Suncorp Group Limited · ASX:SUN
Suncorp — Investor Day (February 2016)
30 slides from Suncorp's investor day presentation, Feb 11, 2016
Slide 1: Suncorp Group targets 10%+ return on equity by FY15
ASX announcement 28 May 2013 SUNCORP GROUP TARGETS 10%+ RETURN ON EQUITY BY FY15 Suncorp Group Targets Return on Equity (ROE) of 10%+ by FY15 Increased simplification benefits of $225 million in FY15 and $265 million in FY16 Average growth of 7% p.a. to 9% p.a. for the next two years ‘Meet o
Slide 2: Suncorp's Simplification Program
ASX announcement Suncorp’s Simplification Program Mr Snowball said the modern Suncorp Group was a more streamlined and efficient company delivering on its targets by leveraging the strategic assets of capital, cost, customer and culture. “The simplification projects outlined a year ago have made our
Slide 3: Suncorp Group Investor Day 2013 Agenda
Suncorp Group Investor Day Presentation 28 May 2013 Suncorp Group Investor Day 2013 1 Suncorp Group Investor Day 28 May 2013 Suncorp 2013 Investor Day Agenda Introduction Patrick Snowball Personal Insurance CEO Mark Milliner Commercial Insurance CEO Anthony Day Vero New Zealand CEO Gary Dransfield S
Slide 4: Q-Plus – a simple idea, executed well
Suncorp Group Investor Day Presentation 28 May 2013 Investor Day 2013 Patrick Snowball Group Chief Executive Officer 3 Suncorp Group Investor Day 28 May 2013 Q-Plus – a simple idea, executed well Demonstrating innovation at Suncorp • Repairing undriveable vehicles • ‘One Company, Many Brands’ in act
Slide 5: The Suncorp journey
Suncorp Group Investor Day Presentation 28 May 2013 The Suncorp journey 4C’s drive the Group’s competitive advantage FY13 - FY16 FY12 - FY16 Optimise and Simplification differentiate FY10 - FY12 program • ‘Meet or beat’ 12% NOHC • Licence consolidation underlying ITR FY10 & Building Blocks • Legacy
Slide 6: The Suncorp journey: More gas in the tank
Suncorp Group Investor Day Presentation 28 May 2013 The Suncorp journey More Gas in the Tank FY13 - FY16 Additional Simplification benefits Optimise and differentiate Businesses deliver value from points of difference 4C’s drive competitive advantage ‘Meet or beat’ 12% underlying ITR 10%+
Slide 7: Additional Simplification benefits and key commitments
Suncorp Group Investor Day Presentation 28 May 2013 Additional Simplification benefits Delivering more, sooner - $225 million in FY15 300 Original net impact 250 Revised net impact Revised Simplification 200 benefits 150 $m 100 Original Simplification 50 benefits 0 Original one-off (50) project cost
Slide 8: Suncorp's shareholder focus
Suncorp Group Investor Day Presentation 28 May 2013 Suncorp’s shareholder focus Yield Growth • Dividend payout ratio of 60% to • 7% to 9% per annum growth 80% across the business lines • Return surplus capital • Leverage the Group’s 9 million customers • Organic strategy • Multi-brand, multi-channel
Slide 9: The Suncorp Personal Insurance journey
Suncorp Group Investor Day Presentation 28 May 2013 The Suncorp Personal Insurance journey A track record of delivery over the past 3 years Brands A portfolio reaching 92% of Australians GWP growth $1 billion Pricing Single pricing engine for mass brands Claims One claims system for mass brands Flat
Slide 10: Personal Insurance strategy and outlook
Suncorp Group Investor Day Presentation 28 May 2013 Suncorp Personal Insurance strategy A sustainable cost advantage through scale Strategic Objectives Focus Areas Further Simplification Manage expenses Manage expenses Build a sustainable New sources of value Maintain margin Maintain margin cost adv
Slide 11: Commercial Insurance: Delivering on our promises
Suncorp Group Investor Day Presentation 28 May 2013 Investor Day 2013 Anthony Day Commercial Insurance Chief Executive Officer 17 Suncorp Group Investor Day 28 May 2013 Suncorp Commercial Insurance Delivering on our promises 2010 promise We have delivered… High single digit growth for three Growth c
Slide 12: Commercial Insurance: We have momentum
Suncorp Group Investor Day Presentation 28 May 2013 Suncorp Commercial Insurance We have momentum… Areas of focus Achievements Results Commercial Insurance 10% GWP Growth Underwriting Customer 8% satisfaction 6% 9.7% 4% 7.6% improvements 2% 6.4% Distribution 0% 1H12 2H12 1H13 General Insurance Claim
Slide 13: Commercial Insurance multi-channel model
Suncorp Group Investor Day Presentation 28 May 2013 Suncorp Commercial Insurance Multi-channel model benefits evolving customer preferences Customer segments Global, Corporate, Mid Global, Corporate, MidMarket, Market, SmallSmall Business, Micro Business, Micro Our Corporate partners channels Broker
Slide 14: New Zealand General Insurance Market
Suncorp Group Investor Day Presentation 28 May 2013 Investor Day 2013 Gary Dransfield Vero New Zealand Chief Executive Officer 23 Suncorp Group Investor Day 28 May 2013 New Zealand General Insurance Market Concentrated and attractive ACE Others FMG Allianz 3% 2% • Total market (GWP) NZ$5.0 billion 4
Slide 15: New Zealand General Insurance Issues
Suncorp Group Investor Day Presentation 28 May 2013 New Zealand General Insurance Issues Structural change, strategic choices • Industry restructuring Key • Cost and premium escalation issues • ‘Back to the future’ underwriting changes • Government fiscal and monetary policy • EQC reform • Risk vers
