SPECIALISED Broking Associates Pty Ltd hit the ground running when it was set up as a general insurance broker on July 1 2003.
SPECIALISED Broking Associates Pty Ltd hit the ground running when it was set up as a general insurance broker on July 1 2003.
It placed $11 million in premiums on its first day, was profitable in the first month, had a positive cash flow in its second month and is now placing $70 million in annual volume on behalf of about 80 select customers.
Although SBA is mostly known as an acronym for Specialised Broking Associates, it also stands for the initials of its three founders (Steve, Bill and Andrew).
Despite some early problems, such as lack of furniture and appliances and an IT system which, while looking good on paper, had to be thrown out after a few months, planning time spent refining the SBA concept has paid handsome dividends.
There has been a total focus on providing a truly personalised service in a market which has historically been dominated by the major international firms.
This approach helped SBA attract quality personnel, allowing it to attract clients such as Fortescue Metals Group Ltd and Alcoa Australia Ltd, which appreciated the difference SBA brought to the market.
More recently, two executives from Mitsui Sumitomo Tokyo dropped in wanting to do business, while one of SBA's new clients, Clough Ltd, announced three projects in five days totalling $500 million in value and wanted to talk.
The cornerstone of the SBA business strategy lies in a combination of very clear industry specialisation - mining, energy, construction and large corporate - and its ability to fill the gap between the international brokers and the smaller broking houses, which are high on service but lack specialist knowledge.
It now has formal alliances with four of the world's top 10 broking houses and informal arrangements with others.
While SBA has limited the number of active clients to 80, revenue has tripled over the past four years by carefully choosing and then working closely with the right clients.
All SBA's systems and procedures are ASICapproved and monitored for compliance by an external auditor monthly.
There are also other formal audits conducted by an arm's length third party agency every two years.
While based in Perth, SBA is as global as its clients.
Because of its niche focus, it handles business in every Australian state as well as substantial placements in Africa, New Zealand, South- East Asia, Europe and the Americas, with 30 per cent of its income derived from outside WA.
The company's simple rule on new staff is to employ those with attitude and skill.
