Protector Forsikring ASA · OSL:PROT
Protector Forsikring ASA — Q1 2012 Earnings Presentation
19 slides from Protector Forsikring ASA's earnings presentation, May 7, 2012
Slide 1: Q1 results 2012 Investor presentation
Q1 results 2012 Investor presentation 7 May 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 Denmark 1 Jan. 2012 • Main targets:
Slide 3: Highlights Q1 2012
Highlights Q1 2012 Best quarter ever, increased guiding • GWP up 28 % – Commercial and public lines of business, up 28% – Change of ownership insurance, up 24% • Net combined ratio, 76%, down 8.1 percentage points • Return on investments, NOK 88.8m (3.5%), up from NOK 22.6m (1%) – 18% growth in inve
Slide 4: Gross written premium Q1 2012
Gross written premium Q1 2012 GWP up 28%, from NOK 522.7m to NOK 668.5m • GWP up 19% within the Norwegian commercial and public lines of business – Strong renewal rate above 100 %, up from 85% in Q1 2011 – Strong new sales and good access to quotations • GWP in Sweden and Denmark, 8 percentage point
Slide 5: Claims development Q1 2012
Claims development Q1 2012 Net claims ratio 80.2%, up from 78.5% • Loss of a single high volume/very low claims ratio contract, drives the claims ratio upwards - Approx 2 % on gross and 3% on net claims ratio • Good development both in the commercial /public sector and change of ownership insurance
Slide 6: Cost ratio Q1 2012
Cost ratio Q1 2012 • Loss of a single high volume/very high cost ratio contract, drives the cost ratios downwards – 2.3 / 3.7 percentage points positive effect on gross / net cost ratio • Gross cost ratio 12.9%, down from 19.8% – Administration costs in nominal value at the same level as in Q1 2011
Slide 7: Highlights Q1 – Norwegian Commercial/public lines
Highlights Q1 12 – Norwegian Commercial/public lines • Volume up 19% – 11 % growth in the municipality sector – 1 large win and 1 large non renewal GWP Q1 2008 – Q1 2012 524 – 26% growth in the commercial sector 439 372 – 4 large wins 337 266 – 1 very large and 1 large non renewal • Personal lines o
Slide 8: Highlights Q1 – Sweden and Denmark
Highlights Q1 12 – Sweden and Denmark • Strong start up in Sweden and Denmark GWP Q1 2011 – Q1 2012 (NOKm) – 8 percentage points of the growth on company level 56 • Sweden 12 – 32 municipalities / other public companies on the customer list Q1 2011 Q1 2012 – 12 companies on the customer list – 1 lar
Slide 9: Highlights Q1 2012 - Change of ownership insurance
Highlights Q1 2012 - Change of ownership insurance • Volume up 24% – Stable market share well above 50% GWP Q1 2008 – Q1 2012 (NOKm) – Hit-ratio stable on a high level approx. 80% 89 – Real estate prices up 6.3% relatively to Q1 2011¹ 72 56 – Turnover rate down 7 days in Jan, 3 days in Feb and 2 day
Slide 10: Results Q1 2012
Results Q1 2012 NOKm Q1 2012 Q1 2011 2011 Premiums written gross 668,5 522,7 1 202,5 Premiums earned gross 327,5 261,5 1 177,0 Claims incurred gross (238,1) (188,0) (839,2) Premiums earned for own account 246,8 199,5 903,5 Claims incurred for own account (197,8) (156,6) (670,3) Operating costs for o
Slide 11: Balance sheet Q1 2012
Balance sheet Q1 2012 NOKm 31.03.2012 31.03.2011 31.12.2011 Financial assets 2 756,5 2 335,0 2 354,8 Bank deposits 119,1 133,5 112,7 • Investment portfolio, 18% growth Other assets 508,3 381,0 332,4 Total assets 3 383,9 2 849,5 2 799,8 Total equity 498,3 552,0 384,5 Total reserves 2 560,5 2 085,4 2
Slide 12: Investment performance Q1 2012
Investment performance Q1 2012 • Net investment result of NOK 88.8m, 3.5% return (NOK 22.6m, 1%) • Equities, return of 13.9% (0.3%), OSEBX 10.8%, OSEFX 13.5% • Bond portfolio, return of 1.5% (1.3%), slightly increased risk exposure • Investment portfolio of NOK 2.756m (NOK 2.335m), 18% growth Return
Slide 13: Asset allocation
Asset allocation • Bonds 85% of portfolio, Norwegian equities 15% • Allocation in equities reduced from 17.8% to 15.0% - Reallocation of NOK 63m from equities to bonds and all new capital allocated to bonds Allocation of investments 31.03.2012 Allocation of investments 31.12.2011 Equities Equities 1
Slide 14: Portfolio structure and quality bond portfolio
Portfolio structure and quality bond portfolio • Duration (credit) of bond portfolio is 2,17 years (2,24 years) - Interest duration 0,27 years (0,26 years) • Slightly increased risk in non rated funds Bond portfolio 31 March 2011 Quality bond portfolio 31 March 2012 Foreign funds; 3,3 % Split of fix
Slide 15: Shareholder matters April 2012
Shareholder matters 25 April 2012 Shareholder No. shares Percent Related parties shareholding ODIN NORDEN 7 429 155 8,62 % MSF-MUTUAL FINANCIAL SERVICES FD 4 479 410 5,20 % HANSARD EUROPE LTD 3 727 086 4,33 % PROTECTOR FORSIKRING ASA • Management’s direct and indirect shareholding totals 3m shares o
Slide 16: Outlook 2012, changed
Outlook 2012, changed Guiding 29 February 2012 Guiding 7 may 2012 • GWP up 18% GWP up 22 % – Status per Q1, ahead of schedule • Combined ratio 88% Combined ratio 88% – Status per Q1, ahead of schedule • Return on investments 4,6% Return on investments 5 % – Status per Q1, ahead of schedule • Operati
Slide 17: Outlook 2012, changed
Outlook 2012, changed NOKm Res Old New 2011 2012e 2012e Premium growth (%) 19 18 22 Return assumptions 2012: Equity allocation approx. 15% Operating profit 82.9 250 270 New capital allocated to bonds. Investment Income -51.4 125 136 Return equities: 8% p.a. Gross cost ratio (%) 15.0 13 13 Return bon
Slide 18: CEO Summary, Outlook 2012
CEO Summary, Outlook 2012 29 Feb 7 May Risk Risk + Volume significant up in commercial & public sector Low No + Sweden and Denmark support growth No No + Volume significant up in Change of Ownership sector Low Low + Balance sheet growing leads to increased financial income Low Low + Cost ratio Gross
Slide 19: Summary
Summary • GWP up 28 % – Commercial and public lines of business, up 28% – Change of ownership insurance, up 24% • Net combined ratio, 76%, down 8.1 percentage points • Return on investments, NOK 88.8m (3.5%), up from NOK 22.6m (1%) – 18% growth in investment portfolio • Operating profit, NOK 148.6m,