Investor Presentation: Outperforming in the Next Decade
Page 21 | Investor Presentation
[intact]
Further industry consolidation ahead
Our domestic acquisition strategy
Open to manufacturing, distribution, and supply
chain opportunities
• M&A will continue to accelerate key strategic
focuses: scale, enhanced distribution capabilities,
and a broadened customer offering
Strong track record of executing our strategy with
a proven ability to achieve synergy targets and
attractive rates of return
Track record of acquisitions since 2001
Company
DPW
US$1.2 billion
Year
2017
2016
OneBeacon Insurance Group, Ltd.
InnovAssur, assurances générales inc.
C$50 million
2015
2014
2012
Canadian Direct Insurance Inc.
Metro General Insurance Corporation Ltd.
JEVCO Insurance Company
C$143 million
C$27 million
2011
2004
2001
Zurich North America Canada
AXA Canada Inc.
Allianz of Canada, Inc.
C$350 million
C$2 billion
C$672 million
C$510 million
Canadian M&A environment
Environment conducive to acquisitions:
Industry ROEs remain below the long-term average of
10%, while our outperformance gap has widened
Necessary investments in technology & innovation,
increasing CAT experience, and persistently low
investment yields continue to favour scale
Demutualization likely for P&C insurance industry
Top 20 P&C insurers = 84% of market
Canadian IFC, 16%
Owned,
Canadian
Mutuals,
13%
Public, 4%
Canadian
Bank
Non-top
20, 16%
Owned,
6%
Top 5 - 2018
47%
OF THE MARKET
Foreign
Owned,
29%
Private &
Others,
16%
Top 5 - 2009
36%
OF THE MARKET
Industry data: IFC estimates based on MSA Research. Please refer to Important notes on page 2 of the Q2-2019 MD&A for further information.
All data as at December 31, 2018View entire presentation