Arab Insurance Group(Arig) revenue growth accelerated from 1.2% in 2017 to 10.3% in 2018
14 Feb 2019 • About Arab Insurance Group(Arig) (
$AGRD) • By InTwits
Arab Insurance Group(Arig) reported 2018 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Arab Insurance Group(Arig) has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.2%.
- The company has unprofitable business model: ROIC is -5.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue jumped on 10.3%. During 2014-2018 Revenue growth bottomed in 2015 at -14.9% and was accelerating since that time.
Net Income margin dropped on 27.6 pp from 3.5% to -24.1% in 2018.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 0.14% in 2018. Arab Insurance Group(Arig)'s CAPEX/Revenue showed almost no change from 2015 to 2018. Average CAPEX/Revenue for the last three years was 0.22%.
Return on investment
The company operates at negative ROIC (-5.4%) and ROE (-24.4%). ROIC decreased on 6.3 pp from 0.91% to -5.4% in 2018. ROE dropped on 27.2 pp from 2.8% to -24.4% in 2018.
Leverage (Debt)
Debt dropped on 79.4% while cash surged on 40.2%.
Arab Insurance Group(Arig) has no short term refinancing risk: cash is higher than short term debt (1,656.2%).
Financial and operational results
FY ended 31 Dec 2018
Arab Insurance Group(Arig) ($AGRD) key annual financial indicators| mln. $ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 282.3 | 240.2 | 205.3 | 207.8 | 229.2 | 10.3% |
| Net Income | 15.6 | -4.4 | 9.2 | 7.2 | -55.3 | -865.0% |
Balance Sheet
|
|---|
| Cash | 192.7 | 198.8 | 180.5 | 82.7 | 115.9 | 40.2% |
| Short Term Debt | 10.0 | 44.0 | 41.0 | 34.0 | 7.0 | -79.4% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 0.6 | 0.6 | 0.4 | 0.7 | 0.3 | -54.9% |
Ratios
|
|---|
| Revenue growth | 7.3% | -14.9% | -14.5% | 1.2% | 10.3% | |
|
|---|
| Net Income Margin | 5.5% | -1.8% | 4.5% | 3.5% | -24.1% | -27.6% |
| CAPEX, % of revenue | 0.2% | 0.3% | 0.2% | 0.3% | 0.1% | -0.2% |
|
|---|
| ROIC | 1.2% | -0.7% | 1.1% | 0.9% | -5.4% | -6.3% |
| ROE | 6.1% | -1.7% | 3.7% | 2.8% | -24.4% | -27.2% |
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 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Randall & Quilter Invt Hldgs Ltd ($RQIH) | 20.7% | 10.0% | 22.1% | 110.7% | |
| Helios Underwriting ($HUW) | 47.9% | 12.8% | 54.8% | 18.4% | |
| Beazley ($BEZ) | | 1.1% | 6.0% | 7.9% | 5.7% |
| Marsh & Mclennan Cos Inc ($MHM) | | -0.4% | 2.5% | 6.2% | 6.6% |
| F.B.D.Hldgs ($FBH) | 1.1% | 0.8% | -6.5% | 5.8% | |
| |
|---|
| Median (8 companies) | 21.4% | 0.8% | 4.3% | 6.0% | 5.7% |
|---|
| Arab Insurance Group(Arig) ($AGRD) | | -14.9% | -14.5% | 1.2% | 10.3% |
Top companies by EBITDA margin, %
| Top | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Marsh & Mclennan Cos Inc ($MHM) | 20.8% | 22.0% | 23.5% | 23.8% | 21.8% |
| |
|---|
| Median (1 company) | 20.8% | 22.0% | 23.5% | 23.8% | 21.8% |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| F.B.D.Hldgs ($FBH) | 7.0% | 5.2% | 3.7% | 2.3% | |
| Marsh & Mclennan Cos Inc ($MHM) | 2.8% | 2.5% | 1.9% | 2.2% | 2.1% |
| Randall & Quilter Invt Hldgs Ltd ($RQIH) | 1.1% | 0.3% | 3.5% | 0.3% | |
| Rsa Insurance Group ($RSAB) | 0.5% | 0.2% | 0.4% | 0.3% | |
| General Accident ($GACB) | 0.3% | 0.2% | 0.1% | 0.1% | |
| |
|---|
| Median (8 companies) | 0.5% | 0.2% | 0.3% | 0.2% | 0.1% |
|---|
| Arab Insurance Group(Arig) ($AGRD) | 0.2% | 0.3% | 0.2% | 0.3% | 0.1% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Marsh & Mclennan Cos Inc ($MHM) | 21.0% | 22.0% | 23.6% | 23.3% | 20.5% |
| F.B.D.Hldgs ($FBH) | 0.2% | -9.0% | 0.9% | 4.5% | |
| Beazley ($BEZ) | 4.5% | 4.8% | 4.8% | 2.8% | 1.5% |
| Rsa Insurance Group ($RSAB) | -0.1% | 1.2% | 2.7% | 2.8% | |
| Randall & Quilter Invt Hldgs Ltd ($RQIH) | -3.4% | -2.1% | 1.7% | 1.7% | |
| |
|---|
| Median (8 companies) | 1.0% | 1.2% | 2.2% | 2.2% | 2.2% |
|---|
| Arab Insurance Group(Arig) ($AGRD) | 1.2% | -0.7% | 1.1% | 0.9% | -5.4% |
Top companies by Net Debt / EBITDA
| Top | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Marsh & Mclennan Cos Inc ($MHM) | 0.5x | 1.1x | 1.2x | 1.3x | 1.5x |
| |
|---|
| Median (1 company) | 0.5x | 1.1x | 1.2x | 1.3x | 1.5x |
|---|
