Helvetia Baloise Holding Ag · SIX:HBAN
Helvetia Baloise — Helvetia Group — Baader Helvea Swiss Equities Conference 2019
49 slides from Helvetia Baloise's conference presentation, January 2019
Slide 1: Strong business. Profitable growth. Shareholder value.
Strong business. Profitable growth. Shareholder value. Baader Helvea Swiss Equities Conference Bad Ragaz, Switzerland Helvetia Group January 2019
Slide 2: Disclaimer
Disclaimer Disclaimer: NEITHER THIS DOCUMENT NOR ANY PART OR COPY OF IT NOR THE INFORMATION CONTAINED IN IT AND ANY RELATED MATERIALS MAY BE TAKEN OR TRANSMITTED INTO THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN OR DISTRIBUTED OR REDISTRIBUTED, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES, AUSTRALI
Slide 3: Helvetia at a glance
Kapiteltrenner Helvetia at a glance. oder Fazit auf Farbfläche Flexible Schriftgrösse Arial Black 0.9 ZA 3 Optional Bereichsbezeichnung | Thema/Projekt | Referent 11.01.2019
Slide 4: Who we are – Helvetia at a glance
Who we are – Helvetia at a glance Our profile Leading Swiss all-lines insurer (Top 3) with business operations in four additional country markets in Europe and in selected niche markets worldwide (Specialty Markets) Active in non-life (property & casualty) and life insurance as well as in Specia
Slide 5: Helvetia is well positioned and has an excellent basis for the future
Helvetia is well positioned and has an excellent basis for the future Switzerland Business volume 2017: CHF 4,978 million Stable foundation of the Group Non-life: Private clients & SME, #5 market position Very good CR of 83.1% (2017) Europe High quality service provider Life: Business volume
Slide 6: Our strength is a well developed sales network with excellent partners…
Our strength is a well developed sales network with excellent partners… (as of 30/06/2018) Own sales force Agents Brokers Partners Direct sales/new media CH 1,200 broker Swisscanto online@helvetia.ch 910 sales agents 1,760 agents smile.direct agreements Raiffeisen AT 250 sales agents 380 agents 1,20
Slide 7: …which we develop into a customer-centered omni-channel network step by step
…which we develop into a customer-centered omni- channel network step by step Cross-channelling Omni-channelling Partners Own Mobile sales- force Own Agents Brokers Partners Direct sales / sales force new media Online 7 |
Slide 8: We have grown profitably on an organic basis and through selected acquisitions over 160 years
We have grown profitably on an organic basis and through selected acquisitions over 160 years 160 years of insurance expertise 1858 start as transport insurer 1996 merger of Helvetia Insurance & Patria Mutual 1870-1970 initially, expansion strategy with small portfolios worldwide Creation of
Slide 9: Our strategy helvetia 20.20 creates value
Our strategy helvetia 20.20 creates value helvetia 20.20 creates ...through transformation … and gets us fit for the Our financial targets value... and innovation future Volume: CHF 10 billion (ambition) Value for customers Transformation Fit for the future Simple, customised and personalised Stre
Slide 10: Our key investment highlights are:
Our key investment highlights are: Strong business set-up Profitable growth strategy Shareholder value Successful all-lines insurance since Increasing underlying earnings Increased dividend per share (in CHF) 160 years (in CHF million) Sound business mix (47% non-life, 53% life)1) 422 439 49
Slide 11: Key financials
Kapiteltrenner Key financials. oder Fazit auf Farbfläche Flexible Schriftgrösse Arial Black 0.9 ZA 11 Optional Bereichsbezeichnung | Thema/Projekt | Referent 11.01.2019
Slide 12: Solid development of volume, profit and combined ratio
Solid development of volume, profit and combined ratio After tax profit1) Business volume Our focus (in CHF million) (in CHF million) Profitable growth 492 502 8,235 8,513 8,641 439 5,833 224 2015 2016 2017 HY 2018 2015 2016 2017 HY 2018 Net combined ratio (non-life) Value of new business (life) O
Slide 13: Strong capitalisation and sustainable dividend strategy
Strong capitalisation and sustainable dividend strategy Shareholders’ equity1) Solvency Our focus (in CHF million) (as of 01/01/2018) Financial strength SST ratio: 212% 140-180% 4,655 4,813 5,229 4,994 0% 100% 200% Target range4) 2015 2016 2017 HY 2018 Dividend per share Dividend yield / Pay-out r
Slide 14: Current examples of strategy implementation
Kapiteltrenner Current examples implementation. of strategy oder Fazit auf Farbfläche Flexible Schriftgrösse Arial Black 0.9 ZA 14 Optional Bereichsbezeichnung | Thema/Projekt | Referent 11.01.2019
Slide 15: Strengthening of core business: tailor-made customer journey along all touchpoints
