30 September 2011 Jeff Mack [10-Nov-11] Operating segment - - PowerPoint PPT Presentation

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30 september 2011
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30 September 2011 Jeff Mack [10-Nov-11] Operating segment - - PowerPoint PPT Presentation

Dec 11, 2023 45 likes •301 views

Financial results for the nine months ended 30 September 2011 Jeff Mack [10-Nov-11] Operating segment structure 2 CARIBBEAN INTERNATIONAL STRATEGIC LIFE HEALTH ASSET PROPERTY & PROPERTY & ALTERNATIVE AND PENSION MANAGEMENT

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SLIDE 1

Financial results for the nine months ended 30 September 2011

Jeff Mack [10-Nov-11]

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SLIDE 2

Operating segment structure

2

LIFE HEALTH AND PENSION INTERNATIONAL PROPERTY & CASUALTY ASSET MANAGEMENT STRATEGIC ALTERNATIVE INVESTMENTS

GLOC (100%) GLL (100%) FATUM LIFE CURACAO (100%) FATUM LIFE ARUBA (100%) FATUM HEALTH (100%) GGIL (100%) WIA (100%) FATUM GENERAL CURACAO (100%) FATUM GENERAL ARUBA (100%) TNI (54%) RSA (25%) GUARDIAN RE (100%) JGHL (39.1%) Sold Aug 11 RGM (33.33%) SERVUS (50%) ECGPC (40.5%) LAEVULOSE (79%) GAM (100%)

CARIBBEAN PROPERTY & CASUALTY

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SLIDE 3

Consolidated financial highlights - 2011

Consolidated financial highlights

2011 2010 Change Gross premiums written 3,679,200 3,472,371 6.0% Net premiums written 2,732,728 2,816,062

  • 3.0%

Net income from insurance activities 206,010 137,329 50.0% Net income from investing activities 784,264 832,374

  • 5.8%

Net income from all activities 990,274 969,703 2.1% Operating expenses (556,295) (550,304) 1.1% Finance charges (72,522) (68,055) 6.6% Operating profit 361,457 351,344 2.9% Share of (loss)/profit of associated companies (33,028) 12,011 -375.0% Profit attributable to equity holders of the parent 242,337 190,223 27.4% Earnings per share $ 1.05 $ 0.93 12.9%

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SLIDE 4

Three year history

3,936 4,203 4,324 3,472 3,679

  • 500

1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 2008 2009 2010 Q3-2010 Q3-2011

Gross Premiums Written - GPW ($millions)

New strategies and initiatives have more that offset disposal of our Lloyds of London business – Jubilee

  • Alliance with large Global Partners
  • Expansion into the Netherlands through our Dutch Caribbean company, FATUM
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SLIDE 5

Three year history

3,180 3,479 3,578 2,816 2,733

  • 500

1,000 1,500 2,000 2,500 3,000 3,500 4,000 2008 2009 2010 Q3-2010 Q3-2011

Net Premiums Written - NPW ($millions)

Excluding NPW from Lloyds, GHL’s NPW increased 5%; $2.3billion versus $2.2 billion

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SLIDE 6

Geographic distribution of revenue

1.8 , 46% 0.6 , 16% 0.7 , 17% 0.8 , 21%

Q3-2010 - $3.96 billion

Trinidad & other Caribbean Jamaica Netherland Antilles Non Caribbean

1.6 , 45% 0.7 , 18% 0.7 , 19% 0.6 , 18%

Q3-2011 - $3.58 billion

Trinidad & other Caribbean Jamaica Netherland Antilles Non Caribbean

  • The Group’s revenue base remains well balanced with

approximately 45% of revenues derived from T&T

  • Non Caribbean will drop following divestment in Lloyds
  • GHL no longer owns any business in the UK
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SLIDE 7

Three year history

(before operating expenses and finance charges)

308 252 230 137 206 478 1,041 1,175 832 784 200 400 600 800 1,000 1,200 1,400 1,600 2008 2009 2010 Q3-2010 Q3-2011

Net Income ($millions)

Insurance Activities Investing Activities

  • Despite soft market conditions, net income from underwriting

activities increased 50% due to continued disciplined underwriting and control of catastrophe exposures

  • Net income from investing activities dropped 6% attributable to

low interest rate environment

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SLIDE 8

Three year history

135 108 83 68 73

  • 20

40 60 80 100 120 140 160 2008 2009 2010 Q3-2010 Q3-2011

Finance costs ($millions)

Finance costs increased by 7% compared with Q3-10; the increase arises because of the overlap of the $300 million bond repaid in April 2011 and the $1 billion Bond which was raised in January 2011.

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SLIDE 9

Three year history

(178) 465 551 351 361 (300) (200) (100)

  • 100

200 300 400 500 600 2008 2009 2010 Q3-2010 Q3-2011

Operating profit ($millions)

Excellent underwriting result, coupled with strong expense management

  • vercame a weak investment climate
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SLIDE 10

Three year history

154 (827) 406 190 242 (1,000) (800) (600) (400) (200)

  • 200

400 600 2008 2009 2010 Q3-2010 Q3-2011

Profit attributable to equity holders of the parent ($millions )

  • Profit after tax increased 27%
  • Without one-time, non-recurrent write down of a Jamaican

investment and our share of loss suffered by the parent of Jubilee (total -$48million ), PAT would have been $290 million; a 53% increase.

