Portfolio and Acquisitions Summary 2019
Private late
stage portfolio
P&C insurance business overview
Market share | YTD Sep-19
(earned premium, gross)
ALDAGI
GEORGIA
CAPITAL
Market composition by
product lines
9.6%
8.5% 9.0%
6.1% 6.0%
6,811
3,810
3,446
1,184
2,655 2,687
421
175
I Insurance Density USD 1
UK
Switzerland
France
Belgium
Source: Swiss Re Institute
(1) Including healthcare insurance.
Germany
Slovenia
Poland
Bulgaria
Turkey
Russia
Georgia
Investment rationale
Significantly underpenetrated P&C insurance market in Georgia (0.6% penetration)
• Market leader with a powerful distribution network of point of sale and sales agents
Value creation potential
Compulsory border TPL effective from 1 March 2018
• Local TPL expected to kick in and provide access to untapped retail CASCO insurance market with
only 4% existing penetration
• Increasing footprint in untapped MSME sector, where Aldagi's revenues have grown by 93% in 2019
(from GEL 0.7mln to GEL 1.3mln)
.
Developing and introducing new digital channels to simplify purchase of insurance products
Undisputed leader in providing insurance solutions to corporate clients
Insurance penetration & density
VIG
20%
17%
29%
Property,
25%
Other, 9%
12%
8%
5%
5%
3%
Liability,
12%
Other IC Group Ardi
TBC Unison
Insurance
Source: Insurance State Supervision Service of Georgia
Irao
GPIH Aldagi
Market & Aldagi Revenue (GEL millions)
Georgia P&C
Penetration 0.6%
Density $25
YTD Sep-19:
CAGR 2010-2018
Market revenue GEL 254mln
Aldagi share 29%,
Market - 13%
Aldagi - 15%
Motor,
42%
Source: Internal data
Market PL & Combined Ratio | YTD Sep-19
Credit
Life, 13%
Total Market Profit
GEL 28.7 mln
286
12.8*
4.9%
227
3.0%
202
2.2%
1.4% 1.4% 1.2%
179
117%
10.7
98%
100%
104%
82%
86%
142
115
122
149 152
44
106
100
Market CR 92%
80%
46
6.0
38%
37%
37%
35% 38%
2.0
37%
32%
0.7
27%
32%
0.0
(1.7) (2.0)
67
71
86
29
32
42
46
52
90
Aldagi
2010 2011 2012 2013 2014
2015 2016 2017
2018
TBC Unison Ardi
Insurance*
Irao
Alfa
fa GPIH
Other
Insurance penetration
Market PL
Combined ratio
Market
Aldagi
-Market share
*Aldagi and TBC Insurance net profits and combined ratios are based on IFRS amounts.
Source: Insurance State Supervision Service of Georgia
Page 38View entire presentation