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African Venture Capital Association presents Africa, The Rising Giant AVCA 9th Annual Conference
Guaranty Trust Assurance plc …for life and living
Life Insurance General Insurance Asset Management
www.gtassur.com
February 2012
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www.gtassur.com 4
Incorporated as Heritage Assurance Company Limited in 1989. Licensed to transact only General business . Acquired by GTBank in 2002. Change of management in November 2003. Remained a fringe player
1989 -‐ 2003
February: Recapitalised to N359m. March: Acquired Life Assurance license to become a composite company. August: Changed name to Guaranty Trust Assurance Limited. Major restructuring of the company and increase of capital to N500m
2004
Completed the implementaQon of Insurance enterprise soRware. November: Changed status to Public Liability Company (non-‐quoted). December: Shareholders’ Funds at N3.1 billion. Broke even by year end
2005
September: Signed TAA with ING, Netherlands for retail expansion project. Developed bancassurance model. December: Shareholders’ funds at N5.33 billion. Dec: Africinvest Capital Partners became 2rd largest shareholder.
2006
Launched Bancassurance across GTBank branches in Lagos. July‘07: Rated A+ by Agusto & Co. raQng agency (highest risk ra,ng ever assigned to company in Insurance Industry). Y/E Dec ‘07 -‐ Declared N1.1 billion PBT
2007
2008-‐2011 Opened an Asset Management subsidiary. Launched bancassurance naQonwide with three other banks. Nov ’09: Was listed on the floor of the Nigerian Stock Exchange. 2010: 5th largest insurance company by market share. Oct ‘11: Divested from the GTBank Group, Took on investments from DPI, Africinvest, FMO, DEG and Proparco. Dec’11: Gross Premium of N10 billion, 3rd largest insurer by market share.
www.gtassur.com 5
0
200
400
600
800
1000
1200
2006 2007 2008 2009 2010
Gross Premium Income Growth ($US' million)
18%
30 Non Life Underwriters 14 Life Operators
12 Composite Insurers 2 Reinsurers
Nigerian Insurance Industry
Insurance penetraQon for Nigeria is put at 0.7% (South Africa 7%, Morocco 2%)
Key industry reforms expected to drive patronage (Pension Reform Act, Local Content Act, MDRI)
Life insurance is one of the fastest growing product segments in the Nigerian market
Industry Top 5 -‐2010 Industry Top 5 -‐2011
www.gtassur.com 6
48%
GTAssur is the fastest growing Insurance company in Nigeria with at CAGR of 48% for the period 2007 -‐ 2011
Combined RaQo has dropped from 126% in 2007 to 85% in 2011
77% of top line income is generated from insQtuQonal clients while 23% is generated from retail customers
-‐
10,000.00
20,000.00
30,000.00
40,000.00
50,000.00
60,000.00
70,000.00
80,000.00
2007 2008 2009 2010 2011
US$'000 GTAssur Growth in Gross Premium Income
www.gtassur.com
Investment returns Since the beginning of the global economic crisis, the capital
market has been bearish and has witnessed significant dips (2008: -48.77%, 2009: -33.78%, 2010: 18.93% 2011: -16.31%)
Public Perception towards insurance Aversion to purchasing insurance premised on a distrust of
insurance companies, misguided religious beliefs and lack of awareness/enlightenment
Regulatory environment Policy U-turns by regulators e.g. enactment of universal banking
in 1999 and repeal in 2011
Price erosion due to price competition Competition in the institutional space based largely on price
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www.gtassur.com
Ratings Agusto & Co. (2011)
(best in Industry)
Global; Credit Rating (2010)
A.M. Best (2011) (best in Industry)
Achievements First Insurance company to cross N1 Billion PBT (2007) First Insurance company to cross N2 Billion PBT (2008) First Insurance Company to implement 24hrs claims settlement
Awards 3rd Place Winner; Great Place to Work in Nigeria (2012) Winner; Brand Excellence in Insurance Award (2011) Nominee; Insurance Company of the Year: Thisday Awards: (2008 &
2009) Gold Winner; Corporate Image: Lagos Advertising & Ideas Festival
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A+ A+ B
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African Venture Capital Association presents Africa, The Rising Giant AVCA 9th Annual Conference
