Lion Finance Group Plc · LSE:BGEO
Lion Finance — Aldagi BCI — Investor Day (February 2011)
18 slides from Lion Finance's investor day presentation, February 2011
Slide 1: Georgian Health Care & Insurance Market
GEORGIAN HEALTH CARE & INSURANCE MARKET INSURANCE COMPANY ALDAGI BCI Presenter: Nikoloz Gamkrelidze, ALDAGI BCI, CEO FEB 2011
Slide 2: Aldagi BCI – Managed Chain of Clinics, Planned Expansion
Health Care Market - 8% Of GDP Out Of Pocket Spending - 72% Of Total Health Care Expenditure Fragmented Health Care Market New Governmental Initiative - Insurance Companies In Health Care Business Aldagi BCI – The Only Company Running Managed Chain Of Clinics Since 2006 Planned Expansion – Launching
Slide 3: Health Care Market in Georgia
HEALTH CARE MARKET IN GEORGIA 3 TOTAL HEALTH CARE EXPENDITURES CIS COUNTRIES COMPARISON Y2009 SOURCE: WHO. Per capita Total Government World Health expenditure on expenditure expenditure on Statistics 2010 health (US$) on health as % health as % of of GDP total Health expenditure Armenia 133 4 47 Ge
Slide 4: Health Care Market in Georgia: Market Structure
HEALTH CARE MARKET IN GEORGIA 4 MARKET STRUCTURE ! ! ! NO SIGNIFICANT COMPETITORS OPPORTUNITY ! ! ! HIGH SPENDING PER Governmental TO CAPTURE CAPITA Out of pocket spending HUGE spending 18% CUSTOMER 72% BASE ! ! ! CONSIDERABLE Insurance PROFIT MARGINS spending 10% HEALTH CARE EXPENDITURE PER CAPITA
Slide 5: Aldagi BCI – Sole Company Running Managed Chain of Clinics
Health Care Market - 8% Of GDP Out Of Pocket Spending - 72% Of Total Health Care Expenditure Fragmented Health Care Market New Governmental Initiative - Insurance Companies In Health Care Business Aldagi BCI – Sole Company Running Managed Chain Of Clinics Since 2006 Planned Expansion – Launching 6 N
Slide 6: Health Care Market in Georgia: Fragmented Market
HEALTH CARE MARKET IN GEORGIA 6 FRAGMENTED MARKET Highly fragmented Health Care market despite higher health care expenditure as % of GDP in Georgia compared to low & middle income European countries ! No managed chains of outpatient & inpatient centers ! Depreciated hospitals of the Soviet era ! No
Slide 7: Health Care Market in Georgia: Governmental Reforms
HEALTH CARE MARKET IN GEORGIA 7 GOVERNMENTAL REFORMS GOVERNMENTAL ATTEMPT TO COPE WITH FRAGMENTED HEALTH CARE MARKET: GOVERNMENTAL REFORM IN 2007 GOVERNMENTAL REFORM IN 2010 INSURANCE COMPANIES IN 100 NEW HOSPITALS HEALTH CARE BUSINESS Government initiated privatization of Governmental Health Insura
Slide 8: Aldagi BCI – Sole Company Running Managed Chain of Clinics
Health Care Market - 8% Of GDP Out Of Pocket Spending - 72% Of Total Health Care Expenditure Fragmented Health Care Market New Governmental Initiative - Insurance Companies In Health Care Business Aldagi BCI – Sole Company Running Managed Chain Of Clinics Since 2006 Planned Expansion – Launching 6 N
Slide 9: Aldagi BCI Integrated Delivery Network
