YES BANK
Pinc
INSURANCE
LEVERAGING DECADES OF FINANCIAL EXPERIENCE
Agenda • Overview of Indian Pharma Industry • Risk Exposure of Yes Bank • PINC Advantage for Yes Bank • About PINC
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Overview of Indian Pharmaceutical Sector ■
Indian pharmaceutical sector industry supplies over 50 per cent of global demand for various vaccines, 40 per cent of generic demand in the US and 25 per cent of all medicine in UK.
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Presently over 80 per cent of the antiretroviral drugs used globally to combat AIDS (Acquired Immune Deficiency Syndrome) are supplied by Indian pharmaceutical firms.
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The pharmaceutical sector was valued at US$ 33 billion in 2017.
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The country's pharmaceutical industry is expected to expand at a CAGR of 22.4 per cent over 2015-20 to reach US$ 55 billion.
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India's pharmaceutical exports stood at US$ 17.27 billion in FY18 and have reached US$ 19.14 billion in FY19.
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Some of the recent developments/investments in the Indian pharmaceutical sector are as follows: Between Jul-Sep 2018, Indian pharma sector witnessed 39 PE investment deals worth US$ 217 million. Investment (as % of sales) in research & development by Indian pharma companies* increased from 5.3 per cent in FY12 to 8.5 per cent in FY18.
► ► ► Inbillion 2017, Indian pharmaceutical sector witnessed 46 merger & acquisition (M&A) deals worth US$ 1.47 ► The exports of Indian pharmaceutical industry to the US will get a boost, as branded drugs worth US$ 55 billion will become off-patent during 2017-2019.
Pinc
Our Understanding of Zydus • Zydus Cadila is an innovative global pharmaceutical company that discovers, develops, manufactures and markets a broad range of healthcare products. • The group's operations range from API to formulations, animal health products and cosmeceuticals. • The Company is the fourth largest pharmaceutical company in India with 4.1% market share and is ranked amongst the top three players in the promoted covered market of gynecology, respiratory, pain management, cardiovascular, dermatology and gastrointestinal therapeutic areas.
• Headquartered in the city of Ahmedabad in India, the group has global operations in four continents spread across USA, Europe, Japan, Brazil, South Africa and 25 other emerging markets. • With over 13,000 employees worldwide, a world-class research and development centre dedicated to discovery research and eight state-of-the-art manufacturing plants, the group is dedicated to improving people's lives.
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Major Risk in Pharmaceutical Sector Strategic Risk
• Management decision resulting into losses for the company • Political Risk
Compliance Risk
Operational Risk
• Regulatory investigation relating to competition law, marketing practices, pricing, compliance, antitrust, environmental, employment and tax litigations. • Intellectual Property Rights • Increased Regulatory requirement
• Outsourcing risk with increasing reliance on third parties • Risks associated with product liability, and recalls, resulting in legal proceeding • Cyber Security • Crime and Physical Security • Natural Hazard Risk
Financial Risk
• Credit Risk
Reputational Risk
• Adverse event relating to Product Safety, Cyber Attack, Negative Assessment by Stakeholder...
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Risk Mitigation through Insurance
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Risk Mitigation through Liability Insurance
• Director & Officer Liability Insurance • Product Liability & Product Recall • Product Contamination Insurance • Cyber Insurance • Crime Insurance • Intellectual Property Insurance
Legal Costs ..
Legal & consultancy BIii or 6 1eaa1ng pnarma companies In FY18 l.elail COOSUDICJ Nl\CSi!les NE!(Proflt
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CD5t sunPharma 1nas 1,615.3 Auroo1nao Pharma 369.4 Lupin 493. 1 Clpla 450.5 or Reaays Laos 439.6 (adlla Health 230.1 Note: Rs In crora
26,489.5 2,161.6 16,463.0 2,423.2 15,796.6 251.3 15,155.7 1,410.5 14,281.0 946.8 11,904.9 1,ns.a sourm: rnc; IJQtlt>ase
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Why Cyber Insurance ??
