Protector Forsikring Asa · OSL:PROT
Protector Forsikring Asa — Investor Day (August 2016)
107 slides from Protector Forsikring Asa's investor day presentation, Aug 18, 2016
Slide 1: The Challenger – Capital Markets Day August 18th 2016
THE CHALLENGER Capital Markets Day August 18th 2016
Slide 2: Agenda
Agenda 10:00 Welcome and snack • Company update & long term targets ⁻ Including solvency II ⁻ Q&A • The investement challenger – core business ⁻ Fast growing float ⁻ Financial underwriting ⁻ Q&A • In depth Sweden ⁻ Does model work outside Norway? ⁻ Q&A • In depth UK ⁻ Main future growth driver ⁻ Q&A
Slide 3: Company Update and Long Term Targets
Company Update and Long Term Targets Sverre Bjerkeli (56) - CEO: • Head of consumer/commercial division at Storebrand (If..) • CEO Storebrand Bank • IT; Key positions in NOKIA/ICL and CEO Eterra/Ementor • Last 12 years in Protector • Handball player and trainer on international level • Marathon runn
Slide 4: Vision, Business Idea, Main targets and Values
Vision, Business Idea, Main targets and Values – Consistent for 10 years 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 «We are different» Profitable growth Top 3 V
Slide 5: How to value Protector?
How to value Protector? • Cost leader • Quality leader • 20% growth per year and further geographical expansion Facts Are nordic peers • > 20% historical return on Solvency capital relevant? • Among best combined ratio in the industry • Best historical investment returns and a growing float • DCF? M
Slide 6: Historical timeline
Historical timeline Enters Enter Expands Expands Expands commercial municipality to to to sector sector Sweden Denmark UK 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Launches Listed on Insourced GWP GWP GWP GWP Change of Oslo Stock claims BNOK 1 BNOK 2 BNOK 3 BNOK 4 Ownersh
Slide 7: Cost leader – half the cost of competitors
Cost leader – half the cost of competitors Overview In-house IT services • Well defined and consistent strategy, understand • Protector develops all IT systems internally. Well value chains and competent people to implement documented, no key personnel risk • “Culture eats strategy for breakfast” •
Slide 8: Quality leader in the Nordic market
Quality leader in the Nordic market Broker Satisfaction Survey Quality leader – 9 years in a row Avg. ex PRF 57 • Consistently on top when brokers rank satisfaction Protector Forsikring 79 with service and offerings. True for Norway, Sweden Competitor 1 61 and Denmark Competitor 2 59 Competitor 3 59
Slide 9: Volume growth – strong and prudent
Volume growth – strong and prudent Sustainable growth • Average volume growth of 21,5 % in period 2008-2015 • H1 2016 growth of 22%. • Profitability comes first, volume growth second • Low capex and will exit new markets if unprofitable over time • Significant growth potential in Sweden and Denmark
Slide 10: Profitability – Best margin in the Nordic market
Profitability – Best margin in the Nordic market Overview • Consistently CR below 100% since 2005 (second year in business) • Average combined ratio of 88,5 % in the period 2008-2015 • H1 2016 combined ratio of 91,2% • Prudent and disciplined underwriting • Reinsurance used to reduce risk and reduce
Slide 11: Strong investment result compared to peers
Strong investment result compared to peers - Insourcing started Q4 2014 Overview • Average investment result of 6,0% in the period 2008-2015, supported by higher interest rates in Norway • H1 2016 investment returns of 2,6% • Better investment return than average of peers for seven out of last eight
Slide 12: Solvency II
Solvency II CMD 2016-08-18 PROTECTOR forsikring
Slide 13: Solvency II
Solvency II Strong capital position: SCR ratio composition 3 000 • SCR coverage ratio 158 % pr. 30.06 • Within risk appetite 2 500 • SCR fully covered by Tier 1 capital only Tier 2 2 000 SCR: 158% • Tier 2 utilization approx. 85 % 1 %; CD 1 500 8 %; Operational 35 %; Market 1 000 Tier 1 28 %; Non-li
Slide 14: Solvency II
Solvency II Composition of SCR: Available SII capital: • Net insurance risk 55 % • Assumed dividend of 40 % on H1 result • Net market risk 35 % • Guarantee provision subtracted from own funds • Other risks 10 % SCR composition Available SII capital 3 000 148 35 3 500 999 319 3 000 2 500 648 2 500 93
Slide 15: Solvency II
Solvency II Solvency II sensitivities 180% 169% 163% 166% 158% 154% 160% 150% 145% 140% 120% 100% 80% 60% 40% 20% 0% SCR coverage Equities Equities Interest rates Interest rates Spreads Spreads -20% +20% -100bp +100bp +100bp -100bp Figures pr. 30.06 including assumed dividend pay-out of 40 % on H1 r
Slide 16: Most solid company in the Nordic insurance market?
