Corporate Briefing Session
Transcript of Corporate Briefing Session
Creating a better tomorrowIGI Holdings Limited
Corporate Briefing Session
IGI Holdings LimitedApril 29, 2021
Creating a better tomorrowIGI Holdings Limited
Content
1. Company Overview
2. Investment Portfolio
3. Financial Highlights
4. Questions & Answers
Creating a better tomorrowIGI Holdings Limited
About IGI Holdings Limited
• Public Listed Company – operating as an investment holding company
• Has investments in financial services, packaging, food and beverage, household cleaning products, pharma and ITcompanies
• Has Credit Rating AA (Long Term) and A1+ (Short term) by PACRA.
IGI Holdings Limited
IGI General Insurance
Limited100%
IGI FSI (Pvt.) Limited
100%
IGI Investments (Pvt.) Limited
100%
IGI Life Insurance
Limited82.69%
IGI FinexSecurities Limited
100%
FMCG47%
PACKAGING24%
FINANCIAL SERVICES
20% REAL ESTATE2%
PHARMA3%
IT4%
OTHERS0%
Creating a better tomorrowIGI Holdings Limited
Content
1. Company Overview
2. Investment Portfolio Performance
3. Financial Highlights
4. Questions & Answers
Creating a better tomorrowIGI Holdings Limited
Product Portfolio
Property & Casualty
Motor
Health
Engineering & Bond
Travel
Takaful
Liability
Market share ~6.7%
Fire36%
Marine12%
Motor25%
Health9%
Misc18%
Marine
Creating a better tomorrowIGI Holdings Limited
Our Reinsurance Partners - 2021
IGI General
Hannover Re
Peak Re
SCOR Global P&C
Saudi Re
Echo Re
Kuwait Re
Arab Insuran
ce GroupKorean
Re
Pak Re
QianhaiRe
TIM
AtradiusRe
Labuan Re
Llyod’ssyndicate
LeadFollower
Creating a better tomorrowIGI Holdings Limited
Financial Highlights – December 31, 2020 vs 2019
Gross Written Premiums
Rs. 6,014 m vs 5,612 m
Net Premium Revenue
Rs. 2,321 m vs Rs. 2,397 m
Underwriting profit (incl. Takaful)
Rs. 343 m vs 303 m
Investment Income
Rs. 369 m vs Rs. 491 m
Profit before Tax
Rs. 685 m vs Rs. 807 m
Profit after Tax
Rs. 486 m vs Rs. 573 m
Creating a better tomorrowIGI Holdings Limited
About IGI Investments
• Operating as an investment holding company
• Has an investment base of Rs. 44 billion (Book ValueRs. 16 billion)
• Has investments in packaging, FMCG pharma, realestate and IT sectors
• During the year 2020, completed its investment of 45%equity stake in SC Johnson & Son of Pakistan(Private) Limited, a leading global manufacturer ofhousehold cleaning products and products for homestorage, air care, pest control and shoe care.
FMCG59%
PACKAGING30%
FINANCIAL SERVICES
0%REAL ESTATE
2%
PHARMA3%
IT5%
OTHERS1%
Creating a better tomorrowIGI Holdings Limited
INVESTMENT PORTFOLIO
IGI
Investments
Packages
Limited
Packages
Real
Estate
Tri-Pack
Films Ltd
Nestle
Pakistan
Ltd
Sanofi
Aventis
Systems
LimitedSiemens
Engg.
