Financial results for the quarter ended 31 March 2012 8-May-12 - - PowerPoint PPT Presentation

Analyst Briefing Financial results for the quarter ended 31 March 2012

8-May-12

Jeffrey Mack Group Chief Executive Officer

Segments

3

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%) RGM (33.33%) SERVUS (50%) ECGPC (15%) LAEVULOSE (79%) GAM (100%)

CARIBBEAN PROPERTY & CASUALTY

Consolidated Financial Highlights – Q1 2012

Q1-12 (TT$MM) Q1-11 (TT$MM)

Var $ Var %

Reported Profit for the year 97 89 8

9%

Basic EPS $ 0.42 $ 0.38

$0.04 11%

Discontinued Net (loss) / gain (1) 1 (2)

+100%

Continuing Profit for the year 98 88 10

11%

Basic EPS $ 0.42 $ 0.38

$0.04 11%

Consolidated Financial Highlights – Q1 2012

Q1-12 (TT$MM) Q1-11 (TT$MM)

Var %

Net income from insurance activities 86 48

79%

Net income from investment activities 242 232

4%

Net income from all activities 328 280

17%

Operating profit before interest and tax 152 129

18%

Finance charges (27) (25)

8%

Taxation (26) (18)

44%

Profit from continuing operations 98 88

11%

Kerri Maharaj Group Chief Financial Officer

Four Year History

(827) 406 261 88 97 (1,000) (800) (600) (400) (200)

• 200

400 600 2009 2010 2011 Q1-2011 Q1-2012

Reported profit attributable to equity holders of the parent ($millions)

• Reported results are impacted by material strategic decisions.

Underlying results are not immediately apparent.

355 461 471 87 98

• 50

100 150 200 250 300 350 400 450 500 2009 2010 2011 Q1-2011 Q1-2012

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

Excludes Zenith & Lloyds

• A clearer picture emerges when continuing operations are

isolated i.e. stable, consistent pattern of growth

Four Year History

Earnings Per Share

$1.76 $2.20 $2.04 $0.38 $0.42 $1.70 $2.14 $1.98 $0.37 $0.40 $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 2009 2010 2011 Q1-2011 Q1-2012

EPS (continuing operations)

Basic Diluted

• EPS from continuing operations reflects the positive performance.

Four Year History

3,285 3,567 4,007 1,356 1,374

• 500

1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 2009 2010 2011 Q1-2011 Q1-2012

Gross Premiums Written - GPW ($millions)

• Consistent growth despite soft economic conditions in our markets
• Net Premiums Written show same trend

Geographic Distribution of Revenue

0.49 , 47% 0.21 , 20% 0.31 , 29% 0.04 , 4%

Q1-2011 - $1.05 billion

Trinidad & other Caribbean Jamaica Netherland Antilles Non Caribbean

0.54 , 49% 0.23 , 21% 0.30 , 27% 0.03 , 3%

Q1-2012 - $1.1 billion

Trinidad & other Caribbean Jamaica Netherland Antilles Non Caribbean

Excludes realised and unrealised gains/losses

• Geographic distribution continues to be stable, with approximately

50% earned in Trinidad and Tobago

Balance sheet composition

21.7 21.0 21.5 22.2 19.4 17.9 18.3 18.9 2.34 3.13 3.19 3.28

• 5.0

10.0 15.0 20.0 25.0 2009 2010 2011 Q1-2012

Consolidated Balance Sheet ($billion)

Total assets Total liabilities Net equity

• High quality assets: intangibles less than $0.3Bn each year
• Consistent equity growth

Segment Information

Life Health and Pensions (LHP) Anand Pascal

Life Health & Pension

15

LIFE HEALTH AND PENSION

GLOC (100%) GLL (100%) FATUM LIFE CURACAO (100%) FATUM LIFE ARUBA (100%) FATUM HEALTH (100%)

• Leading market shares:

– # 1 In Trinidad

• Over 600 dedicated life sales agents
• GLOC carries an “A-” Excellent rating

by AM Best – # 2 In Jamaica

• Over 300 dedicated life sales agents

– Fatum has approximately 50% of the Dutch Caribbean market

• Sales primarily broker-driven

LHP – Annualised Premium Income (API)

