Protector Forsikring ASA · OSL:PROT
Protector Forsikring ASA — Q1 2018 Earnings Presentation
20 slides from Protector Forsikring ASA's earnings presentation, Apr 27, 2018
Slide 1: Q1 2018 Interim Results
Q1 2018 Interim Results Investor presentation Oslo, 27.04.2017
Slide 2: Our DNA
Our DNA Vision The Challenger Business Idea This will happen through unique relationships, best in class decision-making and cost effective solutions Main targets Cost and quality leadership Profitable growth Top 3 Values Credible Open Bold Committed
Slide 3: Highlights Q1 2018
Highlights Q1 2018 17,9 % growth, poor claims quarter • Growth of 17,9% (15,2 % local currency) New Guiding 2018 • Gross cost ratio 8,3% up from 7,1% Net combined ratio >94 % (92-94 %) • Underlying cost ratio better Volume growth 20 % Cost ratio ≈7,5 % • Net Combined ratio 95,1% up from 87,0% Net fi
Slide 4: Gross written premiums Q1 2018
Gross written premiums Q1 2018 Strong growth of 17,9 % Q1 GWP (NOK m) • GWP total NOK 2461,0m up 17,9% 2 500 • Strong growth in Sweden, high hit rates 2 000 2 461,0 1 500 • Single digit Com. & Publ. Norway growth, COI in line with market 1 000 500 • Good growth in Finland 0 2014 2015 2016 2017 2018
Slide 5: Claims development Q1 2018
Claims development Q1 2018 Poor claims quarter – driven by a poor P&C result mainly in Norway • Gross claims ratio 92,5%, up from 91,4 % Q1 Gross claims ratio • Slightly influenced by weather claims • Seasonality gradually changes towards a less favourable Q1 110% • Relative share of motor business
Slide 6: How do we improve our poor claims ratio in Q1
How do we improve our poor claims ratio in Q1 Keep up the good work – cost and quality leadership is maintained Actions already taken Further actions to take • Rolls Royce • Stronger UW discipline in some markets and/or product • Culture of thoroughly searching for cost Reductions and and segments R
Slide 7: Cost ratio Q1 2018
Cost ratio Q1 2018 World Cost leadership maintained • Gross cost ratio 8,3%, up from 7,1% • Driven by some technical changes and minor one-offs • Net cost ratio -1,2%, up from -5,7% • Lower reinsurance commissions and higher commission to brokers • Underlying trend stable 7
Slide 8: Business unit update Q1 2018
Business unit update Q1 2018 GDPR Compliant per 25.05.2018 Public & Commercial sector Change of Ownership Insurance • Volume up 4,9 %, high hit ratios in SME/affinity • Volume down -6,4 % - in line with market • Poor claims quarter • Increased focus on Margin Management • Mostly strong KPIs in Claim
Slide 9: Equity portfolio statistics
Equity portfolio statistics 18,4 % of total investment portfolio Performance – In-house managed equity portfolio vs. benchmarks(08.10.2014 – 31.03.2018) Key Figures In-house Managed OSEBX 170 Portfolio Performance 143,0% 41,1% 150 143 Dividend yield 2,3% 3,3% 130 P/E NTM* 18,9 15,6 3 yr sales CAGR 2
Slide 10: In-House bond portfolio statistics
In-House bond portfolio statistics 81,6 % of total investment portfolio Performance – In-house managed bond portfolio vs. benchmarks (31.03.2015 – 31.03.2018)1,2,3 Portfolio data 31.03.2017 12% 11,0% Size NOK m 8 380 Start point 10% new benchmark 9,6 % Yield 1,8% Duration 0,3 7,9 % 8% Credit duratio
Slide 11: Investment performance Q1 2018
Investment performance Q1 2018 Stable spread levels, NIBOR picking up • 0,0% return on investment portfolio, net investment result Return Q1 2018 of NOK 2,5m 1,0% 0,5% 0,5% 0,0% • Equities; return of -2,4% 0,0% • Oslo Stock Exchange -1,1 % Equities Bonds Total • Portfolio consist of 17 companies -0,
Slide 12: Profit & loss Q1 2018
Profit & loss Q1 2018 17,9 % growth, poor bottom line [1.000.000 NOK] Q1 2018 Q1 2017 FY 2017 Gross premiums written 2 461,0 2 087,4 4 163,2 Growth 17,9 % (15,2 % LCY) Gross premiums earned 1 070,9 858,6 3 805,5 Gross claims incurred (990,6) (784,4) (4 054,2) Earned premiums, net of reinsurance 770,
Slide 13: Balance sheet Q1 2018
Balance sheet Q1 2018 SCR 194,7 % based on standard formula [1.000.000 NOK] 31.03.2018 31.12.2017 SCR ratio composition Owner-occupied property 13,8 13,5 Financial assets 10.208,7 9.379,4 4000 Derivatives 22,0 2,5 Bank deposits 246,0 327,5 Other assets 3.500,7 2.549,3 3500 Total assets 13.991,2 12.2
Slide 14: Solvency II
Solvency II Composition of SCR: Eligible SII capital: • Net insurance risk 58% • Assumed no dividend • Net market risk 33% • Guarantee provision subtracted from own • Other risks 9% funds SCR composition Eligible SII capital 4 000 4 500 481 233 51 1 243 3 500 1 115 4 000 3 000 3 500 22 485 57 12 2 5
Slide 15: Shareholder's matters
Shareholder’s matters Per 31.03.2018 Shareholder # shares Percent Related parties shareholding STENSHAGEN INVEST AS 6 550 000 7,60 % • Management’s direct and indirect shareholding totals 3,5m shares ODIN NORDEN 4 485 857 5,21 % or 4,0% of current outstanding shares SWEDBANK ROBUR SMABOLAGSFOND 3 96
Slide 16: Our DNA
Our DNA Vision The Challenger Business Idea This will happen through unique relationships, best in class decision-making and cost effective solutions Main targets Cost and quality leadership Profitable growth Top 3 Values Credible Open Bold Committed
Slide 17: World leader on cost
World leader on cost Stable development at the moment, will improve towards 2020 • Gross cost incl. claims handling ex. Commission steadily decreased the Gross Cost incl. Claims handling cost, ex. last couple of years broker commission on a good trend 15,00 % 14,00 % • Cost scalability is strengthen
Slide 18: Protector - quality leader in all markets
Protector - quality leader in all markets Humble and proud 12 years in a row 6 years in a row Back on top 2018 Straight to the top Far ahead of number two We are very good at quality – but we will be better 18
Slide 19: Q&A
Q&A Preliminary2017 Results
Slide 20: Key ratio description
Key ratio description Ratio (1) Claims ratio, net of ceded business (2) Expense ratio, net of ceded business (3 ) Combined ratio, net of ceded business (4) Gross claims ratio (5 ) Gross expense ratio (6 ) Gross combined ratio (7 ) Retention rate (8 ) Earnings per share Ratio calculation (1) Claims i