Walaa Cooperative Insurance Co. · TADAWUL:8060
Walaa Cooperative Insurance — FY2024 Earnings Presentation
55 slides from Walaa Cooperative Insurance's earnings presentation, 2024
Slide 1: Walaa Cooperative Insurance Company Investors Presentation
Walaa Cooperative Insurance Company Investors Presentation For The Year Ended 2024
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 Logo Icon Logo, icon Icon A picture containing text, clipart, first-aid kit Icon Description automatically generated Description automatically generated Description automatically generated Description
Slide 4: Content
Content Financial Results 1 2 Company Profile What is IFRS 17 3 4
Slide 5: Financial Results
Financial Results 5
Slide 6: Key Financial Indicators – For The Year Ended 2024
Key Financial Indicators – For The Year Ended 2024 Key Financial and Operating Highlights - (“SAR”) Net Income Paid-up Share Capital SAR 64 Million SAR 1,276 Million Shareholder’s Equity Issued Shares SAR 1,832 Million 127.6 Million Market CAP Key Financial SAR 2,469 million Indicators Quoted Share
Slide 7: Performance Overview – For The Year Ended 2024
Performance Overview – For The Year Ended 2024 Key Financial and Operating Highlights - (“SAR”) Gross Written Premium Gross Claims Paid Total Operation Expenses Insurance Service Results Investment Income SAR 3,505 million SAR (1,417) million SAR (257) million SAR (36) million SAR 140 million Increa
Slide 8: Income Statement By LOB – FY 2024
Income Statement By LOB – FY 2024 Actual 2024 vs. Actual 2023 - SAR “million” Current Year FY 2024 FY 2023 Vs. Prev ious INCOME STATEMENT - IFRS 17 Total Total Total Total Motor Medical P&C P&S U nallocated Total Motor Medical P&C P&S U nallocated Total Total PH SH PH SH Gross Written Premium 684 51
Slide 9: IFRS 17 Balance Sheet – Assets – FY 2024
IFRS 17 Balance Sheet – Assets – FY 2024 SAR “million” FY 2024 FY 2023 Balance Sheet Actuals Budget Actuals Assets PH SH Total Total PH SH Total Cash and cash equivalents 653 309 962 1,871 504 9 512 Short term deposits 247 50 297 582 372 62 433 Long term deposits 410 - 410 - 262 96 358 Insurance con
Slide 10: IFRS 17 Balance Sheet – Liabilities & Equities – FY 2024
IFRS 17 Balance Sheet – Liabilities & Equities – FY 2024 SAR “million” 10
Slide 11: Investment Income
Investment Income Policyholders & Shareholders – SAR “million” 165.1 Note: 139.7 ** Restated as per IFRS 9 implementation From OCI to P&L 51.3 42.8 *** Bargain Purchase 26.8 26.8 28.7 Gain from acquiring 15.3 14 18 2.8 8.9 3.6 8.5 SABB Takaful. 1.2 1.2 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014
Slide 12: Solvency
Solvency Key Financial and Operating Highlights 283% 285% 276% 258% 209% 199% 172% 138% 141% 121% 69% 70% 74% 47% FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 Solvency (SAR m) FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 F
Slide 13: Gross Written Premium (GWP)
Gross Written Premium (GWP) By Line of Business – SAR “million” Motor FY 2024 FY 2023 INCREASE in Gross Written Premium (GWP) BY: Medical P&C 8% 8% 20% 24% 158 5 P&S ∑ 3,505 ∑ 3,346 SAR Million % 15% 47% 20% in comparison with FY 2023. 58% -14% FY 2023 -24% +119% 795 +2% FY 2024 684 680 656 578 592
Slide 14: Gross Claims Paid
Gross Claims Paid By Line of Business – SAR “million” Motor FY 2024 FY 2023 INCREASE in Gross Claims Paid BY: Medical P&C 10% 18% 208 17 P&S 8% 30% 39% 8% SAR Million % ∑ 1,417 ∑ 1,209 in comparison with FY 2023. 43% 44% +13% +53% FY 2023 605 554 536 FY 2024 362 -33% 214 -12% +583% -69% -21% 144 16
Slide 15: Insurance Service Results
Insurance Service Results By Line of Business – SAR “million” ∑ (36) ∑ 28 Decrease in Insurance Service Results BY: Motor Medical 65 68 64 P&C P&S 4 SAR Million -38 26 -9 in comparison with FY 2023. -67 -58 FY 2024 FY 2023 -18% FY 2023 FY 2024 56 46 -72% +322% +16% 0% 14 18 17 5 10 10 -9 -38 -58 -67
Slide 16: GWP Analysis
