STEADFAST GROUP LIMITED — Investor Presentation 2017

Jun 13, 2017

14 June 2017

Market Announcements Office ASX Limited Exchange Centre 20 Bridge Street SYDNEY NSW 2000

Dear Sir

INVESTOR DAY PRESENTATION

Please see attached the Investor Day slides being presented today in Melbourne and tomorrow in Sydney.

Yours faithfully

Linda Ellis Group Company Secretary & Corporate Counsel

Steadfast Group Limited ABN: 98 073 659 677 ACN: 073 659 677 Level 4, 99 Bathurst Street, Sydney NSW 2000 t 02 9495 6500 f 02 9495 6565 www.steadfast.com.au

STRENGTH WHEN YOU NEED IT

Steadfast Group investor day

Programme

Topic	Presenter
Introduction	Robert Kelly
Steadfast Network
Broker services	Nick Cook
Marketing and sales initiatives	Adrian Humphreys
Steadfast Client Trading Platformstructure	Robert Kelly
Steadfast Technologies -Insightand Steadfast VirtualUnderwriter demo including data analytics	Lisa WoodleyVibul ImtarnasanNeils Laaper
New Zealandand Asia rollout	Allan Reynolds
unisonsteadfast	RobertKelly
Acquisition and integration strategy	Jeff Papps
Steadfast Underwriting Agencies
Blend	Chris Newing
UAA update and international strategy	Michael Murphy
London binder	Simon Lightbody
Steadfast Re	Simon Cloney
Q&A

Steadfast Group investor day Introduction

• Investor day is focused on strategic initiatives (not on financials or premium pricing commentary) and offers the opportunity to hear from other members of the senior management team
• 2015 investor day introduced our senior management team
• 2016 investor day introduced our technology and underwriting agency leadership teams
• 2017 investor day focuses on the evolution of our broker services through the Steadfast Client Trading Platform, our international growth strategy and recent activity in the Steadfast Underwriting Agencies

Broker services

Nick Cook – EGM, partner & broker services

Broker services Introduction

• Broker services are one of the key differentiators that attract and retain brokers to the Steadfast Network
• Steadfast provides 160 services to brokers on the Network
• Broker services are refreshed each year through the 'Your Shout' broker survey which ensures that services are relevant and fit for purpose for Steadfast Network broker needs
• External technical providers include Cordell, DLA Piper, Goldseal, LMI Group, Martin Minett, Meridian, MSM Loss Management and The Fold
• Usage growing year-on-year, reflecting greater awareness of the broker's role as a trusted advisor

Broker services

Examples of services

Service usage

Adrian Humphreys – EGM, business development

Sales and marketing priorities

Our aim

Customer Experience Deliver great cover and competitive pricing for the policyholder

Our customers

Different stakeholder groups including our brokers, their clients, policyholders and insurers

Customer experience

A single view of all customers and their touchpoints

Brand and sponsorship	Customer(broker) deliveryenablement	Acquisition &lead driving (SME)activity to brokers	Customer satisfaction(NPS) & retention
Continue to invest insporting events with ahigh affinity to smallbusiness (Nissan V8),SME sponsorships andaward nights	Creating value for ourbrokers through face toface training, businessdevelopment tools,virtual training viawebinar and marketingplaybooks	Driving high qualityleads to our brokersthrough digital channels,curated content andsocial selling	Promoting NPS usageacross the businessto positively impactcustomer satisfaction,loyalty and retention

Brand and sponsorship

Continuation of our brand and sponsorship activity to deliver brand recognition and drive brand consideration of brokers within the Steadfast Network

• "Always on" digital advertising, content and social strategy is driving strong brand recognition.
• Steadfast will continue to invest in the V8 Supercar racing, Nissan team due to the high affinity of SMEs in key verticals and V8 fans

Steadfast brand recognition has remained strong year on year (2016 v 2017)1

Customer (broker) delivery enablement

A focus on providing brokers with tools to support their SME customer outcomes

Steadfast Network broker

BROKER DEVELOPMENT:

Personal development days, town halls, Steadfast Convention, sales coaching, social selling webinars, business planning service

MARKETING SUPPORT:

Broker playbook, marketing tools, brand, sponsorship, online presence, social media, LinkedIn elevate, Steadfast studios.