29.9% 24.8% 9.7% 9.75% 3.8% 0.85%
Other
Investments
19.1%
Coca Cola
Beverages
Ltd
0.5%
Creating a better tomorrowIGI Holdings Limited
Financial Highlights – December 31, 2020 vs 2019
Dividend Income
Rs. 1,143 m vs Rs. 1,246 m
Profit after Tax
Rs. 727 m vs Rs. 784 m
Investments
Rs. 41,613 m vs Rs. 46,060 m
Equity
Rs. 39,468 m vs Rs. 43,859 m
Creating a better tomorrowIGI Holdings Limited
Dividend income
S. No. Name of CompanyNumber of shares
held
Dividend
FY 2020
Dividend
FY 2019
Dividend Per
Share
FY 2020
Dividend Per
Share
FY 2019
1 Nestle Pakistan 4,419,666 773,442 756,185 175 173
2 Packages Limited 26,707,201 320,486 400,608 12 15
3 Sanofi Aventis Pakistan 1,841,739 14,734 55,252 8 30
4 Systems Limited 4,606,836 10,365 8,376 2.25 2.00
5 Coca Cola Beverages Pakistan Limited 12,433,934 10,320 - 0.83 -
6 Packages Real Estate 100,000,000 7,500 - 0.08 -
7 Siemens Pakistan 70,031 3,221 5,253 46 75
8 Central Depository Company Of Pakistan Limited 1,624,995 1,226 1,194 0.94 1.23
9 Zil Limited 199,169 697 299 3.50 1.50
10 LSE Financial Service 843,975 591 675 0.70 0.80
11 Kissan, Punjab and Haider Growers 1,781 146 293 82 165
12 Tri Pack Fims Limited 3,750,417 - 15,002 - 4
13 International Industries Ltd. 504,472 - 2,523 - 5.50
14 Techlogix International Limited 355,718 - 166 - 0.44
Total 1,142,728 1,245,826
Creating a better tomorrowIGI Holdings Limited
Product Suite of
Individual Life Products
Conventional Savings Plans
Unit Linked Insurance
Plans
Medical Coverage Products
Individual Accidental and Health
Plans
Corporate Employee
Benefit Products
Group Life Insurance
Plans
Group Medical
Coverage Plans
Attempting to Disrupt through “Innovation”
Brought in Vitality to Pakistan
Creating a better tomorrowIGI Holdings Limited
Vitality – A Success Story
Launched in 1997
200 thousand
new members
each month
Every single minute this
platform tracks roughly a
1,000 activities and picks up
about 50 biometric
readings
The model is built on a
foundation of 40 million
life years of health, life and
insurance data linked to
wellness behavior
https://www.linkedin.com/pulse/dia-interview-andre-nepgen-discovery-all-ecosystems-roger-peverellihttps://www.forbes.com/sites/tobyshapshak/2018/11/14/south-africas-biggest-medical-aid-discovery-launches-first-behavioural-bank/#6dedd2a57900https://www.vitality.co.uk/careers/our-history/
Operates in more than 22 countries globally* with over 10 million Vitality members.
Creating a better tomorrowIGI Holdings Limited
Our Business Partners
Banca Partners
• Standard Chartered Bank
• Bank Alfalah
• Soneri Bank
• Silk Bank
• Dubai Islamic Bank
Reinsurance Partners
• Hannover Re
• Munich Re
Corporate Relations
Over 500 Relations
Creating a better tomorrowIGI Holdings Limited
Gross Premium Analysis
Overall Gross Premium Rs. 6,610 million Jan – Dec 2020
Individual Life- Agency 21%
Bancassurance33%
Corporate Business46%
Creating a better tomorrowIGI Holdings Limited
Profit and Loss Account For the year ended December 31, 2020
• The Gross premium written by the
Company increased by 28%.
• Investment income increased by 19%
due to Pro-active Investment
Management.
• The loss after tax amounting to Rs. 96
million as compared to loss after tax
of Rs. 176 million in the
corresponding period last year due to:• The major reason for this loss is
increase in acquisition costs for
expanding its distribution
channels of business and
adverse loss ratios due to
COVID-19.
Description
December 31,
2020
December 31,
2019
Rupees in 000's
Gross Premium 6,160,785 4,814,857
Net Premium 5,949,885 4,656,663
Net claims (including surrenders) 4,295,989 4,770,078
Investment Income (including other
income)1,996,733 1,659,314
Charge / (reversal) of insurance liabilities (1,237,032) (154,169)
Acquisition cost 1,682,731 927,462
Admin Expenses 836,853 1,018,403
Loss before tax (135,987) (245,797)
Loss after tax (95,725) (176,718)
LPS (0.56) (1.29)
Creating a better tomorrowIGI Holdings Limited
Assets Under Management
IGI LifeRs. 18,522M
(Dec-19: 17,690M)
Policy Holders Fund
Rs. 16,862M
(Dec-19: 16,075M)
Life ParRs. 2,036M
(Dec-19: 1,865M)
PIBs/ T-Bills
Rs. 2,049M (100%)
Life Non ParRs. 5,330M
(Dec-19: 6,120M)
PIBs/ T-Bills
Rs. 4800M (100%)
Pension (PIBs) Rs. 112M
(Dec-19: 119M)
Investment Linked Rs. 9,734M
(Dec-19: 7,971M)
Shareholders Fund
Rs. 1,660M
(Dec-19: 1,615M)
T-Bills/PIBs/TFCs/IF
Rs. 1,495M (90.1%)
Equity Funds/ SMA
Rs. 148M(8.9%)
Bank Deposits
Rs. 17M (1.0%)
Creating a better tomorrowIGI Holdings Limited
Year - QuarterEmbedded Value
(PKR Million)Change in
Embedded Value% Change
2017-Q4 2,567-
0.0%
2018-Q4 2,273 -294 -11.5%
2019-Q4 2,321 48 2.1%
2020-Q4 2,660 339 14.6%
2,567
2,273
2,321
2,660
2,000
2,100
2,200
2,300
2,400
2,500
2,600
2,700
2017-Q4 2018-Q4 2019-Q4 2020-Q4
Embedded Value (PKR Million)
2.1%
14.6%
-11.5%
Creating a better tomorrowIGI Holdings Limited
Introduction to IGI Securities
Established in 1994; Serving for 25 years.
