Protector Forsikring Asa · OSL:PROT
Protector Forsikring Asa — Investor Day (June 2015)
80 slides from Protector Forsikring Asa's investor day presentation, Jun 3, 2015
Slide 1: Protector Forsikring ASA Capital Markets Day
PROTECTOR FORSIKRING ASA CAPITAL MARKETS DAY Oslo 3rd June 2015
Slide 2: Capital market day ambition
Capital market day ambition • Our focus is operational excellence… • …you’ll learn to know and trust key people • …you’ll understand more about our business and culture • This time we will not; • deliver any new figures – or focus on figures in different business areas • update you on investment str
Slide 3: Agenda
Agenda 13.00 Introduction A profitable growth story Sverre Bjerkeli 13.30 Change of ownership Merete C. Bernau 14.00 Highlights Denmark Flemming Conrad 14.30 Break 15.00 Commercial sector Norway Public Scandinavia Henrik Høye 15.45 Entry UK Market Entry Finland Summary and Q&A Protector Forsikring 1
Slide 4: 11 years with profitable growth
11 years with profitable growth Sverre Bjerkeli (55) - CEO: • Head of consumer/commercial division at Storebrand (If..) • CEO Storebrand Bank • IT; Key positions in NOKIA/ICL and CEO Eterra/Ementor • Last 11 years in Protector • Handball player and trainer on international level • Marathon runner an
Slide 5: Vision, Business Idea, Main targets and Values
Vision, Business Idea, Main targets and Values Vision The challenger Business Idea This will happen through unique relationships, state of the art decision making, and cost effective solutions Main targets Cost and quality leadership Profitable growth Top 3 Values Trustworthy (Troverdig) Accommodati
Slide 6: Half the cost of competitors
Half the cost of competitors 2008 2009 2010 2011 2012 2013 2014 PRF 11,2 % 12,1 % 11,9 % 10,0 % 7,7 % 8,8 % 7,6 % Tryg 17,1 % 17,2 % 17,0 % 16,6 % 16,4 % 15,6 % 14,6 % Gjensidige 17,0 % 17,7 % 16,5 % 16,4 % 15,5 % 15,3 % 15,0 % Top 14,7 % 14,9 % 15,4 % 15,7 % 15,8 % 16,2 % 15,7 % If 17,4 % 17,6 % 17
Slide 7: Volume winner
Volume winner Vol.weighte 2008 2009 2010 2011 2012 2013 2014 d 2008-2014 PRF 9,6 % 19,5 % 16,1 % 19,0 % 26,1 % 22,7 % 27,6 % 22,0 % KLP skade 3,4 % 4,7 % 5,0 % 3,0 % 15,4 % 10,9 % 10,7 % 8,1 % Gjensidige 4,4 % 1,3 % 8,3 % 2,9 % 1,7 % 5,3 % 8,8 % 4,6 % LF 4,2 % 2,3 % 2,2 % 3,3 % 3,2 % 3,5 % 7,4 % 3,7
Slide 8: Best margin in Nordic
Best margin in Nordic Vol.weighte 2008 2009 2010 2011 2012 2013 2014 d 2008-2014 PRF 95,8 % 97,8 % 94,2 % 85,3 % 86,2 % 86,7 % 84,5 % 88,4 % Top 82,4 % 91,1 % 93,3 % 90,3 % 88,0 % 91,5 % 86,0 % 88,9 % Tryg 88,2 % 92,2 % 98,8 % 93,2 % 88,2 % 87,7 % 84,2 % 90,4 % If 91,8 % 92,1 % 92,8 % 92,0 % 89,3 %
Slide 9: Return on investments
Return on investments Avg. 2008- 2008 2009 2010 2011 2012 2013 2014 2014 PRF -2,1 % 16,1 % 9,7 % -2,3 % 8,9 % 7,0 % 5,3 % 6,0 % KLP skade 0,4 % 8,3 % 7,2 % 4,5 % 6,5 % 6,5 % 6,5 % 5,7 % If -3,1 % 12,4 % 7,4 % 1,8 % 6,1 % 5,0 % 4,1 % 4,8 % Tryg 3,5 % 6,6 % 4,3 % 4,8 % 5,1 % 2,5 % 4,3 % 4,4 % Gjensidi
Slide 10: What creates cost- and quality leadership?
