Helvetia Baloise Holding Ag · SIX:HBAN
Helvetia Baloise — Helvetia Group — UBS Best of Switzerland Conference 2017
44 slides from Helvetia Baloise's conference presentation, Sep 15, 2017
Slide 1: UBS Best of Switzerland Conference
Your Swiss Insurer. Helvetia Group UBS Best of Switzerland Conference Ermatingen, 15/09/2017 Susanne Tengler, Head IR
Slide 2: Disclaimer
Disclaimer Disclaimer: NEITHER THIS DOCUMENT NOR ANY PART OR COPY OF IT NOR THE INFORMATION CONTAINED IN IT AND ANY RELATED MATERIALS MAY BE TAKEN OR TRANSMITTED INTO THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN OR DISTRIBUTED OR REDISTRIBUTED, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES, AUSTRALI
Slide 3: Content
Content Helvetia at a glance Strategy helvetia 20.20 Financials Appendix I: Half-year results 2017 Appendix II: Additional information 3 |
Slide 4: Helvetia at a glance
Your Swiss Insurer. Helvetia at a glance
Slide 5: Who we are – Helvetia at a glance
Who we are – Helvetia at a glance Our profile Leading Swiss all-lines insurer (Top 3) with business operations in five additional country markets in Europe and in selected niche markets worldwide (Specialty Markets) Active in non-life (property & casualty) and life insurance as well as in Specia
Slide 6: Helvetia is well positioned and has an excellent basis for the future
Helvetia is well positioned and has an excellent basis for the future Switzerland Business volume 2016: CHF 5,107 million Stable foundation of the Group Non-life: Private clients & SME, #5 market position Very good CR of 82.9% (2016) Europe High quality service provider Life: Business volume
Slide 7: Our strength is a well developed sales network with excellent partners
Our strength is a well developed sales network with excellent partners… Own sales force Agents Brokers Partners Direct sales/new media 960 sales agents 1,410 agents 1,160 broker agreements Swisscanto online@helvetia.ch CH Raiffeisen smile.direct Vontobel AT 240 sales agents 490 agents 1,200 brokers
Slide 8: Customer-centered omni-channel network step by step
…which we develop into a customer-centered omni-channel network step by step Cross-channeling Omni-channeling Partners Own Mobile sales- force Own Agents Brokers Partners Direct sales / sales force new media Online 8 |
Slide 9: We have grown profitably organically and through selected acquisitions
We have grown profitably on an organic basis and through selected acquisitions over almost 160 years Almost 160 years of insurance expertise 1858 start as transport insurer 1996 merger of Helvetia Insurance & Patria Mutual 1870-1970 initially, expansion strategy with small portfolios worldwide
Slide 10: Key investment highlights – strength and sustainability
Key investment highlights – strength and sustainability Good technical results High portfolio quality due to disciplined underwriting policy and cost awareness Sustainable und profitable growth strategy Combining selected markets and profitable insurance and pension solutions Well diversified and co
Slide 11: Strategy helvetia 20.20
Your Swiss Insurer. Strategy helvetia 20.20
Slide 12: helvetia 20.20 gives answers to important trends
helvetia 20.20 gives answers to important trends & makes us fit for the future Trends helvetia 20.20 More individual and demanding customer needs Consistent orientation by customer Fit for the future demands, convenient, personalised range of products Innovative and digital Digitalisation as a s
Slide 13: helvetia 20.20 – ambitious objectives and financial targets
helvetia 20.20 – ambitious objectives and financial targets Strategy objectives Financial targets Switzerland: Volume: CHF 10 billion Increase in Switzerland’s profit contribution through organic growth, innovation and synergies from past acquisitions Non-life: Net CR < 93% Objective: Best S
Slide 14: Strengthening current business and developing new business ideas
With helvetia 20.20 we are strengthening and expanding our current business and developing new business ideas New business ideas Core business transformation New business ideas Organic growth Prototyping Corporate incubation Customer journey & Corporate convenience venturing smile.direct Eco-system
Slide 15: Our Executive Management structure
Our Executive Management structure strengthens integration of all market areas and strategy implementation Corporate CEO Internal Audit1) Secretary1) Philipp Gmür Simon Schneider Christophe Niquille Support Human Resources 1) Reports to the Chairman of functions Roland Bentele the Board of Directors
Slide 16: Financials
Your Swiss Insurer. Financials
