Walaa Cooperative Insurance Co. · TADAWUL:8060
Walaa Cooperative Insurance — Q3 2021 Earnings Presentation
45 slides from Walaa Cooperative Insurance's earnings presentation, 2021
Slide 1: Walaa Cooperative Insurance Company Investors Presentation Q3 2021
Walaa Cooperative Insurance Company Investors Presentation Q3, 2021
Slide 2: Disclaimer
Disclaimer This communication has been prepared by Walaa Cooperative Insurance Co. the “Company”, solely for presentation/ information purposes only, on the bases of best information available at the time of preparation of this communication. This communication contains statements that are, or may b
Slide 3: Investor Relations Contact Information
Investor Relations Contact Information Walaa Cooperative Insurance Company’s Social Media Accounts Dear Investors, Contact Information: We are conducting a short questionnaire for investors, we would Johnson Varughese - Chief Executive Officer greatly appreciate taking a few minutes to provide us wi
Slide 4: Content
Content Company’s Achievements and Highlights 05-07 Financial Results 08-20 Segmental Retention & Loss Ratio 21-22 Challenges & Looking Ahead 23-25 Merger Benefits & Incentives 26 KSA Insurance Market 27-29 Company Profile 30-44 4
Slide 5: Company's Timeline & Milestones
Company’s Timeline & Milestones Walaa Overview • 2021 Signing a Memorandum of Understanding with SABB Takaful Company (“SABB Takaful”) to evaluate a potential merger between the two companies – July 2021 • Maintaining A3 Insurance Financial Strength Rating (IFRS) by Moody’s – May 2021 • Financial st
Slide 6: Company's Business Agreements
Company’s Business Agreements Walaa Overview Signing of Insurance agreements with different parties to provide insurance coverage and other agreements: Arab National Bank (ANB) Related Party • Mortgage program with a value of SAR 41million – Oct 2021 • Bancassurance Distribution with no preferential
Slide 7: Company's Financial Ratings & ISO Certificates
Company’s Financial Ratings & ISO Certificates Walaa Overview Financial Financial rating Financial rating ISO Certificates Rating S&P Moody's BBB+ 2017 ISO 9001:2015 Quality Management System 2017 - Stable Outlook Information Security BBB+ A3 2019 ISO 27001:2013 2018 Management System Positive Outlo
Slide 8: Key Financial Indicators – YTD Q3 2021
Key Financial Indicators – YTD Q3 2021 Key Financial and Operating Highlights - (“SAR”) Reported Net loss Paid-up Share Capital SAR (58) Million SAR 646 Million Shareholder’s Equity Issued Shares SAR 870 Million 64.6 Million Market CAP Free Floating Shares Key Financial SAR 1.388 Billion 57.54 Milli
Slide 9: Financial Results
Financial Results Insurance Operations Performance by Lines of Business - (“SAR, millions”) Q1 Q2 Q3 2021 As at Line Item 2016 2017 2018 2019 2020 2021 2021 Motor Medical Property Eng. Energy P&S Other Total 30.09.2021 Gross Premium Written 1,016.7 1,012.3 1,104.6 1,215.4 1,472.7 343.4 843 163 98 78
Slide 10: Income Statement – Q3 2021
Income Statement – Q3 2021 Key Financial and Operating Highlights - (“SAR, millions”) Income Statements 2016 2017 2018 2019 2020 Q1 2021 Q2 2021 Q3 2021 YTD Q3 2021 YTD Q3 2020 Gross Written Premium 1,016.6 1,102.3 1,105.0 1,215.4 1,472.7 343.4 842.6 548 1,734 1,045 Net Earned Premium 627.1 792.1 79
Slide 11: Statement of Financial Position – as at 30.09.2021
Statement of Financial Position – as at 30.09.2021 Key Financial and Operating Highlights - (“SAR, millions”) 2016 2017 2018 2019 2020 As At 30.09.2021 Balance Sheet – Assets PH SH PH SH PH SH PH SH PH SH Total PH SH Total Cash and Cash Equivalents 594 290 290 20 654 468 561 - 687 - 687 455 4 459 Sh
Slide 12: Statement of Financial Position, Cont.