WHAT CREATES COST- AND QUALITY LEADERSHIP? 10
Slide 11: What creates cost- and quality leadership?
What creates cost- and quality leadership? …..«the secret» is; • A well defined and consistent • Vision, business idea, main strategy targets and values • Value chains supporting strategy • Competent people to implement • This is a good start, but…… • Hard work to live vision, business idea, main ta
Slide 12: 35 x 3 countries value chains
Perso Munici nal pality lines Aff Other lines UW Big Sales Sales 35 x 3 countries Claims = ~100 reduction Claims value chains COI 1.st line Rolls Royce Adm/ analysis Invest ments IT 12
Slide 13: 66 development projects running
66 development projects running UW Municipalities Rolls- Royce Claims handling Motor Sweden An example or two…..
Slide 14: Company projects 2015
Company projects 2015 6 company projects and 60 others LEDE®STJERNE MR² C4 I&ITA
Slide 15: Vision, Business Idea, Main targets and Values
Vision, Business Idea, Main targets and Values Vision The challenger Business Idea This will happen through unique relationships, state of the art decision making, and cost effective solutions Main targets Cost and quality leadership Profitable growth Top 3 Values Troverdig (Trustworthy) Imøtekommen
Slide 16: Nordic Champion: Protector Forsikring
PROTECTOR forsikring NORDIC CHAMPION: PROTECTOR forsikring
Slide 17: Agenda
Agenda 13.00 Introduction A profitable growth story Sverre Bjerkeli 13.30 Change of ownership Merete C. Bernau 14.00 Highlights Denmark Flemming Conrad 14.30 Break 15.00 Commercial sector Norway Public Scandinavia Henrik Høye 15.45 Entry UK Market Entry Finland Summary and Q&A Protector Forsikring 1
Slide 18: Management group
Management group Sverre Bjerkeli, CEO Ditlev de Vibe Vanay, CFO Merete C Bernau Henrik Høye Hans Didring Flemming Conrad COI Comm. & Publ Norway Sweden Denmark
Slide 19: Change of Ownership Insurance
CHANGE OF OWNERSHIP INSURANCE Merete Christensen Bernau
Slide 20: Change of ownership
Change of ownership • Distribution through Real Estate Brokers • Documented quality leader • Claims Handling Quality leadership through; • Critical mass, claims ratio as “leading star”, structure and competent people • Cost leadership through; • Slimmer and different value chain Merete Christensen B
Slide 21: Strong organization – established management
Strong organization – established management Merete Bernau, Director COI Cathrine Tommy Monika Sande Fred Hermann, Haugen, Ravndal, Large Bjørn Johan Nore, Technical Claims claims & Bye, Controlling Market&Service support Handling 1 litigation 1 Alexander Thomas Myran, Amsrud, Claims Large claims &
Slide 22: The product
The product Based on Norwegian legislation (1992) A liability insurance linked to the property - Sellers liability for substantial hidden defects for 5 years - False information, or information withheld might result in liability, significant deviation (5-6% av sales price) May be subscribed on all h
Slide 23: Sales & Distribution offices
Sales & Distribustion 653 offices 2250 brokers 2014 • 4 people • 547 office meetings • Continuing education points 5629 • 45 social gatherings •Eiendomsmegler 1, Privatmegleren, Krogsveen, and others… Drammen Praha Sandnes Os Namsos Bergen lo FredrikstadBilbao Trondheim Sarpsborg Kristiansand Skagen
Slide 24: The moment of truth – claims handling
The moment of truth – claims handling • Claims handling a challenge • House buying emotionally charged • High level of technical «know-how» required – what will a claim cost? • Under COI you do not replace old with new, but reimburse for the reduced sales-value • Detective work as «false or withheld
Slide 25: Satisfaction among real-estate brokers at all time high
Satisfaction among real-estate brokers at all time high 89 Hvor tilfreds er du med Protector som leverandør av How satisfied are youeierskifteforsikring? with Protector as a supplier of COI? 84 I hvor stor grad har Protector innfridd dine To what extent has Protector forventninger met your til produ
