Tune Ins Holdings Berhad (948454-K) Presentation (Last Updated - - - PowerPoint PPT Presentation

tune ins holdings berhad 948454 k
SMART_READER_LITE
LIVE PREVIEW

Tune Ins Holdings Berhad (948454-K) Presentation (Last Updated - - - PowerPoint PPT Presentation

Tune Ins Holdings Berhad (948454-K) Presentation (Last Updated - November 2013) Disclaimer By attending the meeting where this presentation is made, or by reading the presentation materials, you agree to be bound by the following limitations:


slide-1
SLIDE 1

Tune Ins Holdings Berhad (948454-K)

Presentation (Last Updated - November 2013)

slide-2
SLIDE 2

2

By attending the meeting where this presentation is made, or by reading the presentation materials, you agree to be bound by the following limitations: The information in this presentation has been prepared by representatives of Tune Ins Holdings Berhad (“TIHB“) for use in presentations by TIHB and does not constitute a recommendation regarding the securities of TIHB. No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information, or opinions contained herein. Neither TIHB nor any of TIHB's advisors or representatives shall have any responsibility or liability whatsoever (for negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with this presentation. The information set out herein is still in draft form and may be subject to updating, completion, revision, verification and amendment and such information may change materially. It should be understood that subsequent developments may affect the information contained in this presentation, which neither TIHB nor its advisors or representatives are under an obligation to update, revise or affirm. This presentation and the information contained herein does not constitute or form part of any offer for sale or subscription of or solicitation or invitation

  • f any offer to buy or subscribe for any securities of TIHB. The securities of TIHB have not been and will not be registered under the U.S. Securities Act of

1933, as amended (the “Securities Act”), and may not be offered, sold or delivered within the United States or to U.S. persons absent from registration under or an applicable exemption from the registration requirements of the United States securities laws. This presentation and the information contained herein is being furnished to you solely for your information and may not be reproduced or redistributed to any other person, in whole or in part in any manner. In particular, neither the information contained in this presentation nor any copy hereof may be, directly or indirectly, taken or transmitted into or distributed in the U.S., Canada, Australia, Japan or any other jurisdiction which prohibits the same except in compliance with applicable securities laws. Any failure to comply with this restriction may constitute a violation of the United States or other national securities laws. No money, securities or other consideration is being solicited, and, if any is sent in response to this presentation or the information contained herein, it will not be accepted. By receiving this document, you acknowledge that you are an “institutional investor” within the ambit of Schedules 6 or 7 of the Capital Markets and Services Act 2007. This document should not be disclosed by you to any other person. By viewing this presentation, you are deemed to have represented and agreed that you and any customers you represent are not a U.S. person and are

  • utside of the United States, and you are not acting for the account or benefit of a U.S. person (as defined in Regulation S under the Securities Act).

Disclaimer

Not for release, publication or distribution, directly or indirectly, in or into the United States, Canada, Australia or Japan.

slide-3
SLIDE 3

3

Purpose of Presentation

1

Company Overview

2

Our Business Pg 4

3

Pg 7

4

Pg 15

5

Financial Highlights Pg 24 Plans & Strategies Pg 41

Not for release, publication or distribution, directly or indirectly, in or into the United States, Canada, Australia or Japan.

Conclusion

slide-4
SLIDE 4
  • 1. Company Overview

4

Not for release, publication or distribution, directly or indirectly, in or into the United States, Canada, Australia or Japan.

slide-5
SLIDE 5

Notes: 1. Shareholders: Tan Sri Dr Tony Fernandes (50%) and Dato’ Kamarudin Meranun (50%) 2. The remaining 16.7% is owned by minority and unrelated shareholders. 3. The remaining 20.0% is owned by Multi-Purpose Capital Holdings Berhad

CIMB SI II Sdn Bhd. Tune Group Sdn. Bhd.1 AirAsia Berhad Tune Ins Holdings Berhad (TIH) Tune LifeRe Ltd (TLR) Tune GenRe Ltd (TGR) Tune Insurance Malaysia Berhad (TIMB)2 Tune Insurance (Labuan) Ltd (TIL)3 25.07% 16.19% 100% 100% 83.3% 80% 14.06% Tune Direct Ltd (TDL) Tune Direct Malaysia Ltd (TDM) 100% 100% Retail / Institutional Investors 44.68%

Tune Ins Holdings

Corporate Structure

5

slide-6
SLIDE 6

6

Note:

* Hong Kong and Macau are considered as individual markets

Not for release, publication or distribution, directly or indirectly, in or into the United States, Canada, Australia or Japan.

