19
1 SIC INSUARNCE COMPANY LTD INTERNATIONAL LY AA RATED IN CLAIMS PAYMENT ABILITY GHANA INVESTMENT FORUM Internationally rated AA
1
SIC
INSUARNCE
COMPANY LTD
INTERNATIONAL
LY AA RATED IN
CLAIMS
PAYMENT
ABILITY
GHANA INVESTMENT FORUM
Internationally rated AA
COMPANY OVERVIEW2
� Commenced operation in 1962 as State Insurance Corporation
� Listed on the Stock Market in 2008, IPO 97% over subscribed.
� Government of Ghana is the largest shareholder
Internationally rated AA
� Government of Ghana is the largest shareholder with 40% shareholding.
� Largest Insurance firm in Ghana
� Underwrites non- life insurance risk
� Subsidiary / Associate
CORPORATE DIRECTION3
� Company Vision, Mission, Values and Objectives
� Future Prospects;
Internationally rated AA
� Future Prospects;
�Oil and Gas Insurance
�Expansion into the West African Sub - Region
ACHIEVEMENTS/ AWARDS4
� Member of Prestigious Club 100
� Four years running Insurance Company of the year adjudged by the Chartered Institute of Marketing, Ghana.(CIMG)
Internationally rated AA
Ghana.(CIMG)
� First Insurance company to be ushered into the Hall of Fame category by the Chartered Institute of Marketing, Ghana.(CIMG) for two years running.
5
SIC is the largest insurance company in the country.
The company controls about 31% of the total market share.
With 23 Insurance companies operating within the industry, SIC
SIC , 31.48%VANGAURD
STAR
OUR MARKET SHARE AND MAJOR COMPETITORS
Competitive Environment
within the industry, SIC stands out as the largest premium income earner and the largest assets based
Internationally rated AA
ENTERPRISE
MET
FINANCIAL PERFORMANCE6
-
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000
70,000,000
2005 2006 2007 2008 2009
GH
¢
EARNED PREMIUM 2005-2009 (19.97%)
36,388,700
44,581,800
52,804,319
60,762,027
61,298,446
2005
2006
2007
2008
2009
GROSS PREMIUM 2005-2009 (10.99%)
Internationally rated AA
2005 2006 2007 2008 2009
EARNED PREMIUM Expon. (EARNED PREMIUM)
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
20052006
20072008
2009
1,000,000 1,500,000
2,233,543
3,478,567 3,478,567
GH
¢
DIVIDEND 2005 -2009 (28.32%)
GROSS PREMIUM Expon. (GROSS PREMIUM)
FINANCIAL PERFORMANCE – CONT.7
4%5%
7%7%
5%
0%
1%
2%
3%
4%
5%
6%
7%
8%
RET. ON ASSETS (2005 - 2009) – 5.54%
8%
10%
12%13%
10%
0%
2%
4%
6%
8%
10%
12%
14%
RETURN ON EQUITY 2005 -2009 (10.53%)
Internationally rated AA
0%
2005 2006 2007 2008 20090%
2005 2006 2007 2008 2009
0% 2% 4% 6% 8% 10% 12% 14% 16% 18%
2005
2006
2007
2008
2009
NET MARGINS (2005-2009) -12.44%
FINANCIAL PERFORMANCE – CONT.
8
58%
54% 54%
56%
52%
48%
50%
52%
54%
56%
58%
60%
2005 2006 2007 2008 2009
COST/INCOME RATIO 2005 - 2009
-
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
2005 2006 2007 2008 2009
GH
¢
CLAIMS 2005 – 2009 (6.51%)
Internationally rated AA
2005 2006 2007 2008 2009 2005 2006 2007 2008 2009
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
2005 2006 2007 2008 2009
INVESTMENT INCOME (2005 - 2009) – 5.91%
CONTACTS9
SIC Insurance Company Limited
Location Address: No. 28/29 Ring Road East (Nyemitei
House), Osu
Postal Address: P.O. Box 2363
Accra, Ghana.
