Mansard Insurance Plc HY 2013 financial results presentation (Nigeria)

523 views

Published on

Mansard Insurance Plc HY 2013 financial results presentation (Nigeria)

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
523
On SlideShare
0
From Embeds
0
Number of Embeds
34
Actions
Shares
0
Downloads
0
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Mansard Insurance Plc HY 2013 financial results presentation (Nigeria)

  1. 1. Mansard Insurance plc. H1 2013 Financial Results Presentation 05/09/2013 1Mansard Insurance plc ©
  2. 2. Important Notice The information contained herein should not be interpreted as advice on the purchase or sale of specific financial instruments. Mansard Insurance plc. (“Mansard”) bears no responsibility in any instance for any loss which may result from reliance on the information. Mansard holds copyright to the information, unless expressly indicated otherwise or this is self-evident from its nature. Written permission from Mansard is required to republish the information on the Company or to distribute or copy such information. This shall apply regardless of the purpose for which it is to be republished, copied or distributed. Certain statements contained herein are forward-looking statements including, but not limited to, statements that are predictions of or indicate future events, trends, plans or objectives. Undue reliance should not be placed on such statements because, by their nature, they are subject to known and unknown risks and uncertainties. Mansard undertakes no obligation to publicly update or revise any of these forward-looking statements, whether to reflect new information, future events or circumstances or otherwise. 2Mansard Insurance plc ©
  3. 3. Outline 3Mansard Insurance plc © • 2013 Key Events • H1 2013 Financial Results • SBU Contribution • Review of Business Divisions • Mansard Investments Ltd • Mansard Health Ltd • Outlook For The Rest of The Year • Appendices
  4. 4. Key Events 4Mansard Insurance plc ©
  5. 5. Global Events • Global oil prices (Bonny light) fell to $105.65pb in May from $116.75pb in January due to renewed euro-zone fears • The zone’s GDP shrank 0.2% in Q1 2013; the sixth quarter of decline in a row • Government debt to GDP ratio stood at 92.2% by the end of Q1 2013 • Unemployment rate reached 12.1% in June 2013 up from 10.5% in June 2012 • Economic growth in the US was put at 1.8% in June, up from 1.4% in May, but still below the 2% target • In the U.S., huge sales of government bonds, increase in yields and long term mortgage rates were the reactions to Bernanke’s statement of reducing QE • The UAE and Qatar got upgraded to emerging market status, potentially opening their markets to a larger group of investors 5Mansard Insurance plc ©
  6. 6. Nigerian Macroeconomic Review • Non-oil sector has been the major driver of GDP growth • GDP expanded by 6.72% in Q2 2013 • External reserves closed with $48.04bn at the end of H1 • Debt-to- GDP ratio is below the 40% threshold at 21% • Exchange rate has been stable at N155/$1 • Inflation rate has remained within the single digit zone closing at 8.4% in June • MPR has been unchanged at 12% since October 2011 • Crude oil theft and pipeline damage led to an estimated annual loss of $7bn (60kb/d) 6Mansard Insurance plc ©
  7. 7. The Industry and Mansard Industry • 3 companies received regulatory approval for audited IFRS 2012 financials. (9 companies had received approval as at August 27, 2013) • Enforcement of No Premium No Cover policy commenced in January • NAICOM continues to drive the Market Development and Restructuring Initiative through the promotion of compulsory insurance products 7 Mansard • First underwriter to receive regulatory approval; set as benchmark for subsequent approvals • NAICOM’s NPNC caused a slight decline in revenue (H1 only) and a huge decline in receivables • Two additional Welcome Centres (Agency Offices) were opened to increase our distribution network and aid easy access to compulsory insurance products. Mansard Insurance plc ©
