Qatar Insurance Co. · QSE:QATI
Qatar Insurance — Q1 2020 Earnings Presentation
36 slides from Qatar Insurance's earnings presentation, March 2020
Slide 1: Domestic dominance, Regional leadership, Global ambitions
Domestic dominance Regional leadership Global ambitions March 2020
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 – March 2020
At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix QIC - KEY FACTS AND FIGURES – March 2020 QIC steadily evolved from a domestic player to a regional leader on to global Solid foundation ambitions over 56 years GWP: QAR 3.7 Billion Expected ROE:
Slide 4: 56 Years of Operational Excellence
At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix 56 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 19 companies Asia Pacific: Q
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 2020 Q1 (186) (0.063) 6,826 2019 671 0.175 10,321 2018 664
Slide 6: Strong Access to Capital
At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix STRONG ACCESS TO CAPITAL QIC shareholders in % as at Mar 2020 Total equity increased by USD 2017 Tier-2 Issue 450m o Government of 13.67% Qatar Shareholders’ equity increased by 2016 Rights Issue c. U
Slide 7: 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 12,843 11,659 844 9,901 576 355 3,690 115 11 2016 2017 2018 2019 2020 Q1 2016 2017 2018 20
Slide 8: Strategy
At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix Strategy 8
Slide 9: 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 • Zenith NatCat Hold
Slide 10: Broad Spectrum of Capabilities
At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix BROAD SPECTRUM OF CAPABILITIES QIC Domestic Reinsurance Lloyd’s Life & Medical Asset Management • Personal lines • Agriculture • Aviation • Group Life • Proprietary o Motor • Credit & Surety • Financi
Slide 11: Competitive Position
At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix Competitive Position 11
Slide 12: 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 19) in QAR million 39,415 45,000 40,000 35,000 30,000 25,000 20,000 13,987 12,843 10,099 15,000 9,921 9,876 8,125 7,850 7,649 6,954 10,000
Slide 13: 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 14: Performance
At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix Performance 14
Slide 15: 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) 2016 2017 2018 2019 2020 Q1 Gross premium 9,901 11,659 12,606 12,843 3,690 Underwriting results 844 115 576 355 11 Net
Slide 16: ...and Shareholder Value Creation
At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix …AND SHAREHOLDER VALUE CREATION Payout ratio Return on Equity (Normalised) 234% 70% 84% 86% 14.7 12.0 11.9 12.5 2016 2017 2018 2019 2016 2017 2018 2019 Payout ratio for 2016 & 2017 includes bonus shar
Slide 17: Key Performance Metrics
At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix KEY PERFORMANCE METRICS 120% 1.6% 1.6% 100% 6.8% 2.6% 1.7% 5.5% 6.4% 6.2% 7.1% 26.8% 80% 19.6% 25.7% 26.6% 60% 72.8% 70.7% 66.6% 66.9% 40% 20% 2017 - 105.8% 2018 - 101.3% 2019 - 103.0% 2020 Q1 - 105.1
Slide 18: Well Diversified Portfolio Enhances Capital Efficiency - Lines of Business
At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix WELL DIVERSIFIED PORTFOLIO ENHANCES CAPITAL EFFICIENCY Gross written Premiums - Focus on profitable growth across individual lines of business 2020 Q1 48% 13% 3% 9% 18% 7% 1%1% 2019 48% 10% 4% 7% 19%
Slide 19: Well Diversified Portfolio Enhances Capital Efficiency - Geography
At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix WELL DIVERSIFIED PORTFOLIO ENHANCES CAPITAL EFFICIENCY Gross written Premiums - Geographically diverse 11% 9% 9% 10% 14% 14% 15% 17% 75% 77% 76% 73% 2017 2018 2019 2020 Q1 International Domestic Regio
Slide 20: Strong Investment Portfolio and Yield
At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix STRONG INVESTMENT PORTFOLIO AND YIELD Invested Assets vs investment and other income in QAR million Investment portfolio composition 20,000 20,553 19,126 3% 3% 3% 3% 18,757 18,321 16,000 7% 8% 8% 8% 1
Slide 21: 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% 6% 1% 3% 41% 15% 14% 47% 40% 17% 53% 19% 17% 20% A- & Above BBB-
Slide 22: Excellent Financial Strength Ratios
At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix EXCELLENT FINANCIAL STRENGTH RATIOS Assets % 2015 2016 2017 2018 2019 Invested assets to total assets 62% 67% 53% 48% 52% Invested assets to net technical reserves 119% 139% 131% 125% 133% Cash and ba
Slide 23: Strong Financial Strength
At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix STRONG FINANCIAL STRENGTH Financial strength rating for QIC o “QIC benefits from a diverse competitive position supported by its leading Rating: ‘A’ / Strong domestic standing, regional Gulf Cooperati
Slide 24: Organisation
At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix Organisation 24
Slide 25: 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 26: Risk Management
At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix Risk Management 26
Slide 27: 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 28: Outlook
At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix Outlook 28
Slide 29: 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 & Surety 1% Liability 7% Motor Domestic Third party Asset
Slide 30: Appendix
At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix APPENDIX 30
Slide 31: Profit and Loss Account, 2016 – 2020 Q1
At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix PROFIT AND LOSS ACCOUNT, 2016 – 2020 Q1 Income Statement (QAR ‘000) 2016 2017 2018 2019 2020 Q1 Gross written premium 9,901,394 11,658,697 12,605,835 12,843,166 3,689,955 Net earned premium 8,359,887
Slide 32: Balance Sheet, 2016 – 2020 Q1
At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix BALANCE SHEET, 2016 – 2020 Q1 Balance Sheet (QAR ‘000) 2016 2017 2018 2019 2020 Q1 ASSETS Cash and cash equivalents 6,962,310 7,914,054 8,011,163 8,544,700 7,378,925 Insurance and other receivables 6,
Slide 33: 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 34: 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 35: 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 Sheikh Khalid bin Mohammed bin Ali Al-Thani Abdullah bin Khalifa Al-Attiya Hussain Ibrahim Al-Fardan Chairman & Managing Director Deputy Chairman Board Me
Slide 36: (i popLf| Guoaioll LoodLe ji
(i popLf| Guoaioll 09 LoodLe ji Expanding Globally, Leading Regionally, Bermuda London Singapore Qatar Kuwait Zurich Malta Shanghai UAE
Qatar Insurance Company (QIC) — Q1 2020 Earnings Presentation on 6ix