Protector Forsikring Asa · OSL:PROT
Protector Forsikring Asa — DNB's 15th Annual SME Conference 2019
28 slides from Protector Forsikring Asa's conference presentation, Apr 4, 2019
Slide 1: Who is Protector and why invest now?
Who is Protector and why invest now? DNB's 15th Annual SME Conference Oslo, 4th April 2019
Slide 2: Our DNA
«Olemme erilaisia» Our DNA Vision «Vi är annorlunda» 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 «Vi er annerledes» Top 3 Values «Vi er forskellige» C
Slide 3: Who are we?
Who are we? The Challenger Expands Exits Change Enters Enter Expands Expands to Expands to to of ownership commercial municipality to Sweden Denmark Finland insurance in sector sector UK Norway 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Launches Insourced Listed on Os
Slide 4: The Nordic Challenger
The Nordic Challenger Segments 4
Slide 5: Commercial sector
Commercial sector 73 % of Nordic revenues Summary Market drivers • Corporate clients minimum size NOK 0.2m • Cost and quality leadership • Standardized products; Workers Compensation, Group Life, Other • Protector’s market appetite in Nordics is > NOK 15bn Insurance, Accident, Health , Property, Mot
Slide 6: Public sector
Public sector 27 % of Nordic revenues Summary Market drivers • Protector is the market leader in the Nordics • Few players and tough market conditions • Insuring more than 600 municipalities • Tender processes are governed by public procurement regulation • 280 Norwegian, 240 Swedish and 80 Danish c
Slide 7: Protector vs If Industrial and Tryg Corporate
Protector vs If Industrial and Tryg Corporate Peers in same segment with same product mix and distribution channel • Protector vs. Peers • Same product mix • Same broker based sales channel • Same commission structure Combined Ratio avg. 13-18 • Same average size of clients Tryg Corp. 91,1% • Profit
Slide 8: Highlights 2018 results
Highlights 2018 results 19% growth – combined ratio 98,6% • Profit before tax -23,9 MNOK down from 441,0 MNOK • Investment return -19,8 MNOK or -0,3% • Protector Exits Change of Ownership insurance in Norway 13 % efficiency increase in 2018 8
Slide 9: Highlights 2018 results
Slide contains COI Highlights 2018 results 15% growth – combined ratio 106,9% • Profit before tax -340,6 MNOK down from 562,2 MNOK • Investment return -56,2 MNOK or -0,6% • Protector Exits Change of Ownership insurance in Norway 13 % efficiency increase in 2018 9
Slide 10: Cost Leader in the world
Cost Leader in the world Competitive advantage strengthened Cost scalability will improve the next 2-3 years Projects to increase competitive advantage 12,0 % 11,5 % F@lcon 11,0 % 10,5 % 10,0 % 9,5 % 9,0 % 8,5 % 8,0 % Target < 8,5% *Gross Cost incl. Claims handling ex. Broker commission Gross expens
Slide 11: Quality leader in Scandinavia and UK
Quality leader in Scandinavia and UK Humble and proud Broker satisfaction index done annually through Protector, Broker houses and/or broker associations 13 years in a row 7 years in a row #1 2 yrs consecutive #2 in 2018 Far ahead of #2 again 11
Slide 12: Volume growth
Volume growth 25 % growth, 10 years in a row Sustainable growth 4 286 • Profitability comes first, volume growth second • Low capex entering new markets 3 612 • Geographical diversification increasing, < 50 % in Norway • UK expected to be biggest geographical area in 2021 2 916 • 2019 guiding – 14 %
Slide 13: Price increases entering 2019
Price increases entering 2019 Further actions needed – in line with market • Price increase in 2019 will continue • High retention and price acceptance in the market • Price increases 01.01 target >8%, result >8% 13 % efficiency increase in 2018 • Many individual price increases – more to come in 20
Slide 14: Strong investment result over the business cycle
