Sjova-almennar Tryggingar Hf · OMXICE:SJOVA
Sjova-almennar Tryggingar Hf — FY2017 Earnings Presentation
23 slides from Sjova-almennar Tryggingar Hf's earnings presentation, Feb 15, 2018
Slide 1: 2017 Annual Results Translation of Investors' Presentation
2017 Annual Results Translation of Investors’ Presentation 15 February 2018
Slide 2: Sjova is #1 in the Icelandic Customer Satisfaction Index
Sjova is #1 among insurance companies in the Icelandic Customer Satisfaction Index. We are pleased that our customers are happier.
Slide 3: 2017 Financial Year: Technical results almost doubled YoY
2017 Financial Year Technical results almost doubled YoY Performance Combined ratio • Profit ISK 1,746 m • Combined ratio was 99.4% compared to • Technical results of ISK 1,158 m 100.9% in 2016 • Actions taken to reduce the combined ratio were directed both at setting premiums and reducing costs Inv
Slide 4: Q4 in brief: Core operations steadily improving
Q4 in brief Core operations steadily improving Performance Combined ratio • Profit ISK 416 m • Combined ratio was 99.6% compared to • Technical results of ISK 274 m 100.1% in Q4 2016 Investments Claims • Investment income ISK 649 m • Claims ratio 75.4% • Return on investment portfolio 1.7% • Increas
Slide 5: Highlights of Q4 2017
Highlights of Q4 2017 Segment performance before tax Q4 2017 Q4 2016 Q4 2017 Q4 2016 Profit for the period 416 1,124 1.289 1.113 Earnings per share 0.29 0.73 Pre-tax profit 584 1,289 584 274 310 Technical results 274 176 176 Profit on investment operations 310 1,113 Annualised return on equity (ROE)
Slide 6: Highlights of full year 2017
Highlights of full year 2017 2017 2016 Segment performance before tax Profit for the period 1,746 2,690 2017 2016 Earnings per share 1.23 1.75 3.065 2.419 Pre-tax profit 2,085 3,065 2.085 Technical results 1,158 646 1.158 927 646 Profit on investment operations 927 2,459 Annualised return on equity
Slide 7: Income statement: Healthy premium growth and cost restraint
Income statement Healthy premium growth and cost restraint Q4 2017 Q4 2016 % 12M 2017 12M 2016 % Premiums earned 4,211 4,051 3.9% 16,383 15,399 6.4% Earned premiums, net of reinsurance 3,997 3,841 4.0% 15,539 14,488 7.3% Investment income 649 1,359 -52.2% 2,264 3,434 -34.1% Total income 4,691 5,243
Slide 8: Investment income declined YoY while core operations improved
Investment income declined YoY while core operations improved Bridge analysis Q4 2016 to Q4 2017 Bridge analysis 2016 to 2017 974 1.170 640 183 2.690 157 710 1.746 1.124 97 46 416 Q4 2016 Earned Inv. Income Claims Expenses Taxes Q4 2017 2016 12M Earned Inv. Income Claims Expenses Taxes 2017 12M resu
Slide 9: Balance sheet: Sound balance sheet
Balance sheet Sound balance sheet 31/12/2017 31/12/2016 Assets Securities 32,006 32,953 Accounts receivables Assets Liabilities 4,784 4,339 Investments where the investment is 951 1.659 1.594 borne by the policyholder 4,030 3,251 4.030 4.030 Cash and cash equivalents 951 1,063 Accounts payable and C
Slide 10: Changes in Solvency Capital Requirement and Capital Requirement for 2017
Changes in Solvency Capital Requirement and Capital Requirement for the financial year 2017 Capital base Solvency capital requirement 2.594 182 1.400 1.746 620 851 37 465 17.166 15.100 9.010 9.206 31.12.2016 Dividend Purchase of own Profit Other 31.12.2017 31.12.2016 Market risk Health Diversificati
Slide 11: Overview of investment income Q4 2017
Overview of investment income 4F 2017 Balance 30/09/2017 Net purchase Return Balance 31/12/2017 Return 1.254 1,3% Liquid funds 771 472 11 13.513 2,0% Govt. guaranteed bonds 11.708 1.551 254 Other bonds -52 5.876 2,3% 5.799 129 Listed equities 9.360 -1.040 8.368 0,5% 48 Unlisted equities 3.306 -114 3