GWP Analysis Line of Business - FY 2024 vs FY 2023, SAR “million” Retail Corporate Motor Medical Third Party Comprehensive FY 2023 84% 16% 73% 27% FY 2023 18% 82% FY 2024 77% 23% 71% 29% FY 2024 18% 82% Property & Protection & Casualty Savings FY 2023 4% 96% 2023 27% 73% FY 2024 1% 99% 2024 26% 74%
Slide 17: Capital Analysis - Total
Capital Analysis - Total Key Financial and Operating Highlights Capital 1,276 +13% 851 851 646 646 528 400 400 400 440 200 200 200 200 200 200 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Restated FY 2023 FY 2024 2022 Shareholders' Equity Net SH Income 1,832 142 148 117 86 +18% 1
Slide 18: Segmental Analysis
Segmental Analysis Total ∑ Gross Written Premium Net Claims Incurred 3,504 3,346 1,322 2,642 1,162 +21% 2,339 1,090 +22% 969 1,473 1,215 561 557 1,017 1,102 1,105 485 480 383 406 650 753 347 208 279 234 101 101 97 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2011 2012 2013 2
Slide 19: Segmental Analysis – Motor
Segmental Analysis Motor Gross Written Premium Net Claims Incurred +20% 795 611 597 707 699 684 +17% 492 513 612 622 611 455 572 411 371 372 421 441 332 317 240 159 107 77 58 63 63 60 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2011 2012 2013 2014 2015 2016 2017 2018 2019 2
Slide 20: Segmental Analysis – Medical
Segmental Analysis Medical Gross Written Premium Net Claims Incurred 657 680 564 542 +14% 491 515 +34% 362 229 149 120 99 103 96 96 92 95 65 69 65 52 64 45 47 27 19 25 26 12 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2
Slide 21: Segmental Analysis – P&C
Segmental Analysis P&C Gross Written Premium Net Claims Incurred 2,027 +5% 37 1,588 +25% 26 26 1,331 24 24 23 1,211 22 21 19 16 16 16 654 12 497 362 397 263 295 292 5 117 110 196 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2
Slide 22: Segmental Analysis – P&S
Segmental Analysis P&S Gross Written Premium Net Claims Incurred +124% +255% 284 277 159 132 213 117 110 155 11 1 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Total Revenue / Insurance Revenue net of RI Sh
Slide 23: Walaa’s Ratio Analysis
Walaa’s Ratio Analysis Shareholder’s Summary FY 2024 - SAR “million” EPS – Earning Per Share P/B – Price To Book Ratio 4.00 3.61 2 2.93 1.73 3.00 2.28 1.56 1.55 1.51 1.74 1.32 1.27 1.35 2.00 1.5 1.18 0.82 1.13 0.40 0.62 1.02 1.00 1 0.00 -1.00 -1.65 0.5 -2.00 -0.99 -3.00 -1.89 0 2015 2016 2017 2018 2
Slide 24: Loss Ratio Analysis
Loss Ratio Analysis By Line of Business – “%’s” IFRS 4 IFRS 17 Insurance service result ratio Loss Ratio Restated 2016 2017 2018 2019 2020 2021 2022 2023 2022 2023 2024 Medical 67% 55% 112% 109% 97% 110% 102% 107% 111% 109% 111% Motor 74% 71% 66% 88% 77% 107% 112% 89% 124% 102% 105% Property NA 47%
Slide 25: Financial Ratios
Financial Ratios Operations Ratios Ratios 2017 2018 2019 2020 2021 2022 2023 2024 Formula IFRS 4 Ratios [GWP(Y1) - GWP(Y0) / GWP(YO) ]x Premium Growth 8% 0.2% 10% 21% 59% 13% 27% 5% 100 Retention Ratio 76% 66% 61% 58% 49% 50% 56% 45% NWP/GWP [Net UW Exp – RI Commission Loss Ratio 65% 70% 85% 73% 100
Slide 26: Financial Ratios – Shareholder’s view
Financial Ratios Shareholder’s view Ratios Restated Ratios 2018 2019 2020 2021 2023 2024 Formula 2022 Current Ratio 148% 135% 127% 110% 114% 105% 116% Current Assets / Current Liabilities Liquid assets to technical reserves 204% 180% 180% 147% 134% 116% 124% Current Assets / Technical Reverse Return
Slide 27: Walaa’s Market Position
Walaa’s Market Position FY 2024 vs. FY 2023 (“SAR, millions”) KSA Insurance Market Analysis Insurance Company's Details Net Income/(Loss) after Earning Insurance Revenue Paid up zakat & tax Equity Per Share ROE Capital SL Company's Name (EPS) FY 2024 FY 2023 Rank FY 2024 FY 2023 Rank 1 Bupa 1,500 5,
Slide 28: Walaa’s Market Position
Walaa’s Market Position FY 2024 vs. FY 2023 (“SAR, millions”) Net Profit (Loss), After Zakat, Attributable To Insurance Company's Details Net Profit (Loss) of The Insurance Results Net Profit (Loss) of The Investment Results Shareholders Total Share Holders Equity Company's % % % % % SL Company's Na
Slide 29: Saudi Insurance Dynamics