Most solid company in the Nordic insurance market? Full year 2015 PRF Rank Gjensidige Rank Tryg Rank Topdanmark Rank Cost ratio 7,5 % #1 15,1 % #2 15,3 % #3 15,9 % #4 Combined ratio (2008-2015) 88,5 % #1 89,4 % #3 89,9 % #4 88,7 % #2 Geographic diversification - share of business outside country of
Slide 17: Long Term Targets
Long Term Targets CMD 2016-08-18
Slide 18: Revised long-term financial objectives
Revised long-term financial objectives New Growth Target 15% Old New • Medium term GWP growth rate: 10% • GWP growth rate 2017-2019: 15% • Net combined ratio: 90% • Net combined ratio: 90% • Solvency I margin: > 250% • Solvency II capital ratio: 125%-160% • Return on solvency capital: >20% • Return
Slide 19: Nordic Champion attacking UK
Nordic Champion attacking UK 18
Slide 20: The investment challenger – core business
The investement challenger – core business CMD 2016-08-18
Slide 21: Investment Attitude – The Challenger
Investment Attitude – The Challenger Peers Protector Good People Great Insurance Attitude Core No Risk Manage Average Target Champion Follow Financial theory Background Losing Market down Buy Traditional Model Financial UW 20
Slide 22: Float
Float • Float = money not paid out as claims but recieved • If combined < 100 % then the float has a negative funding cost • Protector’s float is growing rapidly due to high GWP growth • A substantial premium to invested assets is warranted Float – Illustrative development - Source Fondfinans analys
Slide 23: 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, best in class decision-making and cost effective solutions Main targets Cost and quality leadership Profitable growth Top 3 Values Credible Open Bold Committed
Slide 24: Introduction and historical returns
Introduction and historical returns • Asset management mandate set by the board defines the investment strategy • Well thought through connection between investment portfolio and balance sheet structure General - Priority 1 is to never allow any risk for solvency issues or being trapped Introduction
Slide 25: The Team
The Team Experience and youth – all invested in Protector Shares Dag Marius Nereng Cathrine Foyn Chief Investment Officer Equities Chief Investment Officer Fixed Income More than 20 years of fund More than 25 years of fund manager manager experience. experience. Christoffer Callesen Andreas Høye Jon
Slide 26: The Investment Challenger – Equities
The Investment Challenger Investment Strategy Equities • Long term oriented (5 years to forever) • Patience – willing to wait for great opportunities Philosophy • Concentrated portfolio (10-20 holdings) • Focus on continuous improvement of process • Great companies • Strong management Type of invest
Slide 27: Financial Underwriting (FUW)
Financial Underwriting (FUW) Equities Financial underwriting enables continous improvement of decision making process • Evaluates opportunities and portfolio holdings • Serves as a checklist in avoiding biases and mistakes • Documents and tracks decisions Industry spesific Expected Financial factors
Slide 28: FUW – Financial and risk factors
Industry spesific Expected Financial factors Organisational factors Risk factors OVERALL ASSESSMENT Top line growth Margin change Price change Expected return factors dividend Company Expected Expected Expected Expected Expected Company 1 20% 0.7 % 8,3% 0.0 % 29.0 % Company 2 20% 1.2 % 3.2 % 24.5 %
Slide 29: FUW – Organisational factors
Industry spesific Expected Financial factors Organisational factors Risk factors OVERALL ASSESSMENT Top line growth Margin change Price change Expected return factors dividend Company Expected Expected Expected Expected Expected Company 1 20% 0.7 % 8,3% 0.0 % 29.0 % Company 2 20% 1.2 % 3.2 % 24.5 %
