Protector Forsikring ASA · OSL:PROT
Protector Forsikring ASA — Q2 2010 Earnings Presentation
17 slides from Protector Forsikring ASA's earnings presentation, Jul 16, 2010
Slide 1: Protector Forsikring ASA Q2 results 2010
Protector Forsikring ASA Q2 results 2010 Investor presentation 16 July 2010
Slide 2: Protector Forsikring ASA
Protector Forsikring ASA • A focused non-life Norwegian insurance company • Ownership; ODIN, Franklin Mutual Funds, Alfred Berg Norge/Gambak, • Established Jan.1, 2004. (Listed on Oslo Stock Exchange May 2007) DnB NOR SMB, employees, etc. • Vision: “Protector will be the challenger to the establishe
Slide 3: Highlights Q2 2010
Highlights Q2 2010 Strong technical result and continued growth • 8% growth in GWP • Strong net combined ratio, 85.2%, down 9.6 percentage points – Pole position in the Norwegian market (H1) • Operating profit, NOK – 7.4m, down from NOK 96.6m – Negative return on investments, NOK - 38,7m (-2.1%) dow
Slide 4: Gross written premium Q2 2010
Gross written premium Q2 2010 GWP up 8%, from NOK 215m to NOK 231.3m • GWP down 6% within the commercial and public lines of business – Underlying growth stronger – Renewal rate, 85%, some segments left for profitability reasons • Change of ownership insurance, 33% growth – Driven by a higher turn o
Slide 5: Claims development Q2 2010
Claims development Q2 2010 Net claims ratio 70,9%, down from 78,6%, stronger than expected • Gross claims ratio 67,9% down from 84,2% • Strong development within the commercial and public lines of business – Acceptable within change of ownership insurance • Stable reserves – Run-off-gains of NOK 2m
Slide 6: Cost ratio Q2 2010
Cost ratio Q2 2010 Gross cost ratio 14,2%, down from 15.5% in Q2 2009 • Guided gross cost ratio 16%, on schedule Cost ratio Q2 2006 - Q2 2010 Cost ratio H1 2006 - H1 2010 30 % 30 % 21,8 % 21,4 % 18,4 % 17,8 % 17,7 % 20 % 16,1 % 20 % 16,1 % 15,5 % 14,2 % 14,1 % 10 % 10 % 0% 0% Q2 2006 Q2 2007 Q2 2008
Slide 7: Highlights Q2 2010 - Commercial and public lines of business
Highlights Q2 2010 - Commercial and public lines of business • Volume down 6%, underlying trend continued growth Gross written premium (NOKm) - Portfolio changes, volume moved from Q2 to Q3 603 507 - Profitability actions 480 - Renewal rate 85% • Claims level in Q2 lower than normal 135 143 - No lar
Slide 8: Highlights Q2 2010 - Change of ownership insurance
Highlights Q2 2010 - Change of ownership insurance • Volume up 33%, in line with guiding Gross written premium (NOKm) - Market share unchanged, well above 50% 265 - Hit-ratio stable at 73% • Improved market 152 119 - Real estate prices in June up 8,4% relative to June 09 96 and up 7% in H1 relative
Slide 9: Results Q2 2010
Results Q2 2010 MNOK Q2 2010 Q2 2009 YTD 2010 YTD 2009 2009 Premiums written gross 231,3 215,0 659,2 603,1 871,4 Premiums earned gross 256,4 217,9 465,1 398,8 843,1 Claims incurred gross (174,2) (183,5) (339,2) (325,2) (649,2) Premiums earned for own account 204,6 170,6 369,7 310,2 842,6 Claims incu
Slide 10: Balance sheet Q2 2010
Balance sheet Q2 2010 MNOK 30.06.2010 30.06.2009 31.12.2009 Financial assets 1 783,6 1 493,6 1 634,8 Bank deposits 123,5 117,2 85,6 Other assets 334,6 486,3 252,5 Total assets 2 241,7 2 097,2 1 972,9 Total equity 476,5 458,6 562,7 Total reserves 1 648,3 1 402,8 1 358,7 Other liabilities 117,0 235,7
Slide 11: Investment performance Q2 2010
Investment performance Q2 2010 • Net investment result of NOK – 38.7m (NOK + 86.4m) - Equities; Return of -13,5% (6.6%), OSEBX -12.9%, - Bond portfolio (inc HTM-Bonds); Return of 0.7% (1,5%) - Equities have from 1 July to 15 July increased by NOK 16m i value • Investment portfolio of NOK 1.784m (NOK
Slide 12: Asset allocation
Asset allocation • Bonds 84% of portfolio, Norwegian equities 16% - Exposure in equities reduced in Q2, NOK 100m reallocated (21 April) from equities to bonds - Exposure in equities increased in the beginning of July, NOK 50m allocated to equities Asset allocation 30 June 2010 Asset allocation 31 De
Slide 13: Portfolio structure and quality bond portfolio
Portfolio structure and quality bond portfolio • Duration (credit) of bond portfolio (ex HTM) is 2,31years (1,75 years) - Interest duration (ex HTM) 0,18 years (0,30 years) Bond portfolio 30 June 2010 Quality bond portfolio 30 June 2010 Split of fixed income portfolio NOK mill % Other ¹; 2,1 % Norw
Slide 14: Shareholder matters July 2010
Shareholder matters 12 July 2010 Shareholder No. shares Percent Option program Verdipapirfond Odin Norden 7 209 655 8,37 % MSF-Mutual Financial Services FD 4 479 410 5,20 % • Outstanding options: 2.260.293 Alfred Berg Gambak 3 709 742 4,31 % Strike price of NOK 7,75 DNB Nor Luxembourg SA 3 659 934 4
Slide 15: Outlook 2010, changed
Outlook 2010, changed Guiding 29 April 2010 Guiding 16 July 2010 • GWP up 15% GWP up 10% – Status per Q2, behind schedule • Combined ratio 92% Combined ratio 90% – Status per Q2, ahead of schedule • Operating profit NOK 180m Operating profit NOK 150m – Status per Q2, behind schedule • Return on solv
Slide 16: Outlook 2010
Outlook 2010 NOKm 2009 2010 2010 2010 Feb April July Premium growth (%) 20 15 15 10 Return assumptions H2: Operating profit 258.8 150 180 150 Average invested volume NOK 1.900m Investment income 224.6 88 118 76 Average invested in equities in H2 approx 18% Gross cost ratio (%) 17.6 16 16 16 Return e
Slide 17: Summary Q2 2010
Summary Q2 2010 • Volume up 8% • Strong net combined ratio 85.2%, down 9.6 percentage points • Operating profit, NOK – 7.4m, down from NOK 96.6m – Return on investments, NOK - 38,7m (-2.1%), down from NOK 86.4m (6.6%) • Gross cost ratio down from 15,5% to 14.2% • Guiding changed – Operating profit N