Helvetia Baloise Holding Ag · SIX:HBAN
Helvetia Baloise — Helvetia Group — FY2018 Earnings Presentation
37 slides from Helvetia Baloise's earnings presentation, May 2019
Slide 1: Pleasing growth. Good portfolio quality. Solid results.
Pleasing growth. Good portfolio quality. Solid results. Investor presentation Cover Olga Titus: KLEINOLGA, 2018 (image section) Helvetia Group May 2019
Slide 2: Disclaimer
Disclaimer Disclaimer: Analyst presentation 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 UN
Slide 3: Full-year results 2018
Kapiteltrenner Full-year results 2018. oder Fazit auf Farbfläche Flexible Schriftgrösse Arial Black 0.9 ZA 3 Optional Bereichsbezeichnung | Thema/Projekt | Referent 10.05.2019
Slide 4: Key figures and highlights at a glance
Key figures and highlights at a glance Business volume Non-life +5.8% (in OC) growing in all segments and lines of business Growth CHF 9,073 million Life +2.1% (in OC) driven by investment-linked products in Switzerland (+26.1%) and Germany (+8.8% in OC) and growth in group life business – positive
Slide 5: Solid net income
Solid net income Net income after tax (in CHF million) -14% 31% Life2) -16 -27 5 -33 Non-life2) 69% 502 486 1,349 431 Specialty 7% Markets3) Underlying Underlying-IFRS ∆ Non-life ∆ Life ∆ Other IFRS net 25% Switzerland3) earnings accounting activities income Europe3) 2017 adjustment1) 2018 68% 1) Am
Slide 6: Stable results in Europe – Specialty Markets with pleasing improvement
Stable results in Europe – Specialty Markets with pleasing improvement (in CHF million) Switzerland: net income after tax Europe: net income after tax -22% -2% -14 -75 410 321 120 -2 -1 1,349 117 Underlying earnings Underlying-IFRS ∆ Profit IFRS net income Underlying earnings Underlying-IFRS ∆ Profi
Slide 7: Non-life: strong volume growth in Europe & ARI
Non-life: strong volume growth in Europe & ARI (Business volume in CHF million; Property thereof Motor Liability Accident / Transport / ARI Total NL currency-adjusted growth against 2017) Engineering vehicle Health Art 527 - 607 160 174 4 - 1,472 Switzerland -2.0%* - 0.6% 5.2% 3.5% 4.1% - 0.5%* 690
Slide 8: Non-life: improved technical result but lower investment income due to weak capital markets
Non-life: improved technical result but lower investment income due to weak capital markets Non-life profit by sources (in CHF million) 20171) 2018 ∆ 18/17 Technical result (net) 296 349 18% Investment income (net)3) 204 1092) -47% Other non-technical expenses and income3) -30 -37 -23% Profit or los
Slide 9: Non-life: strong net combined ratio on a very good level
Non-life: strong net combined ratio on a very good level Group net combined ratio Net claims ratio development Net CR 2018 by segment 91.8% 91.0% 9.0% 8.6% 96.2% 95.1% 62.1% 7.2% 20.7% 21.3% 61.1% 82.7% 7.8% 2.6% 1.6% 10.7% 25.5% 23.4% 16.1% 62.4% 62.2% 62.1% 61.1% 63.9% 63.6% 55.9% 2017 2018 Switze
Slide 10: Non-life: overview of net combined ratios
Non-life: overview of net combined ratios (in %) CH Europe Specialty Markets Group Claims ratio (net) 55.9 63.9 63.6 61.1 Cost ratio (net) 26.7 31.2 32.6 30.0 Combined ratio 2018 (net) 82.7 95.1 96.2 91.0 Combined ratio 2017 (net) 83.1 95.4 100.1 91.8 Change from 2017 -0.4 -0.2 -3.9 -0.7 DE IT ES AT
Slide 11: Life: decent growth in investment-linked products
Life: decent growth in investment-linked products (Business volume in CHF Investment- Deposits1) Total Traditional Total Total Total million; currency-adjusted linked investment- life2) individual life group life life growth against 2017) linked 303 64 367 582 949 2,654 3,603 Switzerland 14.2% >100%
Slide 12: Life: net income affected by various effects
Life: net income affected by various effects Life profit by sources (IFRS)1) (in CHF million) 2017 2018 ∆ 18/17 Savings result 2683) 2552) -5% Fee result 17 20 19% Risk result 246 237 -4% Other result 5 -26 n.a. Cost result -69 -73 -6% Margin after costs 467 413 -12% Extraordinary result -220 37 117
Slide 13: Life: product updates and assumption adjustments compensate required increase of risk discount rate