Strong investment result over the business cycle Underlying reality good, but volatility must be expected and managed Beating all relevant benchmarks since insourcing • Risk management through; Operational routines, mandate given by board, FSA stress test quarterly, internal stress test • Investment
Slide 15: Balance sheet 2018
Balance sheet 2018 Very Strong – SCR 175% • SCR coverage ratio 175% pr. 31.12 SCR ratio composition 3500 • SCR fully covered by Tier 1 capital only SCR: 175% 3000 • Full Tier 2 utilization; some Tier 1 restricted capacity 2500 Tier 2 2000 Tier 1 R • Solvency based reinsurance solution also in place
Slide 16: Grenfell Tower Fire
Grenfell Tower Fire A human tragedy 16
Slide 17: The four Grenfell Tower projects
Claims handling Reinsurance • Manage claim and client • Claims handling involvement/support • Keep lawyer cost at low level • Align reinsurance with Risk • Process is key Management, UW and renewal • Align with reinsurance season • Proactive and professional • UK Casualty Reinsurance contract commun
Slide 18: Post GFT Risk Management report released
Post GFT Risk Management report released Learn for the future – Use Risk Management to mitigate future events • 40 pages based on a Review of Public buildings in the Public sector and not GFT as such Grenfell Tower Risk Management • Released in November in the UK - March in Norway Rapport Mars 2019
Slide 19: London office
London office Offices has been chosen The Leadenhall Building – up and running in March 2019 UW/RM team of 4 will grow to 10 next 2 years – no hurry, slow start Will give us access to a much larger commercial market
Slide 20: UK – Summary
UK – Summary On track, according to plan Not a part of Falcon project - yet • GWP 505 MNOK in 2018 up 100% Quality survey 2018 - Totality • 95 public sector clients - Insure 1/3 of London Boroughs Protector 81 Competitor 09 70 • 51 housing associations - 3 large, national HAs on board Competitor 02
Slide 21: Onwards
PROTECTOR m2) Ei ome t— eid insurance 2019 = Onwards
Slide 22: Strategy 2018-2021 - Top priorities
Strategy 2018-2021 - Top 8 priorities “Don’t change strategy” • Claims Handling – Falcon • Profitable growth in Nordic • UK • ROI peer knock out • Protector University • IT as Innovator and Accelerator IT • World class HQ • Manage matrix organization perfectly Innovator Accelerator 22
Slide 23: Cultural development
Cultural development Culture eats strategy for breakfast 36 Focus areas 2018 30 Projects (p) BSE1 BNO 1 Our DNA 1 1 1 1 1 1 1 4 P P 4 4 1 P P F 1 F 1 1 1 F 1 F P F G@W K 1 P K 1 F LMP1 K 1 P 1 P F P COI F 1 1 1 P 4 Vision P P 1 1 P 4 F P 1 P 1 P 1 1 F 1 1 P 1 1 Management training The Challenger BDK
Slide 24: Long term financial objectives
Long term financial objectives New targets decided in Board meeting 31.01.2019 Prior to 2019 From 2019 • Net Combined Ratio 92 % 94 % • Solvency II Capital ratio > 150 % > 150 % • Return on Equity (excl. COI) > 20 % > 20 % • GWP growth rate 15 % 10-15 %
Slide 25: Who is Protector and why invest now?
Who is Protector and why invest now? Strong competitive position entering 2019 • Cost leader in the world Guiding 2019 • Quality leader in all markets Net combined ratio 96 % • Strong HTD results with avg. ROE ~20% Volume growth 14 % • Poor 2018 is behind us and we have exited COI • Prices are going
Slide 26: Our DNA
«Olemme erilaisia» Our DNA Vision «Vi är annorlunda» 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 «Vi er annerledes» Top 3 Values «Vi er forskellige» C
Slide 27: Who is Protector and why invest now? - appendix
Who is Protector and why invest now? - appendix DNB's 15th Annual SME Conference Oslo, 4th April 2019
Slide 28: From Surplus to Risk XL on Property
From Surplus to Risk XL on Property Changed margin distribution and reduced margin in transition year (2019) Question from Protector’s Investor presentation Q4 2018, 01.02.19: Can you give information on the CR distribution throughout the year? • Given a 96 % guided Combined Ratio in 2019, the CR di
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