Business Markets Exclusive Arrangements Profitability Shareholders

  • Insurance product manager and underwriter (directly or indirectly) across Asia Pacific
  • Two core lines of business: Online and General Insurance
  • 16 countries and territories*
  • Key – ASEAN and China
  • AirAsia, Tune Hotels, MICO (Cebu Pacific)
  • 6 mil policies issued in 2012; 5.74 mil YTD (as at 3Q 2013)
  • Online : Low cost distribution model with high profit margins
  • General insurance : Focus on bottom line / underwriting profits
  • Tune Money and AirAsia; strong shareholder support from Tony and Kamarudin
  • Public largely foreign investors including some renowned investors

Tune Ins Holdings

Corporate Overview

slide-7
SLIDE 7
  • 2. Our Business

7

Not for release, publication or distribution, directly or indirectly, in or into the United States, Canada, Australia or Japan.

slide-8
SLIDE 8

8

Policyholders Local Insurance Partner TGR Host/Online Partner

Insurance Premium Risk Reinsurance Premium Distribution Agreement Commissions

  • Online insurance

products sold through websites of AirAsia, Tune Hotels, AirAsia Expedia and Cebu Pacific

  • Without the

incremental cost of direct marketing to customers, we are able to offer our products very competitively

  • We believe the ease

and lower cost makes our products very attractive to customers

  • In Malaysia, we are

licensed to underwrite directly, through TIMB

  • In Thai, Indo, Sing,

Aus, Phil, China, HK, Macau, Japan, Cambodia, Laos, Vietnam, Myanmar & India, Taiwan we have established arrangements with local insurance partners

  • We are also in the

process of securing arrangements in S.Korea & Brunei

Policy Risk Policy

  • Products include

AirAsia INSURE Travel Protection Plan, Cebu TravelSure, Tune Hotels Personal Accident Plan

  • We buy ‘excess of loss’

insurance to manage

  • ur underwriting

exposure through highly-rated global reinsurers

External Reinsurance Agents

Reinsurance Premium Risk

Not for release, publication or distribution, directly or indirectly, in or into the United States, Canada, Australia or Japan.

Online Insurance Business Model

How We Serve Our Partners Across the Region

e.g. AirAsia, Tune Hotels, AirAsia Expedia and Cebu Pacific

slide-9
SLIDE 9

9 New market launch targets

  • Brunei
  • S.Korea
  • Dubai

Source: AirAsia’s website (chart), Company

Not for release, publication or distribution, directly or indirectly, in or into the United States, Canada, Australia or Japan.

Online Insurance Business

Regional Reach

INSURANCE PARTNERS TIMB Malaysia KPI Thailand Dayin Mitra Indonesia EQ Singapore ASIA Hong Kong Macau Philippines Cambodia MINAN China ACE Australia Vietnam Tokojaya Laos SOMPO Japan ICICI Lombard India ASIL Myanmar ZURICH Taiwan AA Insure Travel Protection Plan

slide-10
SLIDE 10

10

  • AirAsia INSURE Travel Protection is available via AirAsia’s online booking page , manage my booking and web

check-in module

  • In excess of 200 million passengers have flown with AirAsia, 160 routes, 81 destinations, 18 countries, 51

unique routes, 154 aircraft across the region. Provides vast opportunities for TIH to leverage its platform for marketing and distribution.

Source: AirAsia Bhd Investor Presentation October 2013 Not for release, publication or distribution, directly or indirectly, in or into the United States, Canada, Australia or Japan.

