Company For Cooperative Insurance · TADAWUL:8010
Company For Cooperative Insurance — The Company for Cooperative Insurance (Tawuniya) — Q1 2019 Earnings Presentation
32 slides from Company For Cooperative Insurance's earnings presentation, 2019
Slide 1: Investor's Presentation Q1 2019 Earnings Conference Call
Investor’s Presentation Q1 2019 Earnings Conference Call
Slide 2: Table of Contents
Table of Contents I. KSA Insurance Industry Market Conditions & Dynamics Market Performance by Line of Business Market Opportunities II. Tawuniya Performance III. Company Overview 2
Slide 3: KSA Insurance Industry
KSA Insurance Industry Change Separator 3
Slide 4: KSA Insurance Industry: regulators, licensed companies, compulsory products
KSA INSURANCE INDUSTRY Active regulators… Over-supplied with Insurers… Compulsory-Driven market… REGULATORS LICENSED COMPANIES COMPULSORY PRODUCTS Saudi Arabian Monetary Authority * SAMA * 33 insurance & reinsurance companies All private sector employees (including their dependents) must have 88 Bro
Slide 5: Underpenetrated market with medical premium domination
KSA INSURANCE INDUSTRY Underpenetrated Market with Medical premium domination… COUNTRY-LOOK GLOBAL-LOOK GWP MIX SR 18,000 USA, 7.2%, Medical Motor P&C PENETRATION* 15,810 16,000 14,000 UK, 9.6%, 12,000 OECD, 7.2%, 14,288 10% 1.4% 1.9% 10,000 10,322 Density Total GDP Non-oil GDP 8,000 UAE, 3.7%, 27%
Slide 6: Corporate segment dominates market premiums
KSA INSURANCE INDUSTRY Corporate segment dominates market premiums… Overall Market Segment MEDICAL MOTOR P&C Retail Retail Retail 1,303 159 29 11% 2% Retail SMEs 2% SMEs 338 1,115 1,737 26% 35% 25% SMEs 2,444 21% Corporates Corporates 7,738 Corporates Corporates Medium 1,679 68% 5,139 919 370 53% 73
Slide 7: Current market conditions
KSA INSURANCE INDUSTRY Current market conditions… Increased government fees and VAT introduction impacting businesses. Expats exodus reached 1.2m in 2018. FSDP under Vision 2030 expected to boost Increased enforcement on Saudi dependents in the the insurance industry penetration level. Overa
Slide 8: 55% of market premiums are controlled by the top players
KSA INSURANCE INDUSTRY 55% of market premiums are controlled by the top 3 players… Y-O-Y MARKET SHARE 60% l Tawuniya & MedGulf cover all lines of business MedGulf Bupa while Bupa only covers health insurance 40% GWP: 2.7b GWP: 8.9b Growth: 21.8% Growth: 12.7% COMPANY GROWTH Share: 7.6% Share: 24.9%
Slide 9: Market facing challenging conditions in underwriting profits
KSA INSURANCE INDUSTRY Market facing challenging conditions in underwriting profits… MA RK E T G W P NET INCOME 406 +8.4% 12.0 +2.6% 11.1 168 207 10.8 Q1, 2017 Q1, 2018 Q1, 2019 Q1, 2017 Q1, 2018 Q1, 2019 MA RK E T LO SS RAT I O INVESTMENT INCOME NON-INVESTMENT INCOME Earned Premium Incurred Claims
Slide 10: Medical market experiencing price and loss ratio increases
KSA INSURANCE INDUSTRY Medical Market experiencing price and loss ratio increases… MA RK E T G W P Y-O-Y MARKET SHARE +21.9% 7.2 60% 5.6 +5.6% 5.9 Tawuniya GWP: 6.1b 40% Growth: 1.8% Share: 27.3% COMPANY GROWTH Medgulf Q1, 2017 Q1, 2018 Q1, 2019 20% GWP: 2.0b 10.0% Growth Market Growth: 43.7% MA RK