Statement of Financial Position, Cont. – as at 30.09.2021 Key Financial and Operating Highlights - (“SAR, millions”) 2016 2017 2018 2019 2020 As At 30.09.2021 Balance Sheet – Liabilities and Equities PH SH PH SH PH SH PH SH PH SH Total PH SH Total Accounts Payable 39 - 24 - 29 - 36 - 56 - 56 55 - 55
Slide 13: Investment Income (PH & SH)
Investment Income (PH & SH) Key Financial and Operating Highlights - (“SAR, millions”) Realized Gain on Investments Unrealized Gain on Investments 47.79 46.95 26.72 27.95 38.40 22.30 19.77 13.99 15.66 15.27 17.96 8.51 21.07 13.96 10.60 4.50 7.15 4.34 2016 2017 2018 2019 2020 YTD Q3 2021 2016 2017 20
Slide 14: Solvency
Solvency Key Financial and Operating Highlights - (“SAR, millions”) 276% 283% 285% 258% 199% 147% 2016 2017 2018 2019 2020 YTD Q3 2021 YTD Q3 2016 2017 2018 2019 2020 2021* Net Admissible Assets 398 552 565 516 679 593 Required Margin 200 200 200 200 239 403 Solvency Margin Excess/(Deficiency) 198 3
Slide 15: Financial Performance - Track Record
Financial Performance - Track Record Key Financial and Operating Highlights - (“SAR, millions”) Walaa is increasing its portfolio diversification and reducing its reliance on Motor line LOB Share: YTD Q3 2021 1,734 P&S +14% 1,473 6% Motor 1,215 27% 1,017 1,102 1,105 753 792 798 713 797 747 627 436 5
Slide 16: Segmental Analysis - Motors
Segmental Analysis - Motors Key Financial and Operating Highlights - (“SAR, millions”) Gross Written Premium Total Revenue Net Claims Incurred Net UW Income 707 612 699 622 572 461 421 649 666 657 612 465 483 344 240 411 371 455 317 492 63 60 107 79 165 456 99 332 77 61 58 63 159 4 -5 -4 -23 -43 119
Slide 17: Segmental Analysis - Medical
Segmental Analysis - Medical Key Financial and Operating Highlights - (“SAR, millions”) Gross Written Premium Total Revenue Net Claims Incurred Net UW Income 249 149 103 120 96 149 65 96 124 109 107 102 69 99 79 45 47 68 45 49 51 65 52 141 33 27 92 95 12 19 25 26 64 17 38 24 12 16 37 49 -9 -6 3 -7 2
Slide 18: Segmental Analysis – Property & Casualty
Segmental Analysis – Property & Casualty Key Financial and Operating Highlights - (“SAR, millions”) Gross Written Premium Total Revenue Net Claims Incurred Net UW Income 918 654 497 362 397 263 295 292 196 117 110 85 47 12 49 16 50 64 62 64 58 63 59 79 16 24 26 24 22 16 5 21 12 21 21 22 24 21 31 22
Slide 19: Segmental Analysis – Protection & Savings
Segmental Analysis – Protection & Savings Key Financial and Operating Highlights - (“SAR, millions”) Gross Written Premium Total Revenue Net Claims Incurred Net UW Income 106 83 67 11 1 4 3 14 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 30.09.2021 19
Slide 20: Segmental Analysis - Total
Segmental Analysis - Total Key Financial and Operating Highlights - (“SAR, millions”) ∑ Gross Written Premium Total Revenue Net Claims Incurred Net UW Income 1.473 1.734 1.102 1.105 1.215 1.017 753 815 831 849 739 793 650 652 279 234 347 456 485 480 557 277 406 561 676 180 188 174 383 101 101 97 208
Slide 21: Segmental Retention Ratio
Segmental Retention Ratio Key Financial and Operating Highlights - (“%’s”) Retention Ratio 2016 2017 2018 2019 2020 YTD Q3 2021 Motor 99% 99% 99% 99% 99% 99.6% Medical 98% 97% 91% 88% 90% 98% Property 3% 3% 2% 1% 1% 11% Engineering 10% 5% 3% 3% 5% 7% Energy - - - - - 0% Others General 40% 28% 25% 17
Slide 22: Segmental Loss Ratio
Segmental Loss Ratio Key Financial and Operating Highlights - (“%’s”) Loss Ratio 2016 2017 2018 2019 2020 YTD Q3 2021 Motor 74% 71% 66% 88% 77% 104% Medical 68% 55% 112% 109% 97% 105% Property 43% 47% NA NA NA NA Engineering NA NA NA NA NA NA Energy - - - - - 34% Others General 40% 70% 46% 6% NA 15%
Slide 23: 2021 Challenges!