TREC holder of Pakistan Stock Exchange; Corporate member
of Pakistan Mercantile Exchange.
Branch network in Karachi, Lahore, Islamabad, Faisalabad,
Rahim Yar Khan & Multan
Online trading platform (internet and mobile based) that caters
to clients locally as well as abroad.Karachi (Head
Office)
Karachi
Rahim Yar Khan
Multan
Faisalabad
Lahore
Islamabad
Creating a better tomorrowIGI Holdings Limited
Products and Services
Equity Brokerage
10,000+ clients in more than 60 cities across Pakistan as well as abroad; Comprising institutions,
corporate, high net worth and retail investors.
Market share of +/- 3%.
Commodity Brokerage
Commodity brokerage service provided by IGI Securities offers trading opportunities to customers at
Pakistan Mercantile Exchange (PMEX) – online commodity exchange of Pakistan.
Research
The research coverage extends over 45 companies across major sectors. Our research papers include:1. Day Break: IGI’s daily publication keeping an investigative eye on news on the corporate, economic and
political front.
2. Equity Research: In depth individual, thematic, and sectoral reports spanning across major sectors.
3. Economy and Strategy: Annual Strategy, Monthly and Quarterly Economic reviews, Monetary Policy
preview and reviews, Federal Budget preview and reviews.
4. Flash Note: This report provides information and analysis by Research team on new updates and corporate
results.
Creating a better tomorrowIGI Holdings Limited
Retail Footprint
Offering online trading to clientele through iTrade (Internet & Mobile Trading)
Client base spread over 60 cities across Pakistan as well as abroad
Over 10,000 retail accounts
City Wise Client Distribution
Karachi Lahore Faisalabad Islamabad Rawalpindi
Multan Peshwae Sialkot Others
Creating a better tomorrowIGI Holdings Limited
Financial Highlights – 2019 & YTD Mar 2020
PKR mn Q1FY21 Q1FY20 % change 2020 2019 % change
Average daliy volume (No. of shares) - PKR mn 645 263 145% 389 199 95%
Average daily value (Rs.) PKR - bn 31 10 210% 15 8 88%
Operating revenue 88,056 40,178 119% 186,970 97,163 92%
Other income / (expenses) 8,414 10,978 -23% 39,346 35,040 12%
96,470 51,156 89% 226,316 132,203 71%
Administrative and operating expenses 58,491 35,356 65% 173,544 121,975 42%
Financial Charges 169 228 -26% 658 715 -8%
37,810 15,572 143% 52,114 9,513 448%
Reversal of provision / (provision for doubtful debts 0 0 n/m 0 8 -100%
Profit / (loss) before taxation 37,810 15,572 143% 52,114 9,521 447%
---- Rupees in '000 ----- ---- Rupees in '000 -----
Creating a better tomorrowIGI Holdings Limited
Content
1. Company Overview
2. Investment Portfolio Performance
3. Financial Highlights
4. Questions & Answers
Creating a better tomorrowIGI Holdings Limited
Standalone financial performanceYear ended December 31, 2020
Creating a better tomorrowIGI Holdings Limited
IGI HoldingsProfit and Loss
Dividend Income
Rs. 1,110 m vs Rs. 1,107 m
Profit before tax
Rs. 975 m vs Rs. 912 m
Profit after tax
Rs. 944 m vs Rs. 897 m
Earnings per share
Rs. 6.62 vs Rs. 6.29
Creating a better tomorrowIGI Holdings Limited
IGI HoldingsBalance Sheet
2019 Dividend paid Rs. 428 M
Long term loan installment repaid Rs 300 M
Reversal of impairment on IGI Finex Rs 101 M
6
8
4
6
3
5
57 68
199
48 48 76
2015 2016 2017 2018 2019 2020
Dividend per share (Rs.) Payout ratio (%)
Dividend per Share
Dec 31, 2020 Dec 31, 2019
Assets
Investment in subsidiaries 15,837,753 15,736,333
Dividend receivable 150,000 -
Tax recoverable 46,724 54,972
Withholding tax recoverable 6,530 6,530
Deferred tax asset 21,086 43,958
Cash and Bank 32,385 11,363
16,094,478 15,853,156
Liabilities
Long term loan 600,000 900,000
Short term loan 1,157,699 1,121,163
Accrued markup 39,516 37,280
Other payable 8,241 9,930
Unclaimed dividend 28,749 28,464
1,834,205 2,096,837
Net Assets 14,260,273 13,756,319
Net Assets - IGI Bank
- Assets 233,155 238,614
- Liabilities 201,795 220,927
31,360 17,687
Equity 14,291,633 13,774,006
Creating a better tomorrowIGI Holdings Limited
Consolidated financial performance of the
GroupYear ended December 31, 2020
Creating a better tomorrowIGI Holdings Limited
IGI Holdings consolidated resultsFY 2020 vs 2019
Revenue
Rs. 11,499 m vs Rs. 9,902 m
Profit before tax
Rs. 2,222 m vs Rs. 939 m
Profit after tax attributable to Parent
Rs. 1,737 m vs Rs. 684 m
Earnings per share
Rs. 12.18 vs Rs. 4.80
Creating a better tomorrowIGI Holdings Limited
IGI Holdings - Consolidated Profit and Loss
2,222
122
110 43 2 52
1,178 21
939
PBT for 2019 IGI General IGI Life IGI Finex IGI Investments
(excluding
dividend from
associates)
IGI Holdings
(excluding
divdend from
subsidiaries)
Share of profit
from associates
Others PBT for 2020
Rupees in millions
Increase in profitability of Packages / Packages Convertors and BullehShah by Rs. 4.2b (IGI Share: Rs 1.3b).
