Arab Insurance Group(Arig) reports 128% Net Income decline
11 Feb 2016 • About Arab Insurance Group(Arig) (
$AGRD) • By InTwits
Arab Insurance Group(Arig) reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Arab Insurance Group(Arig) is a company in decline: 2015 revenue growth was -14.9%, 5 years revenue CAGR was -2.3%
- Arab Insurance Group(Arig) has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.3%.
- The company has unprofitable business model: ROIC is at -0.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Arab Insurance Group(Arig) ($AGRD) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 237.7 | 280.2 | 263.0 | 282.3 | 240.2 | -14.9% |
| Net Income | -19.1 | 17.6 | 18.6 | 15.6 | -4.4 | -128.3% |
Balance Sheet
|
|---|
| Cash | 343.8 | 348.4 | 273.2 | 192.7 | 198.8 | 3.1% |
| Short Term Debt | 40.0 | 20.0 | 0.0 | 10.0 | 44.0 | 340.0% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 1.3 | 0.6 | 1.3 | 0.6 | 0.6 | -1.4% |
Ratios
|
|---|
| Revenue growth | -11.7% | 17.9% | -6.1% | 7.3% | -14.9% | |
| Net Income Margin | -8.0% | 6.3% | 7.1% | 5.5% | -1.8% | -7.4% |
| CAPEX, % of revenue | 0.6% | 0.2% | 0.5% | 0.2% | 0.3% | 0.0% |
| ROIC | -1.6% | 1.8% | 1.5% | 1.2% | -0.7% | -1.9% |
| ROE | -7.9% | 7.7% | 7.7% | 6.1% | -1.7% | -7.8% |
Revenue and profitability
The company's Revenue dropped on 14.9% in 2015.
Net Income marign decreased on 7.4 pp from 5.5% to -1.8% in 2015.
Capital expenditures (CAPEX) and working capital investments
Arab Insurance Group(Arig)'s CAPEX/Revenue was 0.25% in 2015. The company showed almost no change in CAPEX/Revenue from 2012 to 2015. It's average CAPEX/Revenue for the last three years was 0.33%.
Return on investment
The company operates at negative ROIC (-0.71%) and ROE (-1.74%). ROIC decreased slightly on 1.9 pp from 1.2% to -0.71% in 2015. ROE decreased on 7.8 pp from 6.1% to -1.7% in 2015.
Leverage (Debt)
Debt surged on 340% in 2015 while cash increased on 3.1% in 2015.
Appendix 1: Peers in Nonlife Insurance
Below we provide Arab Insurance Group(Arig) benchmarking against other companies in Nonlife Insurance industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Helios Underwriting ($HUW) | -7.1% | 17.8% | 26.1% | 47.9% | |
| General Accident ($GACB) | | | -20.4% | 25.6% | -45.7% |
| Gable Hldgs Inc ($GAH) | 30.1% | 36.6% | 36.3% | 22.1% | |
| Randall & Quilter Invt Hldgs Ltd ($RQIH) | 12.1% | 40.7% | 4.7% | 20.7% | |
| Marsh & Mclennan Cos Inc ($MHM) | | 3.5% | 2.8% | 5.6% | -0.4% |
| |
|---|
| Median (7 companies) | 9.0% | 17.8% | 4.7% | 20.7% | -17.2% |
|---|
| Arab Insurance Group(Arig) ($AGRD) | | 17.9% | -6.1% | 7.3% | -14.9% |
Top companies by EBITDA margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Marsh & Mclennan Cos Inc ($MHM) | 17.1% | 18.3% | 19.9% | 20.8% | 22.0% |
| |
|---|
| Median (1 company) | 17.1% | 18.3% | 19.9% | 20.8% | 22.0% |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| F.B.D.Hldgs ($FBH) | 1.6% | 3.0% | 5.4% | 7.0% | |
| Marsh & Mclennan Cos Inc ($MHM) | 2.4% | 2.7% | 3.3% | 2.8% | 2.5% |
| Randall & Quilter Invt Hldgs Ltd ($RQIH) | 3.8% | 1.4% | 1.0% | 1.1% | |
| Rsa Insurance Group ($RSAB) | | 0.4% | 0.4% | 0.5% | 0.2% |
| General Accident ($GACB) | | 0.5% | 0.1% | 0.3% | 0.2% |
| |
|---|
| Median (7 companies) | 1.6% | 0.5% | 0.5% | 0.5% | 0.2% |
|---|
| Arab Insurance Group(Arig) ($AGRD) | 0.6% | 0.2% | 0.5% | 0.2% | 0.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Marsh & Mclennan Cos Inc ($MHM) | 17.6% | 19.5% | 19.9% | 21.0% | 22.0% |
| Helios Underwriting ($HUW) | -2.4% | 2.9% | 2.3% | 4.9% | |
| General Accident ($GACB) | | 0.4% | 0.7% | 1.0% | 0.6% |
| F.B.D.Hldgs ($FBH) | 4.8% | 5.4% | 5.0% | 0.2% | |
| Rsa Insurance Group ($RSAB) | | 2.9% | -0.6% | -0.1% | 1.2% |
| |
|---|
| Median (7 companies) | 1.6% | 3.3% | 2.3% | 0.2% | 1.2% |
|---|
| Arab Insurance Group(Arig) ($AGRD) | -1.6% | 1.8% | 1.5% | 1.2% | -0.7% |
Top companies by Net Debt / EBITDA
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Marsh & Mclennan Cos Inc ($MHM) | 0.4x | 0.3x | 0.3x | 0.5x | 1.1x |
| |
|---|
| Median (1 company) | 0.4x | 0.3x | 0.3x | 0.5x | 1.1x |
|---|