SALES SUPPORT:

Lead generation, pipeline management, LinkedIn sales navigator, tender/quote templates, product sales collateral, 'know how' sales videos

Acquisition and lead driving activity to broker

Targeted growth through focused digital activity on priority (SME) customer segments and key strategic partnerships

Strategic partnerships through key segment and category

A new approach to sales – leveraging the size/strength of our network to partner with associations, business partners and corporates to drive sales across the group at a national level

Social selling via LinkedIn Sales Navigator

Pilot achieved positive user feedback (78% recommending investment), and return on marketing investment at 140% over a 12 week period

Google search and online banners

verticals Telesales Leads delivered to brokers increased 142% year-on-year

A standard approach for brokers to outsource targeted sales calls, providing a regular flow of quoting opportunities. 1,200+ appointments delivered to the Network in FY17 to date

Curated content via Well Covered blog

• 1.49m reach amongst SMEs
• 3,130 engagements

Steadfast net promotor score continues to trend upwards

Driving NPS usage across the business to positively impact customer satisfaction, loyalty and advocates

Source: Brand health study – Bohemia Group, April 2017

© 2017 Steadfast Group Limited | 13

Data and analysis framework

© 2017 Steadfast Group Limited | 14 Source: Steadfast Group, "Key findings from EY global insurance digital survey", 2013

Steadfast Client Trading Platform (SCTP)

Robert Kelly – Managing Director & CEO

Steadfast Client Trading Platform (SCTP)

End to end platform for brokers and insurers

• Launched in June 2016, exclusive to Steadfast Network brokers, their clients and select insurer partners
• Insurer partners contracted to provide one or more insurance class on the SCTP: AIG, Allianz, Allied World, Berkley, Calibre, CGU, CHUBB, London 'super' binder, QBE, Vero and Zurich
• Benefits for clients: contestable marketplace, improved wording over off-platform policies
• Benefits for brokers: instant quoting, standard commission rates
  • connects seamlessly with Insight (broker back office system) allowing data analytics to better serve clients
• Benefits for insurers: efficient access to Steadfast Network, reduced cost

Insurance class (e.g. business pack)

Separate SCTP for each class of insurance

• Insurers signed on for SCTP:
  • Business pack Jun 2016
  • Professional lines Sept 2016
  • Liability Dec 2016
  • Property Mar 2017
  • Commercial motor panel finalised

Lisa Woodley, EGM – Broker Technology Services Vibul Imtarnasan, EGM – Technology Solutions Niels Laaper, EGM – Underwriting Agency Technology Services

Insurance is a flow of information

How to enable our competitive advantage

Compared to other industry solutions, we want to:

• CAPTURE more data
• ANALYSE more data
• DELIVER more data FASTER
• Do it more COST EFFECTIVELY and CONSISTENTLY

Our core IT systems

Real-time marketplace for general insurance – facilitates SCTP

Broking back office and CRM system – seamlessly interfaces with SCTP

Electronic product distribution and core system for underwriting agencies

Our core IT systems

Core system ownership – strategic advantages

Key advantages of owning of core technology:

• 1. Platform to introduce more innovative features
• 1. Ability to control our destiny and our data
• 1. Facilitates further back office cost savings initiatives
• 1. Ease of training for staff
• 1. Adds to the list of compelling reasons to become a Steadfast broker

Too many forms…

Steadfast Virtual Underwriter rationalises forms into one front-end interface for each insurance product

Steadfast Virtual Underwriter: drives and delivers Steadfast Client Trading Platform (SCTP)

Simple, three step process:

• 1. broker enters data once; multiple auto-rated quotes from multiple insurers are returned within seconds
• 1. policies are issued in real-time
• 1. full policy life cycle management in real-time

Steadfast Technologies Insight

1) Simple

• 1. Searchable
• 1. Open designed for efficiency

Steadfast Technologies UnderwriterCENTRAL

Strategic initiatives:

• Implementing UnderwriterCENTRAL across Steadfast Underwriting Agencies
• Achieving straight through processing

Creating business intelligence through data mining

General insurance industry's RISK data problem

1) Islands

• Steadfast Virtual Underwriter, broking system, insurers' systems, Sunrise, etc.

2) No consistency in format

• XML, JSON, Database, CSV, MS Word documents, PDF etc.

3) No consistency in terminology

• No standard industry/occupation codes
• A term can mean different things in different systems/business processes

Steadfast's business intelligence

Steadfast data press features

1) Structured data format conversion

• What you expect from any data aggregation tool
• XML, JSON, CSV, Database, etc.

2) Non-structured data format conversion

Teach a computer to read policy schedules in order to extract data from MS Word Documents

3) Terminology and taxonomy conversion

• Standard codes
• For example: insurers, class of risk, occupations and construction

Steadfast's data analytics capability

New Zealand and Asia rollout

Allan Reynolds – EGM, New Zealand & Direct

New Zealand and Asia rollout

Steadfast into New Zealand

Roll out strategy

• Replicate Steadfast Network model
  • Technology
  • Improved policy wordings
• Build revenue streams
  • M&A fees and brokerage
• Strong buy-in from insurer partners
• Equity investment in 3 brokers
• Steadfast Underwriting Agencies

FY14

• 31 Network brokers
• GWP of $160m
• M&A fees of $0.8m

FY17 to date

• 38 Network brokers
• GWP of $330m
• M&A fees of $4.3m

New Zealand and Asia rollout

Steadfast into Asia

Roll out strategy

• Target Singapore
• Replicate Steadfast Network model
• Build revenue streams
  • M&A fees and brokerage
• 10 brokers have signed
• 5 brokers have agreed to sign
• 5 underwriters have agreed to:
  • Pay M&A fees
  • Issue improved policy wordings
  • Pay increased commission

unisonsteadfast

Robert Kelly – Managing Director & CEO

unisonsteadfast

About the transaction and unisonBrokers

• Steadfast has acquired a non-controlling stake in unisonBrokers which will be renamed unisonsteadfast
• Robert Kelly (Steadfast Managing Director & CEO), Samantha Hollman (Steadfast COO) and Heinrich Eder (former Managing Director of Munich Re Australia) will join the unisonsteadfast Supervisory Board
• Strategic acquisition to significantly increase Steadfast's international presence and distribution platform
  • Immaterial consideration paid
  • Minimal impact on short term revenue and earnings
  • Steadfast's current operations in Australia, New Zealand, Asia and London (wholesale) to continue unchanged

About unisonBrokers

• Established in 2005 with headquarters in Hamburg, Germany and an office in Chicago, USA

• One of the world's largest general insurance broker networks1

• Worldwide network across 130 countries across 6 continents

• Brokers able to offer multi-jurisdictional coverage to their clients by leveraging network's global presence

• 200 brokers

• 130 countries

• $US17 billion of GWP written across the network

1 Finaccord – "Global Insurance Broking: A strategic review of the world's top 150 commercial non-life insurance brokers market report", (11/2016).

unisonsteadfast

Access to new global markets

unisonBrokers network

• Similar structure and management culture to Steadfast Network
• Central coordination supporting seamless transactions, compliance and reporting across borders
• Provides some products and services to brokers
• Earns membership fees from member base

unisonBrokers global network

• Leverage unisonBroker's global reach and Steadfast's experience in providing products and services to support the network
• Steadfast Group to join unisonsteadfast network to facilitate access to international markets for Steadfast Network brokers and underwriting agencies
• Medium term strategy
  • develop new revenue streams by providing additional products and services
  • consider acquiring equity holdings in suitable brokers in the network

