Protector Forsikring ASA · OSL:PROT
Protector Forsikring ASA — Q3 2012 Earnings Presentation
20 slides from Protector Forsikring ASA's earnings presentation, Nov 1, 2012
Slide 1: Q3 results 2012 Investor presentation
Q3 results 2012 Investor presentation November 1st 2012
Slide 2: Facts about Protector
Facts about Protector • A focused non-life Norwegian insurance company • Vision: • Established Jan.1, 2004. (Listed on Oslo Stock Exchange May 2007) “Protector will be the challenger to the established insurance companies” • Entered the Swedish market in 2011 and the Danish market in 2012 • Main tar
Slide 3: Highlights Q3 2012
Highlights Q3 2012 19% growth, strong result and increased guiding • GWP up 19% • Net combined ratio, 85.9%, down 2.2 percentage points • Return on investments, NOK 87.8m (2.8%), up from NOK -110.2m (-4.9%) • Continued reduced risk in the investment portfolio, equities now 8,7% • Operating profit, N
Slide 4: Gross written premium Q3 2012
Gross written premium Q3 2012 GWP up 19%, from NOK 211.2m to NOK 251.6m • GWP up 21% within the Norwegian commercial and public lines of business – Strong renewal rate, 103 %, up from 94% in Q3 2011 – 21% growth in the commercial sector, strong new sales and good access to quotations • GWP in Sweden
Slide 5: Claims development Q3 2012
Claims development Q3 2012 Net claims ratio 73.7%, unchanged from Q3 2011 • Strong development within change of ownership insurance (normally the best quarter due to seasonality) • Run-off losses of MNOK 6.8 (run-off-gains of MNOK 1 in Q3 2011) • Gross claims ratio 69.3%, down from 74.0% Net claims
Slide 6: Cost ratio Q3 2012
Cost ratio Q3 2012 Gross cost ratio 12,8%, down from 13,1% in Q3 2011 • Administration costs increasing in nominal value due to increased manning • Average manning in Q3 increased by 10 manning years compared to Q3 2011 - Acceptable manning level reached in Q4 • Guided gross cost ratio < 13%, ahead
Slide 7: Highlights Q3 – Norwegian Commercial/public lines
Highlights Q3 12 – Norwegian Commercial/public lines • Volume up 21% GWP Q3 2008 – Q3 2012 (NOKm) – 21% growth in the commercial sector 125 103 – 2 large¹ wins 99 – 26% growth in the public sector (low volume) 68 54 – Underlying growth 2% • Personal lines of business , 73% of volume Q3 2008 Q3 2009
Slide 8: Highlights Q3 – Sweden and Denmark
Highlights Q3 12 – Sweden and Denmark GWP (NOKm) • Steady growth in Sweden and Denmark 89 - Posten (Motor) in Sweden and Denmark on board July 1st - New business in municipality sector (1 large win) - Some new commercial clients - 100 mill in GWP end year still realistic 18 20 2 • Well received amon
Slide 9: Highlights Q3 2012 - Change of ownership insurance
Highlights Q3 2012 - Change of ownership insurance • Volume up 3% GWP Q3 2008 – Q3 2012 (NOKm) – Stable market share well above 50% 109 105 – Hit-ratio stable on a high level approx. 80% 90 74 65 – Real estate prices YTD up 7,3% relatively to 2011¹ – No. of properties sold flattens or slightly drops
Slide 10: Results Q3 2012
Results Q3 2012 NOKm Q3 2012 Q3 2011 YTD 2012 YTD 2011 2011 Premiums written gross 251,6 211,2 1 318,8 1 023,0 1 202,5 • GWP up 29% YTD Premiums earned gross 374,9 301,0 1 088,7 876,8 1 177,0 - No. 1 Nordic Claims incurred gross (259,9) (222,9) (790,1) (635,9) (839,2) Premiums earned for own account
Slide 11: Balance sheet Q3 2012