Slide 30: FUW - Industry and peer analysis
Industry spesific Expected Financial factors Organisational factors Risk factors OVERALL ASSESSMENT Top line growth Margin change Price change Expected return factors dividend Company Expected Expected Expected Expected Expected Company 1 20% 0.7 % 8,3% 0.0 % 29.0 % Company 2 20% 1.2 % 3.2 % 24.5 %
Slide 31: FUW – Expected return
FUW – Expected return Equities Industry spesific Expected Financial factors Organisational factors Risk factors OVERALL ASSESSMENT Top line growth Margin change Price change Expected return factors dividend Company Expected Expected Expected Expected Expected Company 1 20% 0.7 % 8,3% 0.0 % 29.0 % Co
Slide 32: Sales development
6 1 11 2005 2011 2006 2011 2007 2008 2012 2012 2009 2010 2013 2013 2011 2012 2014 2014 2013 2014 2015 2015 2015 7 2 12 2005 2005 2005 2006 2006 2006 2007 2007 2007 2008 2008 2008 2009 2009 2009 Sales development 2010 2010 2010 In-house managed equity portfolio 2011 2011 2011 2012 2012 2012 2013 2013
Slide 33: Historical sales and EPS growth development
Historical sales and EPS growth development In-house managed equity portfolio Accumulated portfolio sales growth 2006 – 2015 Accumulated portfolio EPS growth 2006-2015 1200% 2500,0 % 1000% 2000,0 % 800% 1500,0 % 600% 1000,0 % 400% 200% 500,0 % 0% 0,0 % 2006 2007 2008 2009 2010 2011 2012 2013 2014 20
Slide 34: Portfolio statistics
Portfolio statistics In-house managed portfolio vs OSEBX Performance – In house managed portfolio vs. OSEBX (08.10.2014 – 30.06.2016) In-house 120% 94,9 % Managed Key Figures Portfolio OSEBX 100% Performance 95 % 6% Std dev 15 % 17 % 80% EPS Delta 70 % -20 % 60% Dividend yield 1,8 % 3,8% P/E NTM 15,
Slide 35: The Investment Challenger – Fixed Income
The Investment Challenger Investment Strategy Fixed Income • Well diversified investment grade portfolio • Healthy risk adjusted return Philosophy • No currency risk • Strive toward low turnover and volatility • Search for pricing and rating inefficiencies in the market • Try to identify all possibl
Slide 36: Financial assets (AUM)
Financial assets (AUM) Changes in fixed income portfolio Total Financial assets (AUM) Fixed Income 9 000 120,0 % 8 000 100,0 % 7 000 6 000 80,0 % 5 000 60,0 % 4 000 3 000 40,0 % 2 000 20,0 % 1 000 0 0,0 % H1 14 H2 14 H1 15 H2 15 H1 16 H1 14 H2 14 H1 15 H2 15 H1 16 Bond Funds In-house portfolio • 67%
Slide 37: Financial Underwriting (FUW) – Fixed income
Financial Underwriting (FUW) – Fixed income • Enables continous improvement of the decision making process • Documenting our quantitative and qualitative analysises one place • 167 companies evaluated in the model today Industry E(return) ex PRF Investment Financial Organisational OVERALL Protector
Slide 38: Financial Underwriting (FUW)
Financial Underwriting (FUW) How to use the model • Document and track company evaluations, decisions and rating changes • Efficient way to evaluate opportunities and portfolio holdings Industry Industry Industry E(return) E(return) ex ex PRF PRF Investment Investment Financial Financial Organisatio
Slide 39: Portfolio Data
Portfolio Data Average rating: BBB Rating buckets 35,0 % 30,0 % 25,0 % 20,0 % 15,0 % 10,0 % 5,0 % 0,0 % AAA AA A BBB BB B Total renteportefølje Total portfolio In houseportfolio In-house portefølje 38
Slide 40: Portfolio Data
Portfolio Data In-house managed portfolio 35,0 % 30,0 % 25,0 % 20,0 % 15,0 % 10,0 % 5,0 % 0,0 % Protector SEK-Marked SEK – HY Market NOK-Marked NOK – HY Market 39
Slide 41: High return at low risk
Period: 31.03.2015 – 30.06.2016 High return at low risk In-house managed Portfolio vs Peers Standard Deviation Sharpe Ratio 4,0% Protector Fond 1 Fond 2 Fond 3 Fond 4 Fond 5 Fond 6 Fond 7 Fond 8 Fond 9 4,00 3,5% 3,00 3,0% 2,00 2,5% 2,0% 1,00 1,5% 0,00 1,0% -1,00 0,5% -2,00 0,0% -3,00 -4,00 40