Online Insurance Business

Low-cost Distribution

slide-11
SLIDE 11

11

Successful model and brand platform

1

  • Fixed long-term revenues, low operating cost
  • Highly scalable to roll-out across multiple

regions

Established Local Relationships

2

  • Established network of local insurance

partners across key Asian markets

  • Difficult to replicate, providing barrier to

entry

Operational Platform & Know-how

3

  • Proprietary TIPG Platform, globalized IT

systems

  • Share know-how and best practices across

geographies

Talent Management

4

  • Ability to attract and retain talent
  • Active training & development program

Geographical breakdown – Policies Issued for 3Q2013

Note: * China includes Hong Kong and Macau

Total no. of policies = 2.09 mil

Update: Entered into an agreement in May 2013 with Malayan Insurance Co Inc (Php) to manage CEBU Pacific Air International passengers (departing from other countries) effective June 2013

Not for release, publication or distribution, directly or indirectly, in or into the United States, Canada, Australia or Japan.

Online Insurance Business

Replicable Business Model

Malaysia 45% (50%) Thailand 20% (19%) Indonesia 14% (14%) Singapore 5% (6%) China 8% (5%) Others 8% (6%)

2012 2013

Key (font colour):

slide-12
SLIDE 12

12

TIMB

Motor Fire Marine Cargo Health & Dental Personal Accident

Engineering

Foreign Workers We are licensed to issue policies in all classes of general insurance in Malaysia across a broad range of industry and customer segments

Not for release, publication or distribution, directly or indirectly, in or into the United States, Canada, Australia or Japan.

General Insurance Business

Product Offering

slide-13
SLIDE 13

13

TIMB was acquired in May 2012 to enable us to capture revenue from underwriting general insurance including travel insurance in Malaysia. Post acquisition, we have taken active steps to position TIMB as a provider of a diversified portfolio of insurance products and realize synergies with our online insurance business with the following results and objectives: Turnaround

  • Improve capital base

(CAR)

  • Optimise investment

portfolio/ reduce equity exposure

  • Manage underwriting
  • Optimising claims

process

  • Manage expenses

Enhance

  • Enhance existing

management team by making appropriate hires

  • Increased training and

change profit commission strategy

  • New brand launched on

27 Sep 2012

  • Introduce more efficient

processes/ technology

  • Product mix e.g. reducing

motor exposure

Integrate

  • Wider range of products

to AirAsia/Tune Group and its customers

  • Gateway to introduce

no-frills products to TIMB’s motor insurance relationships

  • Leverage BIG to promote
  • ur offerings

Grow

  • Brand / recognition

through digital direct proposition and differentiated products

  • Cross-sell
  • More complex business
  • Teams set up to support

family can support non- family e.g. aviation

  • New accounts acquired

since the acquisition include listed companies in engineering, manufacturing & publication industries.

Not for release, publication or distribution, directly or indirectly, in or into the United States, Canada, Australia or Japan.

General Insurance Business

Turnaround Story

slide-14
SLIDE 14

Q1 FY13 Listed on Main Market of Bursa Malaysia with market cap of RM 1 billion. Q2 FY13

  • 1. Signed CSPA to acquire

Indonesian Gen Insurance Co.

  • 2. Signed Strategic

Partnership with Malayan Insurance to manage CEBU Pacific Air Int’l Passenger Travel Insurance

  • 3. TIH and TMGR (RI Co)

were assigned “A1/P1” ratings from RAM Services

14

Our Journey So Far

2009 2010 2012 2013

Q3 FY09 Set up Labuan based captive JV “Tune Insurance Labuan” Q4 FY10 Management team enhanced to realize the full potential of the Insurance

  • pportunities

Q2 FY12 Acquired Oriental Capital Assurance (renamed to Tune Insurance Malaysia Berhad) Q3 FY12 Signed Distribution Agreement with AA & Tune Hotels to manage Travel Insurance

2011

Q2 FY11 Formed TMGR and TMLR & signed 1st Collaboration Agreement with AA. TIH was formed as the Group Holding Company Q4 FY 11 First premiums received in TMGR

slide-15
SLIDE 15
  • 3. Plans & Strategies

15

Not for release, publication or distribution, directly or indirectly, in or into the United States, Canada, Australia or Japan.

