Qatar Insurance Co. · QSE:QATI
Qatar Insurance — Investor Presentation (December 2017)
36 slides from Qatar Insurance's investor presentation, December 2017
Slide 1: Domestic dominance, Regional leadership, Global ambitions
Domestic dominance Regional leadership Global ambitions December 2017
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
At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix QIC - KEY FACTS AND FIGURES – December 2017 QIC steadily evolved from a domestic player to a regional leader on to global Solid foundation ambitions over 50 years GWP: QAR 11.7 billion Normalise
Slide 4: 53 Years of Operational Excellence
At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix 53 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 116 companies Asia Pacific:
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 (attributable to parent) Return on Equity(Normalised) Earnings per share Market Capitalization in QAR million in % (restated) in QAR in QAR million
Slide 6: 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 926 11,659 844 9,901 664 8,347 485 5,614 3,532 115 2013 2014 2015 2016 2017 2013 2014 2015 2016 2
Slide 7: Strategy
At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix Strategy 7
Slide 8: 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 • Qatar Re US & • Antares Group • Qatar Re • QIC Europe Ltd • Qatar Re Asia NatCat Holdings Continental B
Slide 9: Broad Spectrum of Capabilities
At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix BROAD SPECTRUM OF CAPABILITIES QIC Domestic Reinsurance Specialty Life & Medical Asset Management • Personal lines • Agriculture • Aviation • Group Life • Proprietary o Motor • Credit & Surety • Finan
Slide 10: Competitive Position
At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix Competitive Position 10
Slide 11: 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 2016) in QAR million 35,000 28,715 30,000 25,000 20,000 13,079 15,000 9,901 7,818 7,705 7,190 6,945 6,565 6,430 10,000 4,458 4,886 3,523 3,
Slide 12: 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 13: Performance
At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix Performance 13
Slide 14: 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) 2013 2014 2015 2016 2017 Gross premium 3,532 5,614 8,347 9,901 11,659 Underwriting results 485 664 926 844 115 Net prof
Slide 15: ...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 85% 64% 62% 70% 234% 2.50 1.50 1.00 18.4 18.1 17.1 1.50 1.50 14.7 12.0 2.50 2.50 2.50 1.50 1.50 2013 2014
Slide 16: Underwriting Performance
At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix UNDERWRITING PERFORMANCE Gross Premiums In QAR million Net Underwriting Results In QAR million CAGR 35% 926 844 11,659 664 9,901 485 8,347 5,614 3,532 115 2013 2014 2015 2016 2017 2013 2014 2015 2016
Slide 17: Well Diversified Portfolio Enhances Capital Efficiency
At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix WELL DIVERSIFIED PORTFOLIO ENHANCES CAPITAL EFFICIENCY Gross premiums, split by region 2017 Gross premiums, split by line of business 2017 Domestic Credit & Surety Liability 14% 2% 6% Marine & Aviatio
Slide 18: Strong Technical Performance in a Highly Competitive Environment
At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix STRONG TECHNICAL PERFORMANCE IN A HIGHLY COMPETITIVE ENVIRONMENT in QAR million (9%) (161%) Marine and Aviation 2016 2017 Gross premium 1,171 1,060 Underwriting Results 118 (72) Loss ratio 65% 90% Gro
Slide 19: Strong Investment Yield Despite Low Interest Rate Environment
At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix STRONG INVESTMENT YIELD DESPITE LOW INTEREST RATE ENVIRONMENT Invested Assets vs investment and other income in QAR million Investment versus underwriting income 20,000 18,321 16,000 60% 54% 52% 15,41
Slide 20: 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 3% 5% 4% 4% 5% 5% 10% 16% 17% 34% 43% 60% 57% 14% 23% Financial Govern
Slide 21: Excellent Financial Strength Ratios
At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix EXCELLENT FINANCIAL STRENGTH RATIOS Assets % 2013 2014 2015 2016 2017 Invested assets to total assets 71% 59% 62% 67% 53% Invested assets to net technical reserves 339% 188% 119% 139% 131% Cash and ba
Slide 22: 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 23: Organisation
At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix Organisation 23
Slide 24: 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: Specialty Re/insurance: Life and Medical: Asset management: • Personal Lines • Property & Commercial
Slide 25: Risk Management
At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix Risk Management 25
Slide 26: 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 monitoring o Gover
Slide 27: Outlook
At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix Outlook 27
Slide 28: 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 Credit & Surety Domestic Third party Asset Management Marine & A
Slide 29: Appendix
At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix APPENDIX 29
Slide 30: Profit and Loss Account, 2013 – 2017
At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix PROFIT AND LOSS ACCOUNT, 2013 – 2017 Income Statement (QAR ‘000) 2013 2014 2015 2016 2017 Growth (YOY) CAGR Gross written premium 3,531,707 5,613,767 8,347,210 9,901,394 11,658,697 18% 35% Net earned
Slide 31: Balance Sheet, 2013 – 2017
At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix BALANCE SHEET, 2013 – 2017 Balance Sheet (QAR ‘000) 2013 2014 2015 2016 2017 ASSETS Cash and cash equivalents 3,351,905 2,646,907 3,518,760 6,962,310 7,914,054 Insurance and other receivables 1,164,61
Slide 32: 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 4.7% 4.4% 206 3.6% 187 2.2% 150 165 42% 152 45% 48% 199 100 62% 70%
Slide 33: 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 34: QIC Management Team
At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix QIC MANAGEMENT TEAM Khalifa A. Al Subaey Group President & CEO Ali Saleh Al Fadala Sunil Talwar Sr. Deputy Group President Group CEO - International & CEO Salem Al-Mannai Deputy Group President & CEO-
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 QIC shareholders in % o Government of 13.84% Qatar Sheikh Khalid bin Mohammed Abdullah bin Khalifa Al-Attiya Hussain Ibrahim Al-Fardan bin Ali Al-Thani De
Slide 36: Expanding Globally, Leading Regionally
(i popLf| Guoaioll 09 LoodLe ji Expanding Globally, Leading Regionally, Bermuda London Singapore Qatar Kuwait Zurich Malta Shanghai UAE
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