ALDAGI BCI INTEGRATED DELIVERY NETWORK 9 EXISTING AND PLANNED MEDICAL CENTERS ALDAGI BCI operates 5 In 2010/11 ABCI outpatient & 1 inpatient investments in building centers since 2006 one large and 5 medium- sized hospitals in the 21% of ABCI total health country’s largest region claim expense is ca
Slide 10: ABCI Business Model
ABCI BUSINESS MODEL 10 CAPTURING CUSTOMER BASE CAPTURING CUSTOMER IN TWO WAYS HEALTH CARE INSURANCE BUSINESS INCREASED PENETRATION Offering health care services ENHANCED UP SELLING CUSTOMER CUSTOMERS INSURANCE PRODUCTS BASE IN CAPTURED IN INSURANCE HEALTH CARE COMBINED PRODUCT: RISK & SERVICE COMPON
Slide 11: Aldagi BCI - Key Financial Figures
ALDAGI BCI - KEY FINANCIAL FIGURES 11 FINANCIALS OF ABCI HEALTH CARE BUSINESS REVENUE GENERATED WITH Selected financial data of EXISTING 6 ABCI Health care business OUTPATIENT CLINICS GEL ‘000 Y2009 Y2010 Total Revenue 6,215 7,204 COGS -3,631 -3,830 Gross Profit 2,584 3,373 Total Operating Costs -1,
Slide 12: Aldagi BCI – Sole Company Running Managed Chain of Clinics
Health Care Market - 8% Of GDP Out Of Pocket Spending - 72% Of Total Health Care Expenditure Fragmented Health Care Market New Governmental Initiative - Insurance Companies In Health Care Business Aldagi BCI – Sole Company Running Managed Chain Of Clinics Since 2006 Planned Expansion – Launching 6 N
Slide 13: Georgian Insurance Market Overview
GEORGIAN INSURANCE MARKET OVERVIEW 13 MARKET DATA MARKET GOVERNMENTAL INSURANCE PROJECTS IN STRUCTURE GEORGIA BY GPW Health & (Health Insurance) 184,128 Life GEL ‘000 76% HEALTH INSURANCE 131,674 129,040 PROGRAMS FINANCED 109,527 FROM STATE BUDGET 18,528 Property & Casualty MARKET 24% GROWTH 491% 68
Slide 14: Georgian Insurance Market Overview: Competition
GEORGIAN INSURANCE MARKET OVERVIEW 14 COMPETITION 17 insurance companies operating in Georgia GPI 18% IRAO More than 80% of the market is held by top 5 16% insurance companies MARKET IMEDI L 17% SHARES BY ALDAGI BCI IS A UNION OF 4 GPW IC GROUP YE2009 14% INSURANCE COMPANIES ALDAGI BCI Aldagi Acquir
Slide 15: Insurance Market in Georgia: Density & Penetration
INSURANCE MARKET IN GEORGIA 15 DENSITY & PENETRATION INSURANCE DENSITY PENETRATION (GPW/GDP) Nascent state of Georgian insurance (GPW PER CAPITA USD) Y2009 Y2009 sector translates into UK 4,579 UK 12.9% extremely low France 4,269 France 10.3% insurance penetration US 3,710 US 8.0% and density levels
Slide 16: Aldagi BCI - Insurance Business Overview
ALDAGI BCI - INSURANCE BUSINESS OVERVIEW 16 KEY PERFORMANCE INDICATORS UNDISPUTED MARKET LEADER IN CORPORATE & PERFORMANCE DYNAMICS (NET PROFIT, ROAE) NET PROFIT RETAIL INSURANCE Consolidated Figures GEL 7.1 BUSINESS MLN 20 years of experience on the market 5.0 4.2 MLN MLN The largest subsidiary of
Slide 17: ABCI – Key Financial Figures
ABCI – KEY FINANCIAL FIGURES 17 Consolidated Figures YE2009 YE2010 The target for 2013 is to GEL ‘000 (ACTUAL) (ACTUAL) expand aggressively in the Insurance premium written gross 62,734 62,086 Health Care business to capture c.10% of total Insurance premium revenue, gross 64,699 61,181 Health Care e
Slide 18: Thank You For Your Attention
THANK YOU FOR YOUR ATTENTION TIME FOR Q&A