slide-16
SLIDE 16

16 Leverage on the Growth of AirAsia’s Businesses Improve Online Take/up Rates & Tailor our Sales & Marketing Efforts Replicate & Expand Travel Insurance Business Model Capture Synergies from TIMB Integration & Diversify Product Offering Enhance Revenue Streams via Strategic Acquisitions

  • Expand to all markets

where AA operates

  • Expand into new

markets alongside AA (e.g. India AOC)

  • Manage the insurance

needs of AA’s customers beyond just Travel Insurance

  • Improve consumer

education through tubetorials, advertorials, personalisation and advocates

  • Leverage our access to

brand recognition of AA and Tune Companies

  • Tailor our marketing

efforts through data analytics / personalisation in all markets

  • Expand our travel

insurance business by establishing tie/ups with other partners e.g.

  • ther airlines, hotels,

travel agents

  • Leveraging our

proprietary system, strong local relationships and

  • n/the/ground

experience

  • Expand beyond travel

insurance through Business-to-Consumer (B2C) distribution

  • Improve profitability

and portfolio mix of TIMB’s products

  • Develop a quality

branch / agency force distributing the desired mix of products

  • Improve effectiveness
  • f IT systems to enable

e-submission and real time MIS

  • Leverage AA and Tune

Companies’ other businesses for marketing TIMB products

  • Selectively seeking
  • pportunities to

acquire businesses with the relevant licenses in our core SEA markets

  • Capture underwriting

revenue previously ceded to third party insurance partners in these markets

  • Broaden our ability to
  • ffer a range of

products especially via B2C

Not for release, publication or distribution, directly or indirectly, in or into the United States, Canada, Australia or Japan.

Plans & Strategies

slide-17
SLIDE 17

Our Markets AirAsia Markets

Malaysia Thailand Indonesia Singapore Australia China Macau Hong Kong Philippines Cambodia Vietnam Laos India Japan Brunei Myanmar South Korea Nepal Taiwan Saudi Arabia

  • Myanmar and Taiwan

launched this year

  • Travel insurance for Zest Air
  • AA India AOC WIP
  • 504 aircraft across the region
  • Increasing adoption of

internet booking

  • 65m page visits per month

from 25m unique visitors

  • LCC share of market

continually rising

17

Leverage on the Growth of AirAsia’s Businesses

slide-18
SLIDE 18

Online Offline Integrated Campaign

Education via social media – Video

  • n YouTube, weekly challenge on

Facebook and Twitter TUNETASTIC RACE Facebook Application Radio Ad Car wrap/Mobile advertising Billboard Bunting Brochure In-flight Magazine MATTA Airport adverts Ground activation In- flight Ads Targeted Online banners ads Targeted Monthly eDM Online Ads

18

Improve Online Take/up Rates & Tailor our Sales & Marketing Efforts

slide-19
SLIDE 19

Strategic partnership with Malayan Insurance Co. Inc. (MICO) in the Philippines…

  • MICO – Leading non-life insurance co. in

Philippines

  • Cebu Pacific Air – Philippines’ largest carrier
  • Travel insurance for Cebu Pacific Air passengers

w.e.f. 13 June 20131

  • Further business development ongoing

Note:

  • 1. For passengers departing from HK, Macau, Msia & Spore to the Philippines

Partnership within AirAsia/ Tune Group

  • Insurance for Tune Hotels guests
  • Launched AA Expedia (white label) in Malaysia

& Thailand

Enablers

  • RAM Rating for TMGR (claims paying ability):

 Long term – A1  Short term – P1  Outlook - Stable

Replicate & Expand Travel Insurance Business Model

19

slide-20
SLIDE 20

Digital Direct Marketing Digital Lead Generation B2C Inquiry Quote Apply Buy Policy Inquiry Change Claims Renewal Policy Administration: 1 2 3 Ancillary

E-mail Channel- email address Web Channel- browser cookies Mobile Channel- mobile numbers 3 basic message delivery channel :

