Qatar Insurance Co. · QSE:QATI
Qatar Insurance — Q3 2019 Earnings Presentation
36 slides from Qatar Insurance's earnings presentation, September 2019
Slide 1: Domestic dominance, Regional leadership, Global ambitions
Domestic dominance Regional leadership Global ambitions September 2019
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 – September 2019
At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix QIC - KEY FACTS AND FIGURES – September 2019 QIC steadily evolved from a domestic player to a regional leader on to global Solid foundation ambitions over 50 years GWP: QAR 9.8 billion Expected
Slide 4: 55 Years of Operational Excellence
At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix 55 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 2019 9M 500 0.130 10,941 2018 664 0.174 11,449 2017 424 0.
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 Sep 2019 Total equity increased by USD 2017 Tier-2 Issue 450m o Government of 13.78% 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 12,606 926 11,659 844 9,901 9,806 8,347 576 420 115 2015 2016 2017 2018 2019 9M 2015 2016 2017 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 • Markerstudy NatCat
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 Lloyds Life & Medical Asset Management • Personal lines • Agriculture • Aviation • Group Life • Proprietary o Motor • Credit & Surety • Financia
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 2018) in QAR million 39,165 45,000 40,000 35,000 30,000 25,000 20,000 12,606 12,249 15,000 8,310 8,024 7,412 7,185 7,019 6,880 6,761 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) 2015 2016 2017 2018 2019 9M Gross premium 8,347 9,901 11,659 12,606 9,806 Underwriting results 926 844 115 576 420 Net
Slide 16: ...and Shareholder Value Creation
At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix …AND SHAREHOLDER VALUE CREATION Dividends in QAR Return on Equity (Normalised) Pay-out ratio 64% 62% 70% 234% 84% 1.50 1.00 18.4 18.1 1.50 1.50 14.7 12.0 11.9 2.50 2.50 1.50 1.50 1.50 2014 2015 2016 2
Slide 17: Key Performance Metrics
At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix KEY PERFORMANCE METRICS 120% 1.6% 100% 6.8% 2.6% 2.2% 8.1% 7.1% 6.4% 6.8% 80% 21.0% 19.6% 25.7% 25.6% 60% 40% 68.9% 70.7% 66.9% 66.6% 20% 2016 - 98% 2017 - 105.8% 2018 - 101.3% 2019 9M - 101.5% Loss r
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 2019 9M 52% 10% 5% 6% 15% 7% 3% 2% 2018 50% 10% 5% 7% 16%
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 13% 11% 9% 10% 14% 14% 14% 17% 75% 77% 76% 70% 2016 2017 2018 2019 9M International Domestic Regi
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 3% 3% 3% 19,170 4% 18,757 18,321 16,000 15,411 7% 8% 8% 12,0
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 4% 4% 7% 1% 3% 15% 42% 12% 15% 48% 41% 51% 18% 21% 18% 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 % 2014 2015 2016 2017 2018 Invested assets to total assets 59% 62% 67% 53% 48% Invested assets to net technical reserves 188% 119% 139% 131% 125% 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 Rating: ‘A’ / Stable o “We view QIC as an increasingly diversified insurance group with relatively Outlook: Stable mature operations in the
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 Third party Asset Credit & Surety 2% Liability 7% Re/ Insurance
Slide 30: Appendix
At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix APPENDIX 30
Slide 31: Profit and Loss Account, 2015 – 2019 9M
At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix PROFIT AND LOSS ACCOUNT, 2015 – 2019 9M Income Statement (QAR ‘000) 2015 2016 2017 2018 Growth CAGR 2019 9M (YOY) Gross written premium 8,347,210 9,901,394 11,658,697 12,605,835 8% 15% 9,805,515 Net e
Slide 32: Balance Sheet, 2015 – 2019 9M
At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix BALANCE SHEET, 2015 – 2019 9M Balance Sheet (QAR ‘000) 2015 2016 2017 2018 2019 9M ASSETS Cash and cash equivalents 3,518,760 6,962,310 7,914,054 8,011,163 7,962,210 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: Expanding Globally, Leading Regionally
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Qatar Insurance Company — Q3 2019 Earnings Presentation on 6ix