Life: product updates and assumption adjustments compensate required increase of risk discount rate New business (in CHF million) -0.1% pts. New business margin (in % PVNBP): 2017 1.8% 2018 1.7% 2017 2018 ∆18/17 New business volume (in PVNBP) 2,638 2,634 0% Value of new business (VNB) 49 44 -9% 13 |
Slide 14: Life: resilient interest margin in an ongoing low interest environment
Life: resilient interest margin in an ongoing low interest environment Direct yields and guarantees in life business Group (CHF) Switzerland (CHF) Europe (EUR) Guarantee buckets Group 2.72%4) 100% 2.52%4) 2.45%4) 2.33%2) 90% 2.23%2) 2.25%3) 2.18%3) 0.53% 2.14%2) 2.08%3) 0.49% 80% 0.59% 70% 0.93% 0.9
Slide 15: Individual life: increasing share of capital-light products on new business
Individual life: increasing share of capital-light products on new business Individual life single premiums Individual life regular premiums (New business; in CHF million) (New business; in CHF million) Share of capital- 52% 73% 73% 50% 78% 87% light business1) 885 848 835 111 108 106 429 519 41 51
Slide 16: Other activities: net income up due to positive consolidation effect on own funds
Other activities: net income up due to positive consolidation effect on own funds Other activities earnings by sources (in CHF million) 20171) 2018 ∆ 18/17 Net technical result (group reinsurance) 17 15 -2 Investment / FX result 0 21 21 Costs / Other -49 -55 -7 Financing costs -29 -34 -5 Tax 7 4 -3
Slide 17: Investments: stable new and re-investment yield
Investments: stable new and re-investment yield Investment performance: total portfolio Other Investment (in CHF million) Equities Bonds Mortgages (incl. Total1) property funds) Current income 75 3.1% 537 1.8% 243 3.4% 86 1.7% 47 987 2.0% G/L -149 -95 88 1 -38 -193 Investment result -75 -2.9% 442 1.
Slide 18: Investment portfolio by asset class
Investment portfolio by asset class CHF 52.3 bn 58% 14% 10% 7% 5% 2% 2% 2% 31/12/2017 CHF 52.0 bn 57% 14% 10% 7% 4% 2% 4% 2% 31/12/2018 14% 60 Bonds Investment property Mortgages Market risk PH 1) Equities Loans 2) Alternative investments / investment funds / derivatives Other 1) Equity exposure del
Slide 19: Sustainable investments: MSCI ESG risk profile
Sustainable investments: MSCI ESG risk profile Investment portfolio ESG risk profile: A rating CHF 52.0 bn as of 31/12/2018 2% 6% Equities Main asset classes in scope for the analysis1) 37% 57% 14% 10% 7% 4% Bonds Alternative investments / investment funds / derivatives Bonds Investment property Mor
Slide 20: Dividend per share increased to CHF 24.00 – attractive dividend yield of 4.2%
Dividend per share increased to CHF 24.00 – attractive dividend yield of 4.2% Dividend per share Dividend yield / Pay-out ratio (in CHF) (in %) 3.4% 3.8% 4.2% 4.2% Dividend yield Pay-out ratio based on: 45% 44% 47% underlying earnings 24.00 23.00 21.00 19.00 66% 58% 59% 58% IFRS earnings 2015 2016 2
Slide 21: Strong operating cash production ensuring dividend payment
Strong operating cash production ensuring dividend payment Operating cash production by segment and business activity Cash production and payout (in CHF million; remittance in % of IFRS earnings) (in CHF million; payout in % of operating cash production) 2017 2018 2017 2018 Operating cash Operating
Slide 22: Net economic dividend capacity supporting sustainable dividends
Net economic dividend capacity supporting sustainable dividends Capital walk: from SST capital to net economic dividend capacity (2018) (as of 31/12/2018; in CHF billion) Main effects: 8.1 Main effects: Valuation differences in IFRS Valuation differences in SST Valuation and vs. local accounting
Slide 23: Net economic dividend capacity supporting sustainable dividends
Net economic dividend capacity supporting sustainable dividends Remarks Net economic dividend capacity (NEDC) reflects additional free available capital at the balance sheet date that can be used for dividends or growth purposes. NEDC takes into account certain considerations: > the available fr
Slide 24: Risk sensitivities
Risk sensitivities Risk sensitivities1) (as of 31/12/2018; in CHF million) Interest rate risk sensitivities Interest rate level Interest rate level +10 bp -10 bp Income statement 1.6 -4.0 Equity -79.6 80.8 Equity price risk sensitivities Equity price Equity price +10% -10% Income statement 77.8 -65.
