Ms&ad Insurance Group Holdings, Inc. · TSE:8725
Ms&ad Insurance — Investor Presentation (July 2022)
12 slides from Ms&ad Insurance's investor presentation, Jul 19, 2022
Slide 1: MS Amlin Underwriting Limited
MS Amlin Underwriting Limited July 19, 2022 (Tue)
Slide 2: Presenter – Johan Slabbert, CEO, MS Amlin Underwriting Limited
Presenter – Johan Slabbert, CEO, MS Amlin Underwriting Limited 1
Slide 3: Agenda
1. Progress on 2021 2. Mid-year update on 2022 3. Strategy towards 2025
Slide 4: Progress on 2021 – Full Year Performance
1. Progress on 2021 – Full Year Performance After tax profit of £37m for the year, an improvement of £199m versus 2020 2021 2021 Excluding discontinued classes, AUL produced a profit KPI Var. Plan Actual on the continuing classes of £127m GWP £m 1,512 1,340 -172 Claims Ratio 54% 59% +5pt Profi
Slide 5: Progress on 2021 – Improvements in underlying performance
1. Progress on 2021 – Improvements in underlying performance Focus on risk selection and gross margin leading to significant change in cumulative gross profit （￡000） 400,000 Cumulative profit • Whale chart showing cumulative 2021 profit from all policies ordered by 350,000 profitability. The most
Slide 6: Progress on 2021 – Improvements in underlying performance
1. Progress on 2021 – Improvements in underlying performance The majority of non-cat classes became more profitable as a result of portfolio improvements, rate improvements and better risk selection 5
Slide 7: Progress on 2021 – Update on cat exposure in North America
1. Progress on 2021 – Update on cat exposure in North America Reduction of exposure to severe convective storms (tornadoes, Derechos etc.) due to increased frequency/severity of events Reduce exposure in Florida and the Gulf Coast Continue to shift to higher attaching layers Continue to push
Slide 8: Mid-year update on 2022 – Financial outlook
2. Mid-year update on 2022 – Financial outlook AUL’s year-end financial results are expected to be impacted from the War in Ukraine as well as investment losses during Q1-Q2 MS AUL is pursuing the below activities to close the gap to plan • Continued focus on underwriting profitability • Operational
Slide 9: Mid-year update on 2022 – Update on Ukraine and Q1
2. Mid-year update on 2022 – Update on Ukraine and Q1 • There is significant uncertainty surrounding insurance losses due to the on-going situation, with the quantum of final losses being currently unknown • AUL has been mostly affected in its Political Violence and Political Risks portfolios • AUL
Slide 10: Mid-year update on 2022 – Strategic Actions
2. Mid-year update on 2022 – Strategic Actions AUL continues to make progress in all areas of focus, with governance, planning and reporting framework established Underwriting People & Talent Finance & Capital Operating Efficiency Underwriting Portfolio Strengthened Achieving Embed Operating Model
Slide 11: Strategy towards 2025 – AUL's aspirations as part of MS&AD
3. Strategy towards 2025 – AUL’s aspirations as part of MS&AD Our goal is “To be a prestigious underwriting business, with a market presence worthy of our heritage and potential” • Return to £1.8+ billion Gross premium levels in the medium term • Drive profitability of MS&AD’s international business
Slide 12: Strategy towards 2025 – Summary of ambition in 2025
3. Strategy towards 2025 – Summary of ambition in 2025 • Achieve premium of £1.8bn with COR around 90% by growing profitable business lines such as Natural Resources or Crisis Management where AUL has a strong track record and is well-positioned to win. • Continue to push for rate increases, especia
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