Tel: +233 - (030 2)- 780600 -9
Fax : +233 - (030 2) - 780615
Internationally rated AA
Fax : +233 - (030 2) - 780615
Email: [email protected]
Web Address: www.sic-gh.com
Facebook: SIC INSURANCE
Contact Persons:
BENJAMIN K. ACOLATSE- Managing Director
FRANKLIN O.ASAFO – ADJEI- Deputy Managing Director (F&A)
JOHN KUSI MENSAH – Corporate Affairs
OUR SUBSIDIARY10
SIC FINANCIAL
Internationally rated AA
SIC FINANCIAL SERVICES LIMITED(INVESTMENT / FUND MANAGERS)
SIC-FSL Shareholding StructureSIC-FSL Shareholding Structure
History and BackgroundHistory and Background
� SIC Financial Services Limited is a leadinginvestment banking firm owned by both SICInsurance Co. Limited and SIC Life Co.Limited in a 70:30 ratio.
� SIC-FSL was incorporated on the 31st May2005 and commenced business on 1st June2005, duly licensed as an Investment Advisorand a Broker-Dealer by the Securities &and a Broker-Dealer by the Securities &Exchange Commission (SEC) and as amember of the Ghana Stock Exchange (GSE).
� The Company offers services in the area ofFund Management, Corporate Finance andAdvisory and Security Dealing.
� SIC-FSL is staff with the savviest ofinvestment personnel in the industry, isbacked by the full financial strengthen of bothSIC Insurance Co. Ltd and SIC Life Co. Ltd.
Services
SIC-FSL focuses on providing unparallel financial solutions and services to itsdiverse
clientele base which comprises high net worth individuals, small and mediumscale
companies, large corporate institutions and government institutions. The rangeof
services includes:services includes:
� Fund Management
� Corporate Finance and Advisory Services
�Securities Dealing
�Money Market Operations
Fund Management
The Company provides Fund Management services for high net worth individuals, corporate and government
institutions. The Company also manages funds for major venture capital firm called Bedrock Venture Finance
Company Limited. The Asset Management Department, therefore, provides the following investmentservices:
� Discretionary Investment Management Services
� Portfolio Strategy and Asset Allocation Services
� Specialized Investment in Private Equity Firms; and� Specialized Investment in Private Equity Firms; and
� Pension and Provident Funds Management
17.19%
15.57%
15.44%15.06%
7.62%
5.88%
23.24%
2008 Industry Market Share of Funds under Mgt
Merban Invst. Holdings Limited
Databank Asset Mgt
EDC Invst. Limited
SIC Financial Services Ltd
Ecobank Invst Mgers. Ltd
Fidelity Capital Partners LtdOthers
Items No. of Client
s
Portfolio Value (GH¢)
PortfolioValue(US$)
% OfFunds Under Mgt
Retail Clients 15 133,427.49 93,607.05 0.20%
Institutional Clients
30 66,623,274.34 46,740,054.96 99.80%
Total 45 66,756,701.83 46,833,662.01 100.00%
Corporate Finance and Advisory
SIC-FSL provides investment banking and financial advisory services to its numerous clients through
its Corporate Finance and Advisory Department. The department provides investment banking
services in the following areas;
� Corporate Restructuring
� Mergers and Acquisitions
� Financial Valuation Analysis
� Project and infrastructure finance
� Private placements and privatization� Private placements and privatization
� Initial Public Offering (IPO)
Some Achievements
�Co-Lead Transaction Advisor and Sponsoring Broker of SIC Insurance Company
Limited GH¢60.0 Million Initial Public Offering (IPO).
�Co-Sponsoring Broker of Ecobank Transnational Incorporated (ETI) US$ 2.5
Billion Rights Issue and Initial Public Offer Transaction.
�Transaction Advisor to Ayrton Drugs Manufacturing Limited on the Acquisition
of a Majority Stake by Adcock Ingram Holdings Limited.
Securities Dealing
The Company provides Securities Dealing Services through its Brokerage Department to both
individuals, high net worth individuals , Companies and government institutions.
� Over-The-Counter (OTC) Trading
� Underwriting of Equity and Debt Securities
� Sponsorships of new issues (Equities and Debts); and
� Stock Market Research
Money Market Operations
Our money market operations includes dealing in
securities such as treasury bills and notes,
Commercial Papers, fixed deposits on behalf of our
esteem clients and for our books.
47.42%
32.44%
9.05%
2.43%
1.49%
7.17%
2008 Broker-Dealer Market Share (%)
New World Renaissance Ltd
EDC Stockbrokers Ltd
Databank Brokerage Ltd
NTHC Securities Ltd
SIC Financial Services Ltd
Others
Competitive Strengths
� Experienced Management Team: SIC-FSL has a strong management team withextensive operational and financial experience combining international knowledge andlocal expertise. The management team has been instrumental in delivering excellentperformance over the period.
