Protector Forsikring Asa · OSL:PROT
Protector Forsikring Asa — Investor Presentation (March 2013)
40 slides from Protector Forsikring Asa's investor presentation, March 2013
Slide 1: Investor presentation March 2013
Investor presentation March 2013
Slide 2: Sverre Bjerkeli – Chief Executive Officer
Sverre Bjerkeli (53) – Chief Executive Officer Relevant experience: • Head of consumer/commercial division at Storebrand (If..) • CEO Storebrand Bank. • IT Key positions in NOKIA/ICL and CEO Eterra/Ementor • Last 9 years in Protector • Handball player and trainer on international level • Marathon ru
Slide 3: A profitable growth story
A profitable growth story
Slide 4: History – a "new" Norwegian company
History – a ”new” Norwegian company • Protector established Jan1st, 2004. (Listed on Oslo Stock Exchange May 2007) – Ownership, 80-85% Norwegian; ODIN, Alfred Berg Norge/Gambak, employees, etc. • Management and employees with solid background from the insurance industry – From 15 employees in 2004 t
Slide 5: Vision, Business Idea, Main targets and Values
Vision, Business Idea, Main targets and Values • Vision: “Protector will be the challenger to the established insurance companies”. • Business Idea: “This will happen through unique relationships, state of the art decision making, and cost effective solutions” • Main targets: Profitable annual growt
Slide 6: A focused insurance company…
A focused insurance company… Customer Product lines Distribution segments channels Large and Medium sized Full range (standard Insurance brokers commercial clients products) Selected affinity (group Tailored product lines Insurance brokers company) programs Municipalities and public Full range (stan
Slide 7: Commercial and public lines
PIA ALMVANG (37) Commercial and public lines Director Commercial and public lines • Fast growing • Top class in-house underwriting • Cost leader Education: MSc in Actuarial Science from the • Preferred by the broker University in Oslo Relevant experience: 7 years experience from Swiss Re and • Scala
Slide 8: Commercial and public lines of business
Commercial and public lines of business • Market; – Brokered Non-Marine business (NOK 6.5 billion) • Strategy: – Product: Standardized products – Price: Commercially attractive – Distribution: Through brokers only – Promotion: Target individuals in leading broker houses • Protectors distribution phi
Slide 9: The competitive landscape has changed significantly, leaving the field less crowded
The competitive landscape has changed significantly from 2007 to 2011, leaving the field less crowded Competitive landscape 2007 Competitive landscape 2012 Gjensidige If…, Tryg If…, Tryg Gjensidige KLP, Big internationals, DNB KLP, DNB NEMI, Unison, Tennant, Trygg Hansa, Sparebank 1, Codan, Storebra
Slide 10: Quality leader among Insurance Brokers
Quality leader among Insurance Brokers 80 Protector 74 78 • Rated no.1 sixth year in a row 65 Competitor 1 51 62 • Claims handling department rated on top for the first time 62 Competitor 2 57 57 2012 • The survey used internally to 61 2011 Competitor 3 60 identify areas for improvement 63 2010 59 C
Slide 11: Change of ownership insurance
Change of ownership insurance MERETE C BERNAU (46) – Change of Ownership Director • Distribution through Real Estate Brokers • Protector Market leader • Claims Handling a challenge • Critical mass and structure a must • Cost leader • 6-8% points lower than competitors • Different value chain and com
Slide 12: Claims handling, a challenge
Claims handling, a challenge • Liability product, 5 years liability accord to Norwegian law, a lot of money and passion involved, “new product” • Technical surveys (Boligsalgsrapport) are done with a very poor quality level • Approx. 4.600 claims reported per year • 500+ law suits per year • 30 lawy
Slide 13: Efficiency and quality, claims handling
Efficency and quality, claims handling No. of claims No. of claims closed No. of open claims Total Lawyer Q2 . Q3 . M9 . YTD . Q2 Q3 . M9 . YTD . Q2 . Q3 . M9 . YTD . Q3 M YTD No. 1 88 73 31 250 193 73 56 417 145 125 123 123 No. 2 74 27 28 187 134 75 32 377 145 92 96 96 No. 3 58 20 21 169 105 71 47
Slide 14: Evaluation of Protector among Real Estate Brokers
Evaluation of Protector among Real Estate Brokers • All-time-high, 88% 92 90 What is the value of COI for your client? 91 90 What is the value of COI for you as a real estate broker? 89 When asked for your opinion on Protector, to what extent 87 2011 will you speak of the company in positive terms?
