Protector Forsikring ASA · OSL:PROT
Protector Forsikring ASA — Q3 2010 Earnings Presentation
21 slides from Protector Forsikring ASA's earnings presentation, Oct 28, 2010
Slide 1: Protector Forsikring ASA Q3 results 2010
Protector Forsikring ASA Q3 results 2010 Investor presentation 28 October 2010
Slide 2: Protector Forsikring ASA
Protector Forsikring ASA • A focused non-life Norwegian insurance company • Ownership; ODIN, Franklin Mutual Funds, Alfred Berg Norge/Gambak, • Established Jan.1, 2004. (Listed on Oslo Stock Exchange May 2007) DnB NOR SMB, employees, etc. • Vision: “Protector will be the challenger to the establishe
Slide 3: Highlights Q3 2010
Highlights Q3 2010 33 % growth and increased guiding • Strong growth, GWP up 33 % • Strong net combined ratio, 89.9%, down from 91.5% – Maintained pole position in the Norwegian market (YTD 2010) • Operating profit, NOK 89.4m, up from NOK 65.2m – Return on investments, NOK 68.1m (3.7%) up from NOK 4
Slide 4: Gross written premium Q3 2010
Gross written premium Q3 2010 GWP up 33%, from NOK 141.8 m to NOK 189.3m • GWP up 45% within the commercial and public lines of business – Strong renewal rate, 93% – Underlying growth weaker due to portfolio changes (volume moved from Q2 to Q3) • Change of ownership insurance, 23% growth – Driven by
Slide 5: Claims development Q3 2010
Claims development Q3 2010 Net claims ratio 72.1%, down from 73,9% • One large claim (> NOK 5m) and higher than normal no. of medium sized claims • Stable reserves – Run-off-gains of NOK 3.6m • Gross claims ratio 73.1%, down from 73.6% Net claims ratio Q3 2006 – Q3 2010 Net claims ratio YTD 2006 – Y
Slide 6: Cost ratio Q3 2010
Cost ratio Q3 2010 Gross cost ratio 17.0%, up from 15.8% in Q3 2009 - YTD 16.4%, down from 17% YTD 2009 • Increased manning costs due to increased no. of employees – Average no. of employees in Q3 108, up from 96 in Q3 2009 – Increased pension costs • Agencies drives cost ratio upwards – Increased c
Slide 7: Highlights Q3 2010 - Commercial and public lines of business
Highlights Q3 2010 - Commercial and public lines of business • Volume up 45% Gross written premium (MNOK) - Strong new sales, 3 large customers on board 606 - Strong renewal rate, 93% 603 548 - Portfolio changes, volume moved from Q2 to Q3 - Some “price increases” when broker portfolio changes to ag
Slide 8: Highlights Q3 2010 - Change of ownership insurance
Highlights Q3 2010 - Change of ownership insurance • Volume up 23% Gross written premium (MNOK) - Market share unchanged, well above 50% 265 - Hit-ratio on a historic high level, above 75% 242 193 • Improved market 90 74 - Real estate prices in Sept up 6,8% relative to Sept 09 and up 8% YTD relative
Slide 9: Results Q3 2010
Results Q3 2010 MNOK Q3 2010 Q3 2009 YTD 2010 YTD 2009 Premiums written gross 189,2 141,8 848,4 744,9 Premiums earned gross 254,9 221,1 720,0 619,8 Claims incurred gross (186,2) (162,7) (525,4) (487,9) Premiums earned for own account 205,6 180,1 575,3 490,3 Claims incurred for own account (148,3) (1
Slide 10: Balance sheet Q3 2010
Balance sheet Q3 2010 MNOK 30.09.2010 30.09.2009 31.12.2009 Financial assets 1 925,2 1 594,2 1 634,8 Bank deposits 70,8 95,1 85,6 Other assets 298,2 431,3 252,5 Total assets 2 294,1 2 120,5 1 972,9 Total equity 544,3 503,2 562,7 Total reserves 1 665,2 1 400,1 1 358,7 Other liabilities 84,6 217,2 51,
Slide 11: Investment performance Q3 2010