  8. 8. H1 2013 Financial results 8Mansard Insurance plc ©
  9. 9. H1 2013 Group Financial Highlights 9 • Operating Expense was computed using Company figures since it affects Combined Ratio • Investment contracts (At amortized cost & At fair value) are both Deposit Administration • Other receivables consist of prepayments, accrued income, etc. Mansard Insurance plc © Highlights of Comprehensive Income H1 2013 H1 2012 FYE 2012 FYE 2011 2013 Growth N'000 N'000 N'000 N'000 % Gross Premium Written 7,546,864 7,890,187 12,444,451 10,004,767 -4% Net Premium Income 3,509,854 3,350,405 7,109,300 6,083,463 5% Investment Income & Other Operating Income 2,236,837 816,045 2,208,145 826,321 174% Claims Expenses (Net) 1,269,203 1,287,509 3,160,249 2,659,465 -1% Operating Expenses * 1,737,518 1,441,271 2,782,927 2,205,264 21% Profit Before Tax 2,060,990 1,029,208 2,179,804 1,256,039 100% Profit After Tax 1,842,084 902,142 1,603,305 965,597 104% Highlights of Financial Position H1 2013 H1 2012 FYE 2012 FYE 2011 2013 Growth N'000 N'000 N'000 N'000 % Total Assets 33,336,824 30,101,283 31,566,202 24,872,261 11% Trade Receivables 1,020,454 2,991,464 2,036,827 1,656,457 -66% Other Receivables 708,530 462,652 867,424 352,792 53% Reinsurance and Co-insurance Recoverables 2,939,960 2,448,533 1,798,806 1,436,568 20% Insurance Liabilities 7,603,992 6,489,437 5,865,262 4,649,200 17% Investment Contracts- At Amortised Cost 2,128,300 1,802,542 1,999,686 1,513,107 18% Investment Contracts - At Fair Value 1,933,074 1,226,797 1,603,874 1,042,101 58% Shareholders' Funds 13,955,594 14,119,333 14,113,383 13,536,999 -1% Performance Ratios H1 2013 H1 2012 FYE 2012 FYE 2011 Cost/Income Ratio 51% 47% 49% 48% Management Expense Ratio 45% 41% 39% 36% Underwriting Expense Ratio 20% 15% 16% 11% Loss/Claims Ratio 36% 38% 44% 44% Combined Ratio 100% 95% 99% 91% Risk Retention Ratio 65% 71% 63% 67% Return on Assets 6% 3% 7% 5% Return on Equity 13% 6% 11% 7%
  10. 10. Revenue Account Analysis 10 • Oil & Energy, Life and Motor made the highest contribution to revenue respectively • These three lines also increased their contribution compared to the same period last year • All three lines experienced growth in revenue with the addition of Fire • Decline in revenue is as a result of NAICOM’s NPNC policy which affected majorly corporates • Structured premiums from institutional clients should ensure top-line growth by year end Mansard Insurance plc ©
  11. 11. Life Account Analysis • Group Life made the highest contribution to revenue at 69% just as in H1 2012 • Though Individual Life’s contribution declined, it grew by 0.5% in absolute terms • Annuity had the highest growth at 200% thereby increasing its contribution from 3% last year to 9% • All Life products grew except Health • Acquisition of the HMO will help us put a better focus on this product 11 69% 19% 9% 3% 69% 22% 3% 6% H1 12 Group Life Individual Life Annuity Health Insurance Mansard Insurance plc ©
  12. 12. SBU Contribution 12Mansard Insurance plc ©
  13. 13. 13 IBD Technical We are segmented into 4 distinct businesses * Mansard Health will become fully operational in H2 2013 SYSCON Group Marketing Group FINCON & Corporate Services Division ResourcesControl Claims & Risk Management Division Our Operational Structure RBD Operations & Technology InvestmentHealthInvestments Mansard Insurance plc © Institutional Business Division Retail Business Division
  14. 14. SBU Contribution to Company Results • RBD increased its contribution to gross premium and net premium to 26% and 45% respectively • The division also made a better loss compared to H1 2012 • Apart from increasing its contribution to PBT, Investment grew its profit by 20% 14 74% 26% H1 2013 79% 21% H1 2012 IBD RBD 55% 45% H1 2013 64% 36% H1 2012 IBD RBD Divisional Contribution to GPW Divisional Contribution to NIPR Mansard Insurance plc ©
