L O C K T O N C O M P A N I E S , L L C
Lockton—Delivering Results
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The Lockton Story
Jack Lockton (1942-2004)Founded Lockton Companies—
1966
S I M P L E I D E A —
B U I L D T H E B E S T
“All we have to sell are the
teams that serve our clients: Their attitude, their
passion, their caring,
their skills, and their brain power.”
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Lockton at a Glance
15,000+ clients$16+ billion in premium placed
95% client retention$836 millionin revenue
4,100+ Associates Founded 1966
55 officesHeadquarters: Kansas City, MO
North America, Europe, Latin America, Asia Pacific, and Middle East
Largest independently owned broker in the world
To be the worldwide value and service
leader in insurance brokerage, employee benefits, and
risk management.
O U R M I S S I O N
To be the best place to do
business and to work.
O U R G O A L
L O C KT O N FA C T S
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Serving Clients Around the World
25 U.S. offices
Headquarters in Kansas City
30 offices throughout Europe, Latin America, Asia Pacific, and Middle East
Recently licensed in China and Dubai
Serve clients in virtually every country
Lockton Companies, LLC U.S. Office Locations
Fairfax
Minneapolis
Kansas City
Chicago
St. Louis
Atlanta
Dallas
Denver
Las Vegas
Phoenix
San FranciscoSan Jose
Los AngelesIrvineSan Diego
San AntonioHouston
South Florida
Washington, D.C.
New York
Hartford
CharlotteMemphis
Lockton Companies, LLCGlobal Presence
Strategic PartnershipsOwned Offices and Equity Relationships
L O C KT O N FA C T S
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2003 2004 2005 2006 2007* 2008 2009 2010 2011 Proj. 2012
$254
$303$345
$409
$629
$700$730
$770
$836$867
Lockton—A Performance and Growth Culture
Revenue—All Operations(Fiscal Year Ends April 30)
2010 $770,327,000
2011 $836,128,000
Projected 2012 $867,000,000
* Includes International Acquisition in Fiscal 2007.Fiscal 2009 and 2010 revenue adjusted to eliminate foreign exchange fluctuations.
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A Global Competitor
Top 10 Global Brokers Ranked by
Source: Business Insurance, July 2011*Indicates Lockton’s official revenue; reported in Business Insurance (BI) as $826.9 million.Note: BI subtracts investment income and other revenue.
TOTAL REVENUE
1. Aon Corp. $ 10.6 billion
2. Marsh & McLennan Cos. Inc. $ 10.6 billion
3. Willis Group Holdings P.L.C. $ 3.3 billion
4. Arthur J. Gallagher & Co. $ 1.8 billion
5. Wells Fargo Insurance Services Inc. $ 1.7 billion
6. Jardine Lloyd Thompson Group P.L.C. $ 1.1 billion
7. BB&T Insurance Services Inc. $ 1.1 billion
8. Brown & Brown Inc. $ 966.9 million
9. Lockton Companies $ 836.1 million*
10. Hub International Ltd. $ 761.6 million
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Strong Client Relationships = Revenue Growth
L E A D I N G O R G A N I C G R O W T H
Aon
0%
Marsh
3.0%
Willis
4.0%
Lockton
8.5%
Source: Hale’s Report, Lockton data, 2011
85%
IndustryAverage
95%
Lockton
U N PA RA L L E L E D C L I E N T R E T E N T I O N
Source: Lockton Data & Agency Consulting Group Report 2011
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Why Lockton’s Business Model Benefits Clients
ORGANIC GROWTH
Two times organic growth of nearest global competitor
95 percent client loyalty
We do what we say we will do
CLIENT TEAMS MAKE DECIS IONS
Empowered and accountable client advocates
Resources allocated locally
No “permission from headquarters” required
Speedy answers
PRIVATE AND INDEPENDENT
Focus on clients, not investors and analysts
Long-term decision making = stability
Flexible and responsive
Passion for service
FLAT ORGANIZATIONAL
STRUCTURE
20 to 30 percent more invested in “front-end” client service
Stable, senior teams learn and know your business
Easy client access to experts
Uncommon results in a
most common business.
