PSC has a proven track record in business acquisition, establishment and turnaround in the insurance services industry. The PSC Group comprises a portfolio of businesses ranging from start-ups to mature businesses. PSC has an experienced team of insurance practitioners, with broad skill sets, at both Board and Executive level. These are utilised across the different businesses to leverage efficiencies and opportunities.
PSC operates a diversified insurance intermediary business with operations and revenue in Australia, New Zealand and the United Kingdom. Using FY2015 revenue as a guide, the concentration of revenue across jurisdictions is Australia approximately 66.0%, United Kingdom approximately 33.3% and the balance from New Zealand.
The PSC Group’s principal businesses within the general insurance market comprise:
- insurance broking;
- an Authorised Representative network (PSC Connect);
- reinsurance broking;
- underwriting agencies; and
- wholesale insurance broking in the United Kingdom
Using FY2015 revenue as a guide, the concentration of revenue across business units is insurance broking 48.2%, Authorised Representative network 6.5%; reinsurance broking 14.2%, underwriting agencies 15.6% and wholesale insurance broking in the United Kingdom 13.2%.
The PSC Group also operates complementary businesses including life insurance broking, on-line direct general insurance and third party claims management. Using FY2015 revenue as a guide, the concentration of revenue across these businesses is 2.3%.
The Company does not take underwriting risk but maintains relationships with many insurers in Australia, New Zealand and the United Kingdom.
The PSC Group conducts its business through a number of separate licensed subsidiaries and also operates, through PSC Connect, an Authorised Representative network in Australia and New Zealand which are independent businesses operating under particular PSC Group licenses.
The PSC Group has a diverse client base. It predominantly services the insurance needs of SMEs. These clients have access to the full range of business services offered by the PSC Group. The PSC Group also services other insurance brokers through its United Kingdom broking and underwriting agency operations and services insurance carriers by way of their reinsurance operations.
Growing a diversified business
PSC started out as a single insurance broking business with five employees in 2006. It is now a highly diversified business evidenced by a portfolio of over 50,000 clients, serviced by over 250 employees, across three countries, through a number of business units.
Experienced Board & management
PSC has an experienced team of insurance practitioners with broad skill sets at Board and Executive level which is utilised across the different business units to leverage efficiencies and opportunities.
Growth by acquisitions
PSC has had an established history of acquiring, enhancing, integrating and turning around businesses across Australia and the United Kingdom to create a growing earnings base. PSC continues to actively identify acquisition opportunities and assess whether they meet PSC’s acquisition criteria and are consistent with the PSC Group’s strategy.
Organic growth of existing businesses
Businesses under PSC’s ownership experience organic growth in revenue and earnings. All businesses in the PSC Group have experienced revenue or profit growth within three years of acquisition.
Culture of client focus
The management of PSC prides itself on its culture of client focus. This culture ensures that clients are the focus of everything they do, from exceptional client service to providing innovative and value added advice and products.
Attractive industry and growth opportunities
The global general insurance market is large and remains highly fragmented, which provide significant opportunities for consolidation. PSC is constantly assessing organic and acquisitive opportunities to grow the Company’s profitability in Australia, New Zealand, the United Kingdom and other foreign jurisdictions.
Establishing new businesses
PSC has a history of investing in start-up businesses based on an assessment of market opportunities and trends and client needs. PSC intends to continue investment in business opportunities where the opportunity meets its strategic criteria.
Alignment of ownership
The Company has a strong culture which has an embedded equity ownership philosophy. This ownership by the founders of the Company (who will retain 61.8%% after the listing), key executives and staff, creates strong alignment of stakeholders. The Company believes the Roll-up will further strengthen this alignment.
Ability to realise synergies through business combination
A particular benefit from the PSC Groups large number of businesses is the opportunity to realise synergies through business combinations. The types of synergies that are available to PSC Group include enhancing the scale and negotiating position of individual businesses within the PSC Group as well as the centralisation of certain activities consistent across many of the underlying PSC Group businesses.