Transcript Слайд 1 - UniCredit Bank AG Vienna Branch

Open Joint Stock Company
Insurance Company
Universalna
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Why Ukrainian Insurance Market?
 Only Southern and Eastern European markets demonstrate considerable
potential for growth
 Insurance is one of the most dynamically growing sectors of the
Ukrainian economy
 In 2005 Gross Premiums collected from individuals increased 1.7 times
compared to the previous year
 Insurance entertains preferable taxation in Ukraine – profit from insurance
operations is taxed at 3% comparing to 25% profit tax for other economic
activities
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Market Overview
 At this point of time it is difficult to correctly define the size of insurance
market due to a common practice of using insurance products as an instrument
for tax optimization.
 The share of real insurance products still does not exceed 30% of the total
written premiums.
 Starting from 2005 the trend has changed and, by the end of the year,
the volume of real insurance has increased
 Real market is highly fragmented
TOP-5 companies collect more than 9% of the total premiums written
TOP-10 – 15% of the premiums written
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Leaders of Real Insurance Market, 2005*
INSURANCE COMPANY
Gross Premiums,
mln. US$
Growth rate, %
compared to 2004
1
ORANTA
67 750
148,4
2
Garant-auto
47 027
162,4
3
ASKA
36 300
94,8
4
INGO Ukraine
33 480
118,7
5
Kredo-Classic
31 700
136,9
6
UNIVERSALNA
29 000
178,1
7
ETALON
25 600
43,4
8
UPSK
24 700
122,9
9
PZU Ukraine
20 900
154,3
* Data based on “Expert Ukraine”
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Market Potential
 Motor Insurance
Motor TPL current penetration YoY 2005 - 20%
Expected car fleet market growth till 2010 – 11% CAGR
That will increase considerably all types of Motor Insurance
 Property Insurance
Prospected fast growth of mortgage market leads to consequent
development of real property and construction risks insurance development
 Personal Insurance
Introduction of compulsory medical insurance and development of life
insurance allows us to expect for sharp growth
Forecasted growth in the next 5 years: min. 300%
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Company Snapshot
 2nd in terms of size of network among Ukrainian insurance
companies
 Gross Premiums Written in 2005 – US$ 29 mln, in the 1st half of
2006 – US$ 14.6 mln
 Strategic positioning: retail with prime focus on providing services
to individuals
 Goal: to become Pan-Ukraine Insurance Company by expanding
retail network into all regions of the country
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Key Strength:
 Over 15 years of presence and positive history in Ukrainian insurance
market
 Independence: the company is not a captive
 Transparent and clear shareholder structure
 2nd biggest retail insurer in the country
 Strong re-insurance position and high-quality portfolio protection with key
international players
 Experienced management team both in HQ and branches
 Nationally recognized and highly reputable brand-name
 The first insurer which introduced ISO 9001 quality system
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Key Market Segments
Company is one of the industry leader in the following segments:
Segment
Ukrainian Green Card Insurance
Civil Liability of Motor Vehicles Owners
in European countries
28%
Motor Hull Insurance
5%
Travel Abroad Medical Insurance
Motor TPL (Third Party Liability) Insurance
TIR-Carnet Insurance
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Market Share
20%
5%
100%
Financial Highlights
000’ US$
2004
19,600
2005
29,000
F2006
32,000
Equity
9,500
9,700
19,000
Insurance reserves
7,900
10,800
12,000
Net profit
- 473
115
800
Gross Premiums
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Portfolio Structure
2005
Type of Insurance
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% of total
portfolio
F2006
F2006
Gross
Premiums,
‘000 US$
% of total
portfolio
TIR Carnet system
3 077
10.6
3 100
9.7
Ukrainian Green Card
6 890
23.8
4 900
15.3
Motor TPL Insurance
3 850
13.3
4 500
14.1
Motor Hull Insurance
7 023
24.2
8 600
26.9
Property Insurance
2 291
7.9
3 000
9.3
Personal Insurance
1 623
5.6
2 800
8.8
Travel Medical
Insurance
659
2.3
800
2.5
Other insurance
3 587
12.3
4 300
13.4
29 000
100%
32 000
100%
Total
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Gross
Premiums,
‘000 US$
2005
Branch Network
47 branches in all regions of the country
3 regional Directorates
1 representative office in Budapest, Hungary
Company staff:
Total – 1610
Agents - 856
Number of average
surveyors:
- 15 employees all over
the country
Real Estate objects:
- 53 objects in all
regions of Ukraine
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Branch Network
In s u ra n c e P re m iu n s s tru c tu re , 2 0 0 3
B ran ch e s
35%
In s u ra n c e P re m iu m s S tru c tu re , 2 0 0 4
H e ad O ffice
35%
R e in s u ra n ce
30%
B ra n ch e s
33%
H e a d O ffice
50%
R e in s u ra n ce
17%
In s u ra n c e P re m iu n s S tru c tu re , 2 0 0 5
B ra n ch e s
51%
H e a d O ffice
37%
R e in s u ra n ce
12%
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The Ratio of Head Office Premiums / Branches
Premiums Ratio best demonstrates fast
development of branch network. It is a
perfect reflection of retail strategy and a stable
growth trend that Universalna entertains.