Investment performance Q3 2010 • Net investment result of NOK 68.1 m (NOK 49.3m) - Equities; Return of 13,1% (10,3%), OSEBX 16,25% - Bond portfolio (inc HTM-Bonds); Return of 1.5% (1,5%) - Equities have from 1 October to 27 October increased by NOK 24m i value • Investment portfolio of NOK 1.925m (N
Slide 12: Asset allocation
Asset allocation • Bonds 78.9% of portfolio, Norwegian equities 21.1% - Exposure in equities increased in July/August, NOK 70m allocated to equities Asset allocation 30 Sept 2010 Asset allocation 31 Dec 2009 Equities Equities 21,1 % 25,1 % Money Money market market Bonds HTM 50,7 % 56,2 % 11,5 % Bon
Slide 13: Portfolio structure and quality bond portfolio
Portfolio structure and quality bond portfolio • Duration (credit) of bond portfolio (ex HTM) is 2,3 years (1,8 years) - Interest duration (ex HTM) 0,17 years (0,25 years) Bond portfolio 30 Sept 2010 Quality bond portfolio 30 Sept 2010 Other ¹; 2,1 % Norwegian funds; 21,1 % Split of fixed incom e po
Slide 14: Shareholder matters October 2010
Shareholder matters 26 October 2010 Shareholder No. shares Percent Option program ODIN NORDEN 7 218 055 8,38 % MSF-MUTUAL FINANCIAL SERVICES FD 4 479 410 5,20 % • Outstanding options: 2.175.293 DNB NOR LUXEMBOURG SA 3 671 980 4,26 % ALFRED BERG GAMBAK VPF Strike price of NOK 7,75 3 590 742 4,17 % PR
Slide 15: Outlook 2010, increased
Outlook 2010, increased NOKm 2009 2010 2010 2010 2010 Feb Apr July Oct Premium growth (%) 20 15 15 10 12 Operating profit 258.8 150 180 150 180 Investment Income 224.6 88 118 76 106 Gross cost ratio (%) 17.6 16 16 16 17 Net combined ratio (%) 96.5 92 92 90 91 Return on solvency (%) 38 20 24 20 23 Re
Slide 16: Summary Q3 2010
Summary Q3 2010 • GWP up 33% • Strong net combined ratio, 89.9%, down from 91.5% - Pole position in the Norwegian market (YTD 2010) • Operating profit of NOK 89.4m, up from NOK 65.2m -Strong return on investments NOK 68.1m (3.7%), up from NOK 49.3m (3.4%) • Guiding increased - Operating profit NOK 1
Slide 17: Appendix
Appendix PROTECTOR forsikring 17
Slide 18: Claims handling, Change of ownership insurance
Claims handling, Change of ownership insurance • Approx. 4.000 claims reported per year MERETE C BERNAU (44) – Change of Ownership Director of Claims • 200 law suits per year • 3 teams, 2 within claims handling and 1 within process • 24 lawyers, 3 technical support • Claims handling department: Mere
Slide 19: Improved quality and efficiency within claims handling
Improved quality and efficiency within claims handling • External factors - “New” Supreme Court decision - Established Court practice • Internal factors - Management development - Changes in management - Role clarification - One-year management program fulfilled - Less turn-over on lawyers - Increas
Slide 20: Efficiency and quality, claims handling
Efficency and quality, claims handling Change of ownership No. of claims No. of claims closed No. of open claims Total Lawyer Q2 . Q3 . M9 . YTD . Q2 Q3 . M9 . YTD . Q2 . Q3 . M9 . YTD . Q3 M YTD Efficiency Team 1 402 303 165 1 212 845 477 231 2 133 943 729 737 737 Team 2 282 370 149 884 305 248 97
Slide 21: Change of ownership insurance
Change of ownership insurance • Black figures • No. of lawsuits decreasing • Historical high win ratio in court - 28 – 6 – 6 (win – draw – loss) • Documented improved quality and efficiency within claims handling • Further potential 2011 – 2013, 8 percentage points on claims ratio Potential MNOK 201