Slide 26: …and very satisfied end-customers
…and very satisfied end-customers Change of Ownership – Seller satisfaction Probability of choosing Protector in your 88 93 next sale 84 82 Clear and understandable information 85 85 Accommodativeness 2014 87 2013 86 Trustworthiness 2012 90 2011 90 Utility/value of the product 2010 87 2009 88 Sense
Slide 27: Vision, Business Idea, Main targets and Values
Vision, Business Idea, Main targets and Values Vision The challenger Business Idea This will happen through unique relationships, state of the art decision making, and cost effective solutions Main targets Cost and quality leadership Profitable growth Top 3 Values Trustworthy (Troverdig) Accommodati
Slide 28: Highlights Q1 2015 - Change of ownership insurance
Highlights Q1 2015 - Change of ownership insurance • Volume up 25% GWP Q1 2011 – Q1 2015 (NOKm) – No. of policies sold up 17% 126 – Strong real estate market 101 89 – High turnover, no. properties sold up 13,2% 72 82 – Real-estate prices up 7,9%¹ • Acceptable profitability – Cost ratio on a high lev
Slide 29: Konfliktnivået er 2 %
Konfliktnivået er 2 % En henvendelse på et boligkjøp er ikke en konflikt. En konflikt oppstår ved uenighet i oppgjøret. Eksempel: 436 873 Eierskiftepoliser 7 864 konflikter * Tilsvarende tall for motorvognforsikring er ca. 24 %
Slide 30: Change of ownership
Change of ownership • Distribution through Real Estate Brokers • Documented quality leader • Claims Handling Quality leadership through; • Critical mass, claims ratio as “leading star”, structure and competent people • Cost leadership through; • Slimmer and different value chain Merete Christensen B
Slide 31: Sweden
SWEDEN - Market entry Jan 1st 2011
Slide 32: Sweden
Sweden • “Copying” a winning formula through; • Vision, business Idea, objectives, values and broker promise • Right people on board • Adjustments for local differences • Cost leadership Hans Didring (35) - Country Manager Sweden • Quality leadership Education: • Critical mass in 2015 M.Sc. in Busin
Slide 33: Strong organization – established management
Strong organization – established management Hans Didring, Country Manager Fredrik Håkan Elin Holmgren, Elin Sandahl, Landelius, Assarson, Claims Claims Broker service Market/UW management Managment Growth in Personnel 2012 – Q1 2015 30 25 20 15 10 5 0 mar.12 mai.12 jul.12 mar.13 mai.13 jul.13 mar.1
Slide 34: Protector's SEK 8 bln insurance market by broker
Protector’s SEK 8 bln insurance market by broker Approximately half of the volume SEK 3-5 bln is within Protector’s risk appetite on short term Share of brokered insurance market in % • The five largest brokers in Sweden Other are dominant with above 80 % 19 % AON share 25 % • Aon and Willis constan
Slide 35: Protector's SEK 8 bln insurance market by competitor
Protector’s SEK 8 bln insurance market by competitor Approximately half of the volume SEK 3-5 bln is within Protector’s risk appetite on short term Share of brokered insurance market in % • Our five largest competitors in Sweden is dominant with 65 % share Trygg-Hansa Other 21 % 35 % • Trygg-Hansa d
Slide 36: Some public customers / Some commercial customers
Some public customers: Some commercial customers: Karlskrona Malmö Affinity
Slide 37: Setting new quality standard in Sweden
Setting new quality standard in Sweden Avg. 59 77 Protector Forsikring 80 77 Protector receives the highest score 62 Konkurrent 1 53 when brokers are asked to rank 62 insurance companies according to how 61 Konkurrent 2 62 satisfied they are with their service and 69 61 offerings Konkurrent 3 60 72
Slide 38: Vision, Business Idea, Main targets and Values
