Company Introduction
May 2006
Corporate Profile 2006
Revenues
Employees
Offices
$200,000,000+
700+
21 offices in 8 States
Industry Rank:
14th largest in U.S.
Market Identity
Specialty Focus
Middle Market
Services
Retail 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
Offices
Driver-Alliant
Kelter-Alliant
Franey Muha-Alliant
Copyright 2006, Alliant Resources Group, Inc. - Confidential, not for distribution
Revenue by Line
Other
Law Firms 3%
4%
Employee Benefits
22%
Indian Nations
10%
Specialty P&C
40%
Other
4%
Public Entity
22%
Commercial P&C
35%
Copyright 2006, Alliant Resources Group, Inc. - Confidential, not for distribution
How are we organized?
Organization
Tom Corbett
Chairman, CEO
ARG
Corporate Operations
Greg Zimmer
CFO - ARG
Jerry Hall
COO - ARG
Stewart
Managing Director Sales
Kiehl
Managing Director Service
Mike Simmons
Vice Chairman
Production Operations
Ralph Hurst
President
Driver Specialty
Ins Group
Sales
Service
Jerry Hall
President
Driver Commercial
Ins Group
Bill Franey
President
Franey Muha
Comml Ins Group
Michael Kelter
President
Kelter Commercial
Ins Group
Sales
Sales
Sales
Sales
Alliant Underwriting
Services
Service
Service
Service
Service
Alliant Business
Services
Corporate Services Team
Copyright 2006, Alliant Resources Group, Inc. - Confidential, not for distribution
Sean McConlogue
President
Alliant Specialty
Insurance Services
Greg Zimmer
President
Alliant Risk
Services
Driver Commercial
Jerry Hall, President
H I S T O R I C A L
F I N A N C I A L
P E R F O R M A N C E
R E V I E W
Overview
Alliant 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
$250
$200
$150
2005 business mix by operating revenue
Benefits
$100
17%
$50
P&C
$57.5
83%
$0
Copyright 2006, Alliant Resources Group, Inc. - Confidential, not for distribution
Driver Specialty
Ralph Hurst, President
Alliant Revenue
H I S T O R I C A L
F I N A N C I A L
P E R F O R M A N C E
R E V I E W
Overview
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
$250
$200
$150
2005 business mix by operating revenue
$100
Benefits
32%
$52.5
$50
P&C
$57.5
68%
$0
Copyright 2006, Alliant Resources Group, Inc. - Confidential, not for distribution
Alliant Specialty
Sean McConlogue, President
Alliant Revenue
Alliant Specialty is the primary platform for program based cobroker 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
H I S T O R I C A L
$250
$200
$150
2005 business mix by operating revenue
$30.5
$100
$52.5
F I N A N C I A L
P E R F O R M A N C E
R E V I E W
Overview
Other
16.32%
$50
$57.5
P&C
83.68%
Copyright 2006, Alliant Resources Group, Inc. - Confidential, not for distribution
$0
Alliant Risk Services
Greg Zimmer, President
Alliant Revenue
H I S T O R I C A L
F I N A N C I A L
P E R F O R M A N C E
R E V I E W
Overview
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-inclass services
Current Revenue of $13.4 MM
$250
$200
$150
2005 business mix by operating revenue
Business
Services
40%
$13.4
$30.5
Underwriting
$100
Services
$52.5
60%
$50
$57.5
$0
Copyright 2006, Alliant Resources Group, Inc. - Confidential, not for distribution
Kelter Commercial
Michael Kelter, President
Alliant Revenue
H I S T O R I C A L
F I N A N C I A L
P E R F O R M A N C E
R E V I E W
Overview
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
$250
$200
$20.7
$150
2005 business mix by operating revenue
$13.4
$30.5
Other
$100
5.17%
$52.5
$50
$57.5
P&C
94.83%
$0
Copyright 2006, Alliant Resources Group, Inc. - Confidential, not for distribution
Franey Muha Commercial
Bill Franey, President
Alliant Revenue
H I S T O R I C A L
F I N A N C I A L
P E R F O R M A N C E
R E V I E W
Overview
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
$250
$200
$22.4
$20.7
$150
2005 business mix by operating revenue
$13.4
$30.5
$100
Benefits
$52.5
48%
Other
9%
$50
$57.5
P&C
43%
$0
Copyright 2006, Alliant Resources Group, Inc. - Confidential, not for distribution
Alliant - Corporate Services
Alliant Revenue
Overview
H I S T O R I C A L
F I N A N C I A L
P E R F O R M A N C E
R E V I E W
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.
