Cic Insurance Group Plc · NSEKE:CIC
Cic Insurance — FY2021 Earnings Presentation
27 slides from Cic Insurance's earnings presentation, Mar 16, 2022
Slide 1: Investor Briefing: 2021 End Year Results
Investor Briefing 2021 End Year Results 16th March 2022 GENERAL •LIFE •HEALTH • ASSET
Slide 2: Agenda
Agenda 1. Overview and Strategy 2. Economic Overview 3. Financial Performance 4. Geographical Segments Performance
Slide 3: Overview & Strategy
OVERVIEW & STRATEGY CIC GROUP
Slide 4: CIC at a Glance
CIC at a Glance S O 19.6B Gross 41 5B Assets 42% Asset Written Premium Management Unit trust Market R Q “ gy & 5.8% Life 7.8% General 4 countries 25 Branches Assurance Market Business Market Share Share QUICK CIC FACT
Slide 5: Our Philosophies and Values
Our Philosophies and Values Our Purpose A financial service industry institution predominately owned by the Co-operative Movement transforming lives. Why we exist as CIC Insurance Group We operate in Kenya and the region using the co-operative model to ensure that we economically and socially tr
Slide 6: Group Structure
Group Structure CIC CIC CIC CIC CIC GENERAL LIF AFRICA CIC AFRICA AFRIC ASSE INSURANC E T UGAND INSURANC A E LTD CO-OPERATIVES ASSURANC MANAGEMENT A LTD E LTD 100% E LTD LTD 93% (SOUTH SUDAN LTD) (MALAWI) 100% 100% 69% 91% CIC CIC AFRICA CO-OPERATIVES CO- GENERAL LIFE LIFE OPERATIVES INSURANCE ASSUR
Slide 7: Ownership Structure
Ownership Structure SHAREHOLDER CATEGORY VS % OF SHARES HELD FOREIGN INVESTOR LOCAL INDIVIDUAL INVESTORS LOCAL INSTITUTIONAL INVESTORS 1% 22% 77%
Slide 8: Our Journey of Growth & Value Creation
Our Journey of Growth & Value Creation
Slide 9: The CIC Group Strategy: 2021-2025
The CIC Group Strategy: 2021-2025 CIC Group Strategy transformational focus areas 1. Functional organization 10. Risk structure 2. and Digitization compliance 9. Debt management Transforming 3. Data analytics CIC back to 8. High No. 2 overall 4. performing sales by 2025 Operational efficiency teams
Slide 10: Key Highlights on Our Strategy Execution
Key Highlights on Our Strategy Execution Transformational Key Highlights Initiative Functional Alignment of various roles in HQ & branches e.g. branch distribution, finance organization & strategy , Cooperatives structure Establishment of key functions in alignment to the Group strategy e.g. Group t
Slide 11: Key Highlights on Our Strategy Execution
Key Highlights on Our Strategy Execution Transformational Key Highlights Initiative Operational Deployment and upgrade of systems e.g. GB core system (Premia), Group efficiency ERP, CICAM core system (Fund master for client investment) Business processes review especially on claims for GB medical an
Slide 12: Awards 2021
Awards 2021 AKI Awards - Overall Winner Group Life Company of the Year AKI Group Life Best Practice Award Other Awards • Decade of Excellence Insurance Kenya - Global Banking and Finance Award 2021 • Best General Insurance Company Kenya - International Business Magazine Awards 2021 • Best Life Insur
Slide 13: Economic Overview
ECONOMIC OVERVIEW CIC GROUP
Slide 14: Economic Overview Summary
ECONOMIC OVERVIEW SUMMARY Kenya and Regions GDP growth % Improved Listed Equities Performance 12.0% 2,200 200 9.5% 10.0% 2,000 180 8.0% 160 1,800 6.0% 4.5% 3.8% 140 4.0% 3.3% 3.7% 1,600 120 2.0% 1,400 100 0.0% 1,200 80 kenya Uganda South Sudan Malawi -2.0% -1.1% -1.7% 1,000 60 -4.0% -4.1% -6.0% 2020
Slide 15: Financial Highlights
FINANCIAL HIGHLIGHTS / s GENERAL - LIFE - HEALTH. ASSET ¢ | )) CIC GROUP