  15. 15. SBU Contribution to Company Results • Retail claims proportion grew to 45% in H1 2013 • As it was in 2012, RBD made the highest contribution to Operating expense. This is as a result of high cost of distribution 15 55% 45% H1 2013 59% 41% H1 2012 IBD RBD Divisional Contribution to OPEX Divisional Contribution to Net Claims 35% 57% 8% H1 2013 39% 54% 7% H1 2012 IBD RBD Investment Mansard Insurance plc ©
  16. 16. Review of Business Divisions 16Mansard Insurance plc ©
  17. 17. IBD Financial Highlights 17Mansard Insurance plc © • Declines are driven by the “No Premium No Cover” rule which came into force in January 2013 • We expect IBD to close the year at about the same level as 2012 H1 13 H1 12 Growth N'000 N'000 % Gross Premium Written 5,583,143 6,248,388 -11% Net Premium Income 1,932,459 2,132,762 -9% Claims Expenses 699,171 762,516 -8% Underwriting Profit 878,745 1,153,961 -24% Operating Expenses 547,478 500,422 9% Profit Before Tax 342,052 597,840 -43%
  18. 18. IBD Financial Highlights 18 • Underwriting Results Margin (33%) • Underwriting Expense Ratio (25%) • Loss/ Claims Ratio (45%) • Management Expense Ratio (24%) • Combined Ratio (94%) • Underwriting Results Margin (50%) • Underwriting Expense Ratio (23%) • Loss/ Claims Ratio (31%) • Management Expense Ratio (30%) • Combined Ratio (84%) • Underwriting Results Margin (61%) • Underwriting Expense Ratio (16%) • Loss/ Claims Ratio (29%) • Management Expense Ratio (34%) • Combined Ratio (79%) Mansard Insurance plc © Corporate Business Group H1 13 H1 12 Growth N'000 N'000 % Gross Premium Written 1,700,627 1,874,325 -9% Net Premium Income 762,675 872,533 -13% Claims Expenses 342,515 349,889 -2% Underwriting Profit 249,650 416,397 -40% Operating Expenses 183,433 190,394 -4% Profit Before Tax 77,001 214,673 -64% Energy and Special Risk Group H1 13 H1 12 Growth N'000 N'000 % Gross Premium Written 3,242,786 3,453,113 -6% Net Premium Income 762,487 774,855 -2% Claims Expenses 236,523 105,986 123% Underwriting Profit 378,695 624,215 -39% Operating Expenses 226,330 143,441 58% Profit Before Tax 152,365 447,673 -66% PS & Infrastructure Group H1 13 H1 12 Growth N'000 N'000 % Gross Premium Written 639,729 920,951 -31% Net Premium Income 407,297 485,374 -16% Claims Expenses 120,134 306,641 -61% Underwriting Profit 250,400 113,349 121% Operating Expenses 137,715 166,586 -17% Profit Before Tax 112,686 (64,507) N/A
  19. 19. IBD Performance Analysis 19Mansard Insurance plc ©
  20. 20. RBD Financial Highlights 20Mansard Insurance plc © • Growth driven by Motor and Annuities • We expect RBD to be profitable by year end H1 13 H1 12 Growth N'000 N'000 % Gross Premium Written 1,963,721 1,641,799 20% Net Premium Income 1,577,395 1,217,643 30% Claims Expenses 570,033 520,683 9% Underwriting Profit 863,601 591,676 46% Operating Expenses 885,491 698,591 27% Profit Before Tax (21,890) (147,810) N/A
  21. 21. RBD Financial Highlights 21 • Underwriting Results Margin (60%) • Underwriting Expense Ratio (15%) • Loss/ Claims Ratio (36%) • Management Expense Ratio (46%) • Combined Ratio (97%) • Underwriting Results Margin (37%) • Underwriting Expense Ratio (20%) • Loss/ Claims Ratio (47%) • Management Expense Ratio (87%) • Combined Ratio (153%) • Underwriting Results Margin (70%) • Underwriting Expense Ratio (11%) • Loss/ Claims Ratio (22%) • Management Expense Ratio (71%) • Combined Ratio (104%) • Underwriting Results Margin (67%) • Underwriting Expense Ratio (18%) • Loss/ Claims Ratio (19%) • Management Expense Ratio (22%) • Combined Ratio (59%) Mansard Insurance plc © Bancassurance Group H1 13 H1 12 Growth N'000 N'000 % Gross Premium Written 1,100,132 958,777 15% Net Premium Income 869,534 710,833 22% Claims Expenses 312,958 359,385 -13% Underwriting Profit 520,689 