� Efficiency: SIC-FSL’s objective is to become an efficient operator utilizing moderntechnology to achieve cost efficiencies whilst rapidly growing revenues. SIC-FSL hasalready initiated moves to deploy a highly efficient brokerage software which will give ourclients the opportunity to trade online using our platform whilst enhancing its riskclients the opportunity to trade online using our platform whilst enhancing its riskmanagement and back office capabilities.
� High Growth Strategy: SIC-FSL intends to leverage on its shareholders (SICInsurance Co. Ltd and SIC Life Co. Ltd) extensive branch network to implement a broadbase retail strategy that focuses on growth and new market entry. Hence the companyintends to roll out branch networks in all major branches of SIC Insurance Co. Ltdaround the country and later enter other West African Sub Regions (Liberia, Sierra Leoneetc).
� Strong Brand: SIC-FSL continue to ride on the back of the strong brand name of itsshareholders; SIC Insurance and SIC Life Companies Limited.
Our Financial Strength
82,657.00
186,021.00
140,684.00 14.00%
16.75%
11.52%
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
18.00%
-
20,000.00
40,000.00
60,000.00
80,000.00
100,000.00
120,000.00
140,000.00
160,000.00
180,000.00
200,000.00
11.79%
26.53%
20.06%
8.98%
20.21%
15.28%
Return on Average Equity
Return on Average Asset
0.00%-
2007 2008 2009
Net Profit After Tax Profit Margin 2007 2008 2009
Net Profit After Tax (NPAT) increased fromGH¢82,657 in 2007 to GH¢186,021 in 2008before declining to GH¢140,684 in 2009.NPAT has over the period grown on acompounded basis by 19.40%. The Company’sProfit Margin increased from 14.00% in 2007to 16.75% in 2008 before subsequentlydeclining to 11.52% in 2009.
Return on Average Equity (RoAE) grew from11.79% in 2007 to 26.53% in 2008 beforesubsequently declining to 20.06% in 2009.This show management’s ability to maximizeshareholder’s funds.Return on Average Asset (RoAA) similarlygrew from 8.98% in 2007 to 20.21% in 2008before declining to 15.28% in 2009 giving anindication of management’s strong ability toput its total assets a profitable use.
Our Financial Strength
513,934.00
937,974.00
1,309,571.00
-
82.51%
39.62%
-
0.10
0.20
0.30
0.40
0.50
0.60
0.70
0.80
0.90
-
200,000.00
400,000.00
600,000.00
800,000.00
1,000,000.00
1,200,000.00
1,400,000.00
409,531.00
595,552.00
1,098,543.00
-
45.42%
84.46%
-
0.10
0.20
0.30
0.40
0.50
0.60
0.70
0.80
0.90
-
200,000.00
400,000.00
600,000.00
800,000.00
1,000,000.00
1,200,000.00
2007 2008 2009
Total Assets Growth in Total Assets
2007 2008 2009
Shareholders Fund Growth in Shareholders Fund
SIC-FSL’s total assets has grown tremendouslyfrom GH¢513,934 in 2007 to GH¢1,309,571 in2009. The Company’s total asset has beengrowing at a compounded annual growth rate(CAGR) of 36.58% over the three year period.
Shareholder’s Funds has more than doubleover the period. Shareholder’s Funds increasedfrom GH¢409,531 in 2007 to GH¢1,098,543 in2009. Shareholder’s Fund over the period hasbeen growing at a Compounded AnnualGrowth Rate (CAGR) of 38.95%.
Contact Details
SIC Financial Services Limited
Location Address: No. 28/29 Ring Road East (Nyemitei House), Osu
Postal Address: P.O. Box 2363
Accra, Ghana.
Tel: +233-(021)-767051, 767123, 767117Tel: +233-(021)-767051, 767123, 767117
Fax : (+233)(0)21-767021
Email: [email protected]
Web Address: www.sic-fsl.com
Contact Persons:
Abraham K. Boateng- Managing Director
Albert Boateng- Head, Asset Management
Joshua Adofo Boanya- Unit Head, Corporate Finance
