Insurance 2019

Insurance 100 2019

The annual report on the most valuable and strongest insurance brands May 2019

Published in association with Insurance Business

Contents.

About Brand Finance

4

Get in Touch

4

Request Your Brand Value Report

5

Foreword

6

Brand Value Analysis

8

Sector Reputation Analysis

12

Interview with Paul Lucas

14

Brand Finance Insurance 100 (USD m)

16

Definitions

18

Brand Valuation Methodology

20

Market Research Methodology

21

Stakeholder Equity Measures

21

Consulting Services

22

Brand Evaluation Services

23

Communications Services

24

Brand Finance Network

26

Brand Finance Insurance 100 May 2019 3

About Brand Finance.

Brand Finance is the world's leading independent brand valuation consultancy.

Brand Finance was set up in 1996 with the aim of `bridging the gap between marketing and finance'. For more than 20 years, we have helped companies and organisations of all types to connect their brands to the bottom line.

We pride ourselves on four key strengths:

++Independence ++Technical Credibility

++Transparency ++Expertise

We put thousands of the world's biggest brands to the test every year, evaluating which are the strongest and most valuable.

Brand Finance helped craft the internationally recognised standard on Brand Valuation ? ISO 10668, and the recently approved standard on Brand Evaluation ? ISO 20671.

Get in Touch.

For business enquiries, please contact: Richard Haigh Managing Director rd.haigh@

For media enquiries, please contact: Sehr Sarwar Senior Communications Manager s.sarwar@

For all other enquiries, please contact: enquiries@ +44 (0)207 389 9400

For more information, please visit our website:

company/brand-finance

brandfinance

brandfinance

brand.finance

4 Brand Finance Insurance 100 May 2019

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Understanding the Value of

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Join us at the Brand Finance Global Forum,

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Request Your Brand Value Report.

A Brand Value Report provides a complete breakdown of the assumptions, data sources, and calculations used to arrive at your brand's value.

Each report includes expert recommendations for growing brand value to drive business performance and offers a cost-effective way to gaining a better understanding of your position against competitors.

What is a Brand Value Report?

Brand Valuation Summary

+ Internal understanding of brand + Brand value tracking + Competitor benchmarking + Historical brand value

Brand Strength Index

+ Brand strength tracking + Brand strength analysis + Management KPIs + Competitor benchmarking

Royalty Rates

+ Transfer pricing + Licensing/franchising negotiation + International licensing + Competitor benchmarking

Cost of Capital

+Independent view of cost of capital for internal valuations and project appraisal exercises

Customer Research

+ Utilities + Insurance + Banks + Telecoms + Airlines

+ Tech + Auto + Hotels + Beers + Oil & Gas

For more information regarding our Brand Value Reports, please contact:

enquiries@

What are the benefits of a Brand Value Report?

Insight Strategy Benchmarking Education Communication Understanding

Brand Finance Insurance 100 May 2019 5

Foreword.

David Haigh CEO, Brand Finance

What is the purpose of a strong brand: to attract customers, to build loyalty, to motivate staff? All true, but for a commercial brand at least, the first answer must always be `to make money'.

Huge investments are made in the design, launch, and ongoing promotion of brands. Given their potential financial value, this makes sense. Unfortunately, most organisations fail to go beyond that, missing huge opportunities to effectively make use of what are often their most important assets. Monitoring of brand performance should be the next step, but is often sporadic. Where it does take place, it frequently lacks financial rigour and is heavily reliant on qualitative measures, poorly understood by non-marketers.

As a result, marketing teams struggle to communicate the value of their work and boards then underestimate the significance of their brands to the business. Sceptical finance teams, unconvinced by what they perceive as marketing mumbo jumbo, may fail to agree necessary investments. What marketing spend there is, can end up poorly directed as marketers are left to operate with insufficient financial guidance or accountability. The end result can be a slow but steady downward spiral of poor communication, wasted resources, and a negative impact on the bottom line.

Brand Finance bridges the gap between marketing and finance. Our teams have experience across a wide range of disciplines from market research and visual identity to tax and accounting. We understand the importance of design, advertising, and marketing, but we also believe that the ultimate and overriding purpose of brands is to make money. That is why we connect brands to the bottom line.

By valuing brands, we provide a mutually intelligible language for marketing and finance teams. Marketers then have the ability to communicate the significance of what they do, and boards can use the information to chart a course that maximises profits. Without knowing the precise, financial value of an asset, how can you know if you are maximising your returns? If you are intending to license a brand, how can you know you are getting a fair price? If you are intending to sell, how do you know what the right time is? How do you decide which brands to discontinue, whether to rebrand and how to arrange your brand architecture? Brand Finance has conducted thousands of brand and branded business valuations to help answer these questions.