349,038 49% Operating Expenses 403,670 317,909 27% Profit Before Tax 117,019 6,502 1700% Agency Group H1 13 H1 12 Growth N'000 N'000 % Gross Premium Written 533,515 420,046 27% Net Premium Income 440,032 298,352 47% Claims Expenses 204,637 104,487 96% Underwriting Profit 161,895 126,266 28% Operating Expenses 381,110 299,319 27% Profit Before Tax (219,216) (188,141) N/A PCT H1 13 H1 12 Growth N'000 N'000 % Gross Premium Written 120,743 79,860 51% Net Premium Income 84,727 54,847 54% Claims Expenses 18,386 15,416 19% Underwriting Profit 58,976 37,951 55% Operating Expenses 60,113 47,931 25% Profit Before Tax (1,138) (7,679) N/A Channels Management Group H1 13 H1 12 Growth N'000 N'000 % Gross Premium Written 209,332 183,116 14% Net Premium Income 183,102 153,612 19% Claims Expenses 34,052 41,395 -18% Underwriting Profit 122,041 78,422 56% Operating Expenses 40,597 33,432 21% Profit Before Tax 81,444 41,508 96%
  22. 22. RBD Performance Analysis 22 73% 79% 78% 24% 27% 21% 22% 76% Banca Agency PCT Channels Mgt. Business Line Achievement Per Group Life Non-Life Mansard Insurance plc ©
  23. 23. Retail Network 23 Alausa Welcome Centre Onikan Welcome Centre Opebi Welcome Centre Yaba Welcome Centre Victoria Island (H/O) Welcome Centre Alaba Welcome Centre Ogba Welcome Centre Apapa Welcome Centre Ikorodu Road Welcome Centre Ikota Welcome Centre Festac Welcome Centre Abuja Welcome Centre Mansard Insurance plc ©
  24. 24. Mansard Investments 24Mansard Insurance plc ©
  25. 25. Investment Performance Analysis 25Mansard Insurance plc © • Property yield is exclusive of revaluation gains Portfolio/Fund Managed by: Q2 2013 (% p.a.) Perf. 2012 (% p.a.) Mansard Money Market Portfolio MIL 10.34% 11.78% Mansard Fixed Income Portfolio MIL 13.67% 10.17% Mansard Equity Portfolio MIL 29.57% 12.44% Mansard Property Portfolio MIL 5.27% 7.04% Money Market Portfolio MIL 10.52% 12.44% Fixed Income Portfolio MIL 7.58% 12.31% Balanced Portfolio MIL 12.77% 16.67% Income & Growth Portfolio MIL 16.76% 13.40% Strategic Growth Portfolio MIL 16.70% 13.49% Dynamic Growth Portfolio MIL 5.60% 13.05% Mansard Education Plus Portfolio MIL 12.52% 16.08% Stanbic IBTC Equity Fund Stanbic 20.00% 27.98% Stanbic IBTC Ethical Fund Stanbic 18.77% 10.68% Stanbic IBTC Bond Fund Stanbic 1.29% 22.90% Coral Growth Fund FSDH 19.95% 8.73% Coral Income Fund FSDH 4.40% 15.92% Mansard Weighted Average Yield 12.83% 11.13% Average Nibor - YTD 12.03% 15.38% Inflation - YoY 9.00% 12.00%
  26. 26. Group Performance - Investment • Assets under management of N17.3bn as at 30 June, 2013 • The portfolio mix was skewed towards low risk money market and fixed income securities constituting 68% of the total investment portfolio • Holdings in quoted equity stood at 13% (this is a combination of fundamentally strong quoted and unquoted equity). • Total investment returns for the period were 12%, outperforming a large number of indices and some competitors’ asset management operations. 26Mansard Insurance plc ©
  27. 27. Mansard Health 27Mansard Insurance plc ©
  28. 28. About Mansard Health • Formerly Procare HMO • The license was acquired in April 2013 • No lives or assets or liabilities were attached • Strategic plan was written for the new subsidiary • Corporate Head Office is at 177 Ikorodu Road Onipanu, Lagos • Liaison offices are being put up in the six geo-political zones • Recruitment of key staff has been done 28Mansard Insurance plc ©
  29. 29. Outlook For Rest of the Year (H2 2013) 29Mansard Insurance plc ©
  30. 30. Drivers for H2 Growth • Lease of the remaining spaces on our commercial property (Mansard Place) • Open one additional Welcome Centre and a full branch in Port Harcourt • Initiate our debt issuance program • Commence full operations of HMO business • Expand operational scope of Mansard Investments Ltd 30Mansard Insurance plc ©
  31. 31. Thank you! 31Mansard Insurance plc ©

×