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Farm Underwriting & Growth Strategy

Farm Underwriting & Growth Strategy. NICK KIRK CEO of Calliden Group. The strategy. ARGIS has undergone a review of the performance of its book and as a result, some elements of its strategy are changing so that ARGIS can become even more Farm Focused.

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Farm Underwriting & Growth Strategy

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  1. Farm Underwriting & Growth Strategy NICK KIRK CEO of Calliden Group

  2. The strategy • ARGIS has undergone a review of the performance of its book and as a result, some elements of its strategy are changing so that ARGIS can become even more Farm Focused. • This analysis revealed why certain sections of the ARGIS portfolio are performing poorly. • The worst performing section is ‘domestic dwelling’. • As a result, Calliden will be moving away from writing risks which are heavily weighted in domestic sections.

  3. Snapshot of UW performance Section performance since 2006 Property sections need to improve to achieve necessary returns

  4. The Risk Appetite • Our risk appetite will centre around providing a complete farm package: • for full time primary producers, excluding hobby farms (can-do occupations) • in specified farming areas (can do post codes) • A farm package is defined as having 5 or more qualifying sections, including Farmer’s Liability, with a minimum annual base premium of $1,500. • A $300 excess applies on the majority of sections * 5 sections is defined as: 4 qualifying sections + Farmer’s Liability

  5. Business we will be declining • Policies with non can-do occupations (including hobby farms); • Policies not situated in our can-do postcodes; • Existing policies with less than 5 qualifying sections. • Changes will be effective for new business with immediate effect and renewals from 28 November 2011.

  6. Impact to existing book ü ? û • CATEGORY 2 • >4 Sections no liability • 3 & 4 sections with liability • 3 & 4 sections without liability CATEGORY 1 Business with 5 or more qualifying sections incl. Liability • CATEGORY 3 • Hobby Farms • Non ‘Can Do’ • < 3 sections • Decline Postcodes

  7. The Rationale • A proportion of our existing business does not fit our risk appetite. • Business written since the farm centre started generally fits our risk appetite and our aim is to build on this recent success. • The strategy of exiting poor sections aligns with our new business strategy and allows us to send a clear message to the market.

  8. ARGIS is Farm Focused ARGIS Farm Extra is comprehensive and specifically designed to cover primary producer farming needs Our pricing model will ensure you receive a competitive quote Our risk appetites are defined – we want to write Farm packages ”Can-do” occupations and postcodes available – Try our eligibility tool to give you the benefit of knowing upfront Dedicated support team for farm queries – whether you are unsure if a risk fits our appetite or if you need support completing an online quote request, contact us and we will sort it out for you

  9. ARGIS is Straightforward We will provide fast turnaround on everything (quote request, queries, claims notification) – even in the event of declining a quote. One location meaning it simplifies the way we handle business, one phone number meaning all decisions and assistance are made from one place. New Online Quote Request – streamlined process, increased efficiency and less work for you. Fast track approach to claims under $5,000. We aim to invite renewals 6 weeks in advance.

  10. ARGIS Farm Extra product benefits* * Please see policy wording on ARGIS website for full terms and conditions. Automatic cover for new farm buildings up to $200k and alterations to existing buildings up to $50k with Farm Buildings Cover. Automatic farming interruption cover up to $10k, and livestock and goods in transit cover up to $20k with Farm Contents Cover. Temporary protection up to $3k, and locks and keys up to $3k with Farm Contents Theft Cover. Automatic cover for property in your physical or legal control up to $200k and animals in your physical or legal control up to $50k with Farmer’s Liability Cover. Worldwide accidental damage cover with Dwelling Contents. Automatic cover for personal effects up to 25% of the contents sum insured with a limit of $10k on any one item, pair or set with Contents of Dwelling Cover. New replacement vehicle for cars, trucks and utilities up to 7,500kg and up to three years old when travelled less than 50,000kms.

  11. ANYQUESTIONS ? ContactARGIS on 1300 794 364 Email argis@calliden.com.au Web www.argis.com.au Alternatively you can contact your Calliden Development Manager To find out the Development Manager for your region visit the Brokers & Advisers page on the Calliden website www.calliden.com.au

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