Thai Reinsurance Public Co., Ltd. · SET:THRE
Thai Reinsurance Public — Q3 2019 Earnings Presentation
20 slides from Thai Reinsurance Public's earnings presentation, Nov 11, 2019
Slide 1: Thai Re Q3/19 results
Thai Re Q3/19 results
Slide 2: Q3/19 Key Messages
Q3/19 Key Messages • Normalised profit increased by 2%yoy • Healthier insurance portfolio (NPW dropped slightly) • Improved underwriting profit • Service income grew with double digits
Slide 3: 9M19 Key Messages
9M19 Key Messages • Net premium written grew in line, driven by non-conv. • One-time impacted end • Service income grew of 5%yoy
Slide 4: Snapshots
Snapshots System wide (THBm) Q3/18 Q2/19 Q3/19 QoQ YoY 9M18 9M19 YoY Gross written premium 1,032 1,283 942 -27% -9% 3,360 3,509 4% Net written premium 825 967 794 -18% -4% 2,502 2,640 6% Net earned premium 885 947 895 -5% 1% 2,504 2,710 8% U/W profit (loss) -16 -93 -21 77% -31% -296 -146 51% Net inv
Slide 5: Underwriting results
Underwriting results System-wide (excl. 9 projects) Items (THBm) Q3/18 Q3/19 YoY 9M18 9M19 YoY GPW 826 830 +0% 2,512 2,796 +11% NPW 794 778 -2% 2,375 2,534 +7% NEP 826 845 +2% 2,323 2,557 +10% Combined ratio 93.5% 94.1% +0.6pp. 94.0% 97.1% +3.1pp.
Slide 6: Underwriting results
Underwriting results Conventional Items (THBm) Q3/18 Q3/19 YoY 9M18 9M19 YoY GPW 415 390 -6% 1,450 1,386 -4% NPW 390 341 -13% 1,331 1,136 -15% NEP 448 392 -13% 1,243 1,208 -3% Combined ratio 94.5% 95.8% +1.3pp. 94.6% 97.7% +3.1pp.
Slide 7: Underwriting results
Underwriting results Non-conventional (excl. 9 projects) Items (THBm) Q3/18 Q3/19 YoY 9M18 9M19 YoY GPW 411 440 +7% 1,061 1,410 +33% NPW 405 436 +8% 1,044 1,398 +34% NEP 378 453 +20% 1,080 1,349 +25% Combined ratio 92.2% 92.6% +0.4pp. 93.3% 96.5% +3.1pp.
Slide 8: Business breakdown by NPW
Business breakdown by NPW 9M18 9M19 53% Conventional 43% 47% Non-conventional 57% 11% Property 11% 2% Marine &cargo 2% 33% Motor 25% 46% PA&H 56% 8% Others 6%
Slide 9: Investment performance
Investment performance ROI Investment assets value THB 4,793m 5.8% Bank deposits, 9M19 16% 5.6% Common stock, 28% T-bills & 0.1% T-bonds, 9M18 19% 4.9% Unit Debentures & trusts, loans, 29% 8% Report Excl trading securities & status changed
Slide 10: Outlooks Q4/19: Turning around to target ROE 3-4%
Outlooks Q4/19 Turning around to target ROE 3-4%
Slide 11: FY2019-2020 Investment Theme
FY2019-2020 Investment Theme • One-time impacted end • Expected lower retrocession expense • Local premium growth unlocking • Foreign unit on track • Leveraging technology and expanding our service scope to accelerate the growth of 15-20% in next 3 years • Target reach ROE ~ 8-10% in next 3 years
Slide 12: Key Changes and Initiatives 2020
Key Changes and Initiatives 2020 Strategies Action plan New 3 years strategic plan Continue focus on Personal Line and non conventional. (year 2020-2022) Source for new technology, new concept to disrupt the industry. Expand to more countries in ASEAN Target markets: Indonesia, Philippines. Expand t
Slide 13: 3 years strategic plan (year 2020-2022)
3 years strategic plan (year 2020-2022) New Product & Distribution in Personal-line Insurance Accelerate • Growth ≥10% Growth in SAE Financial ≥10 % • ROE ≥10% Market (Reinsurance & Margin Goals • Combined Ratio 95% Services) Most Valuable Personal-line Partner • Growth in Overseas Extend Non Financ
Slide 14: Emerging Business Opportunities Model
Emerging Business Opportunities Model Business Commercial Line Retail channel Cyber Group health Personal health Group health XoL Motor Motor high value ASEAN market Service-based income THRE Actuarial THRE Innovation Key success Good risk, Creative idea Adaptation factors Reasonable terms & Speed B
Slide 15: Q&A
Q&A
Slide 16: Appendix
Appendix
Slide 17: Financial Highlight
Financial Highlight Quarterly income statement Q3/18 Q2/19 Q3/19 QoQ YoY 9M18 9M19 YoY Gross premium written 1,032 1,283 942 -27% -9% 3,360 3,509 4% Net premium written 825 967 794 -18% -4% 2,502 2,640 6% Net earned premium 885 947 895 -5% 1% 2,504 2,710 8% Net claims 466 532 468 -12% 0% 1,302 1,433
Slide 18: 9 Projects Premium Development
9 Projects Premium Development GWP NWP EP 2,259 2,115 1,998 1,997 2,202 2,011 1,784 1,635 1,981 1,911 1,390 1,419 1,421 760 179 496 291 254 236 34 192 170 281 245 209 114 2009 7 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019E Unit:THBm 2H15 2016 2017 2018 2019E Total RI commission expenses 126 24
Slide 19: Contact us
Contact us Mr. Bheerawas Bhunakh, IR • (66)2-660-6111 #1429 • ir@thaire.co.th • http://investor.thaire.co.th/home.html
Slide 20: Disclaimer
Disclaimer The information contained in this presentation is intended solely for your personal reference. Please do not circulate this material. If you are not an intended recipient, you must not read, disclose, copy, retain, distribute or take any action in reliance upon it. Some statements made in
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