Sample Sample

20

Tune Direct

Overview of Sales Model

slide-21
SLIDE 21

Rebalancing portfolio mix …

3Q 2012 3Q 2013

Recruiting quality agents to market profitable products…

3Q 2013 2012

1,023

Total agents

1,131

Total agents

Securing business

  • pportunities within Tune

Group companies & partners…

21

Capture Synergies from TIMB Integration & Diversify Product Offering

Fire 6.0% Motor 55.0% Marine 14.0% PA & Medical 10.0% Misc 15.0% Fire 6.0% Motor 35.0% Marine 17.0% PA & Medical 27.0% Misc 15.0%

slide-22
SLIDE 22

Salcon Berhad Favelle Favco Berhad Emico Holdings Berhad Telco Corporation Berhad Boon Siew Group Kossan Group Evergreen Fibreboard Berhad Century Logistics Holdings Berhad Headboard Berhad London Biscuits Holdings Berhad Press Metal Berhad Tomypak Berhad Yinson Holdings Berhad Star Publication (M) Berhad Versatile Creative Berhad Knee San Berhad Teck Seng Holdings Berhad

22

Ralco Corporation Berhad

Notable Deals

slide-23
SLIDE 23

 Target to own 70% equity in PT Batavia Mitratama Insurance  Total investment: Approximately USD 9 million (depending on NTA upon completion)  Retain 30% profit from Indonesian travel insurance business & initiate regional footprint

Ang Andi Bintoro Ang Andi Bintoro Meilyana Bintoro

30% 70% 78.5% 0.26% 21.2%

“PT Tune Batavia Insurance”1

Note: 1. Name is for illustration purposes only

23

Enhance Revenue Streams via Strategic Acquisitions

slide-24
SLIDE 24
  • 4. Financial Highlights

24

Not for release, publication or distribution, directly or indirectly, in or into the United States, Canada, Australia or Japan.

slide-25
SLIDE 25

Continued Growth

  • Group operating revenue – RM 98.8 million up 44.3% v 3Q 2012 and RM 282.3 million up

107.3% v YTD 2012

  • Online travel sales – Up 48.8% v 3Q 2012 and 36.0% v YTD 2012
  • TIMB sales – RM 80.5 million up 51.0% v 3Q 2012 and RM252.3 million up 39.3% v YTD 2012

Continued diversification

  • 55% of online travel business from non-Malaysian markets up from 50% in 3Q 2012
  • TIMB non-motor insurance up from 45.0% in 3Q 2012 to 65.0% in 3Q 2013

Increased Profits

  • Group PAT - RM 17.6 million up 59.3% v 3Q 2012 and RM50.2 million up 81.5% v YTD 2012
  • Online travel - RM 13.5 million up 48.0% v 3Q 2012 and RM37.0 million up 44.3% v YTD 2012
  • TIMB PAT - RM 5.0 million down 42.4% v 3Q 2012 and RM19.3 million up 45.1% v YTD 2012

Strong Balance Sheet

  • Total assets – RM 976 million.
  • TIMB CAR – Increased from 226% as at 31 Dec 2012 to 269.5% as at 30 Sept 2013.
  • Zero debt

Low Risk Investments

  • YTD Investment income RM 18.2 million; equities < 1%

25

3Q 2013 Results - Key Highlights

slide-26
SLIDE 26

26

Unaudited Financial Results (Statutory*)

Group PAT increased 82% to RM50.2 million YoY; Group PBT increased 65% to RM53.0 million YoY

* Based on statutory accounts (TIMB was acquired on 23 May 2012 thus only 4 months results included in YTD 2012).

# Restated after Purchase Price Allocation adjustments for May 2012 OCA acquisition (Additional amortisation and depreciation

expenses of RM0.5 million (net of tax) for YTD 2013 and RM 0.2 million for YTD 2012).

1 Investment income = investment income + realised gains & losses + other operating income

3Q 2013 2Q 2013 3Q 2012 (Restated) 3Q vs 2Q Variance 3Q vs 3Q Variance YTD 2013 YTD 2012* (Restated#) Y-o-Y Variance (RM’000) (RM’000) (RM’000) (%) (%) (RM’000) (RM’000) (%) A B C A vs. B A vs. C D E D vs. E Operating Revenue 98,810 96,707 68,462 2.2 44.3 282,263 136,155 107.3 Net Earned Premiums 61,452 61,551 57,035 (0.2) 7.7 175,305 103,446 69.5 Investment Income 1 4,793 5,516 8,058 (13.1) (40.5) 18,189 11,064 64.4 Fees & commission income 6,163 6,635 2,272 (7.1) 171.4 20,388 3,632 461.3 Net Claims (21,495) (27,331) (25,375) (21.3) (15.3) (70,693) (35,376) 99.8 Other Expenses (30,839) (30,457) (28,084) (2.7) 9.8 (90,174) (50,591) 78.2 Profit before Tax 20,074 15,914 13,906 26.1 44.4 53,015 32,175 64.8 Profit after Tax 17,623 17,323 11,060 1.7 59.3 50,169 27,635 81.5