Balance sheet Q3 2012 NOKm 30.09.2012 30.09.2011 31.12.2011 Financial assets 3 173,3 2 248,8 2 354,8 • Investment portfolio, 41% growth Bank deposits 153,6 103,5 112,7 Other assets 478,4 371,4 332,4 - Issue of Tier 2 bond, 7 percentage points of Total assets 3 805,3 2 723,7 2 799,8 the growth Total
Slide 12: Dividend policy and long term financial objectives
Dividend policy and long term financial objectives • Protector’s target is to maintain a solvency margin (as defined by the Financial Supervisory Authority of Norway) of at least 250% • Protector’s dividend policy shall be competitive with comparable investments. • Unless otherwise indicated by the
Slide 13: Long term financial objectives
Long term financial objectives • Medium term GWP growth rate: 10% Net Combined Ratio 95,8 % 97,9 % 100 % 94,2 % • Net combined ratio: 91% (92%) 85,3 % 84 % Target < 91% 80 % • Solvency margin: > 250% (new) 60 % • Return on solvency capital (before tax): 20% 40 % 2008 2009 2010 2011 Outlook 2012 Solv
Slide 14: Asset allocation
Asset allocation • Reduced risk in the investment portfolio - Allocation in equities reduced from 12.9% end of Q2 2012 to 8.7% end of Q3 2012 - Reallocation of NOK 150m from equities to bonds and all new capital allocated to bonds • Bonds 91.3% of portfolio, Norwegian equities 8.7% Allocation of inv
Slide 15: Investment performance Q3 2012
Investment performance Q3 2012 • Net investment result of NOK 87.8 m, 2,8% return (NOK -110.2m, -4,9%) - YTD; Net investment result of NOK 184.4m, 6,8% return (NOK -99.4m, -4,5%) • Equities, return of 8.9% (-21.6%), OSEBX 9.5%, OSEFX10.4% • Bond portfolio, return of 2.1% (-0.2%) • Investment portfol
Slide 16: Portfolio structure and quality - bond portfolio
Portfolio structure and quality - bond portfolio • Duration (credit) of bond portfolio is 2,58 years (2,18 years) - Interest duration years 0,59 (0,23 years) • Increased risk in non rated funds Bond portfolio 30 Sept 2012 Quality bond portfolio 30 Sept 2012 Foreign funds; Split of fixed incom e port
Slide 17: Shareholder matters October 2012
Shareholder matters 23 October 2012 Shareholder No. shares Percent Related parties shareholding ODIN NORDEN 7 469 255 8,67 % MSF-MUTUAL FINANCIAL SERVI FD 4 479 410 5,20 % HANSARD EUROPE LTD 3 893 193 4,52 % VPF NORDEA NORGE VERDI 3 875 743 4,50 % • Management’s direct and indirect shareholding tota
Slide 18: Outlook 2012, increased
Outlook 2012, increased Guiding 13 July 2012 Guiding 1 Nov 2012 • GWP up 26% GWP up 26 % – Status per Q3, on schedule • Combined ratio 85% Combined ratio 84% – Status per Q3, ahead of schedule • Return on investments 5,8 % Return on investments 7,8 % – Status per Q3, ahead of schedule • Operating pr
Slide 19: Outlook 2012, increased
Outlook 2012, increased NOKm Res 29 Feb 7 May 13 July New 2011 2012e 2012e 2012e 2012e Premium growth (%) 19 18 22 26 26 Return assumptions Q4 2012: Operating profit 82.9 250 270 315 382 Equity allocation approx. 9% Return equities: 2% Investment Income -51.4 125 136 167 219 Return bonds: 1% Gross c
Slide 20: Summary
Summary • GWP up 19% • Net combined ratio, 85.9% • Return on investments, NOK 87.8m (2.8%), up from NOK -110.2m (-4.9%) • Continued reduced risk in the investment portfolio, equities now 8,7% • Operating profit, NOK 124.6m, up from NOK - 82m • Guiding 2012 increased – Operating profit up from NOK 31