Company For Cooperative Insurance · TADAWUL:8010
Company For Cooperative Insurance — The Company for Cooperative Insurance (Tawuniya) — H1 2016 Earnings Presentation
21 slides from Company For Cooperative Insurance's earnings presentation, 2016
Slide 1: Half Year 2016 Earnings Investor Presentation
HALF YEAR 2016 EARNINGS Investor Presentation 1H - 2016 1
Slide 2: Agenda
Agenda I. Business Overview Vishal Srivastava II. KSA Insurance Market Jad Katra III. Tawuniya Market Strategy Jad Katra IV.1H 2016 Company Financials Amr Al-Nemari – Business Vishal Srivastava – Investment 2
Slide 3: I. Business Overview
I. Business Overview 3
Slide 4: Ownership Structure
The Company For Cooperative Insurance One of the leading Insurance company in the Kingdom Ownership Structure Headquartered in Riyadh, KSA Public, Significant presence across all regions in KSA 53% PPA, Multiple distribution channels and products 24% Strategic Business Units: Health, Motor, Property
Slide 5: Market Leading Insurer
Market Leading Insurer Operating Segments Market Share* Medical & Takaful 75% • Balsam 25% • My Family • Group Medical • Group Takaful Motor Insurance • Al-Shamel 88% 12% • Sanad • Sanad Plus • Rukhsa Property & Casualty • Engineering • Fire & Property 80% • Marine 20% • Aviation • Energy Tawuniya M
Slide 6: Top Rated in the Region by S&P
Top Rated in the Region by S&P KSA Kuwait Bahrain UAE Qatar Oman A Arab Orient QIC ADNIC Doha A- Al-Ahleia Hannover Re Oman insurance Salama Saudi Re Gulf National BBB+ Malath Trust Insurance General Ins. Medgulf Al Buhaira Bahrain National BBB Wataniya Bahrain
Slide 7: Major Clients
Major Clients CONSTRUCTION ENERGY TRANSPORTATION Food, drugs & COMMUNICATIONS FINANCIAL others 7
Slide 8: Reinsurance Partners
Reinsurance Partners Munich Re is rated “AA-” by S&P Swiss Re is rated “AA-” by S&P SCOR Global P&C is rated “A+” by S&P LLOYD’s is rated “A+” by S&P MAPFRE is rated “BBB+” by S&P CCR is rated “AAA” by S&P Transatlantic Re is rated “A+” by AM Best 8
Slide 9: II. KSA Insurance Market
II. KSA Insurance Market 9
Slide 10: Evolving Business Environment for Insurers
Evolving Business Environment for Insurers Regulators Regulations have positively impacted the overall market performance Ministry of Commerce and Several small insurers are struggling to maintain adequate solvency/capital Investment Overall regulations margins => Ease of re-capitalization is no lon
Slide 11: III. Tawuniya Market Strategy
III. Tawuniya Market Strategy 11
Slide 12: Long-term Strategic Pillars
Long-term Strategic Pillars Market Customer Profitability Leadership Centricity Constant endeavor to attain the optimal balance across all three strategic pillars 12
Slide 13: Multiple Sources of Competitive Advantage
Multiple Sources of Competitive Advantage Brand/Balance sheet • Recognized and trusted brand in the market strength • Strong balance sheet with 'A-' S&P rating Strong network/connections • Market leadership position supported by high renewal rates on in the market a consistent basis • Network of tie
Slide 14: Building Differentiated Capabilities
Building Differentiated Capabilities Market leading Superior Leader in Talent expertise customer service innovation management Recruiting, Pioneer in the Risk developing and Customer at application of management retaining the the center of all digital across all lines best talent in activities techn
Slide 15: IV. 1H 2016 Company Financials
IV. 1H 2016 Company Financials 15
Slide 16: Decent Growth in Underwriting Revenues
Decent Growth in Underwriting Revenues Net Earned Premium (in SR millions) Gross Written Premiums (in SR millions) 27% 3,341 2,636 3,837 16% 3,308 1H 1H 2015 2016 Net Claims Incurred (in SR millions) 2,574 28% 2,015 1H 1H 2015 2016 1H 1H 2015 2016 16
Slide 17: Improved Operating Efficiency
Improved Operating Efficiency Expense Ratio (%) Combined Ratio (%) -380 20% bps 16% 117% 95% 91% 94% 91% 91% 86% 1H 1H 2015 2016 Loss Ratio (%) 64 77% bps 76% 2011 2012 2013 2014 2015 1H 1H 2015 2016 1H 1H 2015 2016 17
Slide 18: Continued Growth in Assets/Reserves
Continued Growth in Assets/Reserves Technical Reserves (in SR millions) Total Assets (in SR millions) 14% 7,160 7,197 6,017 6,023 4,225 3,729 11,569 11,890 10% 9,965 9,939 8,218 7,384 2011 2012 2013 2014 2015 1H 2016 Total Investments (in SR millions) 5,481 5,373 7% 3,880 3,816 3,880 3,816 2011 2012
Slide 19: Insurance Business Profits Grew Significantly
Insurance Business Profits Grew Significantly Underwriting Income (in SR millions) Net Income (in SR millions) “Before Zakat” 248 78% 139 6% 642 602 474 351 316 305 1H 1H 2015 2016 Investment Income (in SR millions) 198 -56% 564 86 2011 2012 2013 2014 2015 1H 1H 2015 2016 1H 1H 2015 2016 19
Slide 20: Q&A
Q&A 20
Slide 21: Thank You
—§ Tawuniya 4LigleiJl
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