slide-27
SLIDE 27

27

2010 2011

Key:

2012 2013

% of Pro Forma Operating Revenue 301 319 340 250 282 68 97 99

  • 50

100 150 200 250 300 350 400 2010 2011 2012 YTD 2012 YTD 2013 3Q 2012 2Q 2013 3Q 2013 RM’mil Online TIMB 14.6% 85.4% 17.6% 82.4% 19.9% 80.1% 24.0% 75.5% 20.0% 80.0% 21.6% 78.0% 24.5% 75.5%

  • Gross operating revenue has increased 12.9% v YTD 2012 whereas gross written premium has increased 28.8% v YTD

2012 and by 42.6% v 3Q 12 reflecting the focus on quality not quantity immediately following the acquisition of TIMB 23.0% 76.6%

Pro Forma Operating Revenue

Year-on-year increase through growth in Online sales and TIMB non-motor sales

slide-28
SLIDE 28

28

2010 2011

Key:

2012 2013

% of Pro Forma Net Earned Premiums

  • YoY increase due to growth in Online business, offsetting decline in TIMB’s net earned premium reflecting focus on

underwriting profits including a 25% motor quota share undertaken to help derisk the motor portfolio. 165 211 217 162 175 169 57 62 61

  • 50

100 150 200 250 2010 2011 2012 YTD 2012 YTD 2013 YTD 2013 (Excl MMIP) 3Q 2012 2Q 2013 3Q 2013 RM’mil Online TIMB 25.8% 74.2% 25.8% 74.2% 29.9% 70.1% 41.8% 58.2% 36.4% 63.6% 31.3% 68.7% 29.1% 70.9% 39.8% 60.2%

1 Net earned premium = gross earned premium received - premiums ceded to external reinsurers

41.3% 58.7%

Pro Forma Net Earned Premiums1

Year-on-year growth despite motor quota share

slide-29
SLIDE 29

29

1 Net claims comprises of gross claims paid and gross change to contract liabilities as well as claims ceded to reinsurers and change to contract liabilities ceded to reinsurers 2 Net claims divided by net earned premium

  • Results reflecting continued focus on the expeditious settlement of outstanding claims as well as a more balanced sales

portfolio and focus on quality business RM’mil (%)

2010 2011

Key:

2012 2013

94 110 100 91 71 59 25 27 22 56.6% 52.1% 45.8% 56.4% 40.3% 34.7% 44.5% 44.3% 35.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0%

  • 20

40 60 80 100 120 2010 2011 2012 YTD 2012 YTD 2013 YTD 2013 (Exc MMIP) 3Q 2012 2Q 2013 3Q 2013

Pro Forma Net Claims1 & Net Claims Ratio2

Continued improvement in net claims and net claims ratio

slide-30
SLIDE 30

30

  • PAT growth reflecting substantial growth in online sales, zero debt and continued growth in TIMB offsetting decline in

investment income given more prudent investment strategy

2010 2011

Key:

2012 2013

36 60 49 28 50 54 11 17 18

  • 10

20 30 40 50 60 70 2010 2011 2012 YTD 2012 YTD 2013 YTD 2013 (Exc MMIP) 3Q 2012 2Q 2013 3Q 2013 RM’mil

Pro Forma Profit After Tax

PAT up 78% vs YTD 2012

slide-31
SLIDE 31

31

2010 2011

Key:

2012 2013

Combined ratio

  • QoQ improvement in underwriting margin reflecting reduced management expenses and a lower claims ratio.

ME ratio

  • Prudent provisioning in respect of Best Re adds 1.9% to 3Q Management expenses

1 Management Expense divided by Net Earned Premiums 2 Sum of Net Claims, Management Expenses & Net Fees and Commissions divided by Net Earned Premiums

14.0% 11.5% 18.6% 17.1% 23.8% 24.6% 16.1% 18.1% 24.4% 23.7% 83.9% 77.8% 78.7% 87.9% 78.5% 73.7% 100.1% 78.1% 83.1% 75.0% 0.0% 30.0% 60.0% 90.0% 120.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 2010 2011 2012 YTD 2012 YTD 2013 YTD 2013 (Exc MMIP) 2Q 2012 3Q 2012 2Q 2013 3Q 2013 ME Ratio (%) Combined Ratio (%) Pro Forma Management Expense Ratio1 and Combined Ratio2

Pro Forma Key Operating Ratios

Travel insurance and TIMB both contribute to good underwriting margins

slide-32
SLIDE 32

Profit After Tax (RM ‘mil)

32

  • Gross

sales before reinsurance increased 48.8% vs 3Q 2012 providing a similar increase in net profit.

  • Good contributions from all major

markets, in particular China and Thailand. Commentary Gross Sales before Reinsurance (RM ‘mil)

23.98 35.69 72.58 98.68 3Q 2012 3Q 2013 YTD 2012 YTD 2013 + 36.0% + 48.8% 9.1 13.5 25.6 37.0 3Q 2012 3Q 2013 YTD 2012 YTD 2013 + 44.3% + 48.0%

ONLINE: Sales and Profit

Strong growth in travel insurance sales and profit

slide-33
SLIDE 33

33

Malaysia 45% (50%) Thailand 20% (19%) Indonesia 14% (14%) Singapore 5% (6%) China 8% (5%) Others 8% (6%) Malaysia 46% (52%) Thailand 19% (19%) Indonesia 15% (13%) Singapore 5% (6%) China 8% (5%) Others 7% (5%)

2.09 million

Policies Issued in 3Q 2013

(vs. 1.39 million in 3Q 2012)

Malaysia – 57% in FY 2011, 51% in FY 2012, 46% in YTD 2013

5.74 million

Policies Issued YTD 2013

(vs. 4.32 million YTD 2012)

2012 2013

Key (font colour):

ONLINE: Number of Policies Issued

Continued growth in markets outside Malaysia in 3Q 2013 particularly China and Thailand

slide-34
SLIDE 34

34

Malaysia 47% (53%) Thailand 19% (19%) Indonesia 16% (13%) Singapore 5% (6%) China 7% (5%) Others 6% (4%)

2.03 million

Policies Earned in 3Q 2013

(vs. 1.47 million in 3Q 2012)

Malaysia – 52% in FY 2012, 47% in YTD 2013

5.53 million

Policies Earned YTD 2013

(vs. 4.38 million YTD 2012)

2012 2013

Key (font colour):

Malaysia 46% (51%) Thailand 17% (18%) Indonesia 17% (14%) Singapore 5% (6%) China 8% (6%) Others 7% (5%)

ONLINE: Number of Policies Earned

Revenue is recognised when a customer commences their journey

slide-35
SLIDE 35

35

Commentary Gross Written Premium (RM ‘mil)

53.3 80.5 181.1 252.3 3Q 2012 3Q 2013 YTD 2012 YTD 2013

+ 51.0%

+ 39.3%

Net Written Premium (RM ‘mil)

32.3 34.8 102.8 102.4 3Q 2012 3Q 2013 YTD 2012 YTD 2013

+ 7.7%

  • 0.4%

Gross Written Premium (“GWP”)

  • GWP increased YoY and QoQ mainly driven

by increase in Fire and Online Travel Insurance. Net Written Premium (“NWP”)

  • Excluding motor insurance, NWP increased

YoY by RM20 million or 85% .

TIMB: Gross Written Premium and Net Written Premium

Fire and Online Travel Insurance drive increase in Premium

slide-36
SLIDE 36

Portfolio Mix Commentary

  • Continued

efforts undertaken to rebalance TIMB’s business portfolio to more profitable segments of non-motor business.