Slide 42: Portfolio Data
Portfolio Data In-house managed portfolio Performance – In house managed portfolio vs. Index (31.03.2015 – 30.06.2016) 4,00% Portfolio data 30.06.2016 2,89% 3,00% Size MNOK 3414 2,00% Yield 3,5 % Duration 0,40 1,00% Credit duration 3,26 0,00% Average rating BBB -1,00% -0,75% Official ratings 37,4 %
Slide 43: Investment Attitude – The Challenger
Investment Attitude – The Challenger Peers Protector Good People Great Insurance Attitude Core No Risk Manage Average Target Champion Follow Financial Theory Background Losing Market down Buy Traditional Model Financial UW 42
Slide 44: In Depth Sweden - Does model work outside Norway?
In Depth Sweden - Does model work outside Norway? CMD 2016-08-18
Slide 45: Sweden – Introduction
Sweden – Introduction • “Copying” a winning formula through; • Vision, business Idea, objectives, values and broker promise • Right people on board • Adjustments for local differences • Cost leadership Hans Didring (36) - Country Manager Sweden • Quality leadership reached in 18 months Education: M.
Slide 46: 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, best in class decision-making and cost effective solutions Main targets Cost and quality leadership Profitable growth Top 3 Values Credible Open Bold Committed
Slide 47: Strong organization – established management
Strong organization – established management Hans Didring, Country Manager Fredrik Henrik Erik Forslund, Elin Sandahl, Landelius, Hoppendorff, Chief Claims Director of Project Mngr Underwriter Manager Broker service Finland Jonny Vall Ann-Chalotte Robin Dahl Andrés Thorleifsson Team leader Jenmert T
Slide 48: Setting new quality standard in Sweden
Setting new quality standard in Sweden 74 Protector Forsikring 47 Competitor 1 Competitor 2 59 55 Competitor 3 43 Protector receives the highest Competitor 4 score when brokers are asked to rank insurance Competitor 5 63 companies according to how 54 satisfied they are with their Competitor 6 servic
Slide 49: Public market leader: Some commercial customers
Public market leader: Some commercial customers: Affinity 48
Slide 50: Product and Segment mix Sweden
Product and Segment mix Sweden Product mix Sweden (H1 2016) Segment mix Sweden (H1 2016) Other Liability 5% 7% Affinity 24% Accident 10% 42% Public 51% Motor 27% Property 34% Commercial 49
Slide 51: Market leader in the Swedish bus insurance market
Market leader in the Swedish bus insurance market • 6500 buses ̵ 45% market share ̵ 12 of 30 largest customers • Bus claims handling expertise ̵ Claims handlers ̵ Technicians ̵ Personal injury experts • Efficient bus fleet administration with modern IT system 50
Slide 52: Swedish Affinity programs – On Track
Swedish Affinity programs – On Track Cost efficiency 1-5 Gatekeeping 1-5 Lock-in 1-5 Pricing 1-5 Net Annual Net Earned Totalt Hit rate Clams- Claims- Program Broker Premium Growth Premiu score PQ1 % HTD % Q1 PQ1 PQ1 m HTD 1-5 1 A 46 3 N/A 112* 80% 80% 5 5 5 5 5 2 B 27 0 70% 44 72% 46% 2 2 4 4 3 3 C
Slide 53: Highlights H1 2016 - Sweden
Highlights H1 2016 - Sweden • Volume up 56%% (43% in SEK) • Claims ratio net of 72,9% • All segments and products are very good • Renewal rate >100% • Net combined ratio 78% • Facilities/affinity programs running very well • Improved quality and efficiency in claims handling and broker service proce
Slide 54: Profit & loss Sweden
Profit & loss Sweden [1.000.000 NOK] H1 2016 FY 2015 FY 2014 FY 2013 Gross premiums written 632.4 520.7 325.4 147.4 Strong growth Gross premiums earned 360.2 493.9 298.9 137.3 Gross claims incurred (223.4) (386.5) (233.8) (129.7) Earned premiums, net of reinsurance 276.6 394.5 229.7 96.6 Claims incu