2021 Challenges! Aggressive competition on selling Motor insurance to YTD Q3 YTD Q3 Income Results – SAR ’m FY 2020 individuals as this product is very price sensitive. 2021 2020 Completion of IFRS 17 (Insurance Contracts) & IFRS 9 Gross Written Premium 1,734 1,045 1,473 (Financial Instruments) Impl
Slide 24: Looking Ahead
Looking Ahead As a responsible Insurer, Walaa aims to achieve holistic growth in its business profile – keeping in mind the following aspects: Sustained top line growth through diversification into Protection and Savings line and corporate business, while ensuring stable growth in reserves and earni
Slide 25: Looking Ahead
Looking Ahead Improve the company’s presence in the aggregator business. Motor Increase the share of motor comprehensive insurance by focusing on leasing business. Increase company’s retention rate. Focus on writing inward reinsurance business. Property & launching new products under causality line
Slide 26: SABB Takaful Merger Benefits
SABB Takaful Merger Benefits Walaa Overview Increase of the capital of Walaa from SAR 646m Increased market share, client base, and gaining to Approx. 986m (3rd largest in the insurance SABB bank captive business (SAR 200m). sector). Expanding the Protection & Savings (P&S) Enhanced geographical loc
Slide 27: Walaa's Market Position – YTD Q3; 2021 vs. 2020
Walaa’s Market Position – YTD Q3; 2021 vs. 2020 (SAR ’m) Insurance Company's Details KSA Insurance Market Analysis Earning GWP Operational Income - PH Net Income - SH Company' Paid up SL Company's Name Equity Per Share ROE YTD Q3 - YTD Q3 - Market YTD Q3 - YTD Q3 - YTD Q3 - YTD Q3 - s Code Capital R
Slide 28: Walaa's Market Position – YTD Q3; 2021 vs. 2020
Walaa’s Market Position – YTD Q3; 2021 vs. 2020 (SAR ’m) Insurance Company's Details KSA Insurance Market Analysis Motor Medical Property & Casualty Protection & Savings Total Company's SL Company's Name GWP Rank Market Share GWP Rank Market Share GWP Rank Market Share GWP Rank Market Share GWP Rank
Slide 29: Walaa's GWP Market Position
Walaa’s GWP Market Position (%’s) Walaa’s Market Share 2016 2017 2018 2019 2020 YTD Q3 2021 Motor 4.9% 6.6% 6.6% 7.4% 9.1% 7.6% Medical 0.8% 0.6% 0.5% 0.4% 0.5% 1.3% Property & Casualty 5.6% 5.5% 7.8% 8.1% 10.3% 16.2% Protection & Savings - - - - 0.9% 8.9% Total 2.8% 3.1% 3.2% 3.2% 3.8% 5.4% 29
Slide 30: Company Profile
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Slide 31: Company's Profile and Core Values
Company’s Profile Walaa Overview “The Strategic goal of the company is to position itself as one of the leading insurance companies in the Saudi Market, providing all classes of Shariah-compliant insurance products in the general and health insurance sectors, to all cross-sections of society, partic
Slide 32: Company's Profile
Company’s Profile Walaa Overview Head Office in Wide presence in the Fully paid-up capital of SAR Al Khobar Kingdom 646 million , Equity The oil hub of the Kingdom 3 regional offices and +70 branches SAR 869 million One of the leading insurance and ISO reinsurance companies in the ISO 9001:2015 - Qu
Slide 33: "Walaa" Stands for Loyalty
Company’s Profile Walaa Overview “Walaa” Stands for Complete range of motor, general & health insurance Loyalty lines of business Efficient managerial team, backed- Board Members with diversified up by robust IT systems, internal industry experience & expertise controls & reporting practices. Well d