Saudi Insurance Dynamics Market GWP By LOB - (“SAR, billion”) 60% of the market continues to be in the medical line, which is expected to further grow with the privatization project and population growth. Motor business 2nd largest line, faced stagnant growth in the last 3 years due to NCD introduct
Slide 30: Walaa’s Market Position By GWP
Walaa’s Market Position By GWP (“SAR, millions”) YTD Q3 YTD Q3 LOB 2016 2017 2018 2019 2020 2021 2022 2023 2023 2024 Motor 4.9% 6.6% 6.6% 7.4% 9.1% 7.5% 4.3% 5.7% 4.7% 4.4% Walaa Market Medical 0.8% 0.6% 0.5% 0.4% 0.5% 1.4% 2.1% 1.8% 1.7% 1.3% Share Property & Casualty 5.6% 5.5% 7.8% 8.1% 10.3% 17.2
Slide 31: Walaa’s Market Position By Insurance Revenue
Walaa’s Market Position By Insurance Revenue (“SAR, millions”) YTD Q3 YTD Q3 LOB 2022 2023 2023 2024 Motor 6% 4.5% 4% 6% Walaa Market Medical 2% 1.9% 2% 2% Share Property & Casualty 19% 18.3% 18% 16% Protection & Savings 13% 15.8% 19% 13% Total 6% 5% 5% 5% Motor 6 9 10 5 Walaa Ranking Medical 4 5 5
Slide 32: Company Profile
Company Profile 32
Slide 33: Company’s Core Values
Company’s Profile “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, particularly serving
Slide 34: Company’s Profile
Company’s Profile Head Office in Wide presence in the Fully paid-up capital of SAR Al Khobar Kingdom 1,276 million , Equity The oil hub of the Kingdom 2 regional offices and +47 branches SAR 1,832 million One of the leading insurance and ISO and other certificates reinsurance companies in the Kingdo
Slide 35: “Walaa” Stands for Loyalty
Company’s Profile “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 distributed regi
Slide 36: Board of Directors
Board of Directors 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 Chairman of Invest
Slide 37: Board of Directors
Board of Directors Board Member Board Member Board Member Board Member Board Member Independent Board Member Non-Executive Independent Independent Independent Non-Executive Hatem F. Balghoneim Ahmed A. AlQuraishi Jameel A. Al-Molhem Abdulatif K. Almulhim Osama M. Al-Khonaizi Hesham A. AlJabr Board o
Slide 38: Board Committees
Board Committees Nomination and Risk Management Executive & Strategy Audit Committee Investment Committee Remuneration Committee Committee Committee Chairman Khalifah Al Chairman Mulhiem Chairman Chairman Chairman Jameel Al Dr. Solaiman Al Dr. Solaiman Al Hatem Molhem Twaijri Twaijri Balghoneim Memb
Slide 39: Executive Management
Executive Management o A Chartered Accountant with +30 years of professional experience in lead-managerial roles in the region and has been with Walaa since o Bachelor’s Administration – King Saud University, KSA. 2007. o Over 23 years of experience in leadership, human resources, o Prior to assumin
Slide 40: Company’s Financial Ratings & ISO Certificates
Company’s Financial Ratings & ISO Certificates 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 2019 ISO 27001:2013 2018 Management System A3 Stable Outlook Business Continuity
Slide 41: Major Clients
Major Client’s Diriyah Gate Development Authority Olayan Food Services Company Olayan Descon Industrial Company LTD Electric Power Construction Corporation China Railway Construction Corporation BECHTEL SHARBATLY Apple Saudi Arabia LLC 41
Slide 42: Country Wide Presence
Country Wide Presence +47 locations spread throughout. Northern Region (9 branches) +40 Cities within the Kingdom. Strong and reliable connectivity to the portal of the Insurance Authority, Globe Eastern Region Med/ Saudi Next Care (Third Party claim (16 branches) administrator), Najm, Elm, Saudi Pa
Slide 43: Insurance Products & Services Solutions Summary
Insurance Products & Services Solutions Summary Note: Walaa has an active RI license Motor Medical Property Marine • Motor Comprehensive- Retail • Corporate Medical • Fire and Specified Perils. • Marine Open Cover. • Motor Comprehensive- Corporate • SME Medical • Property All Risk. • Goods in Transi
Slide 44: walea CD
walea CD Ugly I (uoLLw cNg G4ju0 Walaa Cooperative Insurance Co.