Slide 16: 2021 Gross Written Premium
2021 Gross Written Premium GWP per Country KShs Billions GWP Per Line of Business KShs Billions 20.00 9.00 8.56 18.00 17.54 17% 16% 8.00 7.31 16.00 15.13 7.00 14.00 6.00 5.59 12.00 0% 36% 5.00 10.00 4.36 4.37 4.12 4.00 8.00 3.00 6.00 6% -52% 44% 2.00 4.00 -58% 43% 1.12 1.06 2.00 1.11 0.77 1.00 0.82
Slide 17: GWP Contribution per Segment
GWP Contribution per Segment GWP & Contribution Per Country 100% 89% 89% 90% 80% 70% 60% 50% 40% 30% 20% 10% 5% 4% 4% 3% 3% 2% 0% 2021 Actual 2020 Actual Kenya 89% 89% Uganda 5% 4% S.Sudan 2% 3% Malawi 4% 3% Kenya Uganda S.Sudan Malawi Movement in contribution from regions with an increase in Ugan
Slide 18: 2021 Profit Before Tax at Kshs 960 Million
2021 Profit Before Tax at Kshs 960 Million Profit / (Loss) Before Tax in Kshs Millions Consolidated Insurance Business Asset Management Non- Insurance Business 1307% 349% 45% 18% 1,200 600 1,200 523 0 1,000 960 979 2021 2020 1,000 500 (100) 800 400 361 (200) 800 600 (300) 600 300 (400) 400 400 200 (
Slide 19: Five Year Financial Highlights
Five Year Financial Highlights GWP Kshs Billions AUM Kshs Billions 25.00 CAGR 7% CAGR 31% 19.69 100 94 20.00 17.70 16.63 16.99 90 80 14.89 80 15.00 70 60 51 10.00 50 40 40 32 5.00 30 20 - 10 2017 2018 2019 2020 2021 - 2017 2018 2019 2020 2021 PBT Kshs Millions Investment Income Growth Kshs Billions
Slide 20: Five Year Financial Highlights
Five Year Financial Highlights Total Assets Kshs Billions ROE CAGR 8% 8% 38.79 41.54 33.05 35.30 6% 6% 30.51 4% 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 -4% Year Opex Ratio General Insurance Loss ratio Life Assurance Loss Ratio 37% 35% 34% 72% 79% 31% 75% 66% 67% 28% 70% 62% 67% 66% 66% 201
Slide 21: 2021 Group Financial Performance
2021 Group Financial Performance Performance improved boosted by resilient growth in topline and strong investment returns GWP Fees & Commissions Income Investment Income Kshs 19.69 B Kshs 2.14 B Kshs 2,32 B (2020:Kshs 16.99 B) (2020:Kshs 1.46 B) (2020:Kshs 1.43B) 16% 46% 62% Underwriting Result-Gen
Slide 22: Geographical Segments Performance
GEOGRAPHICAL SEGMENTS PERFORMANCE
Slide 23: Market Segment Performance: Kenya
Market Segment Performance Kenya GWP Fees & Commissions Income Capital Adequacy Ratio (CAR) Kshs 17.5 B Kshs 1.9 B General Life (2020:Kshs 15.12 B) ( 2020:Kshs 1.4B) Insurance Assurance 16% 44% 166% 106% Underwriting Result General Profit / (Loss) Before Tax) General insurance GWP up by 16% reflec
Slide 24: Malawi
Malawi Continued growth trajectory in Premiums written and profits GWP Profit Before Tax Capital Adequacy Ratio (CAR) Kshs 0.82 B Kshs 203 M (2020:Kshs 0.58 B) (2020:Kshs 31 M) General Life Insurance Assurance 43% 546% Underwriting Result-General Investment Income 20% 270% Kshs 47 M Kshs 64 M (2020:
Slide 25: South Sudan
South Sudan Strong operating profit results despite volatile operating environment GWP (Loss)/Profit Before Tax Capital Adequacy Ratio (CAR) Kshs 0.22B Kshs 212 M (2020:Kshs 0.51 B) (H2020:Kshs (232) M) 218% 58% 191% Underwriting Result-General Investment Income Kshs (253) M Kshs 466 M GWP decline
Slide 26: Uganda
Uganda Resilient premium growth and future focus on underwriting GWP Profit / (loss) Before Tax Capital Adequacy Ratio (CAR) Kshs 1.1B Kshs (20) M (2020:Kshs 0.77B) (2020:Kshs 57M) General Life Insurance Assurance 44% - 135% 244% 108% Underwriting Result-General) Investment Income Kshs (39) M Kshs 1
Slide 27: Thank you
Thank you We keep our word