Slide 55: Summary and next level Sweden
Summary and next level Sweden 2011-2015 2016- • “Copying” a winning formula • Continued profitable growth • Cost leadership • Strengthen cost leadership by value chain and IT development • Quality leadership reached in 18 months • Strengthen quality leadership by • Combined ratio < 100% reached in 4
Slide 56: In depth UK – Main future growth driver
Henrik Wold Høye (34) - Director Corporate/ Project Manager UK Education: BSc in Finance, Leeds School of Business (University of Colorado), BSc in Economics, College of Arts and Sciences (University of Colorado) Relevant experience: 9 years of experience from insurance and projects in Protector In
Slide 57: Copying a Winning Formula to new Markets
Copying a Winning Formula to new Markets By gradually transferring to «all business is local business» Cost leadership Fact: 1/2 of competitors Target UK: 1/3 of competitors • Competitors higher than Scandinavia • Larger average clients than Scandinavia People and culture Quality leadership Top 3 Fa
Slide 58: Protector & Public Sector
Protector & Public Sector GWP – Public Sector (MNOK) 800 • First municipality in 2005 – "Tønsberg kommune" 700 600 • Customer relationship to more than 500 local 500 authorities 400 300 • Scandinavia's largest public sector insurer 200 100 • Cost-, quality- and UW-leader - 2007 2008 2009 2010 2011 2
Slide 59: Risk appetite and hit ratio
Risk appetite and hit ratio Green: Highly attractive customers Yellow: Attractive customers – at sustainable premiums Red: Will be tendered for at higher premium levels. Tailored solutions do exist 58
Slide 60: Nordic market leader – Public sector
Nordic market leader Public sector 59
Slide 61: UK Stage 3 & 4
UK Stage 3&4 CMD 2016-08-18 PROTECTOR forsikring
Slide 62: Project C4 – Country four
Project C4 – Country four 1000 pages of analysis Ultimo 2013 – Initial process started • Seven markets identified Board meeting • Market studies completed Stage one • Home markets analysis (Nordics) Medio 2014 – Further analysis • Benchmark vs seven identified markets Management meeting Zürich • UK,
Slide 63: Evaluation of Market Studies
Evaluation of Market Studies Austria Belgium Germany Netherlands Poland Switzerland United Kingdom Criteria Rating Score Rating Score Rating Score Rating Score Rating Score Rating Score Rating Score 1 Product Mix 2 0.40 3 0.67 3 0.67 4 0.80 4 0.73 3 0.60 5 0.93 2 Cost ratios 3 1.07 4 1.47 3 1.20 4 1
Slide 64: UK Market Studies – Fact based decisions
UK Market Studies – Fact based decisions CMD 2016-08-18
Slide 65: Distribution channels – public and commercial sector
Distribution channels – public and commercial sector Distribution channels in the UK 2009-2012 Brokers 100% 5.9% 6.1% 6.1% Brokers represent the main distribution channel in the UK, and have 8.4% 90% 7.6% 7.3% 7.8% 7.4% a particularly strong position in the commercial and public 80% sectors (decli
Slide 66: Public Sector Market Overview
Public Sector Market Overview Total United Kingdom Scotland 32 unitary authorities Estimated premium: GBP 500 – 600m Leading carriers: RMP & Zurich (almost Leading carriers: Zurich & RMP 100% MS* together) Leading brokers: Aon, Marsh, JLT & Willis Leading broker: Aon (c. 50% MS) North West & North E
Slide 67: UK Local Government Structure
UK Local Government Structure Local authorities & responsibilities Local government structure Many parts of the UK have a two-tier local government 9 English regions, Scotland, Wales & Northern Ireland structure with: ‒ Counties, responsible for key functions such as education, highways, social se
