Ralph Mucerino Chief Distribution Officer Senior Vice President Global Commercial Insurance June 18, 2012 Strategies for Global Growth IIS 2012.

Slides:



Advertisements
Similar presentations
Semana de Moçambique em Portugal Millennium bim Business review and development plans June 20, 2007.
Advertisements

Globalization of Mexican Businesses By Arun Kottolli.
Fenox Confidential Page 1798 Technology Drive, Suite 242, San Jose, California 95110, USA | Tel: +1 (408) Harvesting Business Opportunities.
Copyright 2009 IDC Aid to Recovery: The Economic Impact of IT, Software, and the Microsoft Ecosystem Worldwide Prepared for Microsoft Corporation October.
GLOBALIZATION OF CAPITAL: THE RISE OF THE MULTINATIONAL Robert E. Scott Economist, Economic Policy Institute April 16, 2012 Challenges of Globalization:
Multi-Client, Multi-Modal Logistics: The Driver of the NAFTA Trade Corridor November 08, 2013.
Brazilian HealthCare & Reinsurance Markets August, 2012.
The BNDES and the perspectives for the Brazilian Economy Luciano Coutinho President of the Brazilian Development Bank (BNDES) March 3 rd, 2010.
Ferraz 2003 Economic liberalisation and development in Latin America: Achievements, constraints and perspectives for the Brazilian Industry João Carlos.
The Florida Economic Environment: Outlook for Retail Sales Tony Villamil The Washington Economics Group, Inc. (WEG) Florida Retail Federation Annual Meeting.
Strategic Marketing. Outline Overview Market leaders Industry future and challenges Q&A References.
The Triad and international business
Hong Kong’s Expanding Role as an Offshore RMB Centre Peter Pang Deputy Chief Executive Hong Kong Monetary Authority 22 February 2011 Goldman Sachs Global.
Economic Implications of the Oil Discovery in Kenya Habil Olaka Chief Executive Officer Kenya Bankers Association Prepared by: The Centre for Research.
Hans Timmer World Bank March 1, 2011 Transformational Changes in the Global Economy Trade, finance and commodities after the crisis.
Annual Report 2003 Bank van de Nederlandse Antillen Willemstad, July 5, 2004.
Creating Opportunities in a Challenging Environment Julio G
THE SPANISH INSURANCE MARKET 2004/2005 January 2005.
Brazilian Trade and Investment Promotion Agency Apex-Brasil Brazil Economic Scenario and Investment Opportunities Alessandro Teixeira President.
Commercial and Economic Section, Consulate General of Poland The Evolving Central and Eastern European Market Business Opportunities in Poland Venue: HKCEC.
Industrials Sector Jason Kraynak and Wade Guzdanski.
Sectoral Analysis : Mobile Application Industry Submitted By : Sagar Deshmukh Birla Institute of Management Technology (BIMTECH )
JSC Kazakhtelecom 30 November 2006Almaty. 2 Kazakh Economy Kazakhstan is Central Asia's largest economy Rapid growth over the last three years, buoyed.
Indonesia - The World’s Next Economic Power Chairul Tanjung Chairman of National Economic Committee (KEN) KOMITE EKONOMI NASIONAL REPUBLIK INDONESIA July.
IIS 48 th Annual Conference Strategies for Global Growth Prudential plc in Asia Barry Stowe Chief Executive Prudential Corporation Asia June 2012.
June 2014 Turkish Embassy 1 RECENT DEVELOPMENTS IN TURKISH ECONOMY AND BILATERAL ECONOMIC AND COMMERCIAL RELATIONS BETWEEN TURKEY AND CZECH REPUBLIC. Necmi.
2  GDP (purchasing power): $2.225 trillion  GDP (official exchange rate): $1.757 trillion  GDP - real growth rate: 6%  GDP - per capita (PPP): $15,800.
Thomaz Souto Corrêa Vice Chairman Abril Group Opportunities for Cross-border publishing: New Frontiers 26 > 28 May th FIPP World Magazine Congress.
18 th Annual Investment Security Group Client Event September 28, 2011.
Investment Climate In Brazil Presentation by Anand Nagaraj Citi Commercial Bank - Middle East Product and Marketing Head.