  • Portfolio mix (M:NM) for YTD 2013 is

31%:69% vs 48%:52% for YTD 2012

36

Fire 6.0% Motor 35.0% Marine 17.0% PA & Medical 27.0% Misc 15.0%

3Q 2013 3Q 2012 No of Agents Total as at June 2013 3Q 2013 Total as at Sep 2013 Recruited Terminated Suspended (A) (B) (C) (D) (E=A+B-C-D) 1,115 78 40 22 1,131

Fire 6.0% Motor 55.0% Marine 14.0% PA & Medical 10.0% Misc 15.0%

TIMB: Portfolio Mix

Portfolio well balanced as drive for quality agents selling the right mix of products continues

slide-37
SLIDE 37

37

Profit After Tax (RM ‘mil)

8.7 5.0 13.3 19.3 3Q 2012 3Q 2013 YTD 2012 YTD 2013

  • 42.4%

+ 45.1%

Commentary

  • Profit after tax decreased QoQ mainly

due to lower investment income, particularly in realised gain on sale of investment and interest income.

  • Profit after tax increased YoY mainly

due to balanced portfolio with more profitable segments of non-motor business resulted in lower claims and net fees & commissions.

TIMB: Profit After Tax

Another quarter of underwriting profits

slide-38
SLIDE 38

Investment & Other 1 Income (RM ‘mil)

7.0 3.8 21.7 15.8 3Q 2012 3Q 2013 YTD 2012 YTD 2013

  • 45.9%
  • 27.4%

Portfolio Mix

Deposits with FI 43.7% Wholesale fund 12.2% Equity securities 1.0% Loans 0.1% Debt securities 28.2%

1.1% 0.6% 2.9% 2.6% 3Q 2012 3Q 2013 YTD 2012 YTD 2013 Investment Yield # Portfolio Mix As at 30 Sep 2013

* Investment yield for 3 months

* * 38

# Investment income (exclude rental income) / investment 1 Other includes realised gains & losses and other operating income

TIMB: Investment & Other Income

YoY decrease reflecting minimal equity holding from which to realise gains

slide-39
SLIDE 39

39

Capital Expenditures

 From FY2009 up till 1Q2013, no material capital expenditure  Planned capital expenditure FY2013-14:

  • Purpose: Implementation of a new core insurance system and associated technology in TIMB
  • Amount: Approximately RM10.0m
  • Sources of funding: Cash flows from operation

Indebtedness

FY 2012  Indebtedness comprised of term loans from RHB Bank Berhad and CIMB Bank Berhad of up to RM160.0 million to finance acquisition of TIMB Group Interest payable at the prevailing cost of funds plus a margin. Following listing (Feb 20), debt 100% repaid Now Zero Gearing

Source: TIH Group ‘s MD&A discussion

Not for release, publication or distribution, directly or indirectly, in or into the United States, Canada, Australia or Japan.

Capital Expenditures and Indebtedness 1

slide-40
SLIDE 40

40

We target for a payout ratio of not less than 40% of our consolidated profit in each financial year beginning 2013

Our Company intends to adopt a policy of active capital management. We propose to pay dividends out of cash generated from our operations after setting aside the necessary funding for capital expenditure and working capital needs. As part of this policy, we target for a payout ratio of not less than 40% of our consolidated profit for the year under MFRS, in each financial year beginning 1 January 2013, subject to the confirmation of our Board and to any applicable law, licence and contractual obligations and provided that such distribution will not be detrimental to our Group’s cash requirements, or to any plans approved by our Board.

Source: TIH Group ‘s MD&A discussion

Not for release, publication or distribution, directly or indirectly, in or into the United States, Canada, Australia or Japan.

Dividend Policy

slide-41
SLIDE 41
  • 5. Conclusion

41

Not for release, publication or distribution, directly or indirectly, in or into the United States, Canada, Australia or Japan.

slide-42
SLIDE 42

42 Exclusive Relationship with AirAsia Proven Business Model Ability to Leverage Extensive Electronic Database Attractive Industry Fundamentals (Insurance & Travel Lifestyle) Experienced Management Team & Strong Shareholders Support

Not for release, publication or distribution, directly or indirectly, in or into the United States, Canada, Australia or Japan.

Conclusion