Suncorp Group Limited · ASX:SUN
Suncorp — 2019 Macquarie Australia Investor Conference
18 slides from Suncorp's conference presentation, May 1, 2019
Slide 1: Macquarie Conference presentation on Suncorp New Zealand
ASX announcement 1 May 2019 Macquarie Conference presentation on Suncorp New Zealand For personal use only CEO Suncorp New Zealand, Paul Smeaton, is giving the attached presentation at the Macquarie Australia Investor Conference today. For further information on the Suncorp Group please visit the we
Slide 2: 2019 Macquarie Conference Presentation
2019 Macquarie Conference Presentation For personal use only Good afternoon everyone and thank you for the opportunity to speak to you today. Over the next 15-20 minutes I wanted to cover off 4 things about Suncorp New Zealand: – who we are – our recent performance – the regulatory environment we fa
Slide 3: Key takeaway points
For personal use only 2019 MACQUARIE CONFERENCE PRESENTATION As a result of this presentation, the takeaway points that I hope you will gather are: – We have a diversified General Insurance and Life business, with prominent market positions and delivering strong returns – We have a well-established
Slide 4: Suncorp New Zealand overview and distribution
For personal use only 2019 MACQUARIE CONFERENCE PRESENTATION Suncorp New Zealand manufactures both general insurance and life products in New Zealand. We are the only insurer in New Zealand that does this. We distribute our products through Intermediaries or Brokers, Corporate Partners and Direct. O
Slide 5: Organisation and governance
2019 MACQUARIE CONFERENCE PRESENTATION – Customer Marketplace – Intermediated Distribution – Claims For personal use only and the enabling functions: – CFO – Actuarial – Risk – People – Technology In terms of Governance, Suncorp NZ has its own Board structure which oversees the performance of all th
Slide 6: New Zealand general insurance market
For personal use only 2019 MACQUARIE CONFERENCE PRESENTATION Let’s now look at the markets we operate in and I’ll start with the general insurance market. According to the Insurance Council of New Zealand (ICNZ) stats, the industry generates NZ$6.5bn in premium each year. If we look at recent histor
Slide 7: New Zealand life insurance market
For personal use only 2019 MACQUARIE CONFERENCE PRESENTATION Turning now to the life insurance market in New Zealand. According to the Financial Services Council, total industry in-force premium was $2.5bn as at December 2018. Claims paid out was approximately $1.4bn. Total new business across the m
Slide 8: Half year financial performance to December 2018
For personal use only 2019 MACQUARIE CONFERENCE PRESENTATION Turning to our latest financial performance for the half year ended 31 December 2018. New Zealand profit after tax was NZ$120m, an increase of 79.1% on pcp. Strong top-line growth combined with favourable natural hazards and working claims
Slide 9: Life underlying profit and ROE
2019 MACQUARIE CONFERENCE PRESENTATION Underlying profit increased 14.3% driven by continued growth of in-force premium and underlying investment performance. For personal use only What I would like to bring to your attention now is the ROE of each of the GI and Life businesses, and the clear divers
Slide 10: Key general insurance ratios
For personal use only 2019 MACQUARIE CONFERENCE PRESENTATION As you can see from the slide, all ratios are moving in the right direction. Our loss ratio, expenses ratio and therefore our combined operating ratio are all down as a result of premium growth, favourable natural hazard and working claims
Slide 11: Regulatory environment in New Zealand
For personal use only 2019 MACQUARIE CONFERENCE PRESENTATION I’d now like to update you on the current regulatory environment in New Zealand. I think it is fair to say, like Australia, we are experiencing a significant amount of regulatory reform including conduct regulation, insurance contract law,
Slide 12: Conduct and culture review response
2019 MACQUARIE CONFERENCE PRESENTATION There were also a small number of cases of potential misconduct, that are now subject to investigations. In response, by 30 June 2019, each life insurer will need to develop an action plan to address the FMA/RBNZ feedback and report on progress to address the i
Slide 13: Strategy: Elevate the Customer
For personal use only 2019 MACQUARIE CONFERENCE PRESENTATION The strategy for Suncorp NZ is very much aligned with the Suncorp Group, including the priority to Elevate the Customer. Our main focus has been, and will continue to be: Enabling a customer-oriented culture within our teams. Making it eas
Slide 14: Outlook
For personal use only 2019 MACQUARIE CONFERENCE PRESENTATION Finally, to our outlook. If I reflect on the past 18 months, in response to significant natural hazard events and working claims inflation, we implemented some significant initiatives. Firstly, we dialled back our corporate exposures in hi
Slide 15: Outlook: EQC cap and Life business
2019 MACQUARIE CONFERENCE PRESENTATION In addition, we expect this headroom to increase as further risk transfers from private insurers to the government as the Earthquake Commission (EQC) cap moves from $100k to $150k effective 1 July 2019. Having said that, if our market share in any of these high
Slide 16: Conclusion and questions
For personal use only 2019 MACQUARIE CONFERENCE PRESENTATION In conclusion, as a result of this presentation, hopefully you have a better understanding of our business in New Zealand and that you have taken away: – we are a diversified GI and Life Business in NZ with prominent market positions and d
Slide 17: For personal use only
For personal use only 2019 MACQUARIE CONFERENCE PRESENTATION 16
Slide 18: For personal use only
For personal use only 2019 MACQUARIE CONFERENCE PRESENTATION 17
Suncorp Group — 2019 Macquarie Australia Investor Conference on 6ix