Slide 68: Competitor analysis
Competitor analysis UK public sector • All major players • Some segment specific information available • Cost-ratios, loss ratios, reserve situation, market shares, risk appetite and latest trends analysed 67
Slide 69: Public Sector Summary
Public Sector Summary UK more than twice the size of the Nordic Market UK Norway Sweden Denmark 406 (12 Number of municipalities 430 (19 regions) 290 (21 regions) 98 (5 regions) regions) Population 62 000 000 5 000 000 10 000 000 5 600 000 Number of employees 5 700 000 570 000 930 000 510 000 Number
Slide 70: A warm Welcome from the Brokers
A warm Welcome from the Brokers Initiated through Market Leader Aon Meetings 2015 Agenda Key take out • Warmly welcomed by • Introductions with market leader Aon • March London professionals Management • Partnership in growth • Introductions Aon Manchester team • Data and market information • June M
Slide 71: Access to Tender Documents
Access to Tender Documents Quickly Increasing Protector’s Knowledge • Brokers welcome Protector, contributing to learning process • Quick access to information about 1/3 of the market • More than 5 000 pages of information processed in initial phase • Tender contents and set up very similar to Scand
Slide 72: Tender comparison
Tender comparison Scale 1-5, only brokered customers Description Efficient General Claims Exposure Total Region of tender Evaluation information history information (weighted) requirements process United Kingdom 3 4 4 4 4 3 3 Norway 2 2 2 3 3 2 2 Sweden 2 4 4 4 4 4 4 Denmark 3 3 3 4 4 2 3 71
Slide 73: CCS Framework
CCS Framework Protector is an approved Insurer from primo 2016 The Framework The CCS insurance services framework’s main objectives are to facilitate procurement process thanks to a standard set of documentation Tendered every 4 years 30 % of Public Sector GWP flow through the framework → 50 %
Slide 74: The Challenger's location in UK
THE CHALLENGER’S LOCATION IN UK CLOSE TO THE BROKERS Based on discussions with leading public sector brokers, we found that: • Manchester seems to be the best ? starting point in the UK • Close to public sector market leader Aon • Is an insurance hub - public sector • Close to highly skilled workfor
Slide 75: UK – Go live
UK – Go live Stage 4 & 5 CMD 2016-08-18
Slide 76: Project C4 transfer to M6
Project C4 transfer to M6 Project C4 UK – July 2016 Sub-Project Status Market Analysis Project M6 – July 2016 Business planning Sub-Project Status Go to Market Pub Attack Formal Establishment Tools 4 Trade Recruitment Claims Surprise Reinsurance 5x20 Great Lakes Practical & Operational office space
Slide 77: Recruitment – First Who, then What
Recruitment – First Who, then What • Partnership with local recruiters • Recruiting continuously since November • Target 25 by end of 2016 Timeline Competence Profile 2015 2016 2017 Role Capacity UW Cla Re Br Mgmt Edu Exp Age? Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec J
Slide 78: The People
The People Team on board • Maureen Owen – Regional Manager UK • Julie Kenny – Claims Manager • Claire Lyons – Claims Technician • Lee Goodyear – Underwriting Manager (Property) • Paul Steventon – Underwriting Manager (Liability) • Charlotte Craven – Fleet Motor Underwriter • Matthew Wright – Fleet M
Slide 79: Culture – An Opportunity and a key factor for success
Culture – An Opportunity and a key factor for success 78
Slide 80: SLA's – a part of the definition of quality
SLA's – a part of the definition of quality • Quality standard with clear objectives • Responsiveness (time) ”Right first time, • At least market standards / brokers’ requirement on time, every time” • Reports with results delivered • Penalties if breached • Payable to broker / customer • Fee or per
