Qatar Insurance Co. · QSE:QATI
Qatar Insurance — H1 2019 Earnings Presentation
35 slides from Qatar Insurance's earnings presentation, June 2019
Slide 1: Domestic dominance, Regional leadership, Global ambitions
Domestic dominance Regional leadership Global ambitions June 2019
Slide 2: Largest insurance powerhouse in the MENA region
At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix Founded in 1964, Qatar Insurance Company (QIC) is the largest insurance powerhouse in the MENA region 2
Slide 3: QIC - Key Facts and Figures – H1 2019
At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix QIC - KEY FACTS AND FIGURES – H1 2019 QIC steadily evolved from a domestic player to a regional leader on to global Solid foundation ambitions over 50 years GWP: QAR 6.4 billion Expected ROE: 11
Slide 4: 55 Years of Operational Excellence
At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix 55 YEARS OF OPERATIONAL EXCELLENCE En route to establishing a global footprint based on domestic dominance and regional leadership Source: S&P CAPITAL IQ MENA: QIC No 1 of 116 companies Asia Pacific:
Slide 5: Sustained Growth from Diversified Sources
At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix SUSTAINED GROWTH FROM DIVERSIFIED SOURCES Net profit Earnings per share Market Capitalization in QAR million (restated) in QAR in QAR million 2019 H1 419 0.114 11,758 2018 664 0.174 11,449 2017 424 0.
Slide 6: Robust Financial Performance
At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix ROBUST FINANCIAL PERFORMANCE Gross written premiums in QAR million Underwriting results in QAR million 12,606 926 11,659 844 9,901 8,347 576 6,385 331 115 2015 2016 2017 2018 2019 H1 2015 2016 2017 20
Slide 7: Strategy
At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix Strategy 7
Slide 8: Expanding Globally and Consolidating Regional Leadership
At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix EXPANDING GLOBALLY AND CONSOLIDATING REGIONAL LEADERSHIP Bermuda London Zurich Malta Singapore Gibraltar • Qatar Re US & • Antares Group • Qatar Re • QIC Europe Ltd • Antares Asia • Markerstudy NatCat
Slide 9: Broad Spectrum of Capabilities
At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix BROAD SPECTRUM OF CAPABILITIES QIC Domestic Reinsurance Lloyds Life & Medical Asset Management • Personal lines • Agriculture • Aviation • Group Life • Proprietary o Motor • Credit & Surety • Financia
Slide 10: Competitive Position
At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix Competitive Position 10
Slide 11: Dominant Position in the MENA Region
At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix DOMINANT POSITION IN THE MENA REGION Regional comparison (FY 2018) in QAR million 39,165 45,000 40,000 35,000 30,000 25,000 20,000 12,606 12,249 15,000 8,310 8,024 7,412 7,185 7,019 6,880 6,761 10,000
Slide 12: Significant Potential for Global and Regional Growth
At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix SIGNIFICANT POTENTIAL FOR GLOBAL AND REGIONAL GROWTH QIC domestic/regional GWP MENA Life & Non-Life QIC Domestic and regional o Dominant market share in Qatar and ahead of its peers in MENA o Signific
Slide 13: Performance
At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix Performance 13
Slide 14: Strong Track Record of Top and Bottom-Line Growth
At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix STRONG TRACK RECORD OF TOP AND BOTTOM-LINE GROWTH.. Key Highlights (QAR million) 2015 2016 2017 2018 2019 H1 Gross premium 8,347 9,901 11,659 12,606 6,385 Underwriting results 926 844 115 576 331 Net
Slide 15: ...and Shareholder Value Creation
At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix …AND SHAREHOLDER VALUE CREATION Dividends in QAR Return on Equity (Normalised) Pay-out ratio 64% 62% 70% 234% 84% 1.50 1.00 18.4 18.1 1.50 1.50 14.7 12.0 11.9 2.50 2.50 1.50 1.50 1.50 2014 2015 2016 2
Slide 16: Underwriting Performance
At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix UNDERWRITING PERFORMANCE Gross Premiums In QAR million Net Underwriting Results In QAR million CAGR 22% 926 844 11,659 12,606 664 9,901 576 8,347 5,614 115 2014 2015 2016 2017 2018 2014 2015 2016 2017
Slide 17: Well Diversified Portfolio Enhances Capital Efficiency
At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix WELL DIVERSIFIED PORTFOLIO ENHANCES CAPITAL EFFICIENCY Gross premiums, split by region 2019 H1 Gross premiums, split by line of business 2019 H1 Domestic Liability 7% 15% Credit & Surety 2% Motor 50%
Slide 18: Strong Technical Performance in a Highly Competitive Environment