Slide 25: Financial condition report 2018
Kapiteltrenner Financial condition report 2018. oder Fazit auf Farbfläche Flexible Schriftgrösse Arial Black 0.9 ZA 25 Optional Bereichsbezeichnung | Thema/Projekt | Referent 10.05.2019
Slide 26: SST: new solvency models neutral regarding resilience of capitalisation, target range revised
SST: new solvency models neutral regarding resilience of capitalisation, target range revised SST ratio Capital management actions > Validate capitalisation against strategy and take action as necessary1) 240% Target range 222% as of 01/01/2019 > Focus on economic business steering 180% > Considerin
Slide 27: Strong capital base in view of weak capital markets and new SST models
Strong capital base in view of weak capital markets and new SST models Improved SST ratio driven by increase of risk-bearing capital and decrease of (in CHF million) 2018 2019 ∆ 19/18 target capital Risk-bearing capital 7,863 8,067 +204 Positive impact from introduction of the new SST standard m
Slide 28: Higher RBC driven by new SST model and move to Solvency II valuation for EU units
Higher RBC driven by new SST model and move to Solvency II valuation for EU units Positive impact of the new SST standard model (mainly driven by recognition (in (inCHF million) CHF million) 2018 2019 ∆ 19/18 of future policyholder bonus as risk-bearing capital) IFRS equity1) 5,229 5,097 -132 Su
Slide 29: Overall lower target capital due to capital market development and new SST model
Overall lower target capital due to capital market development and new SST model The fall in life insurance risk is mainly driven by the adoption of the new SST (in CHF million) 2018 2019 ∆ 19/18 standard model, altered actuarial assumptions and capital markets Underwriting risk life 1,023 916 -10
Slide 30: Own funds (RBC) sensitivities
Own funds (RBC) sensitivities (as of 31/12/2018; in CHF million) Market risk Shift 31/12/2017 ∆ SST- Ratio1) 31/12/2018 ∆ SST- Ratio1) sensitivities 31/12/2017 31/12/2018 Interest rates -50 bp -150 -5% pts. -20 -1% pts. Spreads +50 bp -620 -19% pts. -800 -24% pts. Equities -10 % -202 -6% pts. -173 -
Slide 31: Duration gap
Duration gap Including bonds and other interest rate instruments (as of 31 December) 2017 2018 and loans Asset duration 7.9 7.7 Excluding real estate as additionally matching asset class which covers the volume gap of interest rate instruments and loans to liabilities Total weighted duration gap
Slide 32: Update on strategy implementation
Kapiteltrenner Update on strategy implementation. oder Fazit auf Farbfläche Flexible Schriftgrösse Arial Black 0.9 ZA 32 Optional Bereichsbezeichnung | Thema/Projekt | Referent 10.05.2019
Slide 33: Our strategy helvetia 20.20 creates value
Our strategy helvetia 20.20 creates value helvetia 20.20 creates value... ...through transformation and innovation Value for customers Transformation Simple, customised and personalised insurance solutions and Strengthening of core business secure pension solutions with a high level of convenience
Slide 34: On track to reach our financial targets
On track to reach our financial targets Targets Realised as of 31/12/2018 Organic growth on track, achievement of ambition Business volume CHF 10 billion (ambition) depending on M&A opportunities Non-life Net CR < 93% Net CR: 91.0% Life NBM > 1% NBM: 1.7% Synergies (pre-tax) > CHF 130 million CHF 13
Slide 35: Good progress on implementing our strategy
Good progress on implementing our strategy Strengthening the New business models Innovation core business smile.health Claim notification and Cyber coverages contract renewal via B2B2C smile.life chatbot CH Own fund products "Home" ecosystem Investments of the Easy claims handling with Helvetia Vent
Slide 36: "Home" ecosystem: status quo
"Home" ecosystem: status quo 35 |
Slide 37: Calendar and contact
Calendar and contact Important dates 03/05/2019 Ordinary Shareholders’ Meeting 2019 29/08/2019 Publication of half-year results 2019 04/03/2020 Publication of financial results 2019 Contact details Investor Relations Corporate Communications & PR Susanne Tengler Philipp Schüpbach Claudia Saute