Slide 81: Claims Handling UK – The Moment of Truth
Claims Handling UK – The Moment of Truth • Protector targets to be quality leader in claims handling in first UK survey • Survey to be conducted in 2017 • This will be done through a two-stage operational set-up (similar to Scandinavia): • Short term (present → critical mass is reached): • Partnersh
Slide 82: Market Activities Public Sector
Market Activities Public Sector • Broker meetings • 20 meetings with AON, Marsh, JLT, AJG and Willis • 100 brokers (85 % of all Public Sector brokers) • Professional individuals, efficient organizations • Warm welcome Marsh fall 16 Aon/ • Events Marsh fall 16 • 4 conferences hosted by Public Sector
Slide 83: UW – Gradual learning
UW – Gradual learning Transfering methodology and culture from Scandinavia CMD 2016-08-18
Slide 84: Underwriting process
Underwriting process Other to-do -Risk inspection follow up -New risk inspection -Broker communication UW meeting 1 UW meeting 2…4 Analysis Further analysis Results Risk inspection results Q&A Pre UW Preliminary premium Tender delivery -Tender documents New issues identified quotation -E-mail availa
Slide 85: Public Sector Data
Public Sector Data • Significant dataset available across main lines of business • Result of market entry activities • Ongoing market presence and tender activity • More UK data is scheduled to arrive Property Casualty Fleet # Claims / sum Sums # Claims / sum # Claims / sum Sums insured Claim years
Slide 86: Underwriting – Public Sector
Underwriting – Public Sector Claims history - conclusion Public statistics – and other go/no go indicators Rate comparison / premium suggestion UW recommendation - risk appetite Detailed view – responsibilities Risk engineers and risk factors comments and conclusion • Risk mapping and conclusion pre
Slide 87: Underwriting Tools
UNDERWRITING TOOLS We have approx. 130,000 claims in our dataset Claims frequency Will analyse against all Inflate claims costings local authorities and then similar services Effect of Deductible variations Regional variations also analysed Inc 0 Inc 0 > ded > ded Inc 0 > ded Inc 0 > ded
Slide 88: Underwriting examples
Underwriting examples Summary Client Lots Current Insurer EML/Limit k Aggregate Existing Excess • Introductory information LA Type UA PDBI Housing Properties General Zurich Municipal £100,000,000 any one £5,000 each and every loss £5,000 each and every loss Broker 250 000 £5,000 each and every loss
Slide 89: UK status – Public Sector Tenders
UK status – Public Sector Tenders 5 clients on board, careful start, learning quickly Status Count Share % Status Sum Share % Won 5 25% Won £1m 11% Lost 15 75% Lost £8m* 89% Ongoing 4 Ongoing £4m Quoted 11 Quoted £6m Total 35 Total £21m *Includes non attractive volume 88
Slide 90: UK – UW Commercial sector
UK – UW Commercial sector CMD 2016-08-18
Slide 91: Underwriting Process
Underwriting Process Gradually transferred to UK resources Time: Individual Participation:, CEO / RM,/ Dir. P&C / UWs Time: Individual Participation: CEO, RM, Dir. P&C, UWs Time: Wednesdays Participation: CEO, RM, Dir. P&C, UWs Time: Wednesdays Participation: CEO, RM, Dir. P&C, UWs Negotiation And d
Slide 92: Pre-underwriting
Pre-underwriting Information in tender doc Necessary info available (operational / technical /ownership structure etc.) Risk type Desirable exposure? Easy or difficult to assess? Antiselection? Losses / loss information Reliable claims history, info about causes, preventive actions? Economy Lindorf'
Slide 93: Summary
