Cic Insurance Group Plc · NSEKE:CIC
Cic Insurance — H1 2021 Earnings Presentation
28 slides from Cic Insurance's earnings presentation, 2021
Slide 1: Investor Briefing Half Year 2021
INVESTOR BRIEFING HALF YEAR 2021 GENERAL •LIFE •HEALTH • ASSET
Slide 2: Agenda
Agenda 1. Overview and Transformation Initiatives 2. Economic Overview 3. Financial Performance 4. Geographical Segments Performance
Slide 3: Overview & Transformation Initiatives
OVERVIEW & TRANSFORMATION INITIATIVES
Slide 4: CIC Group subsidiaries
cic GENERAL INSURANCE LTD cic LIFE ASSURANCE LTD cic ASSET CIC AFRICA MANAGEMENT INSURANCE = SOUTH SUDAN LTDy cic AFRICA CO-OPERATIVES up (MALAWN, cic AFRICA UGANDA iTD CO-OPERATIVES GENERAL INSURANCE ED RA UGANDA LTD GENERAL - LIFE - HEALTH - ASSET c ) CIC GROUP
Slide 5: Group Performance Overview
Group Performance Overview Principal drivers of Group Performance ❑ GWP growth driven by a strong performance in all the subsidiaries except South Sudan. ❑ General insurance improved significantly with focus on cost control and claims management. ❑ COVID-19 pandemic impacted our Group Life business.
Slide 6: Transformational Initiatives
Transformational Initiatives The transformation will focus on the following key areas Functional Organization structure • Continue to restructure the company functions to support achievements of the Group objectives in Kenya and the Regions. • Management of staff numbers and alignment to strategy. ,
Slide 7: Transformational Initiatives
Transformational Initiatives Data analytics: • Data is very critical to sales and decision making • Consolidation of our disparate systems for ease of mining data • Implementation of data management system (CRM) Performance Management • New KPI tool implemented • Quarterly appraisal with effect from
Slide 8: Transformational Initiatives
Transformational Initiatives The transformation will focus on the following key areas Innovation/ Research & Product Development • Established the unit and staffed it • Agile product development involving customers • Review of our products to ensure relevant to customers • Development of new product
Slide 9: Transformational Initiatives
Transformational Initiatives Risk and Compliance • Increased focus on Risk Management and compliance • Significant improvement on disciplinary process • Increased the number Fraud Risk Officers • Significant focus on fraud with zero tolerance to fraud and integrity issues • Focus on Anti Money Laund
Slide 10: Transformational Initiatives
Transformational Initiatives Co-operative Strategy • Refocused the team to Sacco’s , Transport Housing & Infrastructure ,Agriculture and Other Sacco’s • Visitation to the Sacco’s • Product review awareness to co-operatives • Specific educational seminars for Sacco’s regionally and nationally • Focus
Slide 11: Some Key Highlights
Some Key Highlights The transformation journey has earnestly started across the Group. Below are some of the key highlights of the initiatives that the business has and continues to implement. Governance •Critical structural and •Adoption of portals and staff re-alignments mobile Apps to enhance acr
Slide 12: Economic Overview
ECONOMIC OVERVIEW CIC GROUP
Slide 13: Economic Overview Summary
ECONOMIC OVERVIEW SUMMARY Kenya and Regional Markets GDP % Improved Performance by Listed Equities 2,000.00 200 15.0% 180 1,800.00 160 10.0% 9.5% 1,600.00 140 1,400.00 120 4.5% 5.0% 3.3%4.3% 3.8% 1,200.00 100 80 0.0% 1,000.00 60 Kenya Uganda South Sudan Malawi -1.1% -5.0% -1.7% -4.1% 2020 2021 Proje
Slide 14: Financial Highlights
FINANCIAL HIGHLIGHTS s GENERAL - LIFE - HEALTH - ASSET ¢ i ) CIC GROUP
Slide 15: H1'2021 Gross Written Premium
H1’2021 Gross Written Premium GWP & Contributions Per Country GWP & Contributions Per Line of Business 12.00 6.0 14 % 9.72 29% 10.00 4.9 Amount in Kshs Billions 8.56 5.0 8.00 4.0 3.8 6.00 -3% 21% 4.00 3.0 2.6 2.7 2.6 50% -24% 95% 2.2 2.00 2.0 0.49 0.33 0.15 0.19 0.40 0.21 -3% 16% - Kenya Uganda S.Su
