TrueNorth 2015 Annual Report

“

The reality of ‘true north’ gives context and meaning to where we are, where we want to go and how to get there.

Without a compass or stars or a correct understanding of our location, we may have trouble locating it

”

but it’s always there.

Stephen Covey

Welcome Since 2001, TrueNorth has focused on providing sound

under one roof to help our clients protect and maximize their

unwavering direction for our clients, employees, and market

assets, by utilizing our integrated solutions approach.

partners. Building upon our heritage, we provide a dynamic entrepreneurial operating platform that promotes a best in

TrueNorth has a big vision. We invite you to be part of it.

class experience. Our model has enabled us to more than

Please contact our team and let us know how we can best

quadruple our sales and expand our presence to over a dozen

serve you.

offices throughout the nation. In addition, our 20/20 Vision initiative establishes a goal of over $1 billion in premiums and

Sincerely,

growing to more than 400 staff members. Such growth-oriented goals allow us to reinvest in innovation, better support our team, provide top-notch customer service, and enjoy an advantage with insurance carriers.

Duane J. Smith President & CEO

Another focus at TrueNorth Companies is to attract, train and develop the very best team members. We believe “people will determine who wins.” Our ability to attract the best in our industry has led to a team of specialists working together

Dru Bridges

Chief Operating Officer

Bill Teubel

Chief Financial Officer

Duane Smith

President & CEO

Jason Smith

Executive Vice President

sound unwavering

Mission

“

To assist companies and people with protecting and maximizing assets, resources and opportunities.

Vision To build a legacy company with our entrepreneurial platform that attracts, develops and coordinates high performing talent and opportunities.

Direction

At TrueNorth, we strive to set the industry standard for excellence, transform the lives of everyone we encounter, and build an enduring legacy for our families and the communities we serve.

Duane Smith President & CEO

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Locations ∙ Cedar Rapids, IA Corporate Headquarters ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙

Arlington, TX Brentwood, TN Cedar Falls, IA Dallas, TX Des Moines, IA Des Plaines, IL Fort Worth, TX Grand Rapids, MI Longmont, CO Moline, IL Overland Park, KS Peoria, IL

Celebrate National Awards

Regional Recognition Regional awards as voted in 2015 by

Marsh Berry 0 P/C Age 10

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Top

Outstanding Agency Performance

★

★

★★

★

2015

★

Insurance Journal

#50

• Top 100 Independent Agency

Business Insurance

#64

• Brokers of U.S. Business Top 100

Inc. 5000

#3,853

• Fastest Growing Private Companies in America

Corridor Business Journal readers in the Cedar Rapids/Iowa City area.

• • • • •

Fastest Growing Company Largest Privately Held Best Property/Casualty Provider Best Life Insurance Provider Best Investment Firm

Profit will determine

who exists.

Technology will determine

who competes.

Quality will determine

who grows.

People will determine

who wins.

TrueNorth Founding Principals, 2001

Individual Honors Loren Coppock

Matt Evans

Recognition of outstanding service during Flood of 2008,

John P. Northcott Award, United Way of East Central Iowa.

Mercy Medical Center.

Kirsten Eddins Recognized as a Forty Under 40 honoree by the Corridor Business Journal.

Linsey Eiben Awarded the National Alliance 2015​Iowa Outstanding CSR of the Year.

Alexis Guinta TrueNorth’s 2015 TrueBlue Award winner.

Meeker-Magner Chubb Cornerstone Agency Award.

Russ Nieland & Charlie Weber Patriot Award, The Iowa Employer Support of the Guard and Reserve (Iowa ESGR).

$560,000 donated in 2015

y Dynamic Culture At TrueNorth, we strongly believe that having a dynamic

encourage community involvement as a company and on an

culture is just as integral to our success as having a healthy

individual level. At our headquarters, we also facilitate an

financial picture, business strategy or positive client

annual week-long campaign for United Way of East Central Iowa,

experience. The best way to attract, develop and coordinate

which help raise funds for their affiliated agencies and human

high-performing talent is by offering a great place to work.

services programs.

“

We feel giving back and being good community citizens is a big element of corporate culture. Culture is as important to us as profit.

”

Duane Smith President & CEO

Philanthropy

Education We are proud to provide opportunities for employees to grow and develop their careers and personal lives through our educational platform based on trust. Through guest speakers, book sharing, licensing opportunities and more, our employees have had the opportunity to explore their passions and priorities and create their own path for success.

Wellness Nationwide, organizations are adopting corporate wellness

TrueNorth has been recognized across our region for our

programs to help their employees lead healthy, proactive lives.

charitable giving. We believe that we survive and thrive

We value these initiatives and take pride in implementing strong

personally and professionally when we help to build strong

corporate wellness programs across health, benefits and risk

communities. With that in mind, our offices support

management industries. Our own wellness initiative is led by

nonprofits across the nation through donations, activities,

TrueNorth’s Wellness Committee. Their monthly incentives

sponsorships and fundraising efforts. From sponsoring little

inspire personal accountability, environmental awareness and

leagues and kickball teams to getting more involved in area

personal growth and these efforts have helped our corporate

nonprofits like Boys & Girls Clubs of America, we value and

office achieve a “BlueZones Worksite” designation in 2013.