Effectiveness of Management
The effectiveness of the management of the company is indicated by
one of the highest in the country Premiums/Employee Ratio.
Premiums per employee (in USD)
Total number of staffed employees:
2003 – 467 persons
2004 – 609 persons
2005 – 698 persons
40
35
30
25
20
15
2004
P/E company total 19 980
P/E branches
9 654
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2005 Growth, %
38 138
92
21 029
118
10
5
0
Premiums per one
employee branch
Premiums per one
employee total
Client Relation
The company has built a strong relationship with its clients.
It ensures high level of loyalty and trust among our clients as
well as business partners.
It is achieved, inter alia, by high level of claims settled and paid.
Optimized Portfolio Structure and developed techniques of risk
management results in higher than industry average but lower than
TOP-10 average Ratio of Gross Premiums / Claims Settled.
IC Universalna
Average market
Average TOP-10
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2003
2004
2005
22%
12%
24%
31%
19%
34%
33%
29.5%
35%
Life Insurance Company
 Universalna possess 100% stake of the subsidiary life insurance
company
 Life Insurance company operates under the same brand name
Universalna – Life
 Gross Premiums Written in 2005 – US$ 535 600
 Total number of insured persons by Universalna Life – 14 528 (7.27
% of the total number of insured nationwide)
 Total number of life insurance contracts – 9 818 (14.13% of the total
concluded contracts nationwide)
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Life Insurance Market (2005)
Name of Life Insurer
Gross Premiums, ‘000
US$
Insurance indemnity,
‘000 USD
No. of Insured
Persons
No. of Insurance
Contracts
1
Grave Ukraine
8 832
79
22 451
8 342
2
Alico AIG Life
8 569
119
19 378
8 726
3
GARANT - Life
5 449
42
16 664
1 499
4
ASKA – Life
4 074
61
23 004
358
5
TAS
4 056
108
17 997
2 389
6
Blue Police
3 913
34
9 733
1 418
7
Etalon Life
2 100
152
54 578
34 385
8
Lemma Vita
1 880
12
9 889
918
9
PZU Life
947
65
2 079
479
10
Ohrana Life
536
93
3 972
20
13
Universalna Life
536
21
14 528
9 818
Universalna in percentage to total
market
1%
2.4%
7.27%
14.13%
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Strategic Goals of the company, 2006 – 2008
 Overall Goal: to be in TOP- 5 insurance companies in Ukraine
 Branch network position strengthening: the overall goal is for branches to have
at least 75% share in Gross Premiums of the company
 Direct agency distribution network development
 Active development of life insurance company as a subsidiary
 Strong protection of the portfolio by re-insurance programs
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Unique Investment Opportunities in Financial Industry
 One of the dominant players on a highly underdeveloped insurance market
with a huge potential for future development within next couple of years
 Retail-driven business with a direct access to fastest growing segment of
Ukrainian economy
 Strong and experienced management team, positive experience of
cooperation with foreign partners
 Nationwide branch network with the offices in all the regions of Ukraine
 Nationally recognized and highly reputable brand-name
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Thanks for
your attention…
OJSC “Insurance Company Universalna”
Tel/Fax: + 380 44 281 61 55
www.universalna.com
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