Slide 16: H1'2021 Profit Before Tax at Kshs 337 Million
H1’2021 Profit Before Tax at Kshs 337 Million Profit / (Loss) Before Tax in Kshs Millions Consolidated Insurance Business Asset Management Non- Insurance Business 400 250 337 500 225 (260) 300 400 H1 2021 H1 2020 400 200 (270) 200 (280) 300 100 150 130 (290) 200 (288) - (300) 100 100 H1 2021 H1 2020
Slide 17: Revenue (GWP) for the Past Years
Revenue (GWP) for the Past 4 years GWP Contribution Kshs Billions 20.00 1.46 1.2 15.00 2.08 1.17 3.98 4.1 3.07 3.31 10.00 2.28 3.30 4.22 4.5 5.00 8.36 7.94 8.03 7.2 0.00 2017 2018 2019 2020 General Medical Group Life Individual Life 2017 2018 2019 2020 8% 12% 8% 7% 21% 48% 22% 45% 24% 42% 20% 56% 15
Slide 18: Five Year Financial Highlights to June 2021
Five Year Financial Highlights to June 2021 GWP & Contribution Kshs Billions AUM Kshs Billions 14.00 11.53 100 89 12.00 10.04 10.04 10.00 9.36 80 74 7.97 8.00 60 51 6.00 40 40 32 4.00 20 2.00 - - H1 2017 H1 2018 H1 2019 H1 2020 H1 2021 2017 2018 2019 2020 Jun-21 PBT Kshs Billions Investment Income K
Slide 19: Five Year Financial Highlights to June 2021
Five Year Financial Highlights to June 2021 Total Assets Kshs Billions Return on Equity (ROE) 41.09 6% 6% 38.79 35.30 33.05 30.51 4% 2% 2017 2018 2019 2020 H1 2021 2017 2018 2019 2020 Jun-21 -4% Year Operating Expense Ratio General Insurance Loss ratio Life Assurance Loss Ratio 29% 95% 79% 69% 67% 7
Slide 20: H1'2021 Group Financial Performance
H1’2021 Group Financial Performance Performance improved boosted by resilient growth in topline and strong investment returns GWP & Contributions Fees & Commissions Income Kshs 11.5 B Kshs 1.1 B (H1 2020:Kshs 9.9 B) (H1 2020:Kshs 673 M) • GWP and contributions grew by 16% 63% 16% driven by a strong
Slide 21: General Insurance & Asset Management propelling Group Profitability
General Insurance & Asset Management propelling Group Profitability Profit/(Loss) Before Tax Kshs Millions General Insurance Asset Management Life Assurance GWP AUM GWP & Contributions Kshs 7.5 B +16% Kshs 89 B +35% Kshs 3.2 B +16% (H1 2020:Kshs 6.5 B) (H1 2020:Kshs 66 B) (H1 2020:Kshs 2.8 B) 800 67
Slide 22: Geographical Segments Performance
GEOGRAPHICAL SEGMENTS PERFORMANCE
Slide 23: Market Segment Performance: Kenya
Market Segment Performance Kenya GWP & Contributions Fees & Commissions Income Capital Adequacy Ratio (CAR) Kshs 10.1 B Kshs 1 B General Life (H1 2020:Kshs 9 B) (H1 2020:Kshs 673 M) Insurance Assurance 13% 55% 134% 117% Underwriting Result General Profit / (Loss) Before Tax) Kshs (114) M) Kshs 52 M
Slide 24: Malawi
Malawi Continued growth trajectory in Premiums written and profits GWP Profit Before Tax Capital Adequacy Ratio (CAR) Kshs 0.4 B Kshs 48 M (H1 2020:Kshs 0.2 B) (H1 2020:Kshs 41 M) General Life Insurance Assurance 95% 16% 16% 181% Underwriting Result-General Kshs 11 M (H1 2020:Kshs 18 M) -35% • Life
Slide 25: South Sudan
South Sudan Strong operating profit results despite volatile operating environment GWP & Contributions (Loss)/Profit Before Tax Capital Adequacy Ratio (CAR) Kshs 0.5B Kshs 330 M (H1 2020:Kshs 0.4 B) (H1 2020:Kshs 5 M) 295% 23% 6073% Underwriting Result-General Kshs (227) M • GWP decline due to revie
Slide 26: Uganda
Uganda Resilient premium growth and future focus on underwriting GWP Profit / (loss) Before Tax Capital Adequacy Ratio (CAR) Kshs 0.5B Kshs (93) M (H1 2020:Kshs 0.3B) (H1 2020:Kshs 5M) General Life Insurance Assurance 50% 1996% 1581% 110% Underwriting Result-General) Kshs (40) M • Life Business: 89%
Slide 27: Investor Relations Contact Details
Investor Relations Contact Details Email : investorrelations@cic.co.ke CIC Insurance Group Contacts: • Damaris Maina • Amon Kerui • Philip Kimani Telephone: 0703 099 120
Slide 28: Thank you
Thank you We keep our word