National Atlantic Holdings Corp
National Atlantic — Sandler O'Neill & Partners Financial Services Conference 2005
18 slides from National Atlantic's conference presentation, Jun 8, 2005
Slide 1: Sandler O'Neill & Partners Financial Services Conference June 8 & 9, 2005
Sandler O'Neill & Partners, L.P. Financial Services Conference June 8 & 9, 2005
Slide 2: James Gorman, Chairman and CEO: Introduction
James Gorman Chairman and CEO Introduction
Slide 3: Forward-Looking Statements
Forward-Looking Statements Some of the statements in this presentation may include forward-looking statements which reflect the Company's current views with respect to future events and financial performance. These statements include forward-looking statements both with respect to the insurance sect
Slide 4: Overview of Our Business
Overview of Our Business Riverview NAIA Mayfair Re Proformance Insurance Company National Atlantic Holdings Corporation We specialize in personal lines property & casualty insurance, predominantly automobile insurance, in the State of New Jersey We distribute exclusively through independent agencies
Slide 5: Investment Highlights
Investment Highlights Distribution through Shareholder Agents Aligns Underwriting Interests Dedicated Management Team with Ownership Stakes Capitalize on Dynamic Market through Localized Knowledge Packaged Product Offering Creates Competitive Advantage Other Subsidiaries Provide Related Fee-Based In
Slide 6: Culture of Investor Focus
Culture of Investor Focus (1) Includes directors who are Partner Agents. (1) Active shareholders in governance since inception ROE, shareholders' equity and net income growth remain core focus Board of Directors 7-person board of directors with significant industry experience Majority independent in
Slide 7: New Jersey's Attractive Demographics
Sources: The U.S. Census Bureau 2003 American Community Survey. NAIC, based on premiums charged in 2002. For 2000-2001, according to The National Board on Educational Testing and Public Policy A.M. Best Company, Inc. for 2003. Estimates of personal income for 2002 from the Bureau of Economic Analysi
Slide 8: Customized Packaged Product Offering
Focus on target (better) market Higher renewal retention Very convenient: Difficult for competitors to replicate Customized Packaged Product Offering One Policy, One Bill Property, Auto, Boat, Umbrella "High Proformance Policy"
Slide 9: Appealing New Jersey Product Offering
Auto Home Excess Guaranteed RC (auto and home) Packaged Flexible Format Appealing New Jersey Product Offering Direct Channel Independent Agent Channel ? ? ? ? ? ? ? ? ? - ? ? ? - ? ? ? - - ? ? - ? ? - - - - ? - - - ? - - - ? - - - - - - - ? - - - - - - - ? - - - Chubb Single Bill Mercury General Tra
Slide 10: The Partner Agent Advantage
The Partner Agent Advantage NAHC's Current Fully-Diluted Ownership Partner Agent Holdings East 61 14.7 Direct Partner Agents Other Agents East 43 20 37 New Jersey P&C Market - Distribution Channel 2003 Direct Written Premiums = $14.0B (1) (2) Sources: (1) Form S-1. (2) A.M. Best and company survey.
Slide 11: The Growth Opportunity Within Our Ranks
The Growth Opportunity Within Our Ranks Partner Agents NAHC Other Carriers East 5.3 94.7 Notes: (1) A.M. Best data includes all P&C lines of business for 2003. (2) Channel distribution based on the insurance company primary distribution channel in 2003. (3) Partner Agents' market share based on Comp
Slide 12: With Growth Comes Increased Pricing Sophistication
With Growth Comes Increased Pricing Sophistication Number of Pricing Points has increased dramatically 2000 2001 2002 2003 2004 Pricing Points 468000 468000 937000 937000 2812000 Written Premium 24691720 27025488 88191684 136420950 175929436 Premiums (Millions) Pricing Points (Millions) Territory Cl
Slide 13: Impact of RCTs on Claim Frequency
Impact of RCTs on Claim Frequency 2000 2001 2002 2003 2004 Company 0.0262 0.0255 0.0257 0.026 0.0241 Industry 0.0305 0.0281 0.0272 0.0262 0.0251 Accident Year PIP Claim Frequencies
Slide 14: GAAP Financial Highlights
2002 2003 2004 161.2 266.7 347.2 GAAP Financial Highlights (In millions) 2002 2003 2004 99.4 163.7 208.672 Total Revenue Net Income Total Assets 2002 2003 2004 8.6 19.1 17.4 (In millions) (In millions) 2002 2003 2004 18.1 49.8 67.8 (In millions) CAGR: 44.9% Shareholders' Equity(1) CAGR: 46.8% CAGR:
Slide 15: Dynamic Growth in All Major Segments
Dynamic Growth in All Major Segments Segments Segments
Slide 16: The Growth Road Map
The Growth Road Map Focus on the New Jersey Market Capture a Larger Share of Our Partner Agents' Business Convert Single Coverage Policies into Our Packaged Policies Market the Services of Our Non-Insurance Subsidiaries to Third Parties
Slide 17: Investment Highlights
Investment Highlights Distribution through Shareholder Agents Aligns Underwriting Interests Dedicated Management Team with Ownership Stakes Capitalize on Dynamic Market through Localized Knowledge Packaged Product Offering Creates Competitive Advantage Other Subsidiaries Provide Related Fee-Based In
Slide 18: Sandler O'Neill & Partners Financial Services Conference June 8 & 9, 2005
Sandler O'Neil & Partners, L.P. Financial Services Conference June 8 & 9, 2005
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