Protector Forsikring Asa · OSL:PROT
Protector Forsikring Asa — Investor Presentation (November 2014)
28 slides from Protector Forsikring Asa's investor presentation, November 2014
Slide 1: Investor Presentation November 2014
INVESTOR PRESENTATION November 2014
Slide 2: 10 Years with Profitable Growth
10 YEARS WITH PROFITABLE GROWTH 2 2
Slide 3: Sverre Bjerkeli (55) – Chief Executive Officer
Sverre Bjerkeli (55) – 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 10 years in Protector • Handball player and trainer on international level • Marathon
Slide 4: Vision, Business Idea, Main targets and Values
Vision, Business Idea, Main targets and Values Vision The challenger Business Idea This will happen through unique relationships, state of the art decision making, and cost effective solutions Main targets Cost and quality leadership Profitable growth Top 3 Values Troverdig (Trustworthy) Imøtekommen
Slide 5: Gross cost ratio – half the cost
Gross cost ratio – half the cost 2008 2009 2010 2011 2012 2013 PRF 11,2 % 12,1 % 11,9 % 10,0 % 7,7 % 8,8 % Gjensidige 17,0 % 17,7 % 16,5 % 16,4 % 15,5 % 15,3 % Tryg 17,1 % 17,2 % 17,0 % 16,6 % 16,4 % 15,6 % Top 14,7 % 14,9 % 15,4 % 15,7 % 15,8 % 16,2 % If 17,4 % 17,6 % 17,2 % 17,3 % 16,9 % 16,8 % LF
Slide 6: Quality leadership 8 years in a row
Quality leadership 8 years in a row Commercial and publ. Commercial and publ. Protector Forsikring 76 Protector Forsikring 82 Market average 51 Market average 58 Competitor 1 69 Competitor 1 Competitor 2 69 64 Competitor 3 56 Competitor 2 62 Competitor 4 55 Competitor 3 61 Competitor 5 55 Competitor
Slide 7: Volume growth (GWP) 2008 – 2013, accumulated
Volume growth (GWP) 2008 – 2013, accumulated Weight AVG 2008 2009 2010 2011 2012 2013 2008- 2013 PRF 9,6 % 31,0 % 52,0 % 80,9 % 128,1 % 179,8 % 20,1 % KLP 3,4 % 8,3 % 13,7 % 17,1 % 35,1 % 49,9 % 7,6 % Gjensidige 4,4 % 5,7 % 14,5 % 17,8 % 19,9 % 26,2 % 4,0 % Codan 12,8 % 14,6 % 14,9 % 14,6 % 22,9 % 2
Slide 8: … but higher claims ratio than peers
… but higher claims ratio than peers • Higher claims ratio than peers • Claims ratio last 5 years around 80% • No ambition to be lower than peers next 3-5 years Claims ratio Q3 2010 - Q3 2014 Claims ratio Q1-Q3 2010 – Q1-Q3 2014 85% 83,1 % 83,4 % 81,9 % 80,9 % 85% 82,4 % 79,3 % 79,4 % 80,7 % 80,8 %
Slide 9: Combined ratio versus peers – Protector on Top
Combined ratio versus peers – Protector on Top Weight AVG CR 2008 2009 2010 2011 2012 2013 2008- 2013 Protector 95,8 % 97,8 % 94,2 % 85,3 % 86,2 % 86,7 % 89,7 % Tryg 88,2 % 92,2 % 98,8 % 93,2 % 88,2 % 87,7 % 91,4 % IF 91,8 % 92,1 % 92,8 % 92,0 % 89,3 % 88,1 % 90,9 % Gjensidige 94,4 % 94,8 % 95,3 % 9
Slide 10: Investment return compared with competitors
Investment return compared with competitors 2008 2009 2010 2011 2012 2013 Average Protector -2,1 % 16,1 % 9,7 % -2,3 % 8,9 % 7,0 % 6,2 % KLP Skade 0,4 % 8,3 % 7,2 % 4,5 % 6,5 % 6,5 % 5,6 % If -3,1 % 12,4 % 7,4 % 1,8 % 6,1 % 5,0 % 4,9 % Tryg 3,5 % 6,6 % 4,3 % 4,8 % 5,1 % 2,5 % 4,5 % Gjensidige -0,6 %
Slide 11: Nordic Champion: Protector Forsikring
PROTECTOR forsikring Nordic Champion: PROTECTOR forsikring
Slide 12: What creates cost- and quality leadership? Part I
WHAT CREATES COST- AND QUALITY LEADERSHIP? Part I 12
Slide 13: What creates cost- and quality leadership?