Summary Risk is summarized on one page - underlying analyzes are easily accessible. Client Helsinki Topco Client UW P&C LG Responsible Key Take- Nace 10.85 UW EB N/A Outs per LOB Industry Food Lead LG Group Food and Drink KAM MO Market assessment Summary of risks - UW comments Grade: Property: Insur
Slide 94: Fact Sheets Property
Fact Sheets Property 70 business types considered and implemented in the template. Summary of assessments 93
Slide 95: Check Lists Liability
94 Check Lists Liability Checklists are used to establish a clear view of qualitative aspects of exposure Incorporating an understanding of the level (and quality) of risk management/- awareness RM standards, codes of practice, injury rate, HSE improvement notices etc. 94
Slide 96: Check Lists Fleet Motor
95 Check Lists Fleet Motor Benchmarking of the degree to which quality of information and data provided effects overview of risk Quality of Claims Information Quality of Exposure Information Fleet Schedule 95
Slide 97: Copying a Winning Formula to new Markets
Copying a Winning Formula to new Markets By gradually transferring to «all business is local business» Cost leadership Fact: 1/2 of competitors Target UK: 1/3 of competitors • Competitors higher than Scandinavia • Larger average clients than Scandinavia People and culture Quality leadership Top 3 Fa
Slide 98: Summary and Final Q&A
Summary and Final Q&A CMD 2016-08-18
Slide 99: Highlights H1 2016
Highlights H1 2016 - On Track • Operating profit of 300 MNOK From Norwegian, to Scandinavian, to… • GWP + 22% year to date (17% local currency) • Net combined ratio 91.2% • Investment results of 188,6 MNOK, 2.6% • First 5 clients in UK • Guiding unchanged 98
Slide 100: Summary and next level
Summary and next level • 2004-2016 Nordic Champion – Broker based business ̵ Cost and Quailty leadership From Norwegian, to Scandinavian, to… ̵ Best combined ratio and investment results ̵ Growing 20% a year ̵ Culture eats strategy for breakfast • 2017-2019; world leading not only on cost ̵ Good is
Slide 101: Key Priorities 2017-2019
Key Priorities 2017-2019 1. Claims handling, huge potential - Internal quality development (Rolls Royce, Veritas, Clean desk) - Efficiency development looking to 2018/2019 2. Profitable growth in the Nordics 3. UK - Manchester - London, Sales/UW Motor - Office number 3 and 4 4. Experto Credite – Cha
Slide 102: Key risk factors going into 2017
Key risk factors going into 2017 Risk Increased competition in Norway Medium Significant Real Estate price correction in Norway Some New entrant Change of Ownership sector Low Significant setback Sweden and affinity programs Low Denmark WC driving claims ratio upwards Some Rate pressure (outside gui
Slide 103: Key Question going forward
Key Question going forward Does protector have the necessary people capacity and competence to deliver? 102
Slide 104: Management Group
Management Group Sverre Bjerkeli CEO Dag Marius Nereng Cathrine Foyn Vibeke Krane Chief Investment Officer Chief Investment Officer Interim CFO Equities Fixed Income Erik Sand Marius Austnes Head of Business Director IT Development Fredrik H. Øyan Ole Gustav Gjekstad Director, Director, P&C and Perf
Slide 105: Leadership Development
Leadership Development 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Visjon, forr.ide, First program Dream Team GTG Lederlinjen / Lede®Stjerne verdier «No Name» Lederen Gruppe-dynamikk L1 Geniprofil 360 270 L2, Bedrift N / ESF, øk/IT, SE NGL 104
Slide 106: 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, best in class decision-making and cost effective solutions Main targets Cost and quality leadership Profitable growth Top 3 Values Credible Open Bold Committed • Final Su
Slide 107: Q&A The Challenger
Q&A The Challenger Capital Markets Day August 18th 2016