Adamjee Insurance : Corporate Briefing Session Presentation

Corporate Briefing Session

28 December 2023

Contents

1. History & Introduction
2. Operational & Financial Performance
3. Outlook
4. Consolidated Financial Highlights

History & Introduction

• Founded in 1960 and is listed on Pakistan Stock Exchange
• Belongs to Nishat Group
• Largest insurance company in Pakistan
• Commenced operations with a paid-up capital of Rs. 2.5 million, which now stands at Rs. 3.5 billion
• Incorporating 115 branches in Pakistan, 3 branches in the UAE and 1 branch in EPZ
• Staff strength of 938 employees
• AICL's (inclusive of UAE market) share stood at 24.7% in 2022 (2021: 22.5%). The market share of Pakistan business was at 18% in 2022 and 17% in 2021
• During the 6MCY23 AICL's share in Pakistan increased to 19%
• Only general insurer in Pakistan with overseas operations
• Market leader in the Power and Utility sectors
• Market leader in Infrastructure and Industrial Risks

History & Introduction - Group Profile

• Nishat Group is one of the leading and most diverse business groups in Pakistan
• Assets over Rs. 2.980 trillion / USD 10 billion
• Strong presence in Financial Services (Banking, Insurance, Asset Management), Textiles, Cement and Power Generation
• Enhancing footprint in the Automobile, Real Estate, Hospitality & Shopping Malls, Dairy (wholesale & retail), Leasing & Aviation industry
• Direct and indirect holdings in the UAE, UK, Sri Lanka, Hong Kong, Bahrain and Azerbaijan
• Strategic partnerships with groups in Japan, Turkey & Malaysia

AUTOMOBILE

History & Introduction - Governance Structure

Board of Directors

• Comprises eight Directors
• Two Independent Directors
• One Executive Director
• Five Non-executive Directors (including one female director)

Board Committees

• Audit Committee
• Ethics, Human Resource & Remuneration Committee
• Investment Committee

Management Committees

• Underwriting Committee
• Claim Settlement Committee
• Re-insurance& Co-insurance Committee
• Risk Management & Compliance Committee

History & Introduction - Accomplishments

• IFS Rating of "AA++" by Pakistan Credit Rating Agency (PACRA)
• FSR of "B" (Negative Outlook) & ICR "BB" by AM Best, UK
• Secured Top Position in Insurance Sector for Best Corporate Report Awards for three consecutive years from 2020 to 2022 by ICAP & ICMAP
• Bronze Award in Insurance Category of SAFA Best Presented Annual Report Awards 2021 & Certificate of Merit in 2020 & 2022
• Secured Silver Position in SAARC Anniversary Award for Corporate Governance 2021 and Certificate of Merit in 2020
• Winner of Asia's Outstanding Insurance Company in Pakistan 2020 by Asia Money
• Best Domestic General Insurer 2019 in Pakistan by Insurance Asia, Singapore
• Best General Insurance Company in Pakistan in 2020, 2019, 2018 & 2017 by World Finance
• Breakthrough Insurer of the Year 2019 by YALLACOMPARE Banking and Insurance Awards UAE
• First insurance company in Pakistan having Tier-3 compliant Data Centre
• Certified Green Office by WWF - ' To Reduce Carbon Footprint'
• Awarded as the "Distinguished Insurance Company 2018 under One Belt One Road initiative" by Insurance Research Institute of Fudan University, China
• Certification of ISO 9001:2015 by Lloyd's Register Quality Assurance

Operational & Financial Performance - Highlights

Particulars

			31-Dec			30-Sep
CY17	CY18	CY19	CY20	CY21	CY22	9MCY23
			(PKR in Mn's)

Balance Sheet

Total Assets	47,388	47,845	49,538	49,520	61,641	73,766	93,786
Liquid Assets	4,716	6,954	7,425	7,287	9,089	11,870	12,810
Investments - Market Value	23,749	24,114	25,888	26,596	31,069	27,975	32,007
Total Equity / Net Book Value	20,364	19,663	21,380	22,235	25,390	24,919	28,000
Income Statement
Gross premium written (incl. Takaful operations)	19,265	21,489	23,720	19,805	24,785	35,191	35,082
Gross premium written (Conventional only)	18,522	20,387	22,507	18,279	23,320	32,677	32,710
Net Premium Revenue	11,535	13,806	15,434	13,295	12,552	16,980	14,383
Underwriting results	557	816	654	376	672	(209)	(801)
Investment Income	1,494	1,285	1,372	1,093	2,469	2,128	3,089
Operational Profit (incl. Takaful operations)	2,121	2,174	2,542	1,925	4,455	3,183	3,285
Profit After Tax	1,221	1,239	1,813	1,876	3,136	2,585	1,868