►cyber Stems from the limitations of the current set of policies to provide protection for losses, whether pertaining to money , securities and Data ► The threat of cyber related risks is something that underwriters prefer to weigh and underwrite independent of other policies ►theTheconsequential threat of security encryptions being hacked and the need to address liabilities ► The Network down time resulting from a cyber invasion and the need to protect the resulting business interruption losses
Pinc
Key Risk due to Network Security Breach Banks have high potential of Network Breach which might happen on the below commonly used platforms by bank, the banks are the source of most active data I
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Banks more and more are emphasizing and developing the Online Banking systems wherein a network breach leaves chances to large amount of possible financial loss both to banks and its customers.
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Credit Card
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Mobile Banking
Online Banking
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With Application based Banking systems available on Mobile 1 network a potential network : breach can effect a large number of customers
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( Bank have a large active database \ : of its customers which have active and sensitive data of its customers. I : Network breach might expose : 1, th em. ) 1
--------------------' ,,.. Sensitive Trading data of customers ' .::: _ using the platform of banks for : ] trading also can get under network : 1 attack and high potential for 1 t Financial Loss ) , / /
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Data Loss
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Online Trading
i The above all are examples of area wherein network breach can lead to high financial loss to bank and"' ] , :
third party, it might also led to transmission of virus, denial of service etc
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Pinc
Key Risk due to Network Security Breach Banks have high potential of Network Breach which might happen on the below commonly used platforms by bank, the banks are the source of most active data •
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Bank Account Details : Bank have a large active database of its customers which have active and sensitive data of its customers. Network breach might expose them. Online Banking : Banks more and more are emphasizing and developing the Online Banking systems wherein a network breach leaves chances to large amount of possible financial loss both to banks and its customers.
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Credit Cards: Banks again have a large amount of Credit Card transaction and active data of Card users breach might lead to huge financial loss Mobile Banking: With Application based Banking systems available on Mobile network a potential network breach can effect a large number of customers Online Trading : Sensitive Trading data of customers using the platform of banks for trading also can get under network attack and high potential for Financial Loss
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The above all are examples of area wherein network breach can lead to high financial loss to bank and third part y it might also led to transmission of virus denial of service etc 1
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Cyber Liability Insurance salient features
FIRST PARTY COVERAGE
THIRD PARTY COVERAGE
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Data Liability : Loss incurred due to to Loss/
would be legally liable from third party due to Preventing Authorized person not to enter the system
Reconstitution of Data and expenses incurred due for the same which would include Notification Cost Disruption of Services
Spreading of Virus using banks Network Disruption/ Corruption or theft of third party data
Forensic Cost in event of a claim Outsourcing Expenses Cost of Repair of Reputation
Denial of Services
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Regulatory Administrative Expenses in event of a
Network Security Breach
Breach of Confidentiality/ Privacy breach due to
disclosure of data which would lead to breach of privacy policy would respond to damages and settlement for the same
Business Interruption : The loss of net profit as a result
of a material interruption to the insured's network, after a denial of service attack or network security breach
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Network Security breach due to which the Insured
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Disparagement, Plagiarism and Infringement related
claims
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Major Risk Exposure Yes Bank
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P rofessional Service
Management Decision
Third Party Claims
Physic al Damage to Asset
Employee Safety
Breach of Trust
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Bodily Injury Claims
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Fire
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Regulatory Violation
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Property Damage Claims
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Riot, Strike, Maliciou s, Terrorism Damage
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Breach of Duty
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Storm , Typhoon , Flood & Inundation
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Employmen t related claims
Error in Rendering , Service
Loss of Documents
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Road Accident
Pinc
Insurable Solution