1 An Introduction to China’s “Digital Economy” Yuan Yuehong, Li Jia Chinese University of Hong Kong Ma Jun Development Research Center, State Council of.
FDI - Where Does Turkey Stand? Orhan Cem Lead Partner, Advisory Services, PwC Turkey  TURKEY WHERE THE OPPORTUNITIES ABOUND ON THE WAY TO SUCCESS February.
1 UN Group Meeting - “Rethinking the Role of National Development Banks” Demian Fiocca Vice President – BNDES December, BNDES:
Automotive (Light Engineering) Sector THE MARKET AND THE GROWTH POTENTIAL Presentation By.
Prudential Financial, Inc. Covering Analyst: Christian Meunier
91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Commercial Payments Overview Visa, Inc. NAEP April 2012.
Marvin Zonis, Professor Graduate School of Business University of Chicago MZA eCommerce, Globalization, and Deregulation GSB 383.
1 Asociaţia Societăţilor Financiare - ALB România The Financial Companies Association – ALB Romania 8 th ALB National Conference Evolution of the consumer.
Economic and Social Update April 2008 William E. Wallace, Lead Economist World Bank, Indonesia April 1, 2008.
EMBAJADA DE MÉXICO EN LA REPÚBLICA CHECA 29/10/2015 V Jirchářích 151/10, Prague 1, Czech Republic Tels.: (420)
Japan and Brazil Economic Outlook Brazilian Development Prospects
The Saudi ICT Market and E‐Commerce Potential
Brian Cabianca Partner Squire Patton Boggs. Amy Hillman Dean W. P. Carey School of Business.
Pedro Bastos September, Disappointment with Brazil given recent economic performance… GDP Growth Source: HSBC Global Asset Management – Brazil/
China Bottled Mineral Water Market
THE STRUCTURE OF TURKISH ECONOMY FALL 2011 CLASS 1.
Introduction to the UK Economy. What are the key objectives of macroeconomic policy? Price Stability (CPI Inflation of 2%) Growth of Real GDP (National.
1 GDP by sector 2012 Source: DANE Colombia’s economy grew 4.0% during 2012 (USD 378 Billion). According with the IMF, the Colombian economy is expected.
MENA – The Good, The Bad and The Not So Good! Miguel Borlido – Roberto Papadia Madrid 23rd May 2016.
COUNTRY RISK ASSESSMENT China & Japan Eliza Bogucka Magdalena Mirek Dominika Dunin - Szpotańska.
The Insurance Industry in Uganda, Key Trends and Opportunities to 2018 Market Research Report ©reportscue.
Allergy Drugs Markets in China Published on : Jun 2014.
Global Nutraceuticals Industry Analysis till 2017 – Emerging Markets in Asia-Pacific and Latin America to Drive Growth provides a comprehensive analysis.
The Balance of Payments EdExcel A2 Macro – June 2016.
Overview of the Korean Economy September 2009 Joong Shik Lee Research Department The Bank of Korea.
Iran’s Automotive Industry: Opportunities & Challenges ahead
© 2016 Global Market Insights, Inc. USA. All Rights Reserved Fuel Cell Market size worth $25.5bn by 2024 Catheters Market size to exceed.
How much has happened after the crisis EUGENIA CORREA and ALICIA GIRÓN
B R I C S B R A Z I L and Foundry Industry Overview / Trends
Main Title Market Research Report
Published: September 2017 Single User PDF: US$ 2500 No. of Pages: 163
Chapter 9 1. The political and economic changes affecting global marketing. 2. The connection between the economic level of a country and the marketing.
WHY INDIA? September 2004.
Retail Scenario – India
Opportunity Analysis and Industry Forecast, Pages: 110 Tables: 43 Charts: 56 Global Opportunity Analysis and Industry Forecast, Online.
AN Overview of the Insurance Market in Cambodia
The Changing World Order
An Introduction to China’s “Digital Economy”
Chapter 9 1. The political and economic changes affecting global marketing. 2. The connection between the economic level of a country and the marketing.
THE FURTURE OF AND OPPORTUNITIES IN THE INSURANCE INDUSTRY
Presentation transcript:

Ralph Mucerino Chief Distribution Officer Senior Vice President Global Commercial Insurance June 18, 2012 Strategies for Global Growth IIS 2012

2 Macro GDP Trends Source: Bain & Company: The Great Eight Trillion Dollar Trends. International Monetary Fund; Bain MTG Analysis, 2011 Note: All values shown in 2010 US dollars at fixed exchange rates. Per Bain report, world GDP expected to be ~90T in 2020 GDP Growth Driver 2010–2020 Contribution to Global GDP Growth (Total = $27T) Next Billion Consumers Energy, Natural Resources, Commodities, Infrastructure Social Infrastructure / Human Capital Other Advanced Economies Developing Countries Nearly 60% of GDP growth over the next decade will come from developing world macro-drivers and by 2020, developing economies will account for more than 50% of world GDP

3 The next billion consumers – Consumer, SME, DM 1.3 bn new consumers (HH income > $5K) generated in this decade Real GDP per capita progression (USD thousands) 3% CAGR 8% CAGR 5% CAGR 12% CAGR 2% CAGR (1) F In the coming decade 37% of global demand will be driven by consumer spending and the new middle class in developing markets Source: Euromonitor, Bain MTG Analysis Notes: (1) Simple average of US, Japan, and UK

4 Global Growth Opportunity Source: 2010 GDP and 2011–2020 Non-Life Premium CAGR per Business Monitor International data and includes health insurance premiums Non-Life Penetration per AIG Global Economics and is consumer lines and commercial lines premiums as a percentage of GDP Size denotes $1T in 2010 GDPChartis Growth Countries Unmet Insurance Needs Growth Potential 2010 Non-Life Insurance Penetration Asia and Latin America represent the highest growth opportunity areas over the coming decade, based on high GDP growth and low insurance penetration Non-Life Premium Growth (CAGR 2011 – 2020)

5 Key Growth Economies Profit Drivers Relative Growth vs Profitability – By Country and By Line A&H Traditional Commercial Specialty Commercial Auto Consumer All Other = $100mm of 2016 NPW (1) Notes: (1) Currently, foreign insurers are excluded from the Chinese auto market; therefore, NPW CAGR is not meaningful. For illustrative purposes, 2011 – 2016 NPW CAGR is set to 100%. Internal forecasts of MTPL rule change in 4Q 2012 with auto premiums written starting 1Q 2013 and growing to $156 mm of 2016 NPW. *Products with < $50 mm 2016 NPW excluded from Chart* (1) Increasing Profitability (2016) 5-Year Premium Growth Chartis Products Strategy

6 China

7 China P&C Insurance Market GPW (3) (1) 2010 CIRC Year Book for 2009 data of auto and non-auto breakdown; 2010 FY data not available until CYE 2011 (2) CIRC statistics 2010 (3) Historical GPW from CIRC statistics; projected GPW by AIG Global Economics (4) CIRC 2010 Report on Insurance Intermediary Market; Definitions: Sideline agent-part-time agent not involved in the insurance sales (e.g. banks, travel, post-office, railway, auto dealer); Captive Agent-company employees; Corporate Agent-professional insurance agent company China is a heavily concentrated auto (72%) dominated insurance market growing rapidly due to internal consumption, exports and infrastructure, with minimal foreign presence (~1%). It relies heavily on agency distribution and is highly regulated China P&C Insurance Market Overview 20 P&C GPWPenetration 2009 Total GPW: US$44Bn 30%

8 Key strategies have been built to meet the market opportunities Chartis China Strategic Initiatives Opportunities: 485 million internet users in 2011 (1) Travel market: 15% CAGR Auto market size: 150 million vehicles by 2015 (2) Middle class: 700 million by 2020 (1) Source: China 2011, June CNNIC report. (2) Source: Ministry of Industry and Information Technology of China. (3) Source: China Ministry of Commerce In 2010, net FDI inflows US$106 billion with a growth rate of 17.4% (2) ODI $59 billion USD in 2010 (3)

9 Brazil

10 Brazil’s insurance market is maturing and more balanced than other SBE countries due to commodities and infrastructure. It is heavily dominated by banking groups, often partnering with foreign global insurance groups, who distribute via bank and agency channels Brazil Overview Brazilian Insurance Market* Revenue – 41% of the Market is Auto *Market excludes pensions Source: Susep. *Consumer + Commercial Lines, 7/10 – 6/11 (Ex-Auto) Commercial Lines

11 Opportunities: Chartis Brazil Strategic Initiatives Mobile phone users: 110M Internet users: 74M 2010 GDP Growth: 6.5% Over $1T planned investments to 2020 Population of ~191M people and middle class ~50% by 2015 Host of 2014 World Cup Host of 2016 Olympic Games Source: eMarketers and IBGE 2010

12 Mexico

13 Mexico P&C Insurance Market GPW (USD 000’s) (1) Mexico P&C Insurance Market Overview Source: Insurance Market from AMIS (Asociación Mexicana de Instituciones de Seguros 2010). GDP figures from World Bank. Distribution Channel breakdown per AXCO 2011 Mexico non-life report. (1) Includes one-time Pemex contract Mexico is a fragmented auto (53%) dominated insurance market, with close links and correlation to the US GDP, with strong foreign and bank presence which relies heavily on brokers and agents

14 Chartis Mexico Strategic Initiatives Total insurance market is $20Bn (P&C $7.4Bn) Expected to grow 4% annually Highly effective and well regarded local Regulator GDP growth expected of 5% on 2011 and 4.5% on 2012 Growing Middle Class (31% of total population of 112.3) Government improving infrastructure making Mexico more attractive for foreign direct investment 10 year Internet user growth 600% (35M on 2010) Opportunities: