Protector Forsikring ASA · OSL:PROT
Protector Forsikring ASA — Q1 2021 Earnings Presentation
24 slides from Protector Forsikring ASA's earnings presentation, Apr 29, 2021
Slide 1: Disclaimer
Disclaimer This presentation and the information contained herein have been prepared by and is the sole responsibility of Protector Forsikring ASA (the "Company”). Such information is being provided to you solely for your information and may not be reproduced, retransmitted, further distributed to a
Slide 2: Q1 2021 Interim results
Q1 2021 Interim results Investor Presentation Oslo, 29 April 2021 Sverre Bjerkeli Chief Executive Officer
Slide 3: Our DNA
Our DNA Vision The Challenger Business Idea This will happen through unique relationships, best in class decision- making and cost effective solutions Main targets Cost and quality leadership Profitable growth Top 3 Values Credible Innovative/Open Bold Committed
Slide 4: Result highlight Q1 2021
Result highlight Q1 2021 Combined ratio at 91.1% | Investment return at 4% | EPS at NOK 7 • Net combined ratio at 91.1% (98.3% in Q1 ‘20) • GWP growth at 1.8% (1.5% in local currencies) • Exit Workers’ Compensation business Denmark and Norway, MNOK 188 (6.5 %) • Investment return of MNOK 581, or 4%
Slide 5: Volume update
Volume update Volume up 1.8%, renewal rate in the Nordics is back on a good level • GWP of MNOK 2 880 in Q1 2021 (MNOK 2 828) in MNOK Business unit Q1 '21 Q1 '20 Growth • MNOK 52 (1.8%) growth (1.5% in LCY) Norway 856 820 36 • Supported by price increases (8.9%) Sweden 895 789 106 Denmark 727 813 -
Slide 6: Claims update
Claims update Claims ratio at 78.5%, 11% down from last year Q1 '21 Q1 '21 Q1 '20 Q1 '20 Business unit • Net claims ratio at 78.5% (89.7%) Gross Net Gross Net Norway 68 % 84 % 94 % 96 % Sweden 61 % 65 % 80 % 79 % • Run-off gains at 0.1% (0.3%) Denmark 104 % 84 % 105 % 113 % • Gains on WC Norway, los
Slide 7: Large losses
Large losses Gross large losses1 of MNOK 27 (1.9%) Gross large loss ratio excl. WC2 20,4% • Gross large losses of MNOK 27, or 1.9% in Q1 12,6% 12,0% 11,1% 8,7% 7,6% 6,0% 6,3% 5,7% 5,0% 5,5% • Volatility must be expected 4,9% 5,1% 2,6% 1,9% 1,2% 0,0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 8: Protector Combined Ratio
Protector Combined Ratio Net CR at 91.1% Q1 2021 Norway Sweden Denmark UK Finland Protector Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Gross premium written 856 820 895 789 727 813 238 192 164 213 2 880 2 828 Gross premium earned 343 367 434 397 2
Slide 9: Country specific comments
Country specific comments Very good start on the year – price increases still on the agenda Gross vs. net CR: “Darag result effect in Q1 ’21” of MNOK -53.8. GWP effect of WC exit of MNOK 31. Underlying growth and profitability looks good. Price increases on EB products still necessary. Good figures.
Slide 10: Status vs. 2021 guiding
Status vs. 2021 guiding Profitability and solidity ahead of guiding, growth lagging behind Guiding 2021 Result Q1 Status Net Combined Ratio: 90-92% 91.1% Ahead Return on Equity (ROE): >20% 17.5%* Ahead Gross Written Premium (GWP) growth: 10% (LCY) 1.5% (LCY) Behind Solvency II Capital Ratio (SCR): >
Slide 11: Investments
Investments Investment is core
Slide 12: Investment performance
Investment performance Gain of MNOK 581 (4.0%) • Q1 return on investment portfolio at 4.0%, or MNOK 581 Q1 investment results • Equity portfolio returning 27.2%, ex. put options • Bond portfolio has gained 0.7% 30% 20% 27.2% 10% 4.0% 0.7% 0% Equities1 Bond Total • Remember that we invest for the lon
Slide 13: Bond portfolio statistics
Bond portfolio statistics 0.7% return in Q1, running yield at 2.0% before cost of risk Portfolio data 31.03.21 31.12.20 31.03.20 Size bond & cash eq. (MNOK)1 12 472 11 603 10 151 • Bond portfolio returning 0.7%, or MNOK 92 Avg. ref. rate (NIBOR, STIBOR, etc.) 0.1% 0.2% 0.5% • Significant administrat
Slide 14: Equity portfolio statistics
Equity portfolio statistics Portfolio returning 27.2% • Equities gaining 27.2% in Q1, or 508 MNOK Cumulative TWR in % – Equity portfolio vs. benchmarks (08.10.2014 – 31.03.2021) • Equity share at 16.2% (13.5% YE2020). • Discount to estimated intrinsic value at 15% • Currently 20 companies in the por
Slide 15: Our DNA
Our DNA Vision The Challenger Business Idea This will happen through unique relationships, best in class decision- making and cost effective solutions Main targets Cost and quality leadership Profitable growth Top 3 Values Credible Innovative/Open Bold Committed
Slide 16: Profit and loss
Profit and loss Profit of MNOK 573 – EPS at NOK 7 NOKm Q1 2021 Q1 2020 FY 2020 Gross premiums written 2 880.2 2 828.0 5 516.3 • GWP growth at 1.8% (1.5% in LCY) Gross premiums earned 1 387.9 1 293.2 5 379.6 Gross claims incurred (1 035.2) (1 105.8) (4 424.6) Earned premiums. net of reinsurance 1 175
Slide 17: Balance Sheet
Balance Sheet SCR-ratio at 216% post special dividend In millions 31.03.2021 31.03.2020 31.12.2020 Owner-occupied property 0.0 12.7 0.0 SCR-ratio composition Financial assets 13 400.5 10 337.6 11 988.6 Derivatives 73.0 300.9 47.9 SCR-ratio: Bank deposits 165.5 182.9 263.2 5 000 216% Other assets 4 4
Slide 18: Solvency II
Solvency II SCR-ratio at 216% Composition of SCR: Eligible SII capital: • Net insurance risk 58% • Accumulated dividend subtracted from eligible capital • Net market risk 32% • Guarantee provision subtracted from own funds • Other risks 10% • Unutilized funding will go to zero following Q2 (bond ren
Slide 19: Capital allocation – maximize shareholder return
Capital allocation – maximize shareholder return Priority 1: Always profitable growth in insurance, if possible Main capital allocation alternatives: 1 2 3 4 5 Investments Insurance underwriting Cash as an option Buy backs Dividends Equities & Bonds 1 Allocation towards profitable growth is preferre
Slide 20: Dividend policy
Dividend policy Special dividend of NOK 1.67 per share – Flexible shareholder distribution policy Solvency II ratio Current level • Capital over 180% in SCR ratio distributed over time = 216%* 180% • Shareholder distribution normally 20%-80% of net profit Normal Range • Quarterly decisions, all allo
Slide 21: Result highlight Q1 2021
Result highlight Q1 2021 Combined ratio at 91.1% | Investment return at 4% | EPS at NOK 7 • Net combined ratio at 91.1% (98.3% in Q1 ‘20) • GWP growth at 1.8% (1.5% in local currencies) • Exit Workers’ Compensation business Denmark and Norway, MNOK 188 (6.5%) • Investment return of MNOK 581, or 4% •
Slide 22: PROTECTOR insurance
PROTECTOR insurance
Slide 23: Appendix
Appendix PROTECTOR
Slide 24: Key ratio description
Key ratio description Ratio (1)Claims ratio, net of reinsurance (2)Expense ratio, net of reinsurance (3)Combined ratio, net of reinsurance (4)Gross claims ratio (5)Gross expense ratio (6)Gross combined ratio (7)Retention rate (8)Earning per share Ratio calculation (1)Claims incurred in % of earned p