► Bankers Blanket Bond ► Cyber Insurance ► Crime Insurance ► Professional Indemnity Insurance ► Director & Officer liability Insurance ► Currency Chest Cover ► Plastic Card Insurance ► Cash in transit Protection ► Asset Insurance ► Loan against Gold ► Employee Oriented Insurance Policies (GMC, GPA,GTL) Pinc
Summarising Key Cyber Risk for Banks • Denial of Access to Customers • Network Security Breach causing Data Breach - Notification Cost for Data Breach - Ransom for Data Breach • Business Interruption
What is Not Covered • Actual Loss of Money, due to Breach doesn't get covered under Cyber Liability Policy this can get covered under the Crime Policy or Crime Section of BBB. This is very important cover and needs to be watertight. Pinc
Pioneer Overview • Pioneer lnvestcorp (PINC) is an India-focused integrated financial services company specializing in insurance advisory services • A decade of experience in serving the needs of corporates across several industries such as Pharma,
OVERVIE
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Healthcare, IT, Liability & BFSI. • Registered
LLOYD 'S Broker
• PINC Group has a professional team of over 250+ members with a strong entrepreneurial mindset • Presence across 8 cities Mumbai I Delhi I Chennai I Bengaluru I Kolkata I Pune I Coimbatore I Ahmedabad
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Group History
•
• 20ll 2007
2000 1995 Rights issue offering of Pioneer Investcorp Ltd on Started Investment Bombay Stock Banking Exchange and Institutional Establishment of Trading business Lease Syndication Business
Commenced Equity derivatives segment
Launched new Bus inesses : 200J •Wholesale Debt Initiated Private Equity Management Advisory line of CDSL 2002 business . • Reinsurance Launched the Commenced Insurance broking covering Insurance for Indian Markets 22 countries Business
2017 Acquired License
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Strengthening and Traded volume in consolidation of Institutional Debt Syndication securities worth and Investment INR 80,oooCr Banking across (USD u .3 billion} business vert icals.
Pinc
Full-Service Spectrum of the PINC Group Service Offerings
! Investment Banking
Institutional Securities
Insurance Advisory and Intermediation
Debt Syndication & Advisory
Bond Trading PE Advisory
M&A Advisory
Institutional Equities
Direct Insurance Broking
Global Reinsurance Broking
Pinc
Direct Insurance Comprehensive understanding of an array of product options and extensive risk analysis of the client with advisory services.
7. Liability & Specie Insurance
Structured , designed and placed a comprehensive Marine Stock through put insurance for a Retail conglomerate .
1.Property & Project Insurance
8. Credit Insurance
7
2. Marine Comprehensive Insurance
Classes Handled
6. Employee Benefit Insurance
Recent Transactions
This involved extensive analysis of existing risk profile of the corporate and ensuring a through the value chain
3.0 il & Energy Insurance 4. Aviation Insurance
5. Miscellaneous
Our Approach
Understanding Client Business Strategies
Risk Evaluation & Management
It
Structuring Insurance Programs
Seeking Quotes & Placement
Claims
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Reinsurance - Facultative • •
Expertise in structuring and placing facultative deals across the globe. Leveraging excellent relationships with rated reliable and stable reinsurers from across the globe
Recent Transactions • Designed and placed an All Risk Policy for one of the biggest art galleries in India • Placed a standalone terrorism cover for one of the biggest oil & Energy groups in India
Classes Handled
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We are Registered Brokers with 500+ Direct Corporate Clients
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Retail Insurance Motor
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Travel
With the capability listed above,,' we strive to constantly evolve on the fulfillment end to deliver maximum value to our customers
Term Life
Health
Claims End to End Claim Handling and Settlement Support.
Process Clear demarcation of tangible and intangible benefits
Underwriting An inhouse underwriting team issues the best coverage options.
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Domain Expertise Our team specializes in customized insurance solutions across verticals which include Mega Risk
Aviation
Terrorism
Marine & Hull
Specialty Lines
Liability
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Leadership Gaurang Gandhi, Managing Director • Over 35+ years of professional experience across financial services mainly investment banking, leasing, structured products and project finance • Qualified Chartered Accountant
Sushant Kumar, Director & CEO • Nearly 35+ years of experience in corporate banking, SME financing, institutional sales, loan syndication and capital markets advisory
Ketan Gandhi, Director •Over 30+ years of comprehensive equity market experience with key strengths in stock picking and developing corporate relationships •Bachelor's of Commerce, HR College of Commerce, Mumbai
Jeevan Adya, Director • Over 35+ years of experience in Marketing & Business Development • Management Graduate from IMDR (Pune)
• Masters of Economics, Guwahati University; Global Executive Leadership Program, University of Michigan and Certified Associate of the Indian Institute of Bankers
Hemang Gandhi, Director More than 30 years of experience in the financial services industry, with a focus on investment banking
Rakesh Bhatia, Director • A qualified Chartered Accountant and a rank holder from the Institute of Chartered Accountants of India. • He liaisons with the regulatory bodies and focuses in creating a robust corporate governance framework for the group.
