero. Chartered Accountant notably in his roles as Previous roles include Australia. strong existing industry (FCA) and member of the Chairman of Chandler Managing Director of relationships. Australian Institute of Successfully established a Macleod Ltd and more financial services Company Directors. short term lending Specialist in wholesale recently Pilbara companies. company, a short term and reinsurance broking Minerals Ltd. Current Chair of ASX insurance company and and MGAs globally. listed Kingston Resources set up the treasury Ltd (KSN) and Deputy function for a large listed Chair of Royal Rehab. group. 6 Investor Update - June 2018
Our Operations Ensurance UK Ensurance Underwriting Australia (To Be Restructured) Australian Insurance • Managed General Agent (underwriting • Australian underwriting agency. Licence and Brokerage • Australian Financial Services Licence Capabilities agency) in the UK. • Authorised and regulated by Financial (AFSL). • Direct to consumer insurance Conduct Authority (FCA). broking. • Coverholder at Lloyds. • White label insurance via • Wholesale insurance provider specialising in • Wholesale insurance provider Products online platforms. the construction, engineering and household specialising in the construction and • Direct to customer insurance sectors. engineering sector. construction and engineering • Retail insurance provider of owner-builder insurance via SHC Insurance insurance. brokers brand (ENA owned). • Small Medium Enterprise to Mid Market • Australian housebuilders and construction Customers • Ensurance NOW retail segment of Construction and companies. products include full suite of Engineering sectors. home and contents insurance • Broker network of 55 strategic brokers • Distributed via 340+ broker network. Distribution products. including Marsh, JLT, Willis, Lockton and • SHC Insurance broker Gallagher. network. • White label retail product • Gross written premiums (GWP) of £1.4m • GWP of $6.7m for FY18. Financials by April 2018. • $9.1m GWP (expected FY19). distribution. • £13m GWP (expected FY19). • Compare the Market platform. Ensurance IT Developing IT platforms to support automated insurance brokerage and underwriting services. 7 Investor Update - June 2018
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