june 2009 financial results presentation 27 august 2009 renaissance park
TRANSCRIPT
June 2009 Financial Results Presentation
27 August 2009ReNaissance Park
Presentation Order
Financial Performance OverviewReview Of OperationsOutlookQuestions
Financial Performance
Overview
Income Statement – June 2009
INCOME June 2009 Dec 2008
USD USD
Gross premium income 9.079,000 7,122,000
Net premium income 6,484,000 3,130,000
Unearned premium reserve (1,196,000) (883,000)
Rental income 1,617,000 394,000
Actuarial fee income 102,000 63,000
Investment income 118,000 0
Other income 228,000 0
Total Income 7,353,000 2,704,000
Income Statement – June 2009EXPENDITURE June 2009 Dec 2008
USD USD
Claims 1,465,000 690,000
Net Commission 966,000 9,000
Operational expenses 2,367,000 2,059,000
Total Expenditure 4,798,000 2,758,000
Surplus/(Loss) from Operations
2,555,000 (54,000)
Fair value – properties (19,114,000)
Fair value – equities 37,226,000
Taxation 1,192,000
Transfer to policyholders (20,827,000)
Transfer from minority interests 3,967,000
Profit for the period 4,999,000
Key Statistics – June 2009KEY STATISTICS June 2009 Dec 2008
Claims ratio – short term 36% 27%
Claims ratio – total 28% 27%
Combined ratio 85% 31%
Rental yield – annualised 4.48% 1.21%
Income growth 172%
Expenses growth 74%
Basic EPS – cents 2.31
Balance Sheet – June 2009
ASSETS June 2009
USD
Cash At Bank 1,305,000
Premium Debtors 2,656,000
Investments – Property 70,334,000
Investments – Equities And Other 41,370,000
Property & Equipment 4,267,000
Other current assets 1,994,000
Total Assets 121,926,000
Balance Sheet – June 2009EQUITY & LIABILITIES June 2009
USD
Insurance Creditors 2,896,000
Other Creditors 3,793,000
Taxation 20,409,000
Policyholders Liabilities 32,897,000
Profit for the year 4,999,000
Non-distributable reserves 60,249,000
Minority Interests (3,317,000)
Total Liabilities 121,926,000
Cash Flow Statement – June 2009June 2009
USD
Operating cash flows 2,452,000
Working capital changes (1,593,000)
Cash generated from operations 859,000
Taxation paid (64,000)
Cash utilised in investing activities (568,000)
Net increase in cash 227,000
Balance at the end of the period 1,305,000
Premium Analysis
Rental AnalysisJune 2009
ActualJune 2009
TargetDec 2008
Rental yield – annualised 4.48% 5.82% 1.21%
Regional rental yields 8%-15% 7.5%-10%%
Average monthly rental per square metre
$2.83 $3.50 $0.28
Regional average monthly rental per square metre
$4-$30 $10-$15
Claims Analysis
Expenses Analysis
Review of Operations
First Mutual Life Assurance
Actuarial valuation of past policies and schemes completedPensions being paid to pensionersNew products – Medical Savings
Group Eternal Peace PlanAggressive marketing
TristarInsurance
Product innovationService deliveryNew products - Travel insuranceStrategic partnership - Tourism insurancePrudent risk management
FMRE Property & Casualty
Consolidating existing businessMarket share growthRegional operationsPrudent underwriting
FMRE Life & Health
Product developmentRetrocession arrangementsRegional work
African Actuarial Consultants
Conversion of policies to foreign currencyRegional opportunitiesStaff training and development
Pearl Properties
Reduce deferred maintenanceIn-house property managementLand banksIncrease rent per square metreProvide hands-on tenant supportTrading stock
Outlook
Capitalisation of subsidiariesRegional reinsurance officeStreamlining operational processesEntry into strategic economic sectorsAcquisition of land banksStaff retention and developmentRegional market entryProduct innovationMarket share growth
Questions