Vision, Business Idea, Main targets and Values Vision The challenger Business Idea This will happen through unique relationships, state of the art decision making, and cost effective solutions Main targets Cost and quality leadership Profitable growth Top 3 Values Trustworthy (Troverdig) Accommodati
Slide 39: Highlights Q1 2015 – Sweden
Highlights Q1 2015 – Sweden • 39% growth GWP Q1 2011 – Q1 2015 (NOKm) – Representing 7 percentage points of the growth on company level 291 – 3 large wins, one large non-renewal 209 – No. 2 in the municipality segment 96 – Strong renewal rate >100% 12 31 Q1 2011 Q1 2012 Q1 2013 Q1 2014 Q1 2015 • Net
Slide 40: Sweden
Sweden • “Copying” a winning formula through; • Vision, business Idea, objectives, values and broker promise • Right people on board • Adjustments for local differences • Cost leadership Hans Didring (35) - Country Manager Sweden • Quality leadership Education: • Critical mass in 2015 M.Sc. in Busin
Slide 41: Denmark
DENMARK - Market entry Jan 1st 2012
Slide 42: Denmark
Denmark • “Copying” the winning formula through; • Vision, business idea, objectives, values & broker promise • Right people on board • Adjustments for local differences • Cost leadership Flemming Conrad (58) – Country Manager • Quality leadership Denmark • Less competition than Norway and Sweden Ed
Slide 43: Key personnel and organization established
Key personell and organization established Flemming Conrad, Country Manager Kasper Michael Henrik Sparvath, Omø, Wolff, Broker service Market/UW Claims Growth in Personnel Q3 2012 – Q1 2015 25 20 15 10 5 0 aug.14 aug.12 aug.13 des.14 des.12 des.13 feb.13 feb.14 feb.15 jun.13 jun.14 okt.12 apr.13 okt
Slide 44: Total brokered insurance market - MDKK 8.000
Total brokered insurance market - MDKK 8.000 - whereas Protector’s risk appetite corresponds with approx. MDKK 6.000 Est Danish brokermarket by Competitors in MDKK and % Est Danish brokermarket by Brokers in MDKK and % Others MDKK 700 FPR (9 %) Others Tryg MDKK 400 MDKK 2000 (25 MDKK 2000; (25 (5 %)
Slide 45: Some public customers / Some commercial customers
Some public customers: Some commercial customers: Århus Billund Esbjerg Glostrup Greve Arbejdernes Boligforening
Slide 46: Front runner on quality in Denmark
Front runner on quality in Denmark Avg. 52 Protector Forsikring 70 76 Protector receives the highest score Konkurrent 1 62 when brokers are asked to rank 69 insurance companies according to how 53 Konkurrent 2 52 satisfied they are with their service and 52 offerings Konkurrent 3 55 Konkurrent 4 52
Slide 47: Vision, Business Idea, Main targets and Values
Vision, Business Idea, Main targets and Values Vision The challenger Business Idea This will happen through unique relationships, state of the art decision making, and cost effective solutions Main targets Cost and quality leadership Profitable growth Top 3 Values Trustworthy (Troverdig) Accommodati
Slide 48: Highlights Q1 2015 – Denmark
Highlights Q1 2015 – Denmark • 74% growth GWP Q1 2012 – Q1 2015 (NOKm) 316 – Representing 11 percentage points of the growth on company level – 3 very large wins, no large non-renewals 182 – Strong renewal rate, 97 % 106 25 • Net combined ratio 84.1 % – Reinsurance commissions driving CR down in Q1
Slide 49: Denmark
Denmark • “Copying” the winning formula through; • Vision, business idea, objectives, values & broker promise • Right people on board • Adjustments for local differences • Cost leadership Flemming Conrad (58) – Country Manager • Quality leadership Denmark • Less competition than Norway and Sweden Ed
Slide 50: Commercial Norway & Market Leader Public Scandinavia
COMMERCIAL NORWAY & MARKET LEADER PUBLIC SCANDINAVIA Henrik Høye Director Commercial and Public
Slide 51: Commercial and public lines of business, Norway
Commercial and public lines of business, Norway • Cost leadership • Quality leadership • Claims handling and customer services strengthens both quality and UW • Underwriting quality in commercial sector • UW leadership public lines Henrik Wold Høye (33) - • “Preferred by the broker” leads to volume