Packages Mall incurred loss of Rs 308m in 2020 vs profit of 42m in 2019 (Sep 2019) due to COVID-19 rent concessions provided to tenants (IGI
Share: 86m).SC Johnson post acquisition loss for 3 months Rs 121m (IGI Share: 55m)Investment income declined by
Rs 122m during the year mainly due to decline in
interest rates.
Loss for FY 2020: Rs. 136m vs Loss for FY 2019:
Rs. 246m
Decrease in Operating expenses by Rs 31m and Finance Cost by Rs 18m
Creating a better tomorrowIGI Holdings Limited
Content
1. Company Overview
2. Investment Portfolio Performance
3. Financial Highlights
4. Questions & Answers
Creating a better tomorrowIGI Holdings Limited
Important DisclaimerTHIS PRESENTATION IS NOT AN OFFER OR SOLICITATION OF AN OFFER TO BUY OR SELL ANY
SECURITIES OR ANY INVESTMENT
This presentation has been prepared by IGI Holdings Limited (“IGI Holdings”) solely for information purposes. No representation or warranty express or implied is made thereto, and no reliance
should be placed on, the fairness, accuracy, sufficiency, completeness or correctness of the information or any opinion contained herein, or any opinion rendered thereto. The information
contained in this presentation should be considered in the context of the circumstances prevailing at the time and will not be updated to reflect any developments that may occur after the date of
the presentation. Neither IGI Holdings nor any of its respective subsidiaries, affiliates, officials, advisors, associates, employees or any person working for, under or on behalf, shall have any
responsibility and/or liability of any nature whatsoever (in contract or otherwise) for any loss whatsoever arising from any use of this presentation or its contents or otherwise arising in connection
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This presentation does not constitute or form part of a prospectus, offering circular or offering memorandum or an offer, solicitation, invitation or recommendation to purchase or subscribe for any
securities and no part of it shall form the basis of, or be relied upon in connection with, or act as any inducement to enter into any arrangement, agreement, contract, commitment or investment
decision in relation to any securities. This presentation shall not at all be intended to provide any disclosure upon which an investment decision could be made. No money, securities or other
consideration is being solicited, and, if sent in response to this presentation or the information contained herein, will not be accepted.
The presentation may contain statements that reflect IGI Holdings own beliefs and expectations about the future. These forward-looking statements are based on a number of assumptions about
the future, which are beyond IGI Holdings control. Such forward-looking statements represent, in each case, only one of many possible scenarios and should not be viewed as the most likely or
standard scenario. Such forward looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those contemplated by the relevant
forward-looking statements. IGI Holdings does not undertake any obligation to update any forward-looking statements to reflect events that occur or circumstances that arise after the date of this
presentation and it does not make any representation, warranty (whether express or implied) or prediction that the results anticipated by such forward-looking statements will be achieved. In
addition, past performance should not be taken as an indication or guarantee of future results.
Certain data in this presentation was obtained from various external data sources that IGI Holdings believes to its knowledge, information and belief to be reliable, but IGI Holdings has not verified
such data with independent sources and there can be no assurance, representation or warranty as to the accuracy, sufficiency, correctness or completeness of the included data. Accordingly, IGI
Holdings makes no assurance, representation or warranty as to the accuracy, sufficiency, correctness or completeness of that data, and such data involves risks and uncertainties and is subject
to change based on various factors.
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