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A Service Team Built Around Your Needs
Property Experts
Loss Control
Consultants
Claims Executiv
eClaims
Cost Control Experts
Risk Management
Experts
Surety Bond
Experts
Mergers & Acquisitions Experts
Lockton Financial Services Experts
Industry Experts
Account Executive
Client
Commercial Insurance Departmen
tIndustry Team
Executive Risk
Loss Control
Claims Manageme
nt
Claims Cost
Control
Mergers&
Acquisitions
Surety
Risk Manageme
nt
Global PropertyPractice
Unit Manager
Financial Solutions
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Lockton Services
EMPLOYEE BENEFITS
COMMERCIAL INSURANCE
SURETY
RETIREMENT SERVICES
AFFINITY PROGRAMS
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AUTOMOTIVE FOODSERVICE PRIVATE EQUITY
AVIATION HEALTHCARE PROFESSIONAL SERVICES
CONSTRUCTION HOSPITALITY RETAIL
ENERGY AND POWER LAW FIRMS REAL ESTATE
FINANCIAL INSTITUTIONS
MANUFACTURING STAFFING AND EMPLOYEE LEASING
ENVIRONMENTAL MARINE TECHNOLOGY
FOOD PROCESSINGAND DISTRIBUTION
NONPROFIT/ RELIGIOUS
ORGANIZATIONSTRANSPORTATION
Lockton Industry Expertise
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Reducing Your Total Cost of Risk
WE LIVE SERVICE!® by:
Planning your program
Marketing your program
Controlling your losses
Managing your program
85%
15%
Losses
Variable Insurance Costs
Fixed Insurance CostsTo
tal C
ost o
f Risk
Lockton Loss Control, Safety,and Claims Management Programs
Less More
Sustainable change:
the key performance.
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Your Broker’s Role
H O W W E D O I T
To be the worldwide value and service
leader in insurance brokerage, employee benefits, and
risk management.
O U R M I S S I O NP E R F O R M A N C E
E X P E RT I S EPA S S I O N
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Lockton
MS NationalEmployer of the Year
A PA S S I O N F O R O U R C O M M U N I T I E S
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CULTURE IS THE BEDROCKOF WHAT WE’RE ABOUT
Lockton—A “Best Place to Work”
AUTONOMY
OPPORTUNIT IES
TEAMWORK & ASSOCIATE
DEVELOPMENT FOCUSED ONSERVIC INGOUR CL IENTS
A culture thatattracts attention
and talent.
ENERGY
ENTHUSIAST ICEFFORT
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The Lockton Philosophies
L O C K T O N C O M PA N I E S W I L L :
Be committed to the highest standards of excellence in everything we do.
Practice the Golden Rule and sustain a highly ethical, moral, and caring culture.
Recognize our Associates as our most valuable assets.
Provide opportunity and support to allow all Associates to grow, improve, and achieve their ultimate potential.
Recognize and substantially reward exemplary Associate performance.
Respect, value, and nurture each of our client and carrier relationships.
Be composed of people who demonstrate a passion for
delivering unparalleled service—internally and externally.
Make a recognizable difference to our client’s business through innovative solutions to meet their insurance needs.
Be proactive in sustaining a meaningful corporate social and civic responsibility.
Maintain our independence and private ownership.
Manage our business for consistent and orderly growth.
Be a fiercely competitive and aggressive sales organization.
Generate fair and healthy financial returns.
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Our Mission
To be the worldwide value and service leader in insurance brokerage, employee benefits, and risk management
Our Goal
To be the best place to do business and to work
www.lockton.com
© 2011 Lockton, Inc. All rights reserved.Images © 2011 Thinkstock. All rights reserved.