Growth Establishing a common vision for business development across our executive team and divisional leadership has

= 10 EMPLOYEES

been a critical part of our growth plans.

We have achieved sustainable growth of 15% year after year, while also meeting and exceeding goals set in other critical areas of our business platform.

From 10 profit centers and 91 employees in 2001, to more than 100 profit centers and nearly 300 employees in 2015, TrueNorth has met and exceeded growth goals. Due to this growth, we’re now building onto the rest of our headquarters for increased office space and creating plans for future expansion.

2001 91 EMPLOYEES

2016 270 EMPLOYEES

45

* NEW EMPLOYEES IN 2015

Divisional Leadership

Josh Budke

Executive Vice President Employee Benefits

Max Smith

Executive Vice President Risk Management

David Verhille

Executive Vice President Financial Strategies

Jason Smith

Executive Vice President Transportation

Risk Management TrueNorth's Risk Management team provides a strong and secure foundation for business growth and success across industries. Our team of industry specialists help organizations create customized solutions to compliment and reflect their unique work culture and growth plan.

Through our customized enterprise risk management process called “The Risk Defender,” we evaluate and avert threats from four distinct zones within any given business.

Max Smith Executive Vice President Risk Management

Alex Trunnell Vice President, Operations Risk Management

2015 Achievements

2016 Goals

•

Introduction of the Risk Defender platform, “An

•

Source $4M in revenue via acquisitions

Enterprise Risk Management Process,” Fall 2015

•

Provide integrated solutions via industry specialists

•

Now offering a Risk Solutions Advisor for loss control

•

Acquisition of Meeker-Magner of Des Plaines, IL

•

Use business intelligence to uncover issues and

•

Created a unique dividend payment program for Property and Casualty in the construction industry

9,328 3,880

Individuals Served in 2015

develop client solutions •

Businesses Served in 2015

Enhance our Claims Advocacy Program

Transportation Serving motor carriers and owner operators within the trucking business for over three decades, TrueNorth Transportation specialists are uniquely qualified to assist transportation companies of all sizes. We are exceptionally proud of our involvement in the transportation industry and the relationships

Jason Smith Executive Vice President Transportation

our specialists continue to foster. Through an exclusive partnership with Truckers Service Association (TSA), TrueNorth

Chad Thurm Vice President, Operations Transportation

is proud to offer TrueChoices, a program to provide valuable health solutions to professional drivers.

27.1%

2015 Achievements

Organic Growth in 2015

•

Fourth year of double-digit organic growth

•

Approached $250M in premiums managed

•

Transitioned Fleet and TrueChoices to OverDrive Platform

2016 Objectives

•

Progress in developing and packaging “What’s for Sale:”

•

Risk Solutions, iNergy, ICX Compliance and more

“

Continued growth and development of innovative solutions: CRM Deployment, LMS, Risk Solutions Compliance

”

Plan your work. Work your plan.

- Jason Smith

•

Expanded association & industry involvement

•

Continued focus on developing existing talent

Employee Benefits

The TrueNorth Employee Benefits team understands that business owners and administrators are tasked with making difficult decisions that serve and impact the well-being of employees and families. With the aid of

Sue Nelson Vice President, Operations Employee Benefits

TrueNorth's landmark process, The Benefits Navigator™, TrueNorth will assist companies by offering

Josh Budke Executive Vice President Employee Benefits

knowledgeable and personalized guidance. A partnership with TrueNorth Employee Benefits will yield a personal experience with access to programs and services that cater to a business’s specific needs.

2015 Achievements •

Implementation of client value-add resources: HR Services Platform, access to benefit and HR-related services, online voluntary benefit enrollment platform for

5,264

Clients Served in 2015

our association clients •

TrueAdvocate Employee Advocacy Program

•

Cloud-based Benefit Portal and Benefit Administration Technology

2016 Growth Strategies •

Cross-divisional collaboration: increase synergies and focus

•

Enhance Benefit Navigator™ sales process

•

Attract and develop talent

Financial Strategies TrueNorth Financial Strategists have a strong understanding of what it takes to achieve financial success on both professional and personal levels. An interaction with the financial team at TrueNorth is based on trust and knowledge. Building on these attributes, our team of financial specialists will design an approach to meet and exceed your personal or business needs and

Dave Verhille Executive Vice President Financial Strategies

objectives. Our firm also takes pride in strategic continuation planning for business owners, ensuring a legacy for generations to come.

Accomplishments

Plans for 2016

•

•

#1 401(k) Agency in region for New Plan Production Transamerica

Asset growth of $50 million in addition to 401(k)’s and foundations

•

Top 5 New Plan Growth Principal

•

TrueNorth Top 10 Agency with Kansas City Life

•

Addition of $30 million of new assets under

•

Increase focus on intradivisional marketing

management

•

New acquisitions/market expansion

•

•

Introduction of “Business Killers,” a value-add resource for business owner clients

Improved retirement readiness in 95% of new retirement plans

$30M

in New Assets Under Management

Corporate Services When TrueNorth was first established, the three founding companies agreed to create one unifying team that would support the entrepreneurial infrastructure of the organization and ensure cohesion amongst divisions.

