Surety 101: You Sell What

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Surety 101 You Sell What?
Presented ByJon Schroeder
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Surety 101
How much surety premium is written annually in
the United States?
A. 1,500,000,000
C. 5,000,000,000
B. 3,400,000,000
D. 6,800,000,000
5050
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Surety 101
How much surety premium is written annually in
the United States?
A. 1,500,000,000
C. 5,000,000,000
B. 3,400,000,000
D. 6,800,000,000
5050
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Surety 101
How much surety premium is written annually in
the United States?
C. 5,000,000,000
B. 3,400,000,000
5050
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Surety 101
At average commissions of 20, that means we are
talking about a 1,000,000,000 niche of the
brokerage industry.
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Surety 101

• Are you getting your piece of the pie?

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Agenda

• What are Surety Bonds?
• Contract Versus Commercial Bonds
• What AJG Surety Does Best
• Success Stories

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Surety 101

• What is Surety?
• Surety is a 3-party agreement between the
  principal (client), obligee (entity requiring the
  bond) and surety (insurance company)
• Not a transfer of risk principal of indemnity
• A guarantee to perform an underlying contract or
  obligation

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Surety 101

• Surety Marketplace
• Focus on strict underwriting, adequate premiums
  and capacity
• Continued consolidation of surety markets
• SAA Top 25 constantly evolving
• Requirements include CPA prepared financial
  statements continuity plans and complete
  disclosure of internal controls
• Bonds are now the privilege of the chosen few
  versus the right of the masses

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Surety 101
State of the Union
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Surety 101

• Contract Bonds
• The Obligation
• Bid vs. Performance and Payment Bonds
• Commercial Bonds
• The Obligation
• Bond Types
• License Permit
• Court Bonds
• Financial Guarantee
• Supply
• Subdivision

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Surety 101

• Contractors
• Sales of 10M and greater
• Ability to generate 5,000 in AJG Surety Income
• Steady User of Bonds
• Any Type of Trade Contractor

• Commercial
• Fortune 1000 Companies
• Suppliers with Public Contracts
• Appeal and Court Bonds
• Home Builders/Developers
• Public Official

Target Account Profiles
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Surety 101

• What We Do Best
• Expand existing surety programs
• Knowledgeable staff with underwriting experience
• Over 150 years of combined experience
• Negotiate with surety markets for best terms and
  conditions
• We work for the client
• Use technology to streamline the surety process
• SurePath System

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Surety 101

• What We Do Best
• Responsiveness
• Most bond requests get issued within 24 hours
• Dedicated Staff of 15 specialists
• Create partnerships
• Open communication between the client, surety
  and broker
• Open Doors
• Solve Problems that lead to other opportunities

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Surety 101

• Success Stories
• Covanta Energy
• North American Coatings
• JCI Jones
• Maverick Technologies

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Surety 101

• Points of Contact
• Owners, CFO, Treasurer and Risk Manager
• Typically the same decision makers that purchase
  the insurance coverages

We welcome the opportunity to cross-sell!
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Surety 101

• What are Surety Bonds?
• Contract Versus Commercial Bonds
• What AJG Surety Does Best
• Success Stories

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Surety 101