26 slides from Bupa Arabia For Cooperative Insurance's earnings presentation, 2018
Slide 1: Bupa Arabia FY 2017 Performance Update
Bupa Arabia FY 2017 Performance Update
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by the management of Bupa Arabia (“The Company”). It does not constitute or form part of, and should not be construed as, an offer, solicitation or invitation to subscribe for, underwrite or otherwise acquire, any securities of the Company or any member
Slide 3: Agenda
Agenda Sell Side Research Analyst Coverage 3 Saudi Insurance Market 5 Bupa Arabia Performance Overview 8 Competitive Positioning 16 FY 2017 Performance Update 3
Slide 4: Sell Side Research Analyst Coverage
Sell Side Research Analyst Coverage Company Analyst Recommendation Price (SR) Aljazira Capital Co Talha Nazar Overweight 137.6 Shuaa Capital Shadi Salman Hold 128.0 HSBC Ankur P Agarwal Buy 127.0 Arqaam Capital Limited Jaap Meijer Hold 121.4 CI Capital Monsef Morsy Overweight 110.0 EFG-Hermes Shabbi
Slide 5: Agenda
Agenda Sell Side Research Analyst Coverage 3 Saudi Insurance Market 5 Bupa Arabia Performance Overview 8 Competitive Positioning 16 FY 2017 Performance Update 5
Slide 6: Saudi Insurance Demographics (1/2)
Saudi Insurance Demographics (1/2) Saudis Expats 20.4 12.9 Total Population 33.3 m* Est. Expats *Official ‘17 stats 32.6 m 2.7 Saudis Expats 5.0 10.2 Saudis 15.4 Private Insurance Mandate Public Coverage (Addressable Market) 18.1 m 15.2 m Dependent of Saudis Domestic Saudis expats & 2.3 Helpers1 2.7
Slide 7: Saudi Insurance Demographics (2/2)
Saudi Insurance Demographics (2/2) Total Population (m) Insured Lives (m) +11% 4.8% +4.2% -1.5% -0.7% 34.2 9.1% 32.7 33.5 33.3 31.7 12.3 12.1 12.0 11.8 10.8 2.5 2.5 2.7 2.7 15.0 15.0 14.4 15.4 14.4 3.2 2.5 2.5 2.7 3.2 2.7 2.5 2.5 2.3 2.3 2.5 2.7 2.7 2.7 2.7 9.3 9.8 9.4 9.3 2.7 7.6 9.3 9.4 7.6 9.8 9.
Slide 8: Agenda
Agenda Sell Side Research Analyst Coverage 3 Saudi Insurance Market 5 Bupa Arabia Performance Overview 8 Competitive Positioning 16 FY 2017 Performance Update 8
Slide 9: Key Financial Metrics
Key Financial Metrics YoY YoY (SR m, unless otherwise indicated) Q4 2016 Q4 2017 FY 2016 FY 2017 variance variance GWP 1,086 1,110 2% 7,939 7,733 -3% Net Earned Premium (NEP) 1,982 1,950 -2% 7,667 7,672 0.1% Contribution 318 211 -34% 1,489 1,267 -15% Loss Ratio1 84.0% 89.2% 5.2pps 80.6% 83.5% 2.9pps
Slide 10: Underlying Performance
Underlying Performance (SR m) FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 Operating Profit 120 285 664 536 347 Investment & Other Income 36 42 19 130 158 Bad Debt Provision (BDP) (9) (26) (39) (35) (4) Earnings before Zakat & Tax (EBT) 147 301 645 631 501 Operating Profit Margin 4.6% 6.2% 9.9% 7.0% 4.5%
Slide 11: Cost Structure as % of NEP
Cost Structure as % of NEP (SR m) FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 Commissions 2.4% 2.7% 2.4% 2.4% 2.4% Levies/Brand Fees 2.2% 2.1% 1.9% 1.8% 1.8% Marketing/Fulfillment 1.0% 0.7% 0.9% 0.5% 0.5% Total Acquisition Cost 5.6% 5.4% 5.2% 4.7% 4.6% Staff Cost 6.8% 6.2% 5.1% 5.1% 5.1% Other Expenses
Slide 12: Balance Sheet Summary (SR m)
Balance Sheet Summary (SR m) Assets Breakdown Working Capital / Shareholders’ Equity 7,000 7,000 6,213 6,213 5,798 133 5,798 6,000 6,000 91 98 5,227 5,227 98 77 98 5,000 2,321 5,000 2,027 3,971 3,971 1,667 4,000 61 4,000 98 1,051 3,000 3,000 5,982 5,613 5,051 2,000 2,000 3,789 3,775 3,892 3,560 2,89
Slide 13: GWP Trend (SR m)
GWP Trend (SR m) Quarterly/Annual GWP Growth 7,939 7,733 7,328 5,740 3,177 2,121 2,079 1,891 2,257 2,446 2,579 2,253 1,848 2,523 1,421 1,377 1,828 825 876 903 574 821 1,100 1,086 1,110 Q1 Q2 Q3 Q4 FY13 Q1 Q2 Q3 Q4 FY14 Q1 Q2 Q3 Q4 FY15 Q1 Q2 Q3 Q4 FY16 Q1 Q2 Q3 Q4 FY17 • GWP grew at a CAGR of 18% fo