Slide 52: Strong organization – established management
Strong organization – established management Henrik Høye, Director Commercial&Public Norway Tor-Åge Schei, Atle Nikolaisen, Fredrik Øyan, Jon Ringlund, Chief Christian Sørensen, Director Personal Sales Director P&C UW Public Sector Controlling Lines Cecilie Hvam- Fredrik Messel, Kathrine Furnes, Jac
Slide 53: Highlights Q1 2015 – Norwegian Commercial/public lines
Highlights Q1 2015 – Norwegian Commercial/public lines GWP Q1 2011 – Q1 2015 (NOKm) • Volume up 9 % 783 – 11% growth in the public sector 718 – 2 large wins, 0 large non-renewals 619 530 – 8 % growth in the commercial sector 439 – 5 large wins and 7 large non-renewals • Personal lines of business ,
Slide 54: Weekly underwriting cycle – all segments
Weekly underwriting cycle – all segments • First-cut: Decision as whether to bid or not Monday • Decision based on our relationship to the broker, the relationship and perceived quality of the customer, quality of information received, as well as Protectors internal Pre- competence in the segment Un
Slide 55: Underwriting Process - Municipality
Underwriting Process - Municipality Consistent underwriting philosophy – three steps 1. Analytical approach (medium- to large-sized databases) 2. Inspections of selected buildings 3. Qualitiative assesment (publicly available data, research and tender information)
Slide 56: Analytical UW Approach
Analytical UW Approach Underwriting based on an analytical approach • Homogeneous market – uniform coverage and portfolios • Cost effective 4-step model – analytical approach • Based on an extensive database of claims-history - Norway: ~7 years avg history, ~ 100 % of the market - Sweden: ~5,5 years
Slide 57: Loss prevention information - example
Loss prevention information - example Not Approved approved solutions Examples of solutions consequences
Slide 58: Market leader Scandinavian municipality market
Market leader Scandinavian municipality market
Slide 59: Quality leader among insurance brokers eight years in a row
Quality leader among insurance brokers eight years in a row Avg. 58 82 Protector receives the highest score Protector Forsikring 81 79 when brokers are asked to rank 64 insurance companies according to Konkurrent 1 68 64 how satisfied they are with their 62 service and offerings Konkurrent 2 61 62 6
Slide 60: Protector & Municipalities
Protector & Municipalities • First municipality in 2005 – "Tønsberg Developement – public sector (MNok) kommune" 800 700 • Scandinavia's largest public sector insurer 600 500 • Customer relationship to 253 Norwegian, 179 400 Swedish and 23 Danish municipalities 300 200 • Underwrite, fire and rescue
Slide 61: Vision, Business Idea, Main targets and Values
Vision, Business Idea, Main targets and Values Vision The challenger Business Idea This will happen through unique relationships, state of the art decision making, and cost effective solutions Main targets Cost and quality leadership Profitable growth Top 3 Values Trustworthy (Troverdig) Accommodati
Slide 62: Commercial and public lines of business, Norway
Commercial and public lines of business, Norway • Cost leadership • Quality leadership • Claims handling and customer services strengthens both quality and UW • Underwriting quality in commercial sector • UW leadership public lines Henrik Wold Høye (32) - • “Preferred by the broker” leads to volume
Slide 63: Entry UK Market
forsikring ENTRY UK MARKET
Slide 64: Scandinavian municipality market leader enters UK
Scandianvian municipality market leader enters UK
Slide 65: Entry in the UK decided
Entry in the UK decided • Analytical work on 500-600 pages basis for decision • Same strategy as in Scandinavia • Entry focus municipalities, location Manchester • Business plan completed • Recruitment started • Start up-costs included in the 2015 guiding • Minor volume in 2016