Slide 11: Medical market has major room for growth in the coming decade
KSA INSURANCE INDUSTRY Medical market has major room for growth in the coming decade… Medical Market Opportunities Tawuniya’s Competitive Position Saudi dependents: 2 M lives during 2019 Current large market share (22.2%) Government Programs: 3 M lives up to 2030 Comprehensive insurer with a
Slide 12: Motor market experiencing premium decline
KSA INSURANCE INDUSTRY Motor Market experiencing premium decline… MA RK E T G W P Y-O-Y MARKET SHARE 60% 4.3 -16.6% 3.6 -14.1% 3.1 AXA Others GWP: 773m GWP: 5.4b 40% Growth: -17.9% Growth: -0.2% Share: 8.7% Share: 60.9% COMPANY GROWTH Q1, 2017 Q1, 2018 Q1, 2019 20% Rajhi GWP: 1.9b Growth: -21.5% MA
Slide 13: Motor market holds promising factors to double its size
KSA INSURANCE INDUSTRY Motor market holds promising factors to double its size in the coming decade… Motor Market Opportunities Tawuniya’s Competitive Position Vehicles: around 12 m by 2018 Strong technical performance to compete for market share. Government Programs: increase insurance covera
Slide 14: P&C market experiencing premium increase
KSA INSURANCE INDUSTRY P&C Market experiencing premium increase… Tawuniya has the “lion-share” MA RK E T G W P 1.7 Y-O-Y MARKET SHARE 60% +9.4% 1.6 Wala’a -0.9% 1.5 GWP: 397m Others 40% Growth: 30.3% GWP: 3.2b Share: 8.0% Growth: -3.1% COMPANY GROWTH Share: 64.0% Q1, 2017 Q1, 2018 Q1, 2019 20% MA RK
Slide 15: P&C market will be positively impacted in the coming decade
KSA INSURANCE INDUSTRY P&C market will be positively impacted in the coming decade… P&C Market Opportunities Tawuniya’s Competitive Position Number of business establishments: 484K in 2018 Dominating position in the market. Government Programs: mega projects by the government (Solar Power, NEO
Slide 16: Tawuniya Performance
Tawuniya Performance Change Separator 16
Slide 17: Q1 2019 experienced growth in Medical and P&C lobs
TAWUNIYA PERFORMANCE Q1 2019 experienced growth in Medical and P&C lobs… GWP ( S A R M I L L I O N ) HIGHLIGHTS TOTAL 2,028 +3.3% 2,095 +17.2% 2,457 Inlcuding Manafeth Medical GWP grew by 19% mainly due to CCHI new table of benefits and price increases. 179 254 P&C GWP grew by 31% mainly due to
Slide 18: Loss ratio by line of business
TAWUNIYA PERFORMANCE Now turning to the loss ratio, the life blood of any insurance business… LOSS RATIO 95.0% 96.1% 85.9% 74.8% 70.0% 60.9% 49.1% 41.3% 26.7% Q1 2017 Q1 2018 Q1 2019 Health Motor P&C 18
Slide 19: Medical Loss Ratio Evolution: Reported 2018
TAWUNIYA PERFORMANCE Medical Loss Ratio Evolution… Reported 2018 0.00 0.00 0.00 0.00 0.00 0.00 Q1 Q2 Q3 Q4 Seasonal Pattern 105 95 95 105 Reported 2018 19
Slide 20: Medical Loss Ratio Evolution: Reported vs Settled 2018
TAWUNIYA PERFORMANCE Medical Loss Ratio Evolution… Reported 2018 vs. Settled 2018 0.00 0.00 0.00 0.00 0.00 0.00 Q1 Q2 Q3 Q4 Seasonal Pattern 105 95 95 105 Settled 2018 Reported 2018 20
Slide 21: Medical Loss Ratio Evolution: including Projected 2019
TAWUNIYA PERFORMANCE Medical Loss Ratio Evolution… Reported 2018 vs. Settled 2018 vs. Projected 2019 0.00 0.00 0.00 0.00 0.00 0.00 Q1 Q2 Q3 Q4 Seasonal Pattern 105 95 95 105 Settled 2018 Projected 2019 Reported 2018 21
Slide 22: Total costs allocated to each line of business fell by 11%
