Investor Presentation 3Q - 2015
Investor Presentation 3Q - 2015
1
Company Overview
2
The Company for Cooperative Insurance (Tawuniya) Overview: • Established in 1987, Tawuniya is the “One of the Largest Insurance” company of KSA market • Headquartered in Riyadh, Saudi Arabia • Joint Stockholding Structure, Listed on Saudi Stock Exchange (Tadawul) • Strategic Business Units : Motor, Health, P&C and Investment • Multiple distribution channels and products • Significant presence in each region of KSA • “A” (Stable Outlook) credit rating by Standard & Poor's Product Market Share:
Motor 12%
Medical & Takaful
Property & Casualty
21%
19% 33
Our
milestones Tawuniya Establishment
Vehicle Liability Insurance Compulsory Act (TP)
1987
2002 1995
Introduced medical insurance plans and other individual products.
Launched a new corporate identity.
IPO to float 70% of the total capital.
2007
2005 2004
Received the first license from SAMA.
Increased the paid up capital to SR 1000 million.
2006
Introduction of 90% surplus to SH as per SAMA rules.
“A” credit rating assigned by S&P for the first time.
2008
2013
The application of health insurance compulsory for the expatriates. 4
Our
structure Distribution
SBUs
Sales Channels Key Accounts
Motor Medical & Takaful Property & Casualty Investment
GRC
BOD&CEO
Risk Management Compliance
Committees Internal Audit
Support Finance Marketing Reinsurance HR SS SMO ISD
5
Our
products Motor
Medical
Al-Shamel Sanad Sanad Plus Rukhsa
Balsam My Family Group Medical Group Takaful
P&C Engineering Fire & Property Casualty Marine Aviation Energy 6
Potential
Increase of awareness
growth influencers
Expansion of compulsory insurance
Mortgage Finance Law and other Acts
Third Party Liability Law
Professional indemnity
Innovative products to meet needs of society
7
Insurance
Regulators in KSA
Overall (MOC)
Cooperative Health Insurance (CCHI)
Primary operations (SAMA)
Shares & Listing (CMA)
8
Major clients
CONSTRUCTION
ENERGY
COMMUNICATIONS
Food, drugs & others
TRANSPORTATION
FINANCIAL
9
Reinsurance
partners Munich Re is rated “AA-” by S&P Swiss Re is rated “AA-” by S&P SCOR Global P&C is rated “A+” by S&P LLOYD’s is rated “A+” by S&P MAPFRE is rated “BBB+” by S&P
CCR is rated “AAA” by S&P Transatlantic Re is rated “A+” by AM Best 10
Top rated in the region A
Hannover Re
ABBB+
o Gulf Insurance o o o o
Saudi Re Malath Wataniya Medgulf
o Al-Ahleia o Kuwait Re
BBB BBB-
Kuwait
QIC
o ADNIC
o Trust o Bahrain National
o Salama
o Doha insurance
o Bahrain Kuwait o Takaful Int’l
o National General Ins. o Oman o Takaful Re o Al Buhaira
o Qatar General o Ins. & Reins
o Oman United
o Aman
o First Takaful
KSA
Arab Orient
Bahrain
UAE
Qatar
Oman S&P GCC Rating Sep 2011
11
Tawuniya Capital Growth : Decent Capital Base The highest growth paid up capital
SR 750 M SR 250 M
1987
SR 1,000 M
SR 500 M
2004
2011
2013
12
Tawuniya Capital Ownership : Long-term Investors PPA 24%
Public 53% GOSI 23%
Public Pension Agency (PPA) is 100% Saudi Government Owned entity. Since its establishment in 1958, Agency caters the benefit plan for Military & Civil Retirees.
General Organization for Social Insurance (GOSI) is Saudi Government Owned entity, implementing social insurance rules for Private Sector Employee.
13
Insurance Market
14
KSA Insurance Market Today •
Regulations have positively impacted the overall market performance
•
Several small insurers are struggling to maintain adequate solvency/capital margins Ease of re-capitalization is no longer being supported by the regulator
•
Stern price competition among large insurers is still present
•
Motor Third Party insurance penetration is still low but expected to increase with strong regulatory enforcement.