Slide 12: Return on and largest changes in the asset portfolio in Q4 2017
Return on and largest changes in the asset portfolio in Q4 2017 • Return on the portfolio was 1.7% in Q4 • Risk in the portfolio reduced in the quarter • Equity positions were reduced considerably during the quarter • Average duration of the Group's bond portfolio was 3.4 years at the end of the qua
Slide 13: Group investment assets exceeding ISK 500 m
Group investment assets exceeding ISK 500 m Assets 31/12/2017 30/09/2017 Net purchase Performance % of portfolio LAND 05 5,802 5,690 0 112 18.0% Marel 2,363 2,637 -119 -154 7.3% RIKB 20 2,034 1,667 340 27 6.3% RIKB 31 1,547 1,911 -416 52 4.8% RIKB 28 1,474 293 1,166 14 4.6% Eik 1,121 1,069 35 17 3.5
Slide 14: Summary of investment income 2017
Summary of investment income 2017 Balance 31/12/2016 Net purchase Performance Balance 31/12/2017 Return Liquid funds 569 645 39 1.254 5,2% Govt. guaranteed bonds 14.753 -1.993 752 13.513 6,1% Other bonds 6.516 -1.029 390 5.876 6,6% Listed equities 8.166 -97 298 8.368 3,4% Unlisted equities 2.939 -2
Slide 15: Financial year 2017 and outlook for 2018
Financial year 2017 and outlook for 2018 Objective - still more profitable insurance operations Performance Combined ratio • Profit ISK 1,746 m • Combined ratio was 99.4% compared to • Technical results of ISK 1,158 m 100.9% in 2016 Investments Outlook for 2018 • Investment income ISK 2,264 m • Comb
Slide 16: Questions
Questions
Slide 17: Investors' Presentation Appendices and Disclaimer
Investors’ Presentation Appendices and Disclaimer
Slide 18: Combined ratio 12M 2017 and 12M 2016 by insurance sector
Combined ratio 12M 2017 and 12M 2016 by insurance sector 136,5% 129,6% 112,4%113,3% 111,0% 106,7%106,7% 99,5% 101,0% 100,9%99,4% 97,2% 87,9% 85,6% 89,5% 80,1% 66,0% 64,7% 66,5% 65,2% 56,5% 40,0% Property Marine, aircraft Mandatory vehicle Other vehicle General liability Accident and Workers‘ Medical
Slide 19: Combined ratio Q4 2017 and Q4 2016 by insurance sector
Combined ratio Q4 2017 and Q4 2016 by insurance sector 135,4% 130,6% 126,6% 121,0% 118,7% 116,3% 113,6% 98,1% 95,8% 99,6%100,3% 100,2%99,6% 85,2% 78,0% 77,5% 73,3% 61,8% 63,2% 57,7% 47,5% 40,7% Property Marine, aircraft Mandatory vehicle Other vehicle General liability Accident and Workers‘ Medical
Slide 20: Development of key indicators
Development of key indicators Premiums earned Solvency ratio 4.294 4.211 4.073 4.051 4.029 1,95 1,86 1,83 1,91 3.849 1,71 3.691 1,56 1,58 1,64 3.584 1,48 3.490 4F15 1F16 2F16 3F16 4F16 1F17 2F17 3F17 4F17 4F15 1F16 2F16 3F16 4F16 1F17 2F17 3F17 4F17 Combined ratio Claims provisions 15.764 15.954 14.
Slide 21: Development of key indicators in recent quarters
Development of key indicators in recent quarters Q4 2017 Q3 2017 Q2 2017 Q1 2017 Q4 2016 Q3 2016 Q2 2016 Q1 2016 Q4 2015 Premiums earned 4,211 4,294 4,029 3,849 4,051 4,073 3,691 3,584 3,490 Earned premiums, net of reinsurance 3,997 4,058 3,815 3,669 3,841 3,761 3,482 3,403 3,263 Investment income 6
Slide 22: Distribution of shareholdings
Distribution of shareholdings 1,266 shareholders as of 11 February 2018 Cumulative shareholdings Shareholding 100% 2,0% 4,4% 97% 4,3% 87% Pension funds 12,3% 66% Individuals and corporates 47,3% Foreign funds Domestic funds Financial undertakings 29,8% Own shares 13% 1 10 20 50 1.242 Number of share
Slide 23: Disclaimer
Disclaimer Although every effort is made to ensure accuracy, in the case of any inconsistencies between the Icelandic and English versions of the company's announcement of results, please note that it is the Icelandic original which is authentic and valid and all English announcements and presentati
Sjóvá-Almennar tryggingar hf. — FY2017 Earnings Presentation on 6ix