TAWUNIYA PERFORMANCE Total costs allocated to each line of business (acquisition & underwriting) fell by 11% from Q1 2018… ALLOCATED EXPENSE AND G&A RATIO HIGHLIGHTS Expenses G&A The motor PAC and UW expense fell 40% due to 12% the absence of leasing overheads. 11% 10% The Health allocated expen
Slide 23: Other elements that feed into the Reported Net income
TAWUNIYA PERFORMANCE Other elements that feed into the Reported Net income are … TOTAL INVESTMENTS (SR MILLION) UN-REALIZED INVESTMENT INCOME (SR MILLION) 183.9 5,967 6,013 5,702 5,485 5,249 5,016 25.1 31.2 1Q16 1Q17 1Q18 1Q19 -62.5 REALIZED INVESTMENT INCOME (SR MILLION) 71.5 61.1 59.2 46.0 2014 20
Slide 24: Company Overview
Company Overview Tawuniya 4Ligl ei! a 4 kD Tawun
Slide 25: Leading Saudi insurer with years of sustained achievements
COMPANY OVERVIEW Leading Saudi insurer with 33 years of sustained achievements… Introduced medical IPO to float 70% of First insurer to insurance plans the total capital launch digital services in KSA 1986 2004 2006 2017 1995 2005 2010 Tawuniya SAMA License, first “A” credit rating Paid-up capital E
Slide 26: Two of the strongest government entities own 47% of Tawuniya
COMPANY OVERVIEW Two of the strongest government entities own 47% of Tawuniya… GOSI Tawuniya is an enlisted company Investment Portfolio: With a paid-up capital of SAR 1,250 m SAR 134 billions More than 51 companies GOSI 23% Publicly PPA Floated Investment Portfolio: 53% SAR 68.5 billions PPA 24% 65
Slide 27: Our Vision & Mission
COMPANY OVERVIEW Our Vision & Mission… OUR VISION OUR MISSION Be the companion that presents Sustain momentum for our society’s safety innovative and customer centric insurance and continuous progress towards the solutions, so our customers feel secure, future. empowered and ready for the future. So
Slide 28: The largest comprehensive insurer in GCC
COMPANY OVERVIEW The largest comprehensive insurer in GCC… Portfolio of SR 8 billion with multi-offerings across all lines of business & segments CORPORATE – SME – RETAIL MEDICAL MOTOR PROPERTY & CASUALTY • My Family • Al-Shamel • Engineering • Aviation • Balsam • Sanad • Fire & Property • Energy •
Slide 29: The largest regional & global reach to clients and providers
COMPANY OVERVIEW The largest regional & global reach to clients and providers… 5 Regional Offices + 2,000 Network of over a million Providers health care providers 105 Branches in 13 Regions 24 Agents + 2,000 20 Employees International Reinsurers Treaties 29
Slide 30: High credit rating and A-rated reinsurance partners
COMPANY OVERVIEW Insurance company with high credit rating within KSA… and (A) rated reinsurance partners… OUR INTERNATIONAL REINSURERS Solicited CCR is rated “AA” by S&P (BBB+) Munich Re is rated “AA-” by S&P Swiss Re is rated “AA-” by S&P Everest Re is rated “A+” by S&P Un-Solicited Transatlantic
Slide 31: 15,740+ organizations across various sectors trust Tawuniya
COMPANY OVERVIEW + 15,740 organizations across various sectors trust Tawuniya… MINING & AVIATION FINANCIALS TELECOM. MANUFACTURING OTHERS PETROCHEM. 31
Slide 32: Thank You
THANK YOU ًﺷﻛرا
The Company for Cooperative Insurance (Tawuniya) — Q1 2019 Earnings Presentation on 6ix