$250
$200
$150
$11.8
Corporate
$22.4
Franey Muha
$20.7
Kelter Comm’l
$13.4
Alliant Risk
$30.5
Alliant Specialty
$52.5
Driver Specialty
$100
$50
Driver Comm’l
$57.5
$0
Copyright 2006, Alliant Resources Group, Inc. - Confidential, not for distribution
Alliant - Corporate Services
Alliant Revenue
Overview
H I S T O R I C A L
F I N A N C I A L
P E R F O R M A N C E
R E V I E W
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.
$250
Alliant
$208MM
$200
$150
$100
$50
$0
Copyright 2006, Alliant Resources Group, Inc. - Confidential, not for distribution
Major Programs
Sector
CSAC Programs
Public Entity
PEPIP
Public Entity
SLIP
Public Entity
Tribal First WC
Indian Nations
TPIP
Indian Nations
Tribal First ALA
Indian Nations
Law Firms
Commercial
Refuse Haulers
Commercial
Conserve-a-Nation Commercial
Parking Garages
Commercial
Energy
Commercial
Premium Existence
$75 MM
20 yrs
$70 MM
14 yrs
$ 6 MM
8 yrs
$50 MM
7 yrs
$15 MM
3 yrs
$15 MM
10 yrs
$50 MM
25 yrs
$10 MM
10 yrs
$8 MM
10 yrs
$8 MM
15 yrs
$8 MM
10 yrs
Copyright 2006, Alliant Resources Group, Inc. - Confidential, not for distribution
Distribution Map
Copyright 2006, Alliant Resources Group, Inc. - Confidential, not for distribution
Tribal First
Commercial Programs
Public Sector Programs
ProQuest
Conserve-a-nation
Financial Partner
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 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 Vision
“Alliant will emerge as the
premiere U.S. specialty
broker providing
advantaged, programbased risk solutions for the
middle market.”
Copyright 2006, Alliant Resources Group, Inc. - Confidential, not for distribution
Core Values
Quality people
Customer focused
Entrepreneurial environment
Open access to all resources
Team environment
Fair and equitable
compensation
Sustained growth and
profitability
Flat management structure
Continuous improvement
No politics
Copyright 2006, Alliant Resources Group, Inc. - Confidential, not for distribution
Producer Profile
Producer 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.)
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 Plan
Business 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 Program
Providing 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
values
Candidates will typically be
either specialty oriented or
have a dominant
geographic presence
Copyright 2006, Alliant Resources Group, Inc. - Confidential, not for distribution
Best-in-class organic growth
Historical organic revenue growth rate
24.4%
23.6%
18.0%
14.4%
17.0%
15.0%
15.0%
13.1%
13.0%
13.0%
13.0%
10.0%
9.4%
12.1%
12.0%
5.0%
5.9%
4.3%
4.0%
2.0%
2.3%
(2.0%)
’02 ’03 ’04
Alliant
’02 ’03 ’04
Competitor
average
8.8%
9.0%
’02 ’03 ’04
Willis
’02 ’03 ’04
Arthur J.
Gallagher
’02 ’03 ’04
Marsh &
McLennan
’02 ’03 ’04
Hub
International
5.5%
4.7%
3.6%
1.8%
0.0%
’02 ’03 ’04
Aon
8.1%
’02 ’03 ’04
Brown &
Brown
’02 ’03 ’04
Hilb Rogal
& Hobbs
’02 ’03 ’04
U.S.I.
Organic growth drives employee opportunities!
Copyright 2006, Alliant Resources Group, Inc. - Confidential, not for distribution
Proven acquisition history
Historical revenue and growth
Alliant
“Acquisitions are not the
future but the foundation for
future growth”
Franey
ACP
Affinity
Kelter
Driver
0
50
100
Revenue at Acquisition
150
Growth
Copyright 2006, Alliant Resources Group, Inc. - Confidential, not for distribution
200
250
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
Copyright 2006, Alliant Resources Group, Inc. - Confidential, not for distribution
Growing a great company…
Growing a great company…
Driver Specialty Group
Driver Commercial Group
Franey Muha Commercial Group
Kelter Commercial Group
(ProQuest)
Alliant Specialty Insurance Services
Alliant Risk Services
Copyright 2006, Alliant Resources Group, Inc. - Confidential, not for distribution
(Tribal First)