Business Mix - 2022

				Historical Business Mix - GPW (%)						CAGR (CY17 to CY22)
									CY21
	100		CY17	CY18	CY19	CY20		CY22
	11	8	8	11	13	16			21%, HEALTH
	90
	80
	70		49	48	46	40	37	35			5%, MOTOR
	60
	50													-3%, MISCELLANEOUS
						7	5	4
	40		8	8	9	5	6	6			19%, MARINE
	30		7	4
		5
	20		27	30	33	37	40	38			20%, FIRE
	10
	0
	18,522	20,387	22,507	18,279	23,320	32,677		GPW (Exc. WTO) PKR in Mn's
	MARINE GPW (CY22) PKR in mn's				Contribution Margin (CY22) PKR in mn's		Underwriting Result (CY22) PKR in mn's
	2,062			MOTOR				MOTOR					MOTOR
	6%						1,716
										-579
				11,571				47%
											-60%
				36%
													HEALTH
								MARINE					-6
				HEALTH								-1%
							443
				5,240				12%	MISCELLANEOUS		MARINE			MISCELLANEOUS
	FIRE		16%				FIRE	383			136
						22	FIRE
	12,496						736	11%		2%	14%
							216
	38%						20%
											23%
				MISCELLANEOUS
				1,308
				4%

Financial Strength

• Asset base of the Company has increased over the last five years, registering a CAGR of 9%.
• Investments grew at the CAGR of 3% during the last five years.
• Growth in Investment property witnessed a CAGR of 82% during the last three years.
• Equity has also registered a CAGR of 4% over the last five years despite the slowdown due to Covid-19.

		Assets Break Up (PKR in Mn's)		27%
					24%	20%
							CAGR (CY17 to CY22)
Change	4%	1%	4%	-0%
							93,786
								9%, Total Assets
							16,229
						73,766		20%, Other Assets
					61,641	10,416
						32,135
							10%, Underwriting recievable
			49,538	49,520
	47,388	47,845		23,399
	4,247						6,212	18%, Cash & Bank
						5,193
	14,480
	2,279						32,007	3%, Investments
						27,975
	23,749			787		2,427	2,859
			402		82%, Investment Property
	2,632				4,356	4,343	11%, Fixed Assets
	Dec-17	Dec-18	Dec-19	Dec-20	Dec-21	Dec-22	Sep-23
		Equity & Liabilites (PKR in Mn's)		93,786	CAGR (CY17 to CY22)
				9%, Total Equity & Liabilities
						73,766	17,853
						15%, Other Liabilties
					61,641	12,758
			49,538	49,520
	47,388	47,845			47,932
	6,385					36,089	12%, Underwriting Provisions
	20,639
	20,364					24,919	28,000	4%, Equity
	Dec-17	Dec-18	Dec-19	Dec-20	Dec-21	Dec-22	Sep-23

Investments

• Total Investments of the company

increased at a CAGR of 3% over the

Investments Break up (PKR in Mn's)

span of recent 5 years.

• Recent Investment mix has been as

follows:

Investments	Dec-21	Dec-22	Sep-23
Equities	68%	66%	66%
Fixed Income	1%	1%	6%
T. Deposits	22%	24%	21%
Subsidiary	9%	9%	7%

Change -2%

23,749

695

2,020

452

2%

24,114

695

4,356

7%

25,888

695

5,884

466

3%

26,596

1,098

5,929

374

17%

31,069

2,662

6,871

378

-10%

27,975

2,396

6,644

382

14%

32,007

2,396

6,562

1,790

Total Investments Inv. In Subsidiary

1. Deposits
   Fixed Income

• During the year 2022, Allocation in equities decreased from 68% of investments to 66% of total investments while the share of term deposits increased from 22% to 24%

20,582

18,685	18,843	19,194	21,158

18,552

21,259

Equities

Dec-17

Dec-18

Dec-19

Dec-20

Dec-21

Dec-22

Sep-23