Suncorp Group Limited · ASX:SUN
Suncorp — UBS Financial Services Conference 2009
22 slides from Suncorp's conference presentation, Jun 24, 2009
Slide 1: Suncorp Wealth Management Presentation announcement
24 June 2009 For personal use only SUNCORP WEALTH MANAGEMENT PRESENTATION Suncorp group executive Geoff Summerhayes has updated the market about the progress of the Group‟s wealth management business, including an independent assessment of its embedded value and the decision to rename it „Suncorp Li
Slide 2: UBS Financial Services Conference
For personal use only UBS Financial Services Conference Geoff Summerhayes Group Executive 24 June 2009 1
Slide 3: Our guiding aspiration
Our guiding aspiration For personal use only We aspire to be a leading life insurance specialist, with ‘first tier’ scale and distribution in Australia and the clear #2 position in New Zealand Australia Premium First tier insurers CBA ING NAB TOW AMP AXA SUN AIG WBC AVI MET ZUR Other 2
Slide 4: Outline
Outline • Overview of Suncorp Life For personal use only • Current operational opportunities – Distribution reach and capability – Retention – Simplification and cost control • Performance – Profit – Capital management – Embedded value • Q&A 3
Slide 5: Rich life insurance heritage
Rich life insurance heritage For personal use only • 175 years of Life Insurance • 90 years of Life Insurance heritage (SGIO) heritage (Royal & Sun Alliance) • Group Risk book • Corporate Super • Retail Super • Tyndall Investment Management • Suncorp Investment Management • 7th largest Life Insurer
Slide 6: Profitable complementary businesses
Profitable complementary businesses Asset Management and Super & Investments For personal use only are mutually reinforcing across the customer base and value chain. Life Insurance Asset Super & Management Investments A$23.4bn of FUM A$8bn FUA • GI: A$10.8bn • Life company: A$6.7bn • External: A$5.9
Slide 7: Suncorp Life in the Group portfolio
Suncorp Life in the Group portfolio • For personal use only Similar business processes and model to GI, and more stable earnings. Bottom line volatile due to discount rate adjustments • Access to customer bases for Suncorp Life, particularly GI and the Bank... and enhanced customer relationships acr
Slide 8: Targeting attractive markets
Targeting attractive markets For personal use only Asset Super & Life Insurance Management Investments • Cyclical trends & adviser • Asset Management – projected preference for Life Insurance managed funds growth >10% off GFC lows and driven by • Regulatory & demographic factors consolidation suppor
Slide 9: Refocus – a life insurance specialist
Refocus – a life insurance specialist For personal use only • Build distribution reach & capability Leadership – Profit • Retention growth restored • Simplification & cost control Refocus –A life insurance specialist Stabilise –Respond to the environment and rebase the business 08/09 09/10 10/11 8
Slide 10: Our distribution challenge
Our distribution challenge • For personal use only Overall new business share below in force share • Solid growth in Term, less in Disability and Group • Our momentum is building in EFA market • Opportunity to grow direct through GI customer base Australian Total Risk Premium Share 20% Premium Marke
Slide 11: Multi-channel distribution
Multi-channel distribution For personal use only The Corporate Divisional Identify Identity Intermediaries & Group Risk Life Insurance Distribution Direct Distribution Partners Brands Bank Customers Asset Management Complementary Business Brands Super & Investments 10
Slide 12: Driving individual life risk new business
Driving individual life risk new business For personal use only Individual Life Risk New Business Premium (A$m) 38 34 33 34 32 7 6 5 7 5 28 28 31 27 27 0607H1 0607H2 0708H1 0708H2 0809H1 Aus NZ 11
Slide 13: A disciplined focus on retention
A disciplined focus on retention • For personal use only Industry-wide lapse rate pressure Lapse Rates • Focus on protecting core portfolios Suncorp Life vs Market through; 14% – Adviser Engagement 13% Lapse Rate % • National adviser roadshow 12% • Targeted forum for top 100 life risk advisers in Au
Slide 14: In force premium growth
In force premium growth For personal use only Life Risk In force Premium (A$m) 713 675 683 585 613 101 102 92 92 97 573 591 612 493 516 0607H1 0607H2 0708H1 0708H2 0809H1 Aus NZ 13
Slide 15: Aggressive cost management
Aggressive cost management • Accelerated & expanded Suncorp / Promina integration For personal use only • Additional expense savings delivered across entire business • Life Insurance – Automation of new business application process – Focus on trans-Tasman economies of scale and scope • Super & Inves
Slide 16: Performance – Profit
Performance – Profit For personal use only A$m 0607H1 0607H2 0708H1 0708H2 0809H1 Underlying Profit 78 72 86 61 68 Market adjustments Annuities market adjustments -1 -10 -34 Life Risk policy liability discount rate changes -6 -4 126 Net investment income on shareholder assets * 60 31 24 -39 -26 60 3
Slide 17: Sound capital position
Sound capital position At 31/12/08 For personal use only Net Total Life Company % Excess Regulatory Excess Regulatory Net Tangible over Required Required Assets Required Assets* Assets Assets# Assets A$m 1,441 950 491 7,323 6.7% • Our capital management principles include; – Minimise capital require
Slide 18: Embedded value – Suncorp Life
Embedded value – Suncorp Life Life & non-Life For personal use only Companies Valuation at Discounted Cash Flow 31 Dec 08 Valuations Adjusted Net Worth Embedded Value = Adjusted Net Worth Net assets at Net Prudential plus the Present market value Assets Capital Value of Free Cash (inc. Target Flows
Slide 19: We aspire to be a leading life insurance specialist
We aspire to be a leading life insurance specialist For personal use only • Build distribution reach & capability Leadership – Profit • Retention growth restored • Simplification & cost control Refocus –A life insurance specialist Stabilise –Respond to the environment, stabilise, and rebase the busi
Slide 20: Disclaimer
Disclaimer This presentation contains general information which is current as at 24 June For personal use only 2009. It is not a recommendation or advice in relation to Suncorp-Metway Limited or any product or service offered by the Suncorp Group. This report should be read in conjunction with all o
Slide 21: Appendix – Management Team
Appendix – Management Team For personal use only Geoff Summerhayes Group Executive Suncorp Life Peter Loosmore David Carter CFO Advice Solutions John Crosswell Vicki Doyle Life Risk Super & Investments Sean Carroll Brett Himbury Life Risk New Zealand Asset Management 20
Slide 22: For personal use only
For personal use only 21
Suncorp Group — UBS Financial Services Conference 2009 on 6ix