Protector Forsikring Asa · OSL:PROT
Protector Forsikring Asa — Q3 2013 Earnings Presentation
18 slides from Protector Forsikring Asa's earnings presentation, Oct 31, 2013
Slide 1: Q3 results 2013 Investor presentation
Q3 results 2013 Investor presentation October 31st 2013
Slide 2: Facts about Protector
Facts about Protector • A focused Norwegian non-life insurance company • Vision: “Protector will be the challenger to the established insurance • Established Jan.1, 2004. (Listed on Oslo Stock Exchange May 2007) companies” • Entered the Swedish market in 2011 and Denmark 1 Jan. 2012 • Main targets:
Slide 3: Highlights Q3 2013
Highlights Q3 2013 Continued profitable growth, increased guiding • GWP up 7% • Net combined ratio, 93.4%, up 7.4 percentage points • Return on investments, NOK 75.6m (2.0%), down from NOK 87.8m (2.8%) – 24 % growth in investment portfolio • Operating profit, NOK 100.1m, down from NOK 124.6m • Guidi
Slide 4: Gross written premium Q3 2013
Gross written premium Q3 2013 GWP up 7%, from NOK 251.6m to NOK 270.4m • GWP down 2% within the Norwegian commercial and public lines of business – Good renewal rate, 89%, down from a strong 100% in Q3 2012 – Good access to quotations, but hit-ratio slowing down in commercial sector • GWP in Sweden
Slide 5: Claims development Q3 2013
Claims development Q3 2013 • Gross claims ratio¹ 77.4%, up from 69.3% • Property, other illness and group life (municipality sector) in Norway behind schedule, all other products in Norway doing well - 3 large property claims in Norway, more than normal (1-2) • Sweden and Denmark slightly behind sch
Slide 6: Cost ratio Q3 2013
Cost ratio Q3 2013 • Gross cost ratio¹ 14.6 %, up from 12.8% – Increased manning in the commercial sector in Sweden, Denmark and Norway • Increased no. of employees continues in Q4 – Increased cost level within change of ownership insurance • Net cost ratio² 16.2 %, up from 12.3 % – Driven by the in
Slide 7: Highlights Q3 2013 – Norwegian Commercial/public lines
Highlights Q3 2013 – Norwegian Commercial/public lines • Volume down 2% – Good renewal rate, 90% down from strong 103% in Q312 GWP Q3 2009 – Q3 2013 (NOKm) – One large non-renewal 125 122 99 103 – Hit-ratio slowing down in the commercial sector 68 • Single digit growth in Q4 expected – Good access t
Slide 8: Highlights Q3 2013 – Sweden and Denmark
Highlights Q3 2013 – Sweden and Denmark GWP Q3 2011 – Q3 2013 • Continued growth 26 18 – 3 percentage points of the growth on company level 2 • Well prepared for “hunting” and renewal season Q3 2011 Q3 2012 Q3 2013 – 18 on board in Sweden per 30.09, 14 on board in Denmark – Minor increase in human c
Slide 9: Highlights Q3 2013 - Change of ownership insurance
Highlights Q3 2013 - Change of ownership insurance • Volume up 12% – Stable market share well above 50% GWP Q3 2009 – Q3 2013 – Hit-ratio stable on a high level, approx. 80% 122 – Real estate prices in Q1-Q3 up 5.7% relatively to 2012¹ 105 109 90 – High turnover rate 74 • Good profitability in Q3 –
Slide 10: Results Q3 2013
Results Q3 2013 NOKm Q3 2013 Q3 2012 Q1-Q3 2013 Q1-Q3 2012 FY 2012 Premiums written gross 270,4 251,6 1 622,9 1 318,8 1 517,0 Premiums earned gross 468,6 374,9 1 346,2 1 088,7 1 464,2 Claims incurred gross (384,0) (276,1) (1 088,2) (843,9) (1 171,0) Premiums earned for own account 357,9 281,6 1 021,
Slide 11: Balance sheet Q3 2013
Balance sheet Q3 2013 NOKm 30.09.2013 30.09.2012 31.12.2012 Financial assets 3 943,4 3 173,3 3 192,8 • Investment portfolio, 24% growth Bank deposits 92,1 153,6 141,9 Other assets 651,7 478,4 430,9 Total assets 4 687,3 3 805,3 3 765,6 Total equity 683,3 609,6 582,1 Subordinated loan capital 148,1 14
Slide 12: Asset allocation
Asset allocation • Bonds 89.6% of portfolio, Norwegian equities 10.4% Allocation of investments 30.09.2013 Allocation of investments 31.12.2012 Equities Equities 10,4 % 8,9 % Bond funds Bond funds 61,5 % 59,3 % Bonds and Bonds and cash cash 31,8 % 28,1 % Total financial assets; NOK 3.943m Total fina
Slide 13: Investment performance Q3 2013
Investment performance Q3 2013 • Net investment result of NOK 75.6 m, 2,0% return (NOK 87.8m, 2,8%) • Equities, return of 6.2% (8.9%), OSEBX 6.6%, OSEFX 6.4% • Bond portfolio, return of 1.5% (2.1%) - Credit spreads are tightening • YTD; Net investment result of NOK 172.9m, 4,7% return (NOK 184.4m, 6
Slide 14: Portfolio structure and quality - bond portfolio
Portfolio structure and quality - bond portfolio • No currency risk • Duration 1,16 years (0,59) average maturity is 3,52 years (2,58 years) • Increased risk in non rated funds Bond portfolio 30 Sept 2013 Quality bond portfolio 30 Sept 2013 Norwegian financial Split of fixed income portfolio NOK mil
Slide 15: Shareholder matters October 2013
Shareholder matters 23 October 2013 Shareholder No. shares Percent ODIN NORDEN 6 780 422 7,87 % Related parties shareholding MSF-MUTUAL FINANCIAL SERVI FD 4 479 410 5,20 % PROTECTOR FORSIKRING ASA 3 570 661 4,14 % OJADA AS 3 563 116 4,14 % HANSARD EUROPE LTD 3 319 875 3,85 % • Management’s direct an
Slide 16: Outlook 2013, increased
Outlook 2013, increased Guiding 11 July 2013 Guiding 31 Oct 2013 • GWP up 22% GWP up 22 % – Status per Q3, on schedule • Combined ratio 88% Combined ratio 88% – Status per Q3, on schedule • Return on investments 4,9% Return on investments 5,9 % – Status per Q3, ahead of schedule • Operating profit N
Slide 17: Outlook 2013, increased
Outlook 2013, increased NOKm Res 29 28 Feb Feb 14 7 May May 11 July New 2011 2012 2012e 2013e 2012e 2013e 2013e 2013e Premium growth (%) 19 26 18 18 22 20 22 22 Return assumptions 2013: Operating profit 82.9 393 270 250 270 310 340 380 Equity allocation approx. 10 % Investment Income -51.4 246 125 1
Slide 18: Summary
Summary • GWP up 7% • Net combined ratio, 93.4%, up 7.4 percentage points • Return on investments, NOK 75.6m (2.0%), down from NOK 87.8m (2.8%) – 24 % growth in investment portfolio • Operating profit, NOK 100.1m, down from NOK 124.6m • Guiding 2013, increased – Operating profit up from NOK 340m to