Coronation Insurance Plc · NSENG:WAPIC
Coronation Insurance — Q3 2020 Earnings Presentation
24 slides from Coronation Insurance's earnings presentation, November 2020
Slide 1: Coronation Insurance Plc. Investors' Call Presentation Q3 2020
Coronation Insurance Plc. Investors’ Call Presentation Quarter 3 2020 Results November 2020
Slide 2: Participants
Participants Yinka Adekoya Managing Director, Coronation Insurance Plc. Adedayo Arowojolu Managing Director, Coronation Insurance Ghana Ltd. Peter Ehimhen CRO/Executive Director, Technical Division Adewale Koko Managing Director, Coronation Life Assurance Ltd. Chidinma Asuni Head, Customer Solutions
Slide 3: Outline
Outline 01 ABOUT CORONATION INSURANCE 02 OPERATING ENVIRONMENT 03 REGULATORY ENVIRONMENT 04 FINANCIAL RESULTS AND ANALYSIS 05 OUTLOOK AND CONCLUSION 06 QUESTIONS AND ANSWERS
Slide 4: Creating Sustainable Value
Creating Sustainable Value 164 13.4billion 3 Operating entities Professional Staff ordinary shares of 50 kobo each in issue N40 billion N16billion 823,000+ Total Assets Portfolio Shareholders Regional offices in Nigeria Abuja, Benin, Enugu, Ibadan and Port Harcourt • Nigerian Stock Exchange Listings
Slide 5: Operating environment
Operating environment Jun’19 Sept’19 Dec’19 Mar’19 Jun’20 Sept’20 Jun’19 Sept’19 Dec’19 Mar’19 Jun’20 Sept’20 11.98 12.26 12.56 13.7 390 460 465 11.22 11.24 361 360 362 361.0 361.0 380.0 14 13.5 13.5 13.5 12.5 11.5 Inflation, MPR 307.0 307.0 307.0 FX Rate N/$ The Naira fell to close at N465/1$ as at
Slide 6: Regulatory and industry environment
Regulatory and industry environment As part of the ongoing reforms by the insurance commission to increase penetration and grow the nation’s insurance sector to global competitiveness, NAICOM recently unveiled a digital platform (NAICOM portal) to drive insurance business and deepen penetration. Spe
Slide 7: Outline
Outline 01 FINANCIAL HIGHLIGHTS 02 INCOME STATEMENT REVIEW 03 FINANCIAL POSITION REVIEW 04 ASSETS UNDER MANAGEMENT
Slide 8: Group financial highlights
Group financial highlights NGN million Sept’20 Sept’19 %∆ Total Income 16,388 15,132 +8 Gross Written Premium 13,264 12,678 +5 Net Underwriting Income 7257 7,160 +1 Total Underwriting Expenses 4,583 4,703 -3 Earnings Underwriting profit 2,674 2,457 +9 Net Investment & Other Income 1417 883 +60 Expen
Slide 9: Outline
Outline 01 FINANCIAL HIGHLIGHTS 02 INCOME STATEMENT REVIEW 03 FINANCIAL POSITION REVIEW 04 ASSETS UNDER MANAGEMENT Proprietary & Confidential Strategy & PMO
Slide 10: Income statement review
Income statement review NGN million Highlights Sept’20 Sept’19 %∆ ▪ Gross written premiums grew by 5% year on year to N13.3bn within the nine months period, comprising 78% contribution in non-life premium generated and 22% in life premium. Gross Written Premium 13,264 12,678 +5 ▪ There was an increa
Slide 11: Product performance
Product performance 33% GWP contribution Motor, 17% Underwriting by product Profit by product Fire, -1% 22% Life, 38% 19% Gen Accident, 2% Marine, -0.1% 11% 7% 5% 2% Engineering, 18% OIL & GENERAL LIFE MOTOR FIRE MARINE ENGINEERING ENERGY ACCIDENT Underwriting profit margin Highlights Oil & Energy,
Slide 12: Group expenses
Group expenses 57% NGN million 39% 44% Net claims expenses 5,465 5,589 5,550 ▪ We had a 10% increase in our net claims expense driven by YoY growth in our gross claims paid for the period. Our strategy is to cut costs and reduce fraudulent claims 3,119 while keeping our customers satisfied. 2,428 2,