Slide 15: Customer satisfaction with Protector
Customer satisfaction with Protector Sellers' satisfaction with Protector 83 Overall impression of Protector 88 Handling of the claim Q3-Q4 2011 88 Q1-Q2 2011 Security of the product Q3-Q4 2010 88 Q1-Q2 2010 Necessity of the product Q3-Q4 2009 85 Q1-Q2 2009 Trustworthiness Q3-Q4 2008 87 Q1-Q2 2008 A
Slide 16: A profitable growth story - facts and figures
A profitable growth story - facts and figures
Slide 17: Top line development 2008 - 2012
Top line development 2008 - 2012 • From 0 to 1.5 billion in 9 years Change of ownership insurance started the growth,… …then P & C increased Protector’s top line… …followed up by Personal Lines of Business. • Commercial and public segments are 2/3 of company, steady growing Gross premium written (MN
Slide 18: Cost and Claims ratio 2004 - 2012
Cost and Claims ratio 2004 - 2012 • 2012 Gross cost ratio < 13 % • Including Claims handling cost (50 % of employees in claims handling) • Commercial and Public Segment significant lower • Relatively stable claims ratio • Average compared to market peers Gross cost ratio 2004 - 2013¹ Net claims rati
Slide 19: Return on Solvency capital 2004 – 2012
Return on Solvency capital 2004 – 2012 • Average Returns on solvency capital after tax historical to date is 20% • Earned money already in Q4 2004 • 2008 and 2009 heavily influenced by financial crises • Investment portfolio is now > 2x Top line => solid basis for future financial income 38% 38% 40%
Slide 20: Long term financial objectives
Long term financial objectives • Medium term GWP growth rate: 10% Net Combined ratio • Net combined ratio: 91% 100% 95,8 % 97,9 % 94,2 % 85,3 % 86,2 % Target < 91% 80% • Solvency margin: > 250% 60% • Return on solvency capital: 20% 40% 2008 2009 2010 2011 2012 Solvency margin Return on solvency capi
Slide 21: Solid financial performance
Solid financial performance MNOK 2004 2005 2006 2007 2008 2009 2010 2011 2012 Gross premiums w ritten 103,9 448,5 516,0 664,9 729,0 871,4 1 011,0 1 202,5 1 517,0 Underw riting result (8,4) 20,2 60,8 48,5 32,6 22,5 45,8 134,3 147,9 Net financial income 0,6 1,3 12,2 40,2 (28,2) 224,4 176,2 (51,4) 245,
Slide 22: Balance sheet 2004 – 2012
Balance sheet 2004 – 2012 MNOK 2004 2005 2006 2007 2008 2009 2010 2011 2012 Financial assets 57 311 673 1 153 1 221 1 635 2 022 2 355 3 193 Bank deposits 10 101 85 91 37 86 100 113 142 Other assets 133 329 352 472 364 252 265 332 431 Total assets 199 741 1 110 1 716 1 622 1 973 2 386 2 800 3 766 Tot
Slide 23: What made it happen?
,OTEGTOR forsikring What made it happen?
Slide 24: What made it happen?