What creates cost- and quality leadership? …..«the secret» is; • A well defined and consistent • Vision, business idea, main strategy targets and values • Value chains supporting strategy • Competent people to implement • This is a good start, but…… • Hard work to live vision, business idea, main ta
Slide 14: Market, strategy and broker statements
Market, strategy and broker statements Our market; Land based, brokered business Approx. 20 bn. in total • Standardized products... Strategy • Competitive prices... (Kotler’s 4 P’’s) • Through insurance brokers only... • Based on unique relations Broker • We shall be: state- • Easy to do business wi
Slide 15: 35 x 3 countries value chains
Perso Munici nal pality lines Aff Other lines UW Big Sales Sales 35 x 3 countries Claims = ~100 reduction Claims value chains COI 1.st line Rolls Royce Adm/ analysis Invest ments IT 15
Slide 16: 100 development projects
100 development projects UW Municipalities Rolls- Royce Claims handling Motor Sweden 16
Slide 17: What creates cost- and quality leadership? Part II
WHAT CREATES COST- AND QUALITY LEADERSHIP? Part II 17
Slide 18: Vision, Business Idea, Main targets and Values
Vision, Business Idea, Main targets and Values Vision The challenger Business Idea This will happen through unique relationships, state of the art decision making, and cost effective solutions Main targets Cost and quality leadership Profitable growth Top 3 Values Troverdig (Trustworthy) Imøtekommen
Slide 19: Investor Presentation Q3 results 2014
INVESTOR PRESENTATION Q3 results 2014 19
Slide 20: Highlights Q3 2014
Highlights Q3 2014 26 % growth and strong result • GWP up 26 % - Scandinavian commercial and public lines 23 percentage points of total growth • Growth in Sweden/Denmark 16 percentage points of total growth - GWP up 29 % in local currencies • Net combined ratio improved to 89.0% (93.4%) • Gross cost
Slide 21: Gross written premium Q3 2014
Gross written premium Q3 2014 GWP up 26 %, from NOK 270,4m to NOK 341,8m • GWP up 41 % within the Scandinavian commercial and public lines – 23 percentage points of total growth • GWP up 16 % within the Norwegian commercial and public lines of business – High renewal rate, 99%, up from 90 % in Q3 20
Slide 22: Cost ratio Q3 2014
Cost ratio Q3 2014 • Gross cost ratio 8.4 %, down from 10.1% – Gross cost ratio including claims handling 12.6% down from 14.6 % – Increased staffing in all 3 countries, but slowing down – Average no of employees Q3 2014 177 up from 152 in Q3 2013 • Net cost ratio 8.1 %, down from 10.3% – Driven by
Slide 23: Highlights Q3 2014 – Sweden and Denmark
Highlights Q3 2014 – Sweden and Denmark GWP > 500 mill YTD, critical mass reached • 160 % growth, 16 percentage points of total company growth GWP Q3 2010-Q3 2014 (MNOK) – 1 very large win in Sweden 68 – No large non-renewals 26 – Renewal rate above 100 % 18 2 • Well prepared for “hunting” and renew
Slide 24: Results Q3 2014
Results Q3 2014 NOKm Q3 2014 Q3 2013 Q1-Q3 2014 Q1-Q3 2013 2013 Premiums written gross 341,8 270,4 2 092,6 1 622,9 1 860,6 Premiums earned gross 591,5 468,6 1 713,1 1 346,2 1 814,6 • GWP up 29% YTD Claims incurred gross (457,7) (384,0) (1 402,9) (1 088,2) (1 450,6) - No. 1 Nordic Premiums earned for
Slide 25: Investment performance Q3 2014
Investment performance Q3 2014 0,6% return on the investment portfolio • Net investment result of NOK 27,9m, 0,6% return (NOK 75,6m, 2,0%) - Q1-Q3; Net investment result of NOK 223,3m, 4,9% return (NOK 172,9m, 4,7%) • Equities, return of -1,7% (6,2%), OSEBX -1,4%, OSEFX -1,2% • Fixed income portfoli
Slide 26: Outlook 2014
Outlook 2014 Guiding 11 July 2014 Guiding 29 Oct 2014 • GWP up 27% GWP up 27% – Status per Q3, ahead of schedule • Combined ratio 88% Combined ratio 88 % – Status per Q3, ahead of schedule – Gross claims ratio slightly behind schedule • Gross cost ratio < 8 %, on schedule Gross cost ratio < 8 % • Op
Slide 27: Summary 2004 - 2014
Summary 2004 - 2014 • Cost- and Quality Leadership • 10 Years of profitable growth • Average Return on Solvency Capital 21.5% • Guiding 2014; 27 % growth, CR 88 % and operating profit 440 mill • Double digit growth expected next 3 years • We’ve only started 27
Slide 28: Protector Forsikring Q&A
PROTECTOR forsikring Q&A 28
Protector Forsikring — Investor Presentation (November 2014) on 6ix