Protector Forsikring Asa · OSL:PROT
Protector Forsikring Asa — Q3 2011 Earnings Presentation
17 slides from Protector Forsikring Asa's earnings presentation, Nov 1, 2011
Slide 1: Q3 results 2011 Investor presentation
Q3 results 2011 Investor presentation 1 November 2011
Slide 2: Facts about Protector
Facts about Protector • A focused non-life Norwegian insurance company • Ownership; ODIN, Franklin Mutual Funds, • Established Jan.1, 2004. (Listed on Oslo Stock Exchange May 2007) Alfred Berg Norge/Gambak, DnB NOR SMB, Nordea, employees, etc. • Vision: “Protector will be the challenger to the estab
Slide 3: Highlights Q3 2011
Highlights Q3 2011 Poor financial- but strong technical results • Return on investments NOK – 110.2m (-4.9%) – Equities have in October increased by NOK 35m in value • 12 % growth in GWP • Net combined ratio, 85.6%, down 4.2 percentage points Pole position in the Norwegian market (YTD) • Operating l
Slide 4: Gross written premium Q3 2011
Gross written premium Q3 2011 GWP up 12%, from NOK189.3m to NOK 211.2m • GWP up 7% within the commercial and public lines of business – Renewal rate , 94%, up from 93% in Q3 2010 • Change of ownership insurance, 17% growth – Increased real estate prices and higher real estate turnover rate • Next vo
Slide 5: Claims development Q3 2011
Claims development Q3 2011 Net claims ratio 71.3%, down from 72.1% • No large claims (> NOK 5m) last 3 quarters • Stable reserves - Run-off gains of NOK 1m • Gross claims ratio 72.2%, down from 73.1% Net claims ratio Q3 2007 – Q3 2011 Net claims ratio YTD 2007 – YTD 2011 79,7 % 78,2 % 75,6 % 73,9 %
Slide 6: Cost ratio Q3 2011
Cost ratio Q3 2011 Gross cost ratio 13.1%, down from 16.9% in Q3 2010 • Administration costs at the same level as of Q3 10 (in nominal value) – Increased manning in Q3-Q4 will increase nominal admin costs • Net cost ratio 14.3%, seasonality effect and will increase in Q4 • Strong development in net
Slide 7: Highlights Q3 2011 - Commercial and public lines of business
Highlights Q3 2011 - Commercial and public lines of business • Volume up 7% Gross written premium (NOKm) – 2.5 percentage points of the growth, Swedish municipalities – Still growing in the commercial sector, 5% growth 727 679 – 0 large wins and 0 losses 606 – Hit-ratio down compared to Q1 and Q2 10
Slide 8: Highlights Q3 2011 - Change of ownership insurance
Highlights Q3 2011 - Change of ownership insurance • Strong real estate market Gross written premium (NOKm) – Real estate prices up 0.4% in Sept and up 9,7% from Sept 10 – Average sales time down from 30 days to 25 days in Sept 11 332 296 242 • Volume up 17% – Hit ratio stable on a high level, above
Slide 9: Results Q3 2011
Results Q3 2011 NOKm Q3 2011 Q3 2010 YTD 2011 YTD 2010 2010 Premiums written gross 211,2 189,2 1 023,0 848,4 1 011,0 Premiums earned gross 301,0 254,9 876,8 720,0 987,7 Claims incurred gross (217,2) (186,2) (623,6) (525,4) (743,7) Premiums earned for own account 232,2 205,6 674,0 575,3 792,3 Claims
Slide 10: Balance sheet Q3 2011
Balance sheet Q3 2011 NOKm 30.09.2011 30.09.2010 31.12.2010 Financial assets 2 248,8 1 925,2 2 021,5 Bank deposits 103,5 70,8 99,9 Other assets 371,4 298,2 264,5 Total assets 2 723,7 2 294,1 2 386,0 Total equity 406,3 544,3 587,5 Total reserves 2 112,5 1 665,2 1 689,4 Other liabilities 204,9 84,6 10
Slide 11: Investment performance Q3 2011
Investment performance Q3 2011 • Net investment result of NOK -110.2m, -4.9% return (NOK 68.1m, 3.7%) • Equities, return of -21.6% (13.1%), OSEBX – 17.3%, OSEFX -20.2% - Equities have in October increased by NOK 35m in value • Bond portfolio, return of -0.2% (0.7%) • Investment portfolio of NOK 2.24
Slide 12: Asset allocation
Asset allocation • Bonds 82.7% of portfolio, Norwegian equities 17.3% Allocation of investments 30.09.2011 Allocation of investments 31.12.2010 Equities 17,3 % Bond funds Equities 20,5 % 24,6 % Bond funds 36,1 % Bonds and cash 46,6 % Bonds and cash 54,9 % Total financial assets; NOK 2 249m Total fin
Slide 13: Portfolio structure and quality bond portfolio
Portfolio structure and quality bond portfolio • Duration (credit) of bond portfolio is 2,18years (2,91 years) - Interest duration 0,23 years (0,34 years) Bond portfolio 30 September 2011 Quality bond portfolio 30 Sept 2011 Foreign funds; 1,4 % Split of fixed incom e portfolio NOK m ill % Norwegian
Slide 14: Shareholder matters October 2011
Shareholder matters 26 October 2011 Shareholder No. shares Percent ODIN NORDEN 7 246 555 8,41 % Related parties shareholding MSF-MUTUAL FINANCIAL SERVICES FD 4 479 410 5,20 % DNB NOR LUXEMBOURG SA 3 699 523 4,29 % PROTECTOR FORSIKRING ASA 3 570 661 4,14 % OJADA AS 3 563 116 4,14 % • Management’s dir
Slide 15: Outlook 2011, changed
Outlook 2011, changed Guiding 15 July 2011 Guiding 1 Nov 2011 • GWP up 18% GWP up 18% – Status per Q3, on schedule • Combined ratio 86% Combined ratio 86% – Status per Q3, ahead of schedule • Return on investments 4.6% Return on inv. – 1.6% – Status per Q3, far behind schedule • Operating profit NOK
Slide 16: Outlook 2011, changed
Outlook 2011,changed • Investment income NOK -35m, down from 105m NOKm Feb May July Nov 2010 2011e 2011e 2011e 2011e Premium 16 15 18 18 18 growth (%) Operating 234 230 230 230 90 Return assumptions Q4 2011: profit Equity allocation approx. 17% Investment 176.1 125 125 105 -35 Income Return equities
Slide 17: Highlights Q3 2011
Highlights Q3 2011 Poor financial- but strong technical results • Return on investments NOK – 110.2m (4.5%) – Equities have in October increased by NOK 35m in value • 12 % growth in GWP • Net combined ratio, 85.6%, down 4.2 percentage points Pole position in the Norwegian market (YTD) • Operating lo