230 190 225 40 51 62 66 65 15 17 50 100 150 200 250 300 350 2009 2010 2011 Q1-2011 Q1-2012

Settled API ($million)

GLOC GLL

• Settled API is up 27.5% due to both sales of protection and savings

business during Q1

• Settled API shows modest growth in GLL

LHP – Gross Premiums Written (GPW)

1,193 1,246 1,347 312 341 452 540 552 133 142 372 455 403 271 272 500 1,000 1,500 2,000 2,500 2009 2010 2011 Q1-2011 Q1-2012

Gross Premiums Written ($million)

GLOC GLL FATUM

• GPW shows steady growth in all territories as new business from

current and prior periods remain on the books

LHP – Revenue

1,438 1,497 1,600 357 388 762 807 806 193 209 572 659 631 253 262 500 1,000 1,500 2,000 2,500 3,000 3,500 2009 2010 2011 Q1-2011 Q1-2012

Revenue ($million)

GLOC GLL FATUM

• Revenue growth driven primarily by gross premium written
• Investment income continues to be affected by low interest rate

environment in Trinidad and falling rates in GLL

Excludes realised and unrealised gains/losses

Caribbean Property & Casualty (CPC) Richard Espinet

Caribbean Property & Casualty

20

GGIL (100%) WIA (100%) FATUM GENERAL CURACAO (100%) FATUM GENERAL ARUBA (100%) TNI (54%) RSA (25%)

CARIBBEAN PROPERTY & CASUALTY

 Largest Caribbean property & casualty insurer

• Double the size of its nearest competitor measured by

gross written premium

• Underwrites in every English speaking Commonwealth

country in the Caribbean

 Financial strength and consistently applied underwriting discipline are competitive advantages

• GGIL carries an “A-” Excellent rating by AM Best
• Consistently delivers high profit margins

 Manages the underwriting cycles  Good geographic spread  Excellent reinsurance program

CPC – Gross Premiums Written

964 1,009 1,347 475 500 243 263 287 143 103 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2009 2010 2011 Q1-2011 Q1-2012

Gross Premiums Written ($million)

GGIL FATUM

• GPW fell in FATUM owing to a continued focus on delivering bottom line

profits instead of chasing low-rated business in a competitive market

• Reduction was somewhat offset by 5.3% growth in premiums written by

GGIL through our global network partners

CPC – Combined Ratio

50% 60% 70% 80% 90% 100% 2007 2008 2009 2010 2011 Q1-2012

Combined Ratio (Caribbean operations)

• The combined ratio for the Caribbean P&C has been consistently below

100%, reflecting the Group’s strong technical underwriting policies and excellent reinsurance protection

Asset Management (AM) Brent Ford

Asset Management

24

ASSET MANAGEMENT

GAM (100%)

 Acts as investment manager for the

group

 Offers investment opportunities to 13

independent mutual funds

 Offers financial advisory services to high

net worth individuals

 Total Assets Under Management $8.4Bn

• Consistently profitable

AM – Assets under management (AUM)

6.9 7.4 8.2 8.4

• 1.0

2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 2009 2010 2011 Q1-2012

AUM - $billion

• AUM increased to $8.4B or 2% from year end 2011 and 4% from

comparative period of March 2011

• Non-discretionary business line introduced in 2011 contributed to YOY

increase

AM – Revenue & Profits

35.0 50.0 57.0 12.9 11.6 11.2 18.1 19.7 4.4 3.3

• 10.0

20.0 30.0 40.0 50.0 60.0 2009 2010 2011 Q1-2011 Q1-2012 Revenue ($M) PAT ($M)

• Revenues and PAT are slightly down from prior year, mainly due to lower

unrealised gains and investment income in a soft interest rate environment

• Conservative approach to investment given volatile markets and

uncertainty

Consolidated Investment mix

8% 49% 13% 0% 8% 9% 13%

2011

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

8% 49% 13% 0% 8% 8% 14%

Q1-2012

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

• Stable investment strategy

QUESTIONS