Protector Forsikring ASA · OSL:PROT
Protector Forsikring ASA — Q2 2012 Earnings Presentation
18 slides from Protector Forsikring ASA's earnings presentation, Jul 13, 2012
Slide 1: Q2 results 2012 Investor presentation
Q2 results 2012 Investor presentation 13 July 2012
Slide 2: Facts about Protector
Facts about Protector • A focused non-life Norwegian insurance company • Vision: • Established Jan.1, 2004. (Listed on Oslo Stock Exchange May 2007) “Protector will be the challenger to the established insurance companies” • Entered the Swedish market in 2011 and the Danish market in 2012 • Main tar
Slide 3: Highlights Q2 2012
Highlights Q2 2012 38% growth, increased margins • GWP up 38 % – Commercial and public lines of business, up 57% – Change of ownership insurance, up 10% • Net combined ratio, 80.7%, down 1.5 percentage points • Return on investments, NOK 7.9m (0.3%), up from NOK -11.8m (-0.5%) • 38% growth in invest
Slide 4: Gross written premium Q2 2012
Gross written premium Q2 2012 GWP up 38%, from NOK 289.1m to NOK 398.7m • GWP up 53% within the Norwegian commercial and public lines of business – Low renewal rate, 84 %, down from 96% in Q2 2011 – Strong new sales and good access to quotations – One new customer accounts for more than 50% of the g
Slide 5: Claims development Q2 2012
Claims development Q2 2012 Net claims ratio 74.1%, up from 72.9% • Claims ratios in line with target • Stable reserves • 1 large claim (> NOK 5m) in Q2, no large claims in Q2 2011 • Gross claims ratio 75.6%, up from 71.6% Net claims ratio Q2 2008 – Q2 2012 Net claims ratio H1 2008 – H1 2012 84,6 % 8
Slide 6: Cost ratio Q2 2012
Cost ratio Q2 2012 Gross cost ratio 10,1%, down from 12,6% in Q2 2011 • Costs lower than in Q2 2011 (in nominal value) – Reduced commissions to agents due to a non renewal of a very large customer – Administration costs increasing in nominal value due to increased manning • Guided gross cost ratio <
Slide 7: Highlights Q2 2012 – Norwegian Commercial/public lines
Highlights Q2 12 – Norwegian Commercial/public lines • Volume up 53% GWP Q2 2008 – Q2 2012 (NOKm) – 37 % growth in the municipality sector 252 – 1 large win and 1 large non renewal – 56 % growth in the commercial sector 165 143 135 98 – 2 very large and 1 large wins and 1 very large non renewal – On
Slide 8: Highlights Q2 2012 – Sweden and Denmark
Highlights Q2 12 – Sweden and Denmark GWP (NOKm) 72 • Steady growth in Sweden and Denmark - Posten (Motor) in Sweden and Denmark on board July 1st - New business in municipality sector - Some new commercial clients 16 17 5 - 100 mill in GWP end year still realistic Q2 2011 Q2 2012 H1 2011 H1 2012 •
Slide 9: Highlights Q2 2012 - Change of ownership insurance
Highlights Q2 2012 - Change of ownership insurance • Volume up 10% GWP Q2 2008 – Q2 2012 (NOKm) – Stable market share well above 50% 119 131 100 96 – Hit-ratio stable on a high level approx. 80% 72 – Real estate prices in H1 up 6,4% relatively to H1 2011¹ – Turnover rate down approx one day in Q2 re
Slide 10: Results Q2 2012
Results Q2 2012 NOKm Q2 2012 Q2 2011 YTD 2012 YTD 2011 2011 Premiums written gross 398,7 289,1 1 067,2 811,9 1 202,5 Premiums earned gross 386,3 314,3 713,8 575,9 1 177,0 Claims incurred gross (292,2) (225,0) (530,2) (413,0) (839,2) Premiums earned for own account 299,6 242,3 546,3 441,8 903,5 Claim
Slide 11: Balance sheet Q2 2012
Balance sheet Q2 2012 NOKm 30.06.2012 30.06.2011 31.12.2011 Financial assets 3 079,8 2 229,6 2 354,8 • Investment portfolio, 38% growth Bank deposits 115,2 143,0 112,7 - Issue of Tier 2 bond, 7 percentage points of Other assets 547,1 417,7 332,4 the growth Total assets 3 742,0 2 790,3 2 799,8 Total
Slide 12: Investment performance Q2 2012
Investment performance Q2 2012 • Net investment result of NOK 7.9 m, 0,3% return (NOK -11.8m, -0,5%) - H1; Net investment result of NOK 96.6m, 3,7% return (NOK 10.8m, 0,5%) • Equities, return of -3,8% (-5.8%), OSEBX -4.6%, OSEFX -4.4% • Bond portfolio, return of 1.0% (1.0%), slightly increased risk
Slide 13: Asset allocation
Asset allocation • Bonds 87.1% of portfolio, Norwegian equities 12.9% • Reduced risk in the investment portfolio - Allocation in equities reduced from 15% end of Q1 12 to 12.9% end of Q2 2012 - All new capital in H1 2012 allocated to bonds Allocation of investments 30.06.2012 Allocation of investmen
Slide 14: Portfolio structure and quality - bond portfolio
Portfolio structure and quality - bond portfolio • Duration (credit) of bond portfolio is 2,53 years (2,5 years) - Interest duration years 0,50 (0,22 years) • Increased risk in non rated funds Bond portfolio 30 June 2012 Quality bond portfolio 30 June 2012 Foreign funds; 12,3 % Norwegian financial S
Slide 15: Shareholder matters July 2012
Shareholder matters 6 July 2012 Shareholder No. shares Percent ODIN NORDEN 7 429 155 8,62 % Related parties shareholding MSF-MUTUAL FINANCIAL SERVI FD 4 479 410 5,20 % HANSARD EUROPE LTD 3 727 086 4,33 % PROTECTOR FORSIKRING ASA 3 570 661 4,14 % OJADA AS • Management’s direct and indirect shareholdi
Slide 16: Outlook 2012, changed
Outlook 2012, changed Guiding 7 May 2012 Guiding 13 July 2012 • GWP up 22% GWP up 26 % – Status per Q2, ahead of schedule • Combined ratio 88% Combined ratio 85% – Status per Q2, ahead of schedule • Return on investments 5 % Return on investments 5,8 % – Status per Q2, ahead of schedule • Operating
Slide 17: Outlook 2012, changed
Outlook 2012, changed NOKm Res 29 Feb 7 May New 2011 2012e 2012e 2012e Premium growth (%) 19 18 22 26 Return assumptions H2 2012: Equity allocation approx. 13% Operating profit 82.9 250 270 315 Return equities: 4% Investment Income -51.4 125 136 167 Return bonds: 2% Gross cost ratio (%) 15.0 13 13 1
Slide 18: Summary
Summary 38% growth, increased margins • GWP up 38 % • Net combined ratio, 80.7% • 38% growth in investment portfolio • Gross cost ratio down from 12,6% to 10.1% • Outlook 2012 increased – Volume growth up to 26% – Combined Ratio down to 85% – Operating profit up to NOK 315m Very good start on Q3 18