Acquisition and integration strategy

Jeff Papps – EGM, operations & acquisitions

Role of team Acquisition and integration strategy

• Source and perform due diligence on potential acquisitions of brokers and underwriting agencies both inside and outside the network using our in-house team
• Transition new entities into the Steadfast operating group
• Support mergers, hubbing and joint ventures within our current entities to drive operational improvement
• Assist equity broker / underwriting agency management with strategy, business planning and operational issues, including performance improvement and succession planning
• Ongoing overview of performance via monthly reporting

Acquisition and integration strategy

Disciplined process and criteria

• (1) Meet with potential partners to evaluate cultural and strategic fit (2) Discuss the principals' vision, motivation to sell and timing (3) Consider how can Steadfast as a partner add value to the business (4) Is combining with an existing entity most appropriate? (5) Analyse the financials and propose a non-binding valuation (6) Perform due diligence including financial, legal and tax (7) Close the deal
  • (8) Transition the business into the family

Acquisition and integration strategy

Mergers and bolt-ons – broker examples

Blend insurance solutions

Chris Newing, CEO

Blend insurance solutions

Accident and health underwriting agency

• Launched in May 2017
• 50:50 joint venture between Steadfast Underwriting Agencies and Advent
• Secured renewal rights to Beazley's local accident and health portfolio
• Key staff from Beazley have joined Blend to facilitate renewal of policy portfolio
• Approved Lloyd's syndicate service company via Advent

Blend insurance solutions

Driven by technology and analytics

Blend will be an 'Insight-Driven Organisation' (Deloitte IDO Form Insight to Action, April 2015) by implementing an analytics function that will support our decisions and what we do

UAA update and international strategy

Michael Murphy, CEO

Company history UAA update and international strategy

• Founded in 1972 in Newcastle, NSW
• Transformed into an underwriting agency in 1988
• Specialises in mobile plant protection
• 1 July 2008, purchased by QBE due to its specialist skills but remained as an independent operating underwriting agency maintaining its brand and ability to be nimble and productive
• 1 April 2015, purchased by Steadfast Group
• 10 year distribution agreement signed with QBE (Australia New Zealand and Singapore)
• Steadfast sold 10% to the UAA management team

UAA update and international strategy

International expansion

• Services and expertise across several international markets
• Expanding agency network off the back of established QBE relationships and Steadfast distribution

• UAA operations in Australia, New Zealand and Singapore
  • 52 staff in offices in Newcastle (head office), Sydney, Brisbane, Perth, Melbourne, Adelaide, New Zealand and Singapore
  • Canada next for international expansion
• Expansion opportunities also include Indonesia, Malaysia and Philippines (all UAA branded)
• QBE branded products supported by UAA's IP Chile, Hong Kong, Macau, Brazil, Mexico, Colombia, Ecuador, Argentina, Puerto Rico, PNG, Fiji and Solomon Islands

Current trading UAA update and international strategy

• International expansion continues with New Zealand business particularly strong
• Australian business receiving commercially responsible rate increases
• Policy count continues to grow
• Infrastructure spend on the east coast, notably NSW, with State Premier indicating 10 years of spend, West Connex, North Connex and Badgerys Creek airport
• UAA Queensland named 'Underwriting Agency of the Year' by the Council of Queensland Insurance Brokers (CQIB) 9 years in a row

London binder

Simon Lightbody – CEO, Steadfast Underwriting Agencies

Main objectives London binder

Consolidate existing London placements

• 16 binders into 1 super binder

SME products across property, liability & professional indemnity

Create a platform for London to take part in the Steadfast Client Trading Platform (SCTP)

• Capacity
• Product
• Commission

SCTP opportunity London binder

London binder is available on SCTP portfolios

• Business pack
• Professional indemnity
• Public/products liability
• Property (ISR)
• Commercial motor (panel finalised)

