H.W. Kaufman Group Q2 Report

Q2

QUARTERLY REPORT

ALAN JAY KAUFMAN Chairman, President and CEO H.W. Kaufman Group

The first half of 2023 concludes on the heels of significant momentum across H.W. Kaufman Group. We have proudly accelerated our talent acquisition strategy, developed and implemented proprietary technology solutions, harnessed the very best of our expertise around the world and driven consistent double-digit growth.

As market conditions remain challenging, our carrier partners are placing additional confidence in our professionals. Insurance brokers and agents are correspondingly seeking the counsel offered by our sector-specific specialists.

Kaufman is built for the long-term, with a vision for decade-over-decade growth. Our financial strength and freedom provide increased flexibility to continue investing in Kaufman Companies worldwide. Importantly, our culture and commitment to professional growth enables Kaufman associates to develop their careers in a welcoming and inclusive environment where they are performing at their best.

The following outlines our financial results from Q2, along with an overview of Kaufman’s ongoing competitive strengths. We are pleased by what we have accomplished through the first six months of the year and remain bullish on the opportunities in the months ahead.

SECURING STRONG FINANCIAL RESULTS

• Burns & Wilcox, Burns & Wilcox Brokerage and Burns & Wilcox Canada all concluded the second quarter with outstanding production levels as we continue to drive competitive separation through our team’s extensive expertise and depth of market relationships.

• Burns & Wilcox U.K. is securing consistent growth through new and innovative products and programs that are offsetting capacity constraints felt by the industry overall.

• RB Jones, Kaufman’s destination for specialized solutions, is demonstrating tremendous growth across its Property, Marine & Energy and Professional Liability teams.

• Kaufman’s U.K., European and South American companies collectively are delivering double-digit growth compared to Q2 2022.

• Atain is advancing on its growth trajectory, driven largely through the increased writing of Liability, Professional, Brokerage Casualty and Marine Cargo risks.

• Stonemark continues to build its competitive advantage within premium financing, building sizable growth within loan count and the amount financed per loan. Given ongoing economic uncer tainty, we expect Stonemark to remain a valuable asset to our brokers and agents and their clients.

COLLABORATION

• Burns & Wilcox established a centralized Claims group two years ago, and today the team has reached a milestone of assisting with 7,500 claims, expecting to surpass 10,000 by year end.

• Through consistent and timely reporting, the team handles approximately 400 inquiries per month including requests for claim acknowledgments, claim status, coverage disputes and claim updates from carrier partners and TPAs.

• A CAT Task Force was also built to immediately respond when claims spike following catastrophes, quickly deploying a group of associates who are trained to assist the core team during these peak periods.

• Burns & Wilcox and RB Jones are working together to deliver unique solutions for Marine Liability, Temperature Sensitive Cargo and Professional Liability risks.

• Burns & Wilcox has partnered with the RB Jones Marine & Energy team to offer an innovation solution for solar installations. The product can be tailored to individual projects or large-scale portfolios.

• We expect Burns & Wilcox and RB Jones to continue aligning on new product development, specifically designed to close market gaps and capacity issues going forward.

• As capacity remains constrained in areas such as high-value homes in certain geographies, Burns & Wilcox is teaming with Stonemark to step in with premium financing for insureds. Many carriers are moving away from offering their own financing and are pleased with the seamless ability of Burns & Wilcox and Stonemark to deliver a solution.

• Globally, our teams are delivering important solutions enabling businesses to succeed in the face of macro-economic challenges. In the U.K and Europe, Chesterfield is providing coverage for clients operating amid political unrest. Lochain Patrick, among its many marine solutions, is working with clients to ensure they have the protection required for traversing global shipping lanes.

ADDING TOP TALENT TO EXTEND OUR LEADERSHIP POSITION

• Through Q2, Kaufman has added nearly 300 associates worldwide, with professionals attracted to our independent ownership and commitment to sustainable success.

• Given the important role technology is continuing to play within our strategic vision, Kaufman elected Chris Randazzo to our Board of Directors at our June meeting. Chris is a seasoned and accomplished executive with extensive expertise as a Chief Information Officer (CIO) at renown financial institutions, including Morgan Stanley and Merrill Lynch Global Wealth & Asset Management. Chris is working closely with Kaufman CIO Rich Fusinski and leading a Board Technology Subcommittee focused on overseeing technology investments and proprietary product development.

• David Janis recently joined our team as General Counsel. He is serving as a member of Kaufman’s executive leadership team, advising on key legal and business, while building a responsible and responsive framework for strategic risk approach and mitigation. Previously David spent four years as Associate General Counsel at Rocket Mortgage in Detroit.

• Burns & Wilcox has named Bob Quillman as Regional Vice President, Texas. Bob is responsible for the performance of the Burns & Wilcox Dallas/Ft. Worth, Houston and San Antonio offices, focused on aggressively growing our presence throughout the state. Bob brings more than 30 years of experience, recently leading national and regional sales teams at Kemper Insurance.

• At Atain, Linc Trimble has come aboard as the company’s Chief Underwriting Officer. Linc joins Atain with more than 35 years of expertise, with significant experience in senior underwriting and executive leadership roles. Most recently he served as the CEO of StarStone U.S., after founding StarStone’s Excess Casualty division and serving as Global Head of Casualty. At Atain, Linc is responsible for driving our underwriting strategy as we continue expanding Atain’s capabilities, including Primary Casualty, Professional Liability and Excess Casualty.

Today, Kaufman is operating with the full support, confidence and trust of our clients and carrier partners. Our professionals are focused delivering needed solutions for clients in an evolving risk climate. Across our global operations, we are leaning into new product offerings, deepening our bench strength and maintaining an aggressive pursuit of new and retained business.

Kaufman also expects to continue building our global footprint through the acquisition of talent, teams and companies that expand our reach, extend our capabilities and elevate our competitive position.

Our ongoing appreciation to clients, partners and Kaufman associates for a collective commitment to excellence. Here’s to much success in the next six months and beyond.

AWARDS & RECOGNITIONS

Insurance Business America

Elite Woman 2023

Jenny MacKay, Senior Director, Digital Transformation, H.W. Kaufman Group

Insurance Business America:

5-Star Whole Broker and MGA

Burns & Wilcox

Insurance Business America:

5-Star High Net Worth

Burns & Wilcox

Insurance Business America:

5-Star Non-Profit

Burns & Wilcox

H.W. KAUFMAN GROUP