Brand Finance's research revealed the compelling link between strong brands and stock market performance. It was found that investing in highly-branded companies would lead to a return almost double that of the average for the S&P 500 as a whole.

Acknowledging and managing a company's intangible assets taps into the hidden value that lies within it. The following report is a first step to understanding more about brands, how to value them and how to use that information to benefit the business.

The team and I look forward to continuing the conversation with you.

6 Brand Finance Insurance 100 May 2019

Stellar brand value from Ping An moves China into pole position on global insurance stage.

++ Ping An strengthens its position as the world's most valuable brand, valued at US$50.5 billion after whopping 93% increase since last year

++ Chinese insurance brands Ping An, China Life and AIA hold top 3 positions in the Life Insurance sector's top ten

++ GEICO, brand value rises 34% to US$8.8 billion, leaps four places to join this year's top ten for the first time

++ New entrant Discovery is world's second strongest insurance brand, South African health insurer logs impressive 85.97 out of 100 Brand Strength Index (BSI) score

Brand Finance Insurance 100 May 20197

Brand Value Analysis.

Prime spot for Ping An

Ping An is the world's strongest and most valuable insurance brand, with its brand value up 93% to US$50.5 billion. The brand is seeing its investment in technology now beginning to pay off and reap benefits. To attract China's more than 500 million internet users, 1% of the insurance group's annual revenue has been spent on Research & Development. Business is being won by improving understanding of consumers based on data collection through online services. Last year, it is said, 36% of 40 million new insurance customers came to the company that way. InsurTech and FinTech solutions remain an integral part of Ping An's ongoing strategy. Ping An is also the fourth most valuable brand in China.

Global success for China

The total brand value for all insurance brands in China, according to this year's Brand Finance Insurance 100 report, is US$98.2 billion. This earns it pole position in the global insurance market. The US drops to second place with a brand value of US$78.1 billion. Brand value for China Life is up from US$14.4 billion to US$21.8 billion, and more growth is likely for it, PICC and CPIC. In Asia-Pacific (APAC) growth continues across life, health, property and casualty (P&C) insurance. The strongest growth is seen in health insurance. While India is increasing its health insurance penetration on its rural population, China is focusing health insurance and long-term care insurance on its

Ping An, China Life, and other Chinese insurance brands are once again benefiting from the growth of the middle-class consumer and their own ability to tap into the power of technology to sharpen their business. Whilst cybersecurity incidents and business interruptions dominate risk landscapes for companies of all sizes in the global market, innovative products, new health insurance products and good use of technology have made this a positive year for many insurance brands.

David Haigh CEO, Brand Finance

8 Brand Finance Insurance 100 May 2019

Brand Value Analysis.

USD bn

aging population. By 2050 39% of the Chinese people will be over 65.

The benefit of blockchain

AIA, with a brand value up 51% from US$10.3billion to US$15.5 billion, retains its title as Hong Kong's premier brand. The brand is flexing its technological muscles, having recently launched a blockchain-enabled bank assurance platform, allowing it and its bank distributers to share policy data and digital documents in real time. The platform also reconciles commissions automatically through smart contracts.

Similarly, European giant AXA is offering flight-delay insurance over a blockchain platform with parametric triggers and smart contracts. Restructuring at AXA seeks to strengthen its health, property and damages insurance businesses and reduce its dependence on life insurance. The brand's acquisition of Bermuda based XL Group for US$15.4 billion and PICC Groups IPO?the first insurance brand to list on China's mainland in seven years ? indicates a real sense of confidence and growth ambition.

Brand Value over Time

60

4.5

30

1.5 0

2013 2014 2015 2016 2017 2018 2019

Ping An Allianz China Life AXA AIA

Top 10 Most Valuable Brands

1 01

2019: $50,465m +92.9% 2018: $26,155m

2 02

2019: $23,105m 2018: $20,229m

+14.2%

3 03

2019: $21,836m 2018: $14,393m

+51.7%

4 04

2019: $15,654m +17.5% 2018: $13,317m

5 05

Hong Kong

2019: $15,503m 2018: $10,270m

+51.0%

6 06

2019: $10,721m 2018: $8,738m

+22.7%

7 29

2019: $9,139m 2018: $7,208m

+26.8%

8 2 12

2019: $8,784m 2018: $6,546m

+34.2%

9 2 10

2019: $8,219m 2018: $7,169m

+14.7%

10 1 8

2019: $7,982m 2018: $7,674m

+4.0%

Brand Finance Insurance 100 May 2019 9

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