At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix STRONG TECHNICAL PERFORMANCE IN A HIGHLY COMPETITIVE ENVIRONMENT in QAR million (18%) 19% Marine and Aviation 2017 2018 Underwriting Results Gross premium 1,060 874 Underwriting Results (72) (58) Gros
Slide 19: Strong Investment Yield Despite Low Interest Rate Environment
At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix STRONG INVESTMENT YIELD DESPITE LOW INTEREST RATE ENVIRONMENT Invested Assets vs investment and other income in QAR million Investment versus underwriting income 20,000 18,757 18,629 16,000 18,321 54%
Slide 20: Focus on Sector Balance and Security of Investments
At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix FOCUS ON SECTOR BALANCE AND SECURITY OF INVESTMENTS Fixed income: Rating Fixed income: Geographic mix Fixed income: Mix by sector 3% 4% 7% 1% 3% 15% 44% 14% 16% 47% 37% 55% 17% 19% 18% A- & Above BBB-
Slide 21: Excellent Financial Strength Ratios
At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix EXCELLENT FINANCIAL STRENGTH RATIOS Assets % 2014 2015 2016 2017 2018 Invested assets to total assets 59% 62% 67% 53% 48% Invested assets to net technical reserves 188% 119% 139% 131% 125% Cash and ba
Slide 22: Strong Financial Strength
At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix STRONG FINANCIAL STRENGTH Financial strength rating for QIC Rating: ‘A’ / Stable o “We view QIC as an increasingly diversified insurance group with relatively Outlook: Stable mature operations in the
Slide 23: Organisation
At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix Organisation 23
Slide 24: Strong Geographic and Sector Diversification
At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix STRONG GEOGRAPHIC AND SECTOR DIVERSIFICATION Group level Operations Direct Insurance: Reinsurance: Lloyds Re/insurance: Life and Medical: Asset management: • Personal Lines • Property & Commercial Lin
Slide 25: Risk Management
At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix Risk Management 25
Slide 26: Strict Adherence to Clearly Defined ERM Procedures
At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix STRICT ADHERANCE TO CLEARLY DEFINED ERM PROCEDURES Risk Management at QIC Enterprise risk management cycle o ERM is broken down into Risk Management, Capital Management and Exposure Management o Gover
Slide 27: Outlook
At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix Outlook 27
Slide 28: Aspiring to Become a Global Top 50 Composite Insurer
At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix ASPIRING TO BECOME A GLOBAL TOP 50 COMPOSITE INSURER Well-diversified business mix Balanced geographical mix Distinct sources of income Credit & Liability 7% Surety 2% Domestic Re/ Insurance Third par
Slide 29: Appendix
At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix APPENDIX 29
Slide 30: Profit and Loss Account, 2015 – 2019 H1
At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix PROFIT AND LOSS ACCOUNT, 2015 – 2019 H1 Income Statement (QAR ‘000) 2015 2016 2017 2018 Growth CAGR 2019 H1 (YOY) Gross written premium 8,347,210 9,901,394 11,658,697 12,605,835 8% 15% 6,385,248 Net e
Slide 31: Balance Sheet, 2015 – 2019 H1
At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix BALANCE SHEET, 2015 – 2019 H1 Balance Sheet (QAR ‘000) 2015 2016 2017 2018 2019 H1 ASSETS Cash and cash equivalents 3,518,760 6,962,310 7,914,054 8,011,163 7,693,891 Insurance and other receivables 6,
Slide 32: Qatar: A Thriving Economy
At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix QATAR: A THRIVING ECONOMY GDP and real GDP growth* in USD billion Hydrocarbon vs. Non-hydrocarbon sectors in GDP* 250 6.00% 4.0% 200 3.6% 2.2% 2.2% 1.6% 206 192 4.00% 150 167 152 45% 48% 100 62% 70% 6
Slide 33: Qatar's Growing Insurance Sector
At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix QATAR’S GROWING INSURANCE SECTOR Total premiums in USD million* Insurance Penetration 2016 12% UK 2,813 2,935 Japan Premiums as % of GDP 10% 2,200 8% 1,994 USA 6% Germany 1,516 4% India China Bahrain
Slide 34: QIC Board of Directors and Major Shareholders
At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix QIC BOARD OF DIRECTORS AND MAJOR SHAREHOLDERS QIC shareholders in % o Government of 13.79% Qatar Sheikh Khalid bin Mohammed Abdullah bin Khalifa Al-Attiya Hussain Ibrahim Al-Fardan bin Ali Al-Thani De
Slide 35: Expanding Globally, Leading Regionally
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Qatar Insurance Company (QIC) — H1 2019 Earnings Presentation on 6ix