Slide 14: NEP Trend (SR m)
NEP Trend (SR m) Quarterly/Annual NEP Growth 7,667 7,672 6,739 4,595 2,604 1,514 1,649 1,765 1,812 1,882 1,864 1,939 1,982 1,876 1,909 1,937 1,950 532 595 703 775 881 996 1,316 1,402 Q1 Q2 Q3 Q4 FY13 Q1 Q2 Q3 Q4 FY14 Q1 Q2 Q3 Q4 FY15 Q1 Q2 Q3 Q4 FY16 Q1 Q2 Q3 Q4 FY17 • NEP grew at a CAGR of 26% for
Slide 15: Contribution Trend (SR m)
Contribution Trend (SR m) Quarterly/Annual Contribution Growth 1,528 1,489 1,267 946 510 608 540 375 353 387 462 339 317 334 278 318 174 179 114 176 211 207 211 70 87 Q1 Q2 Q3 Q4 FY13 Q1 Q2 Q3 Q4 FY14 Q1 Q2 Q3 Q4 FY15 Q1 Q2 Q3 Q4 FY16 Q1 Q2 Q3 Q4 FY17 Contribution • Contribution grew at a CAGR of 4%
Slide 16: Agenda
Agenda Sell Side Research Analyst Coverage 3 Saudi Insurance Market 5 Bupa Arabia Performance Overview 8 Competitive Positioning 16 FY 2017 Performance Update 16
Slide 17: Bupa Group
Bupa Group We are part of an international family that provides health and care services in more than 190 countries 70 84,000 32 190 Years of Experience with Employees serving Million in Countries Customers +17 +336 Hospitals Clinics +453 +900 Age Care Homes Dental Centre +60 +36 Retirement Villages
Slide 18: The Bupa Arabia Strategy
The Bupa Arabia Strategy Bupa Arabia is the greatest healthcare company in the Arab world. It is designed to deliver on its purpose. When it touches you, whether you are an employee, a customer or a community member, you will live a longer, healthier, happier life. We have written history. A healthc
Slide 19: Why Bupa Arabia? We Are Bupa Arabia
Why Bupa Arabia? We Are Global Expertise Bupa Arabia, and Reach The largest healthcare insurance company in Saudi Arabia serving over Life-touching 3.3 million members in the kingdom Healthcare Services with the Tebtom program We are part of the largest healthcare network in the world outside the U.
Slide 20: Tebtom Program
Tebtom Program FY 2017 Performance Update 20
Slide 21: Rahatkom Program
Rahatkom Program FY 2017 Performance Update 21
Slide 22: What We've Achieved in Customer Service
What We’ve Achieved in Customer Service A change in the way the market views customer service Moving from “Health Insurer” to “Healthcare Partner” through innovative initiatives: • Up Your Service Passion: enhance service mindset and operational excellence • Quality management systems • Automation a
Slide 23: Achievements & Awards
Achievements & Awards Our services have set industry standards We have been recognized by various organizations for our value added benefits to our customers • “Best Medical Insurance Company 2017” by International Finance Magazine • “Best Investor Relations Saudi Arabia 2017”by International Financ
Slide 24: Investment in Competitive Advantages
Investment in Competitive Advantages Key Business Achievements in 2017: Experienced Management Team and Staff • Daily Food Company - Maestro Pizza • Nas Holding - FLY NAS • Ritz Carlton Hotel Riyadh / Jeddah Strong Brand & Customer Social Service Culture • Makkah Construction and Reconstruction Resp
Slide 25: Market Context - 2018 Focus
Market Context - 2018 Focus CUSTOMERS • Difficult fiscal environment to continue • Continued affordability issues for clients • Payment terms; growing desire for extended payment terms COMPETITORS • Better competitive pricing environment • We will keep Looking forward, to sustain our differentiation
Slide 26: THANK YOU
THANK YOU Bupa Arabia Business Advisory & Investor Relations Tel: +966 920 000 456 Ext: 5414 ba.bair@bupa.com.sa www.bupa.com.sa