•
Newly-introduced (i.e. Visit Visa, Motor Government fleets…) and potentially-new compulsory lines (Domestic Helpers…) are expected to boost market premium growth.
Market
9M 2015
9M 2014
Variance
GWP
28,357.9
23,431.1
21%
Incurred Claims
15,568.0
12,762.4
22%
Net Income
866.0
659.4
31%
Loss-making Companies
12
13
Out of 34 15
Top KSA Insurance Companies Gross Written Premium (in SR Millions)
GWP Market Share Trend – 9M Cumulative Tawuniya
Medgulf
Bupa
Remaining Companies
6,228
4,781
3,419 1,520
56 50
52 49 48
48
50 46
48 48 49
50 46
44 45
BUPA
Tawuniya
MedGulf
Malath
48 48
994 Al-Rajhi ARCC
Operating Surplus ex. PH Investment (in SR Millions) 488 344
27
25 21
141
23 24 19
22 21 18
23 18
20
2121
17 17 17 18 19 19 15 1717 17 16 16 16 15 15 15 14 16 16 15 1514 14 14 13 12 13 14 13 12 11 12 11 12
37
40
20 2123 BUPA
Tawuniya
Al-Rajhi ARCC
AlSaqr
ATC
Net Income (in SR Millions) 543
436
44 Tawuniya
BUPA
AlSaqr
37 Al-Rajhi ARCC
36 UCA
16
Top KSA Insurance Companies Earning per Share SAR 10.90
5.42
4.46
4.42 1.42
Tawuniya
0.80
MedGulf 1.36
BUPA 9M, 2015
0.15 UCA
9M, 2014
Loss Ratio “ Tawuniya”
82%
78.8%
69%
78%
66.6%
75.0%
51% 26.3%
Medical
Motor
P&C 2014
Total
9M 2015
17
Tawuniya’s Long-Term Strategic Pillars
Market Leadership
Profitability
Customer Centricity
To attain the optimal balance across all three strategic pillars 18
Financial Highlights
19
Sustainable Growth Technical Reserves (in SR Millions) 6,936 6,017
Total Assets (in SR Millions)
9,965 7,531
2010
7,384
2011
9,939
10,897
3,979
3,729
2010
2011
6,023
4,225
11,098 2012
2013
2014
8,218
Total Investments
2012
2013
2014
6,629
2Q 2015 3Q 2015
3,880
3,816
3,914
2010
2011
2012
2013
3Q 2015
(in SR Millions)
5,016 3,876
2Q 2015
2014
5,410
5,219
2Q 2015
3Q 2015
20
Key Financial Parameters Net Claims Incurred (in SR Millions)
Gross Written Premiums (in SR Millions)
4,181
4,431
5,635
5,605
6,208
4,785
4,781
4,346
1,478
2010
2011
2012
2013
2014
9M 2014
9M 2015
2010
Net Earned Premium (in SR Millions)
4,728
3,542
3,098
2011
2012
2013
2012
2013
2014
2,791
3,010
9M 2014
9M 2015
Net Income (Loss) (in SR Millions)
4,075
485
2010
2010
2011
3,659
4,804
3,951 2,659
2,009
3,138
2014
9M 2014
9M 2015
560 439
2011
411
320
2012
2013
2014
9M 2014
509
9M 2015
591
21
Loss Ratios : Efficient Management Retention Ratio
Combined Ratio
83%
86%
95%
2010
2011
2012
117%
2013
91%
2014
92%
92%
9M 2014
9M 2015
Net Income Margin
69%
78%
12.13% 8.15%
2010
2011
2012
2013 -11.73%
2014
85% 82%
83%
2010 2011 2012 2013 2014
Total Investment income
18.99% 14.77%
80%
12.21%
1H 2014
248
12.71% 90
2010
2011
9M 9M 2014 2015
(in SR Millions)
224
161 101
84%
206
242
9M 2014
9M 2015
1H 2015 2012
2013
2014
22
GWP: Maintaining the composition Gross Written Premium Mix (SR Million)
9M 2015
9M 2014
P&C 18%
P&C 20%
Motor 18%
9M 2014 Medical 62% 4,345
Motor 22%
9M 2015 Medical 4,780
60%
23
Thank You
Final Slide Tawuniya logo
1
Company Overview
2
The Company for Cooperative Insurance (Tawuniya) Overview: • Established in 1987, Tawuniya is the “One of the Largest Insurance” company of KSA market • Headquartered in Riyadh, Saudi Arabia • Joint Stockholding Structure, Listed on Saudi Stock Exchange (Tadawul) • Strategic Business Units : Motor, Health, P&C and Investment • Multiple distribution channels and products • Significant presence in each region of KSA • “A” (Stable Outlook) credit rating by Standard & Poor's Product Market Share:
Motor 12%
Medical & Takaful
Property & Casualty
21%
19% 33
Our
milestones Tawuniya Establishment
Vehicle Liability Insurance Compulsory Act (TP)
1987
2002 1995
Introduced medical insurance plans and other individual products.