Bachelors of Commerce, Mumbai University
Sathish Mathur, CEO - Reinsurance • 30+ years in corporate finance, leasing and liability insurance • AICW A, CPA, Masters in Business Administration
Sanjay Kabra, CFO & Compliance Officer • A Chartered Accountant with a Diploma in Insurance & Risk Management from ICAI and CII, London and a Fellow of the Insurance Institute of India. • 21+ years of experience in Strategic Financial Planning, MIS Reporting and Insurance.
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Our Clients
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THERMAX
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T l I GREAT EA TERN I II PPING CO. LTD.
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[AFCOn s ] ASHOK PIRAMAL GROUP
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TATA TATA PROJECTS LIMITED
E V E R S T O N E
MARSIL EXPORTS
M u n i c h RE
SPIC
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J. Ml. BAX I & CO.
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GHARDA CHEMICALS LIMITED
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Pinc
Contact Us Corporate Office:
MUMBAI
BENGALURU
1218, 12th Floor, Maker Chamber V, Nariman Point, Mumbai 400 021. Tel: +91 22 6618 6400 / 022-6618 6633 Fax: +91 22 6618 6623
No.105 - 105A, Prestige Terminus 1, 1st Floor, Old Airport Exi t Road, Bengaluru - 560 017. Tel: +91 80 2522 0110 New Delhi
DELHI
KOLKATA
PUNE
812, 8th Floor, Kailash Buil ding , 26, Kasturba Gandhi Marg, Connaught Place , New Delhi- 110 001. Tel : +91 11 4516 6705 Fax: +91 11 4516 6704
Flat No.GF-1, Ground Floor, Block B, Tivoli Court, 1C, Ballygunge, Circular Rd, Kolkata - 700 019. Tel: +91 33 4064 7970 Fax: +91 33 4064 7971
Global Trade Centre , 1 / 1, Rambaug Colony , L.B.S. Marg, Navi Peth, Pune - 411030.. Tel : +91 20 24325460 Mobile No. - 9960183334
AHMEDABAD 4th Floor, Unit Space No. 415, "Signature", Plot No. 13B, GIFT SEZ, GIFT CITY, Gandhinagar - 382355 Mobile No. - 9712149199
CHENNAI 17,B / 4, 4th Floor, Adwa ve Towers, Chevalier Sivaji Ganesan Sal ai, South Boag Road , T . Nagar, Chennai - 600 017 Tel: +91 44- 48601602
COIMBATORE 122 , West Ramalinga Road,, RS Puram, Coimbatore-641002, Mobile No. - 9894244321
Insurance
Reinsurance
RahulChauhan
Akshay Karnath
Email: rahul.chauhan@pincinsure.com
Email: akshay.kamath@pincinsure.com
Pinc
Disclaimer The information and material provided in this presentation do not constitute an offer or solicitation for the purchase or sale of any security and financial instrument. The information may be obtained from various sources and PINC and/or its affiliates do not represent that the information is accurate or complete, and it should not be relied upon as such. PINC accepts no liability whatsoever for any direct or consequential loss arising from the use of this material or its contents. All estimates and opinions provided herein constitute the original researcher's judgment as of the date of the report and may be subject to change without notice. PINC will not be responsible for the consequences of reliance upon any opinion or statement contained herein. The returns on the products discussed in this material are not guaranteed by any bank unless specifically stated and are subject to investment risks, including possible loss of the principal amount invested. An investment in any product should be made only after careful study of the most recent sales prospectus, term sheets, relevant fund regulations and basic legal information contained therein. Furthermore, investments in foreign currencies are subject to
exchange
rate
fluctuations . Before entering into any transaction, you should consider the suitability of the transaction to your circumstances and independently review (with your professional advisors as necessary) the specific financial risks as well as legal, regulatory, credit, tax and accounting consequences.
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