Disclaimer
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Transcript of Disclaimer
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Disclaimer
This presentation is not an offer or invitation to subscribe for or purchase any securities.
No warranty is given as to the accuracy or completeness of the information in this presentation. You must make your own independent investigation and appraisal of the business and financial condition of GIC Group of companies.
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2013: Opportunities
2012: Year in Review
Agenda
2012: Financial Highlights
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GIC celebrating 50 years of success. Rebranding of GIG across GIG group companies.
2012 at a glance
Moving from Origin to
Excellence
Maintain Leadership
Achieve Remarkable &
distinct results
Highest Credit Rating
among Kuwait Insurers
ERM“Enterprise Risk
Management”
GIC maintained its leadership position in Kuwait for the 12th consecutive year. Ranked number 8 out of Private Insurance Companies in MENA region in terms of GPW 2011*. GIC, through its subsidiaries, maintain its market leader in Bahrain, Jordan in terms of GWP and in Egypt in
terms of technical profits.
Achieved the Targeted Budget figures in terms of Production and Profitability despite all the obstacles especially Political Unrest in the MENA Region.
GIC obtained Standards and Poor’s interactive financial strength and long-term counterparty credit rating of A-/Stable outlook
Obtain AM Best credit rating of A- (excellent) / Stable outlook for GIC , GLIC and BKIC. Obtain AM Best credit rating of B++ (good) / Stable for AOIC and B++ (good) / Negative for AMIG.
Strong and serious steps have been taken by the risk management in line with the best practice.
Regional Expansion
*Source: Al-Bayan Magazine issue # 491, Oct. 2012
Increase focus on regionalization, successfully acquired 20% of Alliance UAE. Increase GIC’s percentage of share in Al-Argan Real estate (Kuwait) to become nearly 20%.
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For the second consecutive year, Gulf Insurance Company has won the Best Insurance provider in the Middle East by the Global Banking and Finance Review. An annual award given to selected distinguished companies around the world in the banking and finance industry.
2012 at a glance (continued)
Maintain Global Banking
and Finance reward
Technology edge
Conventional Business
Takaful Business
Implementing New IT Platform for GLIC to enhance all the Technical Operations.
Maintaining existing clients (GIC renewed the tender of KPC’s medical scheme) and increasing the persistency and loyalty of customers by providing a better personalized customer service, advices and faster claims handling.
Continues improvements in Takaful business unit in GIC as well in Egyptian Takaful life company; to provide wide distinguished and new range of insurance solutions to customers.
Reporting & Budgeting
Cycle Implementing a New Financial Reporting, Budgeting and Planning System across GIG.
Distribution Channels
Increase our Distribution Network Regionally and increased the number of Life & Non-Life Sales Force in GIC and other Subsidiaries.
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2013: Opportunities
2012: Year in Review
Agenda
2012: Financial Highlights
7 Draft for Discussion
2012… Financial Highlights
KD million KD million
KD million KD million
Actual CAGR: 12%
Growth Rate % Budget variance
9% 4%14% 4%
30% 2%
Gross Premium Written
Underwriting Result
Revenues
Net Profit *
Actual CAGR: 19% Actual CAGR: 17%
Actual CAGR: 4% -11% -24%
Net profit *: Attribute to GIC parent Company; 2007 net profit presented Without non-Recurring profits KD 29.9 M (37,7 - 29,9 = 7,8)
8 Draft for Discussion
2012… Financial Highlights
KD million KD million
KD million KD million
Actual CAGR: 8%
Growth Rate % Budget variance
12% 10%10% 1%
10% 4%
Consolidated Assets
Investment Portfolio (Portfolio Mix)
Shareholders’ Equity
Net Technical Reserves
Actual CAGR: 12% Actual CAGR: 3%
Actual CAGR: 18% 11% 6%
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2012…Stock performance
GIC’s Share price Performance, Sector & Market Index
During 2012-YE, GIC’s share price has been raised up. Taking into consideration the cash dividends to shareholders amounted KD 3.5 million, KD 0.9 million bonus shares (5% of the nominal value) paid in April-2012
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Regional Operations (Pan-Regional Presence)
GIC Intends to continue its regional expansion strategy which affirm its regional leading position and to serve the Kuwaiti investments in the Arab region ,spread of risks and exploit the opportunities of growing markets.
CountryBusiness Line
M&A P M, GA L H TMENA
Kuwait
KSA
Bahrain
GCC
Lebanon
Egypt
Jordan
Syria
Non-GCC
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Presence Across the MENA Region
GCC countriesMENA (Others)
Libya
TunisiaMorocco
Egypt
Palestine
QatarOman
YemenCountries in blue colour indicate GIC presenceCountries in green colour indicate GIC targeted markets
● ●
Algeria
SaudiArabia
Jordan
Lebanon
KuwaitBahrain
Algeria
Iraq●●●●●●●
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Syria
Iraq
U.A.E
UAE ●●●●● ●Turkey
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2013: Opportunities
2012: Year in Review
Agenda
2012: Financial Highlights
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2013… Opportunities
Maintain leadership position and improve the market share by enhancing the focuses on customer needs.Maintain Leadership
Continue seeking best opportunities for our Regional Expansion in the MENA Region that is within our Appetite and would give us a high return on Capital Invested.
Regional Expansion
Continuing the implementation of an efficient and effective Enterprise Risk Management functions within GIC group.
Enterprise Risk Management
Perform an active role towards our subsidiaries in many areas & improve group integration, to strengthen their financial positions in order to allow these companies to continue to strongly compete in the domestic markets.
Working to implement a comprehensive program of unified policies between the parent company and its subsidiaries in many areas, with the aim of streamlining operations, reducing costs, and increasing revenue.
Enhance Group Integration
Maintain our AM Best and S&P financial strength and credit rating on A level for GIC and its rated subsidiaries.
Financial Strength & Credit Rating
Work continuously and extensively to invest and improve career development programs, training program for GIG’s employees, continuous development in Information Technology and marketing plan for GIC's products & services.
Continuous Developments
GIC is examining a possible partnership with Burgan Bank to distribute insurance products of GIC regionally through their regional network (Subject to approval of Local Authorities).
Enhance Distribution Network
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2013 Ambition (KD million)
Target Growth2012 A2013 E*
* These targets might be affected by non-recurring conditions of financial markets as well as the political situations and government spending in the countries where we are operating in.
156.0 145.4 7.3%
91.2 86.0 6.1%
173.1 167.7 3.2%
93.4 88.2 5.9%
GPW
Revenues
Investment Portfolio
Net Technical Reserves