Slide 13: Group expenses
Group expenses NGN million 35% 30% Operating expenses 26% 13,264 ▪ Total operating expenses for the 12,678 company witnessed a 25% YoY growth within the period. Across key 10,098 components, staff cost declined by 11% y/y, while other opex had a 38% Impairment increase. The implementation of Staff c
Slide 14: Revenue
Revenue Group Total GWP contribution Income by Business Groups Annual Growth Commercial & Institutional ~17% SMEs N’m 3yr CAGR 6% Financial Institutions 7% 65% 10% Public Sector 15,132 16,388 Retail S&D 10,255 12,841 2% 1% HNI Sept’17 Sept’18 Sept’19 Sept’20 8% 0.3% Bancassurance Ghana Total Income:
Slide 15: Group profit position
Group profit position N’m Underwriting profit Profit before tax N’m 5% 19% 20% 4% 2% 14% 3% 3% 2,674 2,457 1087 1% 1066 1,379 475 Sept'18 Sept'19 Sept'20 Sep'18 Sep'19 Sept'20 Underwriting Profit UWP margin Profit before tax ROA ROE ▪ Underwriting profit margin ratio moved up a notch to 20%, from th
Slide 16: Outline
Outline 01 FINANCIAL HIGHLIGHTS 02 INCOME STATEMENT REVIEW 03 FINANCIAL POSITION REVIEW 04 ASSETS UNDER MANAGEMENT Proprietary & Confidential Strategy & PMO
Slide 17: Statement of financial position
Statement of financial position NGN million Q3’20 FY’19 %∆ Highlights ▪ Cash and cash equivalents increased by 140% from the year Cash and cash equivalents 2,771 1,152 +140 end 2019 position to N2.77bn (FY:19 N1.15bn). Increase Financial assets 13,494 9,069 +49 recorded in this asset class was a maj
Slide 18: Highlights of financial position
Highlights of financial position NGN million 37,418 40,646 40,227 Highlights 32,594 Total Assets & 30,746 29,197 28,450 26,735 Earnings Assets ▪ Earnings assets to total assets ratio 20,164 21,466 grew slightly by 4% from Dec’19 to close at 71% as at Q3’20. The growth in financial assets within the
Slide 19: Outline
Outline 01 FINANCIAL HIGHLIGHTS 02 INCOME STATEMENT REVIEW 03 FINANCIAL POSITION REVIEW 04 ASSETS UNDER MANAGEMENT Proprietary & Confidential Strategy & PMO
Slide 20: Assets under management
Assets under management N’m Q3’20 FY’19 1% 4% 11% Term Deposits 1,711 511 5% 2% 6% 6% 2% Treasury Bills 4,229 2,701 1% 26% Bonds 8,962 5,576 26% Quoted Investments 0.014 124 Unquoted Investments 389 668 56% Investment Property 139 255 53% Statutory Deposit 633 633 Right: Q3’20 16,063 10,468 Left: FY
Slide 21: How we build for the future
How we build for the future ▪ We are relentless in delivering our strategic targets for the next five years. We remain focused on our GWP growth drive this FINANCIAL year in line with our revised growth expectations following the impact of the global pandemic on insurance operations. ▪ We are optimi
Slide 22: Disclaimer
Disclaimer The information presented herein is based on sources which Coronation Insurance Plc (The “Company”) regards dependable. This presentation may contain forward looking statements. These statements concern or may affect future matters, such as the Company’s economic results, business plans a
Slide 23: Q&A
Q&A © CORONATION INSURANCE PLC RISK INSURED REST ASSURED
Slide 24: Thank You
Thank You For further inquiries: Coronation Insurance Seyon Thomas Plc. Head, Enterprise Division 119 Awolowo Road , Ikoyi. Lagos , Nigeria T: 012774500 /4566 /4555 E: Seyon.Thomas@Coronationinsurance.com.ng http://www.coronationinsu T: +234 1 277 4500 rance.com.ng Ext: 4506 Email: strategy.investor