Slide 45: What is IFRS 17?
What is IFRS 17? 45
Slide 46: What is IFRS-17 and how does it impact us?
What is IFRS-17 and how does it impact us? Key Message - Introduction and Key Terminologies Explained IFRS-17 is an accounting change that aims to de-clutter the financials, and: does not impact: the underlying economics of the insurance contracts. non-insurance components of the Balance Sheet. the
Slide 47: Key Terminologies
Key Terminologies Key Message - Introduction and Key Terminologies Explained Measurement Models [Discounted Cash Flows]: Contractual Service Margin (CSM) [reserves]: • General Measurement Model (GMM). [LFRC & LIC] • Unearned/future expected profit. • Long terms contracts – including Non-unit-linked
Slide 48: Balance Sheet IFRS17 Components
Balance Sheet IFRS17 Components Insurance Liability for Liability for Remaining Contract Coverage Incurred Liabilities Claims (LIC) (LRC) Reinsurance Asset for Asset for Remaining Contract Coverage Incurred Assets Claims (AIC) (ARC) Face Notes to FS 48
Slide 49: (PAA) Insurance Contract Liabilities & Reinsurance Contract Assets
(PAA) Insurance Contract Liabilities & Reinsurance Contract Assets IFRS4 Bridge Insurance Contract Liabilities Reinsurance Contract Assets Unearned Premiums Incurred but not RI Share of Unearned RI Share of Incurred but not Reported (IBNR) Premiums Reported (IBNR) Premium Receivables, net Outstandin
Slide 50: (GMM/VFA) Insurance Contract Liabilities & Reinsurance Contract Assets
(GMM/VFA) Insurance Contract Liabilities & Reinsurance Contract Assets IFRS4 Bridge Insurance Contract Liabilities Reinsurance Contract Assets Incurred but not RI Share of Unearned RI Share of Incurred but not Unearned Premiums Reported (IBNR) Premiums Reported (IBNR) Premium Receivables, net Outsta
Slide 51: Income Statement IFRS17 Components
Income Statement IFRS17 Components Insurance Insurance Insurance Service Revenue Service Result Expense Net Expense Amounts recoverable from RI Allocation of from RI for Contracts RI Premiums incurred held claims Face Face 51
Slide 52: Insurance Service Result & Net Expense from Reinsurance (PAA)
Insurance Service Result & Net Expense from Reinsurance Contracts held (PAA) IFRS4 Bridge Insurance Service Result (PAA) Net Expense from Reinsurance Contracts held (PAA) Change in IBNR, OSLR, & Other Change in Reinsurance IBNR, GWP Ceded Premiums Technical Reserves OSLR, & Other Technical Reserves
Slide 53: Insurance Service Result & Net Expense from Reinsurance (GMM / VFA)
Insurance Service Result & Net Expense from Reinsurance Contracts held (GMM / VFA) IFRS4 Bridge Insurance Service Result (GMM / VFA) Net Expense from Reinsurance Contracts held (GMM / VFA) Change in IBNR, OSLR, & Change in Reinsurance IBNR, GWP Ceded Premiums Other Technical Reserves OSLR, & Other T
Slide 54: Income Statement FS Presentation
Income Statement FS Presentation IFRS17 Line Items Mapping IFRS4 Line Items Mapping Gross written premiums 1 Insurance revenue 1 Inward reinsurance premiums 1 Reinsurance premiums ceded 3 Excess of loss premiums 3 Insurance service expenses 2 NET WRITTEN PREMIUMS Change in gross unearned premiums 1
Slide 55: Balance Sheet FS Presentation
Balance Sheet FS Presentation IFRS4 Line Items IFRS17 Line Items IFRS4 Line Items IFRS17 Line Items Mapp Map Map Map Assets ing Assets ping Liabilities ping Liabilities ping Cash and cash equivalents Cash and cash equivalents Policyholders claims payable 1 Accrued expenses and other Short term/fixed
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