The support of this world-class operating and administration structure allows us to execute on our vision while also nurturing the innovative, entrepreneurial spirit.

Today, our Service Corporation includes the following teams: •

Accounting & Finance

•

Administration

•

Business Development

•

Human Resources

•

Technology

•

Legal

•

Marketing

•

Operations Grown from seven team members to

“ServCo’s” dynamic team provides special in-house

Representatives from the Corporate Services Division.

Finance & Accounting

2001

ability to provide creative solutions for our clients.

2015

capabilities and a level of expertise that enhances TrueNorth’s

Human Resources & Operations

Corporate Support

Legal

Marketing

Technology

64

Mergers & Acquisitions A True Solution TrueNorth offers the values and personalized care of a local firm with the sophistication, breadth of services and high-performance talent of a large national company. We’re unique in that we offer an entrepreneurial platform that provides freedom, control and potential to enterprising individuals and agencies.

Our Transition Pilot™ is a clear and focused mergers and acquisitions program that provides swift, seamless transition for firms and their leaders. Whether the goal is to sell their practice and retire, merge the firm onto our integrated platform or come aboard as a producer, our customized transition options provide the flexibility and control needed to protect the bigger future for everyone involved.

Daniel Driscoll Director, Mergers & Producer Talent Acquisition

“

TrueNorth offered the ability to have flexibility, be here and work with a great team, and yet, not have to be here. I transferred much of my ownership, but still retain some. I can easily log on from my home in southern Florida and return a few phone calls. I’m still engaged and I’m still involved financially, so I still have action here - if you want to call it

”

that - yet, with a lot of the responsibility transfered to a good professional team.

- Andy Shifflett, Risk Management (Formerly Shifflett Insurance)

“

I wanted to be part of a team and had known the people at

”

TrueNorth for a number of years. I also knew that they had a plan to grow and that I could be part of that growth.

- Brent Matthews, Employee Benefits (Formerly Johnston & Matthews)

2020 Plan Flourishing Financials TrueNorth was formed in 2001 with the merger of three local, successful and independent insurance firms. At the time, their total aggregated revenue was approximately $9

$9M

$21.6M

$28.2M

20 20

worked to weave transparency, timeliness and accuracy of

20

5 201

celebrate continued growth. With this realization, we’ve

2

5 00 01

we needed to be “true” to ourselves in order to evolve and

10 20

organically by adding strategic partners and learning that

$56.9M

25 20

million. Since then, we have successfully grown that number

$100.2M $225.5M

results - along with accountability and shared analytics into our fabric; making it easier to understand exactly “where we are.”

Armed with that valuable information, we feel equipped to form strong internal partnerships between our producers and support staff that help to form and support long-term partnerships with external clients, markets and partners.

TrueNorth’s growth has been an evolution; and as we have evolved, so has the depth of our partnerships.

Noteworthy Growth = 10 EMPLOYEES

TrueNorth’s overall growth strategy focuses on our unique entrepreneurial business model and is sustained by hiring high quality team members. To best assist our clients, we continue to focus on “integrated solutions with specialists,” meaning that we strive to understand the needs of the clients and offer unique solutions and partnerships.

2001 91 EMPLOYEES

421%

Total Growth since 2001

2020 401 EMPLOYEES

To date, TrueNorth has grown an impressive 421%.

Mergers and acquisitions have accounted for 181% of that pace, while the remaining 240.6% has been internal, organic growth. We are truly proud of the skilled team we have today and are determined to continue to attract and develop high performing talent through 2020 and beyond.

“

The reality of ‘true north’ gives context and meaning to where we are, where we want to go and how to get there.

Without a compass or stars or a correct understanding of our location, we may have trouble locating it

but it’s always there.

Stephen Covey

Our Focus

”

After reflecting on our progress in 2015, we feel confident in our

1. Clients we serve.

2. Employees we serve.

3. Legacy company we’re building.

direction for the future and proud that we have continued to let our vision guide us: to build a legacy company with an entrepreneurial platform that attracts, develops and coordinates high performing talent and opportunities. While our walls are expanding to fit our growing teams and improved capabilities, we are energized and determined to keep our clients at the forefront of everything we do.

“

I am not sure if your company has an employee recognition program or not, but I just wanted to tell you that any time I need help with anything at all, Alexis is always there to help. This day and time it is hard to find someone who really seems to care about their job and [is] dedicated to customer service, but she always makes sure that I am taken care of any time I may have a problem. If you do

”

have an employee recognition program I would like to nominate her, or if not, maybe you can just tell her that you have heard she is doing a wonderful job. That would mean a lot.

- Message from CRST Malone, a valued client since 2012 Alexis Guinta, Transportation, 2015 TrueBlue Award Winner

“

We all have resources within the walls of this office to help us improve and hit our goals - whether it’s a continuing education opportunity within TrueNorth’s Training and Outreach program, participating

”

in our Toastmasters Club, or finding your own personal “Board of Directors.” I believe the greatest resource we have are the people here.

- Eric Stafford, Trucker Service Association