Slide 17: Where we are today: development of volume, profit and combined ratio
Where we are today: sustainable and solid development of volume, profit and combined ratio (1/2) After tax profit1) Business Volume Our focus (in CHF million) (in CHF million) Profitable growth 439 492 8,235 8,513 422 7,767 258 5,532 2014 2015 2016 HY 2017 2014 2015 2016 HY 2017 Net combined ratio
Slide 18: Where we are today: sustainable dividend payout (2/2)
Where we are today: our shareholders benefit form a sustainable payout of dividends with an attractive yield (2/2) Shareholders’ equity1) Solvency Our focus (in CHF million) (in %) Financial strength SST (as of 31/12/2016) 140-180% 0% 100% 200% 4,963 4,655 4,813 4,806 SST (as of 30/06/2016) 140-18
Slide 19: Non-life: retaining good portfolio quality
Non-life: we focus on retaining the good portfolio quality by pursuing a cautious underwriting policy 93.6% 93.5% 92.1% 91.6% 91.3% 9.2% 8.7% 9.0% 8.9% 8.8% Disciplined underwriting strategy 21.0% 21.9% 20.4% 20.3% 20.5% Selective underwriting of large risks Portfolio optimisation if necessary
Slide 20: Life: stabilising the interest margin
Life: we focus on stabilising the interest margin in the current low interest rate environment Switzerland (CHF) Europe (EUR) Sustainable balance sheet structure due to efficient asset-liability matching with low 2.85%2) duration gap 2.72%2) 2.45%2) 2.32%1) 2.25%1) 2.32%1) 0.65% 0.70% Limited lo
Slide 21: Individual life: transforming our product range
Individual life: we successfully transform our product range – share of modern products on new business increasing Group Switzerland Europe (Written new business premiums; (Written new business premiums; (Written new business premiums; in CHF million) in CHF million) in CHF million) Share of capital
Slide 22: Investment portfolio well diversified, small duration gap
Our investment portfolio is well diversified and the duration gap is small Portfolio by asset class Performance by asset class Duration gap3) 2016 HY 2017 Other1) 2% 1% Alternative 2% 3% HY 2017 (not annualised) Loans 2% 2% investments / Equities2) 5% 5% investment Efficient asset-liability funds /
Slide 23: Sustainable investments: MSCI ESG risk profile
Sustainable investments: MSCI ESG risk profile 31/12/2016 Other2) 2% ESG risk profile: A rating 2% Alternative investments / Loans 2% investment funds / derivatives Equities 5% 6% Market risk PH Mortgages 9% 4% Investment 14% property 26% 70% Bonds 60% Low / minor ESG risk = AAA - A Moderate ESG ris
Slide 24: We target a shareholder structure with long-term focus
We target a shareholder structure with long-term focus 4.0% Raiffeisen Switzerland Patria Mutual 34.1% Free float Pool members 61.9% 38.1% Free float1) by investor type Free float1) by geography Investors Private individuals based abroad Swiss Other institutional 31.1 % investors investors 32.5% 39.
Slide 25: Appendix I: Half-year results 2017
Your Swiss Insurer. Appendix I: Half-year results 2017 25 |
Slide 26: FTE development and synergies from 2014 acquisitions
FTE development and synergies from 2014 acquisitions FTE development Realised synergies (pre-tax)1) (as of 30/06/2017; in CHF million) -579 204 Basler AT 58 MoneyPark 62 Nationale 1,831 Suisse 51 46 Personnel costs 7,066 6,476 Helvetia 6,429 6,487 40 Helvetia 5,031 16 Non-personnel costs 12 30/06/20
Slide 27: Underlying earnings by business activity
Underlying earnings by business activity (Underlying earnings; in CHF million) 34% Life 258 238 Non-life 66% 177 151 88 92 HY 2016 HY 2017 -1 -10 Total Non-life Life Other activities ∆ 8.4% 16.9% 4.2% n.a. 27 |
Slide 28: Underlying earnings by segment
Underlying earnings by segment (Underlying earnings; in CHF million) SpM 5% 22% CH 258 Europe 238 73% 194 173 59 HY 2016 53 HY 2017 14 14 -1 -9 Total CH Europe Specialty Markets Corporate ∆ 8.4% 12.5% 11.8% 2.5% n.a. 28 |
Slide 29: Non-life: business volume in HY 2017
Non-life: business volume in HY 2017 (in CHF million) Currency-adjusted growth Property thereof Engineering Motor vehicle Liability Accident / Health Transport / Art ARI Total NL against HY 2016 334 - 472 108 138 2 - 1,053 Switzerland 2.4% - 0.9% -3.2% 5.1% -0.8% - 1.5% 341 14 357 95 101 51 - 945 Eu
Slide 30: Non-life: overview of net combined ratios
Non-life: overview of net combined ratios (in %) CH Europe Specialty Markets Group Claims ratio (net) 59.8 63.1 63.5 62.0 Cost ratio (net) 24.7 31.3 33.2 29.3 Combined ratio HY 2017 (net) 84.5 94.4 96.8 91.3 Combined ratio HY 2016 (net) 83.1 97.2 97.0 91.9 Change from HY 2016 1.4 -2.8 -0.2 -0.6 DE I
