Arab Insurance Group(Arig) revenue decline continued from 14.9% in 2015 to 14.5% in 2016
14 Feb 2017 • About Arab Insurance Group(Arig) (
$AGRD) • By InTwits
Arab Insurance Group(Arig) reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Arab Insurance Group(Arig) is a company in decline: 2016 revenue growth was -14.5%, 5 years revenue CAGR was -2.9%
- Arab Insurance Group(Arig) has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.3%.
- The company has potentially unprofitable business model: ROIC is at 1.1%
- It operates with high leverage: Net Debt/EBITDA is 10.3x while industry average is 1.2x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Arab Insurance Group(Arig) ($AGRD) key annual financial indicators
| mln. $ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 280.2 | 263.0 | 282.3 | 240.2 | 205.3 | -14.5% |
| Net Income | 17.6 | 18.6 | 15.6 | -4.4 | 9.2 | -307.2% |
Balance Sheet
|
|---|
| Cash | 348.4 | 273.2 | 192.7 | 198.8 | 180.5 | -9.2% |
| Short Term Debt | 20.0 | 0.0 | 10.0 | 44.0 | 41.0 | -6.8% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 0.6 | 1.3 | 0.6 | 0.6 | 0.4 | -40.4% |
Ratios
|
|---|
| Revenue growth | 17.9% | -6.1% | 7.3% | -14.9% | -14.5% | |
| Net Income Margin | 6.3% | 7.1% | 5.5% | -1.8% | 4.5% | 6.3% |
| CAPEX, % of revenue | 0.2% | 0.5% | 0.2% | 0.3% | 0.2% | -0.1% |
| ROIC | 1.8% | 1.5% | 1.2% | -0.7% | 1.1% | 1.8% |
| ROE | 7.7% | 7.7% | 6.1% | -1.7% | 3.7% | 5.4% |
Revenue and profitability
The company's Revenue dropped on 14.5% in 2016.
Net Income marign increased on 6.3 pp from -1.8% to 4.5% in 2016.
Capital expenditures (CAPEX) and working capital investments
In 2016 the company had CAPEX/Revenue of 0.18%. CAPEX/Revenue showed almost no change from 2013 to 2016. For the last three years the average CAPEX/Revenue was 0.22%.
Return on investment
The company operates at low ROIC (1.10%) and ROE (3.66%). ROIC increased slightly on 1.8 pp from -0.71% to 1.1% in 2016. ROE increased on 5.4 pp from -1.7% to 3.7% in 2016.
Leverage (Debt)
Debt decreased on 6.8% in 2016 while cash decreased on 9.2% in 2016.
Appendix 1: Peers in Nonlife Insurance
Below you can find Arab Insurance Group(Arig) benchmarking vs. other companies in Nonlife Insurance industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Gable Hldgs Inc ($GAH) | 36.6% | 36.3% | 22.1% | 17.2% | |
| Helios Underwriting ($HUW) | 17.8% | 26.1% | 47.9% | 12.8% | |
| Randall & Quilter Invt Hldgs Ltd ($RQIH) | 40.7% | 4.7% | 20.7% | 10.0% | |
| Brit ($BRIT) | -4.9% | -1.2% | 3.9% | 4.5% | |
| F.B.D.Hldgs ($FBH) | 0.2% | 0.2% | 1.1% | 0.8% | |
| |
|---|
| Median (8 companies) | 17.8% | 3.7% | 13.2% | 2.7% | 2.6% |
|---|
| Arab Insurance Group(Arig) ($AGRD) | | -6.1% | 7.3% | -14.9% | -14.5% |
Top companies by EBITDA margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Marsh & Mclennan Cos Inc ($MHM) | 18.3% | 19.9% | 20.8% | 22.0% | 23.5% |
| |
|---|
| Median (1 company) | 18.3% | 19.9% | 20.8% | 22.0% | 23.5% |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| F.B.D.Hldgs ($FBH) | 3.0% | 5.4% | 7.0% | 5.2% | |
| Marsh & Mclennan Cos Inc ($MHM) | 2.7% | 3.3% | 2.8% | 2.5% | 1.9% |
| Brit ($BRIT) | 0.3% | 0.1% | 0.2% | 1.6% | |
| Randall & Quilter Invt Hldgs Ltd ($RQIH) | 1.4% | 1.0% | 1.1% | 0.3% | |
| General Accident ($GACB) | 0.5% | 0.1% | 0.3% | 0.2% | 0.1% |
| |
|---|
| Median (8 companies) | 0.5% | 0.5% | 0.4% | 0.3% | 0.4% |
|---|
| Arab Insurance Group(Arig) ($AGRD) | 0.2% | 0.5% | 0.2% | 0.3% | 0.2% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Marsh & Mclennan Cos Inc ($MHM) | 19.5% | 19.9% | 21.0% | 22.0% | 23.6% |
| Helios Underwriting ($HUW) | 2.9% | 2.3% | 4.9% | 1.5% | |
| Rsa Insurance Group ($RSAB) | 2.9% | -0.6% | -0.1% | 1.2% | 2.7% |
| General Accident ($GACB) | 0.4% | 0.7% | 1.0% | 0.6% | 0.4% |
| Brit ($BRIT) | 2.7% | 3.6% | 4.6% | 0.5% | |
| |
|---|
| Median (8 companies) | 3.1% | 2.9% | 0.6% | 0.5% | 2.7% |
|---|
| Arab Insurance Group(Arig) ($AGRD) | 1.8% | 1.5% | 1.2% | -0.7% | 1.1% |
Top companies by Net Debt / EBITDA
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Marsh & Mclennan Cos Inc ($MHM) | 0.3x | 0.3x | 0.5x | 1.1x | 1.2x |
| |
|---|
| Median (1 company) | 0.3x | 0.3x | 0.5x | 1.1x | 1.2x |
|---|
