MGA Model Evolution in Asia

Roland Berger For MGAs in Asia should note that a sizable competitor with large. ambitions is expanding in the region as well Case study on Nexus Overview Key success factors % nexus > Presence in Europe, Buy and USA, China (inc. Hong Kong build over > Nexus has preferred acquisitions fuel growth, from 2014 to 2019, organic growth Singapore, Malaysia > Founded in 2008 > Offers insurance on accident & health, surety, travel, latent defect, marine and aviation, financial lines and trade credit >>USD 400m gross written premium "Aims to be the largest specialty MGA in Asia, achieving USD 50m in GWP" maintaining profit margins Partnerships with underwriters via brokers - Nexus's EBITDA grew from USD 3m to USD 18m in 2019 - Nexus completed ~19 acquisitons - Nexus's EBITDA to gross written premium margins maintained at 4-5% consistently > Funds mainly came from investment firms such as B.P. Marsh & Partners, an investor in early stage financial services businesses (~19% shareholding stake in Nexus) Nexus partners with more than 30 specialist underwriters to support product offerings Distribution > Brokers are a key distribution channel for Nexus e.g. started Xenia Broking Group and acquired Credit & Business Finance (a specialist insurance broker) in 2019 > As Nexus turn it's growth ambitions to Asia, we expect Nexus to continue acquisition and drive growth aggressively Nexus acquired a Malaysia-Based Structured Solutions Specialist (Huntington Underwriting) in 2018 Source: Nexus Underwriters, Press News, Roland Berger 20200525_MGA model evolution Asia_vf.pptx | 34

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