Slide 34: Company's Profile – Shareholders as of 30.09.2021
Company’s Profile Walaa Overview – As of 30.09.2021 Shareholder Status Nationality No. of Shares Held Holding %’s 4.29% IGI, Jordan Corporate Foreign 2,020,569 3.13% 5.50% 5.48% 1.83% American Life Insurance Several Foreign 3,551,911 5.49% Arab National Bank Several Saudi 3,545,146 5.48% 82.90% AIG
Slide 35: Board of Directors
Board of Directors Walaa Overview Chairman Vice Chairman Board Member Board Member Board Member Non-Executive Non-Executive Non-Executive Non-Executive Non-Executive Suliman A. Al-Kadi Khalifa A. Al Mulheim Wasef S. Al Jabsheh Dr. Solaiman A. Al-Twaijri Waleed M. Al-Jaafari Chairman of the Board Cha
Slide 36: Board of Directors, Cont.
Board of Directors, Cont. Walaa Overview Board Member Board Member Board Member Board Member Board Member Board Member Independent Independent Independent Non-Executive Independent Non-Executive Abdulrahman A. Balghunaim Hatem F. Balghoneim Abdulaziz S. Al-Shaikh Jameel A. Al-Molhem Khalid A. Al-Omr
Slide 37: Board Committees
Board Committees Walaa Overview Nomination and Risk Management Executive& Strategy Audit Committee Investment Committee Remuneration Committee Committee Committee Chairman Chairman Chairman Chairman Chairman Abdulrahman Khalifah Al Jameel Al Dr. Solaiman Hatem Balghunaim Mulhiem Molhem Al Twaijri Ba
Slide 38: Senior Management
Senior Management Walaa Overview Chief Executive Chief Financial Chief Technical Chief Technical Appointed Officer Officer Officer (Motor-P&C) Officer (Medical-P&S) Actuary Johnson Varughese Mohannad Al Desouki Wasif Minhas Ghayas Khan Syed Raza Haider o A Chartered Accountant with o Graduated from
Slide 39: Senior Management
Senior Management Walaa Overview Mraya Lafi Al-Subaei Khalid Ahmed Omran Sukainah Ali Alkhalifah Rakan Abdulrahman AlAssaf Rawan Munther Alafaleq Internal Audit Manager Compliance & AML Manager Risk Manage Cyber Security Manager Board Secretary & Investor - Bachelors in Computer Science (Computer Re
Slide 40: Major Clients
Major Client’s Walaa Overview 40
Slide 41: Country Wide Presence
Country Wide Presence Walaa Overview +70 locations spread throughout. +40 Cities within the Kingdom. Strong and reliable connectivity to the portal of council of Cooperative Health Insurance (CCHI), Mednet / Saudi NextCare (Third Party claim administrator), Najm, Elm, Saudi Payments, and Bank’s Port
Slide 42: Insurance Products & Services Solutions Summary
Insurance Products & Services Solutions Summary Walaa Overview Motor Medical Aviation Marine Property Engineering Energy Director’s Cyber Miscellaneous Life and Officers Crime Liability 42
Slide 43: Insurance Products & Services Solutions Summary
Insurance Products & Services Solutions Summary Walaa Overview Motor Medical Aviation Misc. Products Motor Comprehensive-Commercial Medical Insurance Aviation Hull Fidelity Guarantee Motor Comprehensive-Private Health Insurance - Non CCHI Product Aviation Liability Money Insurance Motor Third Party
Slide 44: Walaa Business - Products to Launch in Future
Walaa Business - Products to Launch in Future Walaa Overview Financial Lines and Contract Works Performance Bond Live and Commercial Crime Insurance Blood Stocks 44
Slide 45: Weiog Ca
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