Slide 31: Non-life: net combined ratio split
Non-life: net combined ratio split -0.6% 91.9% 91.3% -2.6% 1.1% 28.2% 0.0% 29.3% 0.9% 0.7% 0.7% 63.0% 61.3% CR HY 2016 ∆ Claims fiscal ∆ NatCat ∆ Claims ∆ Costs CR HY 2017 year (without previous years1) NatCat) Claims ratio (without NatCat) Cost ratio NatCat 1) Also includes ULAE and policyholder di
Slide 32: Life: business volume in HY 2017
Life: business volume in HY 2017 (in CHF million) Currency-adjusted Investment- Deposits1) Total Traditional life Total individual Total Total growth against linked investment- life group life life HY 2016 linked 121 9 130 295 425 2,090 2,515 Switzerland 5.5% 68.5% 8.3% -10.4% -5.4% -4.6% -4.7% 203
Slide 33: Life: new business margin and embedded value
Life: new business margin and embedded value (New business and embedded value; in CHF million) HY 2016 HY 2017 ∆ 17/16 Value of new business (VNB) 7 20 184% New business volume (in PVNBP) 1,510 1,643 9% New business margin (NBM; in % PVNBP) 0.5% 1.2% 0.7% pts 30/06/2016 30/06/2017 ∆ 17/16 Traditiona
Slide 34: Life: reserves
Life: reserves (in CHF billion; as of 30/06/2017) EU 6.9 0.25% interest guarantee 1.00% interest guarantee Individual life 11.4 CH Other 28.5 6.0 Group life 5.1 extra-mandatory Retirement 17.1 assets 11.0 5.9 mandatory 21% of Swiss life reserves are subject to the BVG minimum interest rate 34
Slide 35: Investments: performance and new and re-investment yield
Investments: performance and new and re-investment yield (in CHF million) Investment performance: total portfolio (yields not annualised) Equities Bonds1) Investment property Mortgages Other Total Current income 55 2.4% 280 0.9% 124 1.8% 44 0.9% 17 521 1.1% G/L 94 -162 5 0 141 78 Investment result 1
Slide 36: Equity walk: statutory to IFRS
Equity walk: statutory to IFRS (in CHF billion) 3.3 -0.8 4.8 Dividend pay-out ratio IFRS: 44% (at underlying) (net of hybrids interest payments for hybrids accounted for equity) Local GAAP: ~58%1) 2.3 Consolidated local Investments Technical provisions Consolidated IFRS GAAP equity as of and oth
Slide 37: Solvency and risk sensitivities
Solvency and risk sensitivities Group solvency (as of 31/12/2016) Sensitivities of solvency Equities Interest rates Credit spreads1) -30% -100 bp +100 bp SST -10% pts -14% pts -24% pts Risk sensitivities (as of 30/06/2017, in CHF million) Interest rate risk sensitivities Interest rate level Interest
Slide 38: Appendix II: Additional information
Your Swiss Insurer. Appendix II: Additional information 38 |
Slide 39: Our market positions
Our market positions CHF 822 million 31% Life 69% Non-life No. 30 CHF 215 million CHF 5,107 million 72% Life Niche position 28% Non-life No. 2 No. 3 No. 8 CHF 527 million 42% Life No. 26 58% Non-life No. 30 CHF 422 million 30% Life 70% Non-life CHF 863 million 43% Life 57% Non-life Market positions
Slide 40: Our product portfolio (1/2)
Our product portfolio (1/2) Non-life Premiums by business line (2016) Property (incl. engineering) CH DE IT ES AT FR LI 8% 9% Motor vehicle • • • • • • 33% Property 9% Liability Motor vehicle • • • • • • 8% Accident / Health Liability • • • • • • 33% Transport (incl. art) Accident / Health
Slide 41: Our product portfolio (2/2)
Our product portfolio (2/2) Life Group life Occupational pension plans (BVG) (Switzerland only) Individual life Management pension scheme solutions via Helvetia Collective Foundation CH DE IT ES AT All risks and benefits in occupational pension plans are assured and guaranteed by Helvetia Insurance.
Slide 42: How does non-life insurance work?
How does non-life insurance work? (greatly simplified) Customer Helvetia Policy Premium Insurance process Claims and costs Current claim payments Current claim payments Premium Provisions and future claims Investments Combined ratio Acquisition costs / administration costs Return Insurance benefits
Slide 43: How does life insurance work?
How does life insurance work? (greatly simplified) Customer Helvetia Policy Premium Insurance process Risk process Savings process Cost process Risk premium Savings premium (investments) Cost premium Risk benefits (death, disability) Risk benefits (death, disability) Return on investments Acquisitio
Slide 44: Calendar and contact
Calendar and contact Important dates 5 March 2018 Publication of financial results 2017 20 April 2018 Ordinary Shareholders’ Meeting 2018 4 September 2018 Publication of half-year results 2018 Contact Investor Relations Corporate Communications Susanne Tengler Philipp Schüpbach Jonas Grossnikl
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