Client benefits

• Price

• More competitive premiums through portfolio pricing

• Product

• Access to enhanced best-inclass wording consistent across all participating insurers

• Service

• Enhanced response times though bespoke pricing and placement IT platforms

Insurer benefits

• Risk diversity

• Access to portfolios with diverse risk characteristics across industry occupation and geography

• Critical mass

• Access to portfolios with substantial volume of risks

• Distribution

• Access to the largest general insurance broker network in Australia1

London binder

Multi-jurisdictional opportunities

© 2017 Steadfast Group Limited | 51

London binder

Premium % placed into Lloyd's Asian hubs1

Focused on Singapore as it's an important underwriting hub for Lloyd's

1Source: 2016 Risk Registration, Lloyd's.

Steadfast Re

Simon Cloney – CEO, Steadfast Re

Background Steadfast Re

About us

• Steadfast Re launched in August 2014 as a 50/50 joint venture between the Steadfast Group, Simon Cloney and the ex-Management team of Beach Sydney Office (Beach was a Canadian reinsurance broker)
• Team of 20 specialising in treaty and facultative reinsurance, wholesale insurance solutions and analytics
• Operating from Steadfast head office fully embedded in-house reinsurance broker for the Steadfast Network and Steadfast Group

Role in Steadfast Group

• Reinsurance solutions for Steadfast Underwriting Agencies (SUA)
• Co-broker with JLT on the SUA London binder
• Wholesale insurance solutions for the Steadfast Network brokers through our partner, Steadfast Placement Solutions
• Analytics and actuarial analysis on large projects including SCTP
• Reinsurance solutions for SCTP facultative and treaty products

Steadfast Re

Reinsurance solutions for SCTP

350+ Steadfast brokers

London office Steadfast Re

Why have we opened a London office?

• Access to the Lloyd's London and European insurance and reinsurance markets
• Significant number of Steadfast members use Lloyd's – we provide a home-from-home and an in-house Lloyd's broker option
• Part of our international growth strategy

Office location in London

Our London capabilities

• Team of 4 front office reinsurance staff, with 6 staff in compliance, claims and technical support
• We plan to expand our wholesale broker and placement capabilities in London through our Steadfast Placement Solutions operations

Steadfast Placement Solutions Steadfast Re

• Steadfast Placement Solutions (SPS) deliver exclusive tailored wholesale insurance solutions to both Steadfast insurance brokers and underwriting agencies
• Assist in complex and harder to place risks, alongside schemes and facilities
• A large portion of these risks are placed in the Lloyd's market

Expansion into London to support the Network brokers

Building facilities to provide the Steadfast brokers with more direct options into the London market

Hiring London based SPS placement brokers

Keeping risks and information in the Steadfast family

What is a wholesale broker?

• Wholesale brokers act on behalf of the retail broker to assist with advice, placement and administration of risks
• These risks are ordinarily harder to place or more complex and the wholesale broker uses their expertise to access markets, often international including Lloyd's
• A wholesale broker does not deal directly with the insured
• SPS is a dedicated, exclusive resource for Steadfast Network brokers

Key points Steadfast Group investor day

1. Broker services

• Brokers are joining the Steadfast Network as it has over 160 services available
• Marketing and administration support is helping them sell

2. Steadfast Client Trading Platform

• Steadfast Client Trading Platform is improving product offerings for clients and driving efficiencies for brokers and insurers
• Powered by the Steadfast Virtual Underwriting and seamlessly integration with Insight

3. International growth strategy

• Successful roll-out of Steadfast Network model in New Zealand and Asia
• unisonsteadfast provides true international presence and growth platform
• 4. Steadfast Underwriting Agencies
  • London binder continuing to build momentum and can be rolled out across international platforms
  • Growth strategies for existing agencies with opportunities to enter new markets

Q&A