Transcript Slide 1

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Agenda
2012: Year in Review
2012: Financial Highlights
2013: Opportunities
3
2012 at a glance
Moving from
Origin to
Excellence
 GIC celebrating 50 years of success.
 Rebranding of GIG across GIG group companies.
Maintain
Leadership
 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.
Achieve
Remarkable &
distinct
results
 Achieved the Targeted Budget figures in terms of Production and Profitability despite all the obstacles
especially Political Unrest in the MENA Region.
Highest
Credit Rating
among Kuwait
Insurers
ERM
“Enterprise Risk
Management”
Regional
Expansion
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 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.
 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%.
*Source: Al-Bayan Magazine issue # 491, Oct. 2012
2012 at a glance (continued)
Maintain
Global Banking
and Finance
reward
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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.
Distribution
Channels
 Increase our Distribution Network Regionally and increased the number of Life & Non-Life Sales Force in
GIC and other Subsidiaries.
Technology
edge
 Implementing New IT Platform for GLIC to enhance all the Technical Operations.
Conventional
Business
 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.
Takaful
Business
 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.
Agenda
2012: Year in Review
2012: Financial Highlights
2013: Opportunities
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2012… Financial Highlights
Gross Premium Written
Revenues
KD million
KD million
9%
Underwriting Result
KD million
7
14%
4%
30%
2%
4%
Net Profit *
-11%
-24%
KD million
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)
Growth Rate %
Budget
variance
Draft
for Discussion
2012… Financial Highlights
Shareholders’ Equity
Consolidated Assets
KD million
KD million
12%
Investment Portfolio (Portfolio Mix)
KD million
8
11%
10%
1%
10%
4%
10%
Net Technical Reserves
6%
KD million
Growth Rate %
Budget
variance
Draft
for Discussion
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)
MENA
Bahrain
GCC
Kuwait
KSA
UAE
Iraq
Egypt
NonGCC
Business Line
Country
Jordan
Lebanon
Syria
Algeria
M&A
P
M, GA
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Presence Across the MENA Region
T
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GCC countries
MENA (Others)
Turkey
Syria
Tunisia
Morocco
Lebanon
Palestine
Jordan
Iraq
Algeria
Libya
Kuwait
Egypt
Bahrain
Saudi
Arabia
U.A.E Qatar
Yemen
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Countries in blue colour indicate GIC presence
Countries in green colour indicate GIC targeted markets
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.
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Oman
Agenda
2012: Year in Review
2012: Financial Highlights
2013: Opportunities
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2013… Opportunities
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Maintain
Leadership
Maintain leadership position and improve the market share by enhancing the focuses on customer needs.
Regional
Expansion
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.
Enterprise Risk
Management
Continuing the implementation of an efficient and effective Enterprise Risk Management functions within
GIC group.
Enhance Group
Integration
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.
Financial
Strength &
Credit Rating
Maintain our AM Best and S&P financial strength and credit rating on A level for GIC and its rated
subsidiaries.
Continuous
Developments
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.
Enhance
Distribution
Network
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).
2013 Ambition (KD million)
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2013 E*
2012 A
GPW
156.0
145.4
7.3%
Revenues
91.2
86.0
6.1%
Investment
Portfolio
173.1
167.7
3.2%
Net Technical
Reserves
93.4
88.2
5.9%
Target Growth
*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.