Launched a new corporate identity.
IPO to float 70% of the total capital.
2007
2005 2004
Received the first license from SAMA.
Increased the paid up capital to SR 1000 million.
2006
Introduction of 90% surplus to SH as per SAMA rules.
“A” credit rating assigned by S&P for the first time.
2008
2013
The application of health insurance compulsory for the expatriates. 4
Our
structure Distribution
SBUs
Sales Channels Key Accounts
Motor Medical & Takaful Property & Casualty Investment
GRC
BOD&CEO
Risk Management Compliance
Committees Internal Audit
Support Finance Marketing Reinsurance HR SS SMO ISD
5
Our
products Motor
Medical
Al-Shamel Sanad Sanad Plus Rukhsa
Balsam My Family Group Medical Group Takaful
P&C Engineering Fire & Property Casualty Marine Aviation Energy 6
Potential
Increase of awareness
growth influencers
Expansion of compulsory insurance
Mortgage Finance Law and other Acts
Third Party Liability Law
Professional indemnity
Innovative products to meet needs of society
7
Insurance
Regulators in KSA
Overall (MOC)
Cooperative Health Insurance (CCHI)
Primary operations (SAMA)
Shares & Listing (CMA)
8
Major clients
CONSTRUCTION
ENERGY
COMMUNICATIONS
Food, drugs & others
TRANSPORTATION
FINANCIAL
9
Reinsurance
partners Munich Re is rated “AA-” by S&P Swiss Re is rated “AA-” by S&P SCOR Global P&C is rated “A+” by S&P LLOYD’s is rated “A+” by S&P MAPFRE is rated “BBB+” by S&P
CCR is rated “AAA” by S&P Transatlantic Re is rated “A+” by AM Best 10
Top rated in the region A
Hannover Re
ABBB+
o Gulf Insurance o o o o
Saudi Re Malath Wataniya Medgulf
o Al-Ahleia o Kuwait Re
BBB BBB-
Kuwait
QIC
o ADNIC
o Trust o Bahrain National
o Salama
o Doha insurance
o Bahrain Kuwait o Takaful Int’l
o National General Ins. o Oman o Takaful Re o Al Buhaira
o Qatar General o Ins. & Reins
o Oman United
o Aman
o First Takaful
KSA
Arab Orient
Bahrain
UAE
Qatar
Oman S&P GCC Rating Sep 2011
11
Tawuniya Capital Growth : Decent Capital Base The highest growth paid up capital
SR 750 M SR 250 M
1987
SR 1,000 M
SR 500 M
2004
2011
2013
12
Tawuniya Capital Ownership : Long-term Investors PPA 24%
Public 53% GOSI 23%
Public Pension Agency (PPA) is 100% Saudi Government Owned entity. Since its establishment in 1958, Agency caters the benefit plan for Military & Civil Retirees.
General Organization for Social Insurance (GOSI) is Saudi Government Owned entity, implementing social insurance rules for Private Sector Employee.
13
Insurance Market
14
KSA Insurance Market Today •
Regulations have positively impacted the overall market performance
•
Several small insurers are struggling to maintain adequate solvency/capital margins Ease of re-capitalization is no longer being supported by the regulator
•
Stern price competition among large insurers is still present
•
Motor Third Party insurance penetration is still low but expected to increase with strong regulatory enforcement.