Slide 16: Vero New Zealand: Stabilise, prioritise, focus
Suncorp Group Investor Day Presentation 28 May 2013 Vero New Zealand Stabilise, prioritise, focus, generate value Stabilise Prioritise Focus 2011 2012 2013+ • Earthquake claims cost • Highly effective earthquake • New Three Year Plan impacts on capital and claims management model • Clear strategic d
Slide 17: Brand Showcase
Suncorp Group Investor Day Presentation 28 May 2013 Investor Day 2013 Brand Showcase 29 Suncorp Group Investor Day 28 May 2013 Brand Showcase Booths ‘One Company, Many Brands’ in Action General Insurance General Insurance Direct Life Insurance Agribusiness Pricing Engine Policy Admin A key to Simpli
Slide 18: Suncorp Bank: Core Bank growth opportunities
Suncorp Group Investor Day Presentation 28 May 2013 Investor Day 2013 David Foster Suncorp Bank Chief Executive Officer 31 Suncorp Group Investor Day 28 May 2013 Suncorp Bank Core Bank growth opportunities Current operating Core Bank environment opportunities • Solid outlook for the Australian econo
Slide 19: Suncorp Bank's core competency
Suncorp Group Investor Day Presentation 28 May 2013 Suncorp Bank The best bank for middle Australia… • AB&F Australian Financial Institution of the year (non-major) Queensland 126 branches • Total customer base of Western Australia 33 business centres 13 branches 539 ATMs 1,079,000, growth of 20% 1
Slide 20: Well ahead of the majors in customer satisfaction
Suncorp Group Investor Day Presentation 28 May 2013 Suncorp Bank Well ahead of the majors in customer satisfaction Customer Advocacy* Retail Customer Satisfaction (%)** 90 Suncorp Bank 85 Up 5% Major 1 Up 16 points in 80 in 2 years 2 years 75 Major 2 70 65 Major 3 60 55 Major 4 50 -15 -10 -5 0 5 10
Slide 21: Bank targets
Suncorp Group Investor Day Presentation 28 May 2013 Suncorp Bank targets Sustainable growth over the medium term Lending growth 7% – 10% Net Interest Margin 175 – 185bps Deposit-to-lending ratio 60% – 70% Cost-to-income ratio Less than 50% Return on Common Equity Tier 1 12% – 15% 37 Suncorp Group In
Slide 22: Suncorp Life: Building blocks in place
Suncorp Group Investor Day Presentation 28 May 2013 Suncorp Life Building blocks for next wave in place Built a Direct Life business Revived our Adviser business 50,000 customers with a Direct Life product Established a position of industry leadership Integrated distribution to Group customers
Slide 23: Suncorp Life strategy
Suncorp Group Investor Day Presentation 28 May 2013 Suncorp Life strategy Strategy reset for scale and sustainability Our why Enabling our customers to live with confidence Aspirations #1 Player for direct Sustainable advice One Company. Many Brands Industry Leadership Our how Integrate & Leverage S
Slide 24: Cost and Capital update
Suncorp Group Investor Day Presentation 28 May 2013 Investor Day 2013 John Nesbitt Group Chief Financial Officer 43 Suncorp Group Investor Day 28 May 2013 Suncorp’s strategic assets – the 4C’s Cost and Capital update Customer COST ROE CAPITAL 10%+ by Simplification Improved risk benefits FY15 system
Slide 25: Suncorp capital position at 31 Dec 2012
Suncorp Group Investor Day Presentation 28 May 2013 Additional Simplification benefits Delivering more, sooner - $225 million in FY15 300 Original net impact 250 Revised net impact Revised Simplification 200 benefits 150 $m 100 Original Simplification 50 benefits 0 Original one-off (50) project cost
Slide 26: Capital Strategy
Suncorp Group Investor Day Presentation 28 May 2013 Capital Strategy NOHC benefits– Refinancing and improving capital efficiency CPS2 Investors Sub Debt Investors $560 million $770 million Issuer Suncorp Group Limited Bank General Insurance Life CPS 2 $450 million CPS 2 $110 million Sub Debt $100 mi
Slide 27: Capital Strategy and key commitments
Suncorp Group Investor Day Presentation 28 May 2013 Capital Strategy NOHC benefits- Diversification Indicative Diversification potential* Risk Based Capital Group Surplus Diversification will allow us to: Potential NOHC • Quantify risk and optimise return Life • Enhance decision Group Bank Group mak
Slide 28: Suncorp historical ROE
Suncorp Group Investor Day Presentation 28 May 2013 Suncorp historical ROE Impact of Promina goodwill and Non-core Bank 25 Impact of Promina Goodwill 20 21.1 21.7 22.4 Impact of natural hazards and 15 Non-core Bank 12.5 Group Cost of Equity 10% 10 8.0 5 6.1 6.1 5.4 5.5 4.2 4.8 3.2 1.4 3.2 3.3 0 51 S
Slide 29: Question & Answer Session; Suncorp transformation
Suncorp Group Investor Day Presentation 28 May 2013 Question & Answer Session 53 Suncorp Group Investor Day 28 May 2013 Suncorp transformation Life & Vero NZ Bank Core Businesses Commercial Insurance Personal Insurance Simplification Building Blocks in place Non-core Stabilise Bank $18 billion Less
Slide 30: Important disclaimer
Suncorp Group Investor Day Presentation 28 May 2013 Important disclaimer This report contains general information which is current as at 28 May 2013. It is information given in summary form and does not purport to be complete. It is not a recommendation or advice in relation to the Group or any prod