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Financial Review Of Insurance Industry And A Key Player
- 1. Postgraduate Institute Of Management University of Sri Jayewardenepura Financial Analysis Presentation by Group B – II MBA 2010
- 2. General Analysis Industry Specific Analysis Agenda The Industry Company Overview Financial Analysis of the Company Competitor Analysis Non-financial Analysis of the Company Conclusion
- 3. Insurance Insurance can be defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for a premium
- 4. Total Premium Income 2008 - 58,166 Million Market Structure Source : IBSL Report 2008
- 5. Market Structure Source : IBSL Report 2008
- 6. Growth Source : IBSL Report 2008
- 7. General Analysis Industry Specific Analysis Agenda The Industry Company Overview Financial Analysis of the Company Competitor Analysis Non-financial Analysis of the Company Conclusion
- 9. Shareholding Structure 99.5 % 41.6% 87.3% 5% 58.4% Source: Eagle Annual Report 2008
- 10. General Analysis Industry Specific Analysis Agenda The Industry Company Overview Financial Analysis of the Company Competitor Analysis Non-financial Analysis of the Company Conclusion
- 11. Profitability Ratios Source: Eagle Annual Report 2008
- 12. Efficiency Ratios Source: Eagle Annual Report 2008
- 13. Efficiency Ratios Source: Eagle Annual Report 2008
- 15. Key Industry Ratios (General) Net Loss Ratio = Net claims incurred Net earned premium Source: Eagle Annual Report 2008
- 16. Key Industry Ratios (General) Net Expense Ratio = Total expenses Net earned premium Source: Eagle Annual Report 2008
- 17. Key Industry Ratios (General) Net Combined Ratio = Net Loss Ratio + Net Exp. Ratio Source: Eagle Annual Report 2008
- 18. Solvency Margin - General Admissible assets = Defined by the regulator Total Liabilities = Net outstanding claims + IBNR + Other liabilities (Creditors, etc) Net Admissible assets = Admissible assets – Total liabilities Net Admissible Assets should meet criteria of regulator
- 19. Solvency Margin - General Source: Eagle Annual Report 2008
- 20. Solvency Margin - Life Net admissible assets should be more or equal to 5% of Policyholders Liability. Policyholders Liability (for maturity claims, death claims etc)
- 21. Solvency Margin - Life Source: Eagle Annual Report 2008
- 22. Investment Income Ratio Source: Eagle Annual Report 2008
- 23. Investor Ratios Source: Eagle Annual Report 2008
- 24. Investor Ratios Source: Eagle Annual Report 2008
- 25. Investor Ratios Source: Eagle Annual Report 2008
- 26. Investor Ratios Source: Eagle Annual Report 2008
- 27. General Analysis Industry Specific Analysis Agenda The Industry Company Overview Financial Analysis of the Company Competitor Analysis Non-financial Analysis of the Company Conclusion
- 32. General Analysis Industry Specific Analysis Agenda The Industry Company Overview Financial Analysis of the Company Competitor Analysis Non-financial Analysis of the Company Conclusion
- 33. Market Share - Life Source : IBSL Report 2008
- 34. Market Share - General Source : IBSL Report 2008
- 37. Solvency Margin - General
- 38. Solvency Margin - Life
- 43. Investor Ratios
- 44. Investor Ratios
- 45. Investor Ratios
- 46. General Analysis Industry Specific Analysis Agenda The Industry Company Overview Financial Analysis of the Company Competitor Analysis Non-financial Analysis of the Company Conclusion
- 48. Thank You A A C P Dias (MBA/10/2566) E P R A Emil (MBA/10/2575) J F R De Fonseka (MBA/10/2556) E L De Silva (MBA/10/2559) B D L C De Tissera (MBA/10/2563) G G S Edirisinghe (MBA/10/2573) L T G De Silva (MBA/10/2560) K A P Dharmasiriwardena (MBA/10/2565)
Editor's Notes
- Total 16 companies in the Industry The top 5 players account for over 85% of turnover.
- Competitor price war Recession – export industry Inflation and Interest rates Policy lapses
- Return On = NPBT Net Assets Net Assets Operating Profit = NPBT Margin Revenue Gross Profit = Net Earned Premium Margin GWP
- Claims / Losses / Expenses = Claims / Losses / Expenses as a % of Revenue Revenue Operating & Admin Exp = Operating & Admin Exp as a % of Revenue Revenue
- Asset Turnover Ratio = Revenue Total Assets Fixed Asset Turnover Ratio = Revenue Fixed Assets
- Net Earned Premium: The portion of a policy which is recognized during the period under review.
- Equivalent of the GP Ratio.
- Equivalent of the Net Profit Ratio 3 Year analysis of Net Expense ratio
- (This ratio should be below 100% to make underwriting profits). Notes: However we noticed that although this % is around 110%, the Investment Income is adequate enough to cover for this. 3 Year analysis of Net Combined Ratio
- Other Revenue = Other Revenue as a % Total Revenue Revenue
- Earnings Yield = Earnings Per Share (Times) Market Price Per Share Dividend Yield = Dividends Per Share (Times) Market Price Per Share Price Earnings Ratio = Market Price Per Share Earnings Per Share
- Earnings Per Share = Divisible Profit (Rs.) Ordinary Shares Dividend Per Share = Ordinary Dividends (Rs.) Ordinary Shares Dividend Payout Ratio = Ordinary Dividends Divisible Profit
- Net Asset Per Share = Net Asset value (Rs.) Ordinary Shares