What made it happen? 1. Start with a single ambition - Establish a winning culture 2. Establish Clear objectives - Top 3, Cost- and Quality leadership, Profitable growth 3. Take right people on board and keep them happy - Top 20 empl. stable last 3 years 4. Define a clear strategy, your value chain
Slide 25: Operational control, quality and efficiency delivered every day
Operationel control, quality and efficiency delivered every day… Change of Commercial ownership 1,2 & 3 Customer Under- Claims- line Technical Sales Sales Services -service writing handling Claims- surveys handling 25
Slide 26: Parallel development projects
…Together with a lot of parallell development projects • CRM and UW-prosjekt • Skadebegrensende/regress Change of • Retts- og prosessprosjekt • Taksteffektivisering ownership • Ny produktutvikling • Utvikling av CLAIMS • Kremmerskole og lederlinje • Sverige og Danmark • Effektivisering • Komput skad
Slide 27: 2012 on and forward
2012 on and forward
Slide 28: Highlights 2012 – Best year ever
Highlights 2012 – Best year ever Strong growth, strong combined ratio and Scandinavian startup • Volume up 26 % No. 1 in Nordic market • Gross cost ratio down to 12.7 % No. 1 in Nordic market in our segments • Net combined ratio 86.2 % Top 3 in Nordic market • All time high on quality indexes • Swed
Slide 29: Highlights 2012 - Norwegian Commercial and public lines
Highlights 2012 - Norwegian Commercial and public lines • Volume up 26% - Strong competition in the Norwegian municipality sector, still rate GWP 2008 – 2012 (NOKm) pressure, 15 % growth in Protector volume 985 - Still fast growing in the commercial sector, 31% 781 679 - 2 large wins and 2 none rene
Slide 30: Highlights 2012 - Change of ownership insurance
Highlights 2012 - Change of ownership insurance • Volume up 7 % GWP 2008 – 2012 (NOKm) - Market share well above 50% - Hit-ratio on a stable high level, around 80% 400 426 - Real estate prices up 7.7% in 2012 relative to 2011 332 - 4-6% growth in the real-estate prices in 2013 expected 263 265 • Pro
Slide 31: Sweden – Repeating a "winning formula"
Sweden – Repeating a “winning formula” Hans Didring (32) – Head of Sweden Branch • Same Vision, Business idea, Strategy and Values • Initial project completed at minimal cost • Cost ratio leadership realistic objective • Operational support from Norway until critical mass Education: • Well received
Slide 32: - followed by Denmark
- followed by Denmark Flemming Conrad (55) – Head of Danish Branch • Same Vision, Business Idea, Strategy and Values • Initial project completed at even lower costs in Denmark (2011) • Startup team on board • Initial Focus Municipality sector • Accumulated GWP in S/DK estimated to > MNOK 200 during
Slide 33: Highlights Sweden and Denmark 2012
Highlights Sweden and Denmark 2012 • Same Vision, Business Idea, Strategy and Values – No significant project surprises GWP (NOKm) 105 – Well received among Swedish and Danish leading Brokers • Operative presence established 22 16 – 13 people on board in Stockholm per Feb. 1.st 2013 2 – 6 people on
Slide 34: Customers
Customer base January 1st 2013 Sweden Denmark - 80 municipalities - 11 municipalities - 30 commercial customers - 23 commercial customers Customers Esbjerg Billund Karlskrona Århus Brokers 34
Slide 35: Peers - Combined ratio 2012
Peers - Combined ratio 2012 120% 107,8 % 98,2 % 100% 89,3 % 85,3 % 86,2 % 87% 88,2 % 80% 60% 40% Gjensidige Protector Storebrand Tryg If Sparebank1 KLP 35
Slide 36: Nordic peers
Nordic peers Premium growth Combined ratio 35% 100% 25% 15% 90% 5% -5% 80% 2007 2008 2009 2010 2011 2012 2007 2008 2009 2010 2011 2012 Tryg Topdanmark* Gjensidige If… Protector * Pr. Q3 2012 Return on investments RoNAV 65% 20% 15% 45% 10% 25% 5% 0% 5% -5% -15% -10% 2007 2008 2009 2010 2011 2012 2007
Slide 37: Outlook 2013
Outlook 2013 NOKm Res Outlook 2012 2013 Premium growth (%) 26 18 Return assumptions 2013: Equity allocation approx. 9% Operating profit 393 270 Return equities: 8% p.a. Investment Income 246 160 Return bonds: 4% p.a. Gross cost ratio (%) 12.7 12.5 Average invested capital: NOK 3.700m Net combined ra
Slide 38: Guiding Key figures
Guiding Key figures Return on solvency capital after tax Net combined ratio 38% 38% 95,8 % 97,9 % 40% 100% 94,2 % 91% HTD 29% 85,3 % 86,2 % 30% 90,3% 20% HTD 80% 20% 20,4% 10% 5% 60% 0% 0% 40% -10% 2008 2009 2010 2011 2012 Outlook 2008 2009 2010 2011 2012 Outlook 2013 2013 Gross premiums written (MN
Slide 39: CEO Summary, Risk outlook 2013
CEO Summary, Risk outlook 2013 Slightly increased risk Risk + Volume significant up in commercial & public sector Low + Sweden and Denmark support growth No + Balance sheet growing leads to increased financial income No + Cost ratio Gross & Net going down Low 0 Slightly increased Volume in Change of
Slide 40: Summary
Summary • Results 2004-2012 shows steady growth, an average CR sized 90% and a healthy balance sheet • Protector can document Cost- and Quality leadership in selected segments • Investment portfolio more volatile than peers but ROI 2007 - 2012 is 5.8% (equities 10.0%) • Protector is among “top three
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