Slide 66: Market Analysis: Country ranking and results
Market Analysis Country ranking and results Public & muni • High scores given to: • Markets with high cost ratios • Markets where broker penetration is high • Markets with little competition or in a oligopoly situation • Markets where quality of service are assumed to be poor (difficult to measure f
Slide 67: Project C4 UK
Project C4 UK Sub-Project Status Comment Start Stop Lead Market Several stages, EU 7, Nordic 4 and UK 01.03.2014 01.08.2015 Henrik Høye Analysis study Business UK market study available 01.10.2014 11.04.2015 Henrik Høye planning Market information and tender documents Go to Market available. Broker
Slide 68: Risks, key & summary
Risks, key & summary Factor Probability Consequence • Poor reinsurance Low Very high • Wrong people Medium High • Poor risk-selection Medium, but… High • No volume Medium Low • High cost-level Low Medium • Opportunity cost Medium Medium Key factor; Right people on board, train in Protector’s UW meth
Slide 69: Entry Finland
forsikring ENTRY FINLAND
Slide 70: Entry Finland decided
Entry Finland decided • Part of the Nordics, natural part of Protector’s Nordic business • The insurance brokers have a low market share (<10%) • Potential is thus low • Entrypoint is public sector – and some grouped insurance • Market dominated by the four largest players – «fat & lazy» • Project l
Slide 71: IT
PROTECTOR forsikring IT
Slide 72: IT – the challenger's approach
IT – the challenger’s approach • In-house development • All insurance systems designed & developed internally – short time-to-market • IT operations insourced in 2012 • higher security level – better support (both to developers and end-users) • I&ITA – 1.000 innovations and improvements a year • Fac
Slide 73: Summary
forsikring SUMMARY
Slide 74: Vision, Business Idea, Main targets and Values
Vision, Business Idea, Main targets and Values Vision The challenger Business Idea This will happen through unique relationships, state of the art decision making, and cost effective solutions Main targets Cost and quality leadership Profitable growth Top 3 Values Trustworthy (Troverdig) Accommodati
Slide 75: Highlights Q1 2015
Highlights Q1 2015 25% growth and increased guiding • GWP up 25% (24% in local currencies) • Sweden/Denmark, 199 mill growth • Gross cost ratio down to 7.5% (8,1%) • Net combined ratio 82.4% (79.9%) - Reinsurance commissions driving CR down in Q1 as always • 2.2 % return on the investment portfolio
Slide 76: Highlights Q1 2015 – Sweden
Highlights Q1 2015 – Sweden • 39% growth GWP Q1 2011 – Q1 2015 (NOKm) – Representing 7 percentage points of the growth on company level 291 – 3 large wins, one large non-renewal 209 – No. 2 in the municipality segment 96 – Strong renewal rate >100% 31 12 • Net combined 76,6% Q1 2011 Q1 2012 Q1 2013
Slide 77: Highlights Q1 2015 – Denmark
Highlights Q1 2015 – Denmark • 74% growth GWP Q1 2012 – Q1 2015 (NOKm) 316 – Representing 11 percentage points of the growth on company level – 3 very large wins, no large non-renewals 182 – Strong renewal rate, 97 % 106 25 • Net combined ratio 84.1 % – Reinsurance commissions driving CR down in Q1
Slide 78: Market leader Scandinavian municipality market
Market leader Scandianvian municipality market
Slide 79: Summary
Summary • Half the cost of competitors • Quality Leader in the Nordic market • Fastest growing company last 7 years, 22% year • Best Combined Ratio last 7 years • Average Return on Solvency Capital HTD 21.5% • IT is key for cost and quality leadership • Entry UK & Finland decided • Double digit grow
Slide 80: 2016 2015: 2000’ 2018: ?’ 2016 2015: 450’’ 2018: ? 2018: ?’ 2011 2012
2016 2015: 2000’ 2018: ?’ 2016 2015: 450’’ 2018: ? 2018: ?’ 2011 2012 2015: 450’ 2018: ?’ 2018: ?’