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SLIDE 11

Earnings per share

  • $0.27

$1.81 $1.92 $0.96 $1.05

  • $0.26

$1.75 $1.87 $0.93 $1.02

  • $0.50

$0.00 $0.50 $1.00 $1.50 $2.00 $2.50 2008 2009 2010 Q3-2010 Q3-2011

EPS (continuing operations)

Basic Diluted

  • Basic EPS increased by 13% year on year
  • EPS now fully reflects the shares issued to the IFC
  • Total shares outstanding currently 231 million as compared to 205

million at Q3-2010

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SLIDE 12
  • Purchased for $89 million (£6.97mm) in 2003
  • Originally a motor only syndicate, GHL supported Jubilee’s expansion into

international and specialty property business, as well as life

  • £31.9 million underwriting capital provided as at Sept 2011
  • Inception to date profit after tax of $141 million
  • From sale of shares GHL received $117.8 million in cash
  • Added $0.31 per share to 2011’s EPS
  • Depending on ultimate underwriting results GHL will receive its

underwriting capital back over the next four years

  • GHL believes that recorded loss reserves are properly established

Jubilee investment

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SLIDE 13

Balance sheet composition

22,035 21,710 20,988 21,422 21,853 19,012 19,368 17,857 18,450 18,599 3,023 2,342 3,130 2,972 3,253

  • 5,000

10,000 15,000 20,000 25,000 2008 2009 2010 Q3-2010 Q3-2011

Consolidated Balance Sheet ($million) Total assets Total liabilities Net equity

The group continues to deliver consistent earnings with net equity growing over 9% year on year

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SLIDE 14

Consolidated total assets

17,000 18,000 19,000 20,000 21,000 22,000 2008 2009 2010 Q3-2010 Q3-2011

21,391 21,440 20,735 21,170 21,599 644 270 253 253 254

Total assets ($million)

Tangible Intangible

The Group’s assets have grown by approximately 2% year on year

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SLIDE 15

Leverage

  • 0.10

0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90 2008 2009 2010 Q3-2010 Q3-2011

0.66 0.84 0.37 0.55 0.37

Debt-Equity

The Group’s debt/equity ratio remains steady at 0.37

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SLIDE 16

LHP – Annualised premium income (API)

182 230 190 114 133 71 62 66 47 45

50 100 150 200 250 300 350 2008 2009 2010 Q3-2010 Q3-2011

Settled API ($million)

GLOC GLL

LHP sales have been robust in 2011 and are trending ahead of 2010 levels.

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SLIDE 17

LHP – Gross premium written

1,048 1,193 1,246 878 999 395 452 540 399 407 460 372 455 392 374

500 1,000 1,500 2,000 2,500 2008 2009 2010 Q3-2010 Q3-2011

GPW ($million)

GLOC GLL FATUM

The strong levels of new business continue to drive up gross premium income.

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SLIDE 18

LHP – Net premium income (NPI)

986 1,097 1,198 844 916 395 434 523 387 395 445 352 436 353 335

500 1,000 1,500 2,000 2,500 2008 2009 2010 Q3-2010 Q3-2011

NPI ($million)

GLOC GLL FATUM

There have been no material changes to our reinsurance structure

  • ver the year.
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SLIDE 19

Caribbean P&C - GPW

916 964 1,009 784 1,108 186 243 263 218 252

200 400 600 800 1,000 1,200 1,400 1,600 2008 2009 2010 Q3-2010 Q3-2011

Gross premiums written ($million)

GGIL FATUM

Gross premiums written grew by 35.7% year on year principally due to new business written through our Global Network Partners and organic growth in Holland (via FATUM)

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SLIDE 20

Caribbean P&C

50% 60% 70% 80% 90% 100% 110% 2006 2007 2008 2009 2010 Q3-2011

Combined ratio

(caribbean operations)

The combined ratio for the Caribbean P&C has been consistently below 100% - this reflects the Group’s conservative underwriting policies and excellent reinsurance protection.

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SLIDE 21

International P&C - GPW

736 918 741 707 463 153 167 160 123 148

  • 200

400 600 800 1,000 1,200 2008 2009 2010 Q3-2010 Q3-2011

Gross premiums written ($million)

Quota share All other

Premiums written in the International P&C segment relate primarily to underwriting at Lloyd’s - the decline year on year reflects the reduced underwriting (with an exit from underwriting new risks from Q3 onwards)

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SLIDE 22

Asset Management – Assets under management (AUM)

Assets under Management increased by 8% from 2010 and shows a steady increase over time

6.2 6.9 7.4 8.0

  • 1.0

2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 2008 2009 2010 Q3-2011 (TT$Bn)

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SLIDE 23

Asset Management – Revenue & Profits

30.1 35.0 50.0 40.2 41.7 7.5 11.2 18.1 17.1 13.0

  • 10.0

20.0 30.0 40.0 50.0 60.0 2008 2009 2010 Q3-2010 Q3-2011 Revenue ($M) PAT ($M)

Revenues increased by 4% from comparative period in 2010; PAT is lower due to softer investing climate

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SLIDE 24

Investment mix

7% 49% 19% 0% 8% 6% 11% 2010

Investment properties Government securities Debentures & Corporate bonds Other Equities Term Deposits Cash & Cash equivalents

8% 48% 16% 0% 8% 7% 13% Q3-2011

Investment properties Government securities Debentures & Corporate bonds Other Equities Term Deposits Cash & Cash equivalents

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SLIDE 25

QUESTIONS