Investment Considerations

Experienced and Accomplished Management/Directors – Over 250 years combined insurance, business building and acquisitions experience.

Investment Highlights

  • Insider Equity Ownership over 64%:  Insiders own over 64% of SEB’s issued and outstanding shares; and over 75% of the dilution from options and convertible notes.
  • Experienced Management and Board:  Have a proven track record of building and managing companies utilizing both acquisition and organic growth strategies.  Over 300 years of  experience with extensive relevant industry and business  relationships.
  • Market Leading Technology Advantage: SEB companies have leading, unique, proven,  proprietary technology with the potential to cause major structural changes in the healthcare claims processing industry and create a new market presence. Turns cost centres into profit centres.
  • Predictable, Scalable, Cost Structure: Solutions and services are largely executed by technology. People component is low cost and easy to scale.
  • High Gross Margin Business Model: The gross margins in health claims processing, from a fully integrated platform, are over 65%. Profit margins are over 75% of gross margins.
  • Cash Flow Positive Acquisitions: All acquisitions, completed and targeted, are cash flow positive.
  • Recession Resistant Annuity Revenue: Steady growth in health benefits over the past decade, even in a recession.
  • Minimal Working Capital Requirements: Minimal Capital Expenditures.  Clients pay in advance for most services.  Huge Cash Float.
  • Massive Industry – Health Benefits: Over $60.0 billion in premium and claims revenue for Canadian health benefits with over $37.0 billion in Employee Group Benefits Premiums and $25.0 billion from Government programs. Processing and administration fees range up to 15% of revenue, depending on the client.
  • Acquisition/Investment/Joint Venture Growth Model: Many acquisition/investment/joint venture  opportunities in this fragmented industry.  Owners looking for succession.  Client Referral model.
  • Transition of Outsourcing to SEB Technology: Organic growth driven by transition of clients obtained through acquisition/investment/joint ventures to SEB Health Benefits Technology platform.  Transition to SEB technology captures up to 15% of claims or premium revenue being paid to third parties for outsourcing services.

Technology Competitive Advantage

Ownership – SEB is unique in that it owns a leading technology platform in an industry where outsourcing is the norm.

Single Integrated Platform – all administration-adjudication-reporting is managed in one fully integrated technology environment.

Services and Solutions Offering Captures More Revenue – Ownership of the technology platform allows SEB to consolidate and capture more of the revenue within its environment; revenue is currently split among multiple service suppliers and insurers.

Highly Customizable Solutions – The SEB technology solution is highly customizable, quickly and cost effectively.

Client Value Proposition – Better pricing and service is made possible by capturing more revenue, greater control over cost structure (due to technology ownership) and more comprehensive, high value added solutions and service offerings, including ability to administer and adjudicate the most complicated plan designs and claims processing activities.

Minimal Working Capital Requirement – Benefit clients pay for services in advance, reducing working capital requirements.

Growth Strategy