•
Newly-introduced (i.e. Visit Visa, Motor Government fleets…) and potentially-new compulsory lines (Domestic Helpers…) are expected to boost market premium growth.
Market
9M 2015
9M 2014
Variance
GWP
28,357.9
23,431.1
21%
Incurred Claims
15,568.0
12,762.4
22%
Net Income
866.0
659.4
31%
Loss-making Companies
12
13
Out of 34 15
Top KSA Insurance Companies Gross Written Premium (in SR Millions)
GWP Market Share Trend – 9M Cumulative Tawuniya
Medgulf
Bupa
Remaining Companies
6,228
4,781
3,419 1,520
56 50
52 49 48
48
50 46
48 48 49
50 46
44 45
BUPA
Tawuniya
MedGulf
Malath
48 48
994 Al-Rajhi ARCC
Operating Surplus ex. PH Investment (in SR Millions) 488 344
27
25 21
141
23 24 19
22 21 18
23 18
20
2121
17 17 17 18 19 19 15 1717 17 16 16 16 15 15 15 14 16 16 15 1514 14 14 13 12 13 14 13 12 11 12 11 12
37
40
20 2123 BUPA
Tawuniya
Al-Rajhi ARCC
AlSaqr
ATC
Net Income (in SR Millions) 543
436
44 Tawuniya
BUPA
AlSaqr
37 Al-Rajhi ARCC
36 UCA
16
Top KSA Insurance Companies Earning per Share SAR 10.90
5.42
4.46
4.42 1.42
Tawuniya
0.80
MedGulf 1.36
BUPA 9M, 2015
0.15 UCA
9M, 2014
Loss Ratio “ Tawuniya”
82%
78.8%
69%
78%
66.6%
75.0%
51% 26.3%
Medical
Motor
P&C 2014
Total
9M 2015
17
Tawuniya’s Long-Term Strategic Pillars
Market Leadership
Profitability
Customer Centricity
To attain the optimal balance across all three strategic pillars 18
Financial Highlights
19
Sustainable Growth Technical Reserves (in SR Millions) 6,936 6,017
Total Assets (in SR Millions)
9,965 7,531
2010
7,384
2011
9,939
10,897
3,979
3,729
2010
2011
6,023
4,225
11,098 2012
2013
2014
8,218
Total Investments
2012
2013
2014
6,629
2Q 2015 3Q 2015
3,880
3,816
3,914
2010
2011
2012
2013
3Q 2015
(in SR Millions)
5,016 3,876
2Q 2015
2014
5,410
5,219
2Q 2015
3Q 2015
20
Key Financial Parameters Net Claims Incurred (in SR Millions)
Gross Written Premiums (in SR Millions)
4,181
4,431
5,635
5,605
6,208
4,785
4,781
4,346
1,478
2010
2011
2012
2013
2014
9M 2014
9M 2015
2010
Net Earned Premium (in SR Millions)
4,728
3,542
3,098
2011
2012
2013
2012
2013
2014
2,791
3,010
9M 2014
9M 2015
Net Income (Loss) (in SR Millions)
4,075
485
2010
2010
2011
3,659
4,804
3,951 2,659
2,009
3,138
2014
9M 2014
9M 2015
560 439
2011
411
320
2012
2013
2014
9M 2014
509
9M 2015
591
21
Loss Ratios : Efficient Management Retention Ratio
Combined Ratio
83%
86%
95%
2010
2011
2012
117%
2013
91%
2014
92%
92%
9M 2014
9M 2015
Net Income Margin
69%
78%
12.13% 8.15%
2010
2011
2012
2013 -11.73%
2014
85% 82%
83%
2010 2011 2012 2013 2014
Total Investment income
18.99% 14.77%
80%
12.21%
1H 2014
248
12.71% 90
2010
2011
9M 9M 2014 2015
(in SR Millions)
224
161 101
84%
206
242
9M 2014
9M 2015
1H 2015 2012
2013
2014
22
GWP: Maintaining the composition Gross Written Premium Mix (SR Million)
9M 2015
9M 2014
P&C 18%
P&C 20%
Motor 18%
9M 2014 Medical 62% 4,345
Motor 22%
9M 2015 Medical 4,780
60%
23
Thank You
Final Slide Tawuniya logo