Strengthening of core business: tailor-made customer journey along all touchpoints 360° customer view Strengthening of core business 15 |
Slide 16: New business models: Home ecosystem – everything from a single source
New business models: ʺHomeʺ ecosystem – everything from a single source Establishing new business models 16 |
Slide 17: Investments
Kapiteltrenner Investments. oder Fazit auf Farbfläche Flexible Schriftgrösse Arial Black 0.9 ZA 17 Optional Bereichsbezeichnung | Thema/Projekt | Referent 11.01.2019
Slide 18: Investments: well diversified portfolio with good ALM and low duration gap
Investments: well diversified portfolio with good ALM and low duration gap Portfolio by asset class Bonds Investment property CHF 49.6 bn 60% 14% 9% 6% 5% 2%2%2% 31/12/2016 6% Mortgages 5% Market risk PH Equities 1) CHF 52.3 bn 58% 14% 10% 7% 5% 2%2%2% 31/12/2017 Loans Alternative inve
Slide 19: Solvency and risk sensitivities
Kapiteltrenner Solvency and risk sensitivities. oder Fazit auf Farbfläche Flexible Schriftgrösse Arial Black 0.9 ZA 19 Optional Bereichsbezeichnung | Thema/Projekt | Referent 11.01.2019
Slide 20: Well-capitalised: good SST ratio
Well-capitalised: good SST ratio Greatly improved SST ratio driven by the increase of risk-bearing capital (in CHF million) 2017 2018 ∆ 18/17 Stable target capital (compensating effects) Risk-bearing capital 6,317 7,863 1,546 Favorable developments on the capital markets which were characteris
Slide 21: Solvency and risk sensitivities
Solvency and risk sensitivities Group solvency (as of 31/12/2017) Sensitivities of solvency Equities Interest rates Credit spreads1) -10% -50 bp +50 bp SST -6% pts -5% pts -19% pts Risk sensitivities2) (as of 30/06/2018; in CHF million) Interest rate risk sensitivities Interest rate level Interest r
Slide 22: Shareholder structure
Kapiteltrenner Shareholder structure. oder Fazit auf Farbfläche Flexible Schriftgrösse Arial Black 0.9 ZA 22 Optional Bereichsbezeichnung | Thema/Projekt | Referent 11.01.2019
Slide 23: Shareholder structure with long-term focus
Shareholder structure with long-term focus Shareholder structure (as of 30/06/2018) Free float by geography Swiss investors 37.8% Investors based abroad Free float 34.1% 62.2% Patria Mutual 65.9% Free float by investor type Private Other institutional individuals 30.0% investors 45.8% Banks and insu
Slide 24: Appendix I. Half-year results 2018
Kapiteltrenner Appendix I. Half-year results 2018. oder Fazit auf Farbfläche Flexible Schriftgrösse Arial Black 0.9 ZA 24 Optional Bereichsbezeichnung | Thema/Projekt | Referent 11.01.2019
Slide 25: Key figures and highlights at a glance
Key figures and highlights at a glance Business volume Non-life +5.5% (in OC) growing in all lines of business and segments Growth CHF 5,833 million Life +0.8% (in OC) driven by investment-linked products in Switzerland (+19.7%) and Germany (+17.3% in OC) $ Net income after tax Resilient result desp
Slide 26: Solid net income
Solid net income Net income after tax (in CHF million) -13.4% 35% Life2) -8 -28 9 Non-life2) 65% -8 258 250 1,349 224 SpM3) 7% Underlying Underlying-IFRS ∆ Non-life ∆ Life ∆ Other IFRS net income 25% CH3) earnings accounting activities HY 2018 Europe3) HY 2017 adjustment1) 68% HY 2017 HY 2018 1)
Slide 27: Resilient results in non-life and life impacted by weak capital markets
Resilient results in non-life and life impacted by weak capital markets (in CHF million) Non-life Life HY 2017 -16.8% HY 2018 -15.4% -2 -28 177 -6 -8 1,349 147 92 78 Underlying earnings Underlying-IFRS ∆ Profit IFRS net income Underlying earnings Underlying-IFRS ∆ Profit IFRS net income HY 2017
Slide 28: Solid results in Switzerland and Europe – Specialty Markets with pleasing improvement
Solid results in Switzerland and Europe – Specialty Markets with pleasing improvement (in CHF million) Switzerland Europe -22.3% -7.2% -7 -36 -1 -3 194 59 151 55 1,349 Underlying earnings Underlying-IFRS ∆ Profit IFRS net income Underlying earnings Underlying-IFRS ∆ Profit IFRS net income HY 2017 ac
Slide 29: Non-life: business volume in HY 2018
Non-life: business volume in HY 2018 (in CHF million; currency-adjusted Property thereof Motor Liability Accident / Transport / ARI Total NL growth against HY 2017) Engineering vehicle Health Art 322 - 478 112 144 2 - 1,057 Switzerland -3.5% - 1.3% 3.6% 4.3% 3.3% - 0.4% 393 18 426 109 113 57 - 1,099
Slide 30: Non-life: overview of net combined ratios
Non-life: overview of net combined ratios (in %) CH Europe Specialty Markets Group Claims ratio (net) 61.6 65.6 64.1 63.9 Cost ratio (net) 24.6 30.1 32.1 28.7 Combined ratio HY 2018 (net) 86.3 95.7 96.2 92.7 Combined ratio HY 2017 (net) 84.5 94.4 96.8 91.3 Change from HY 2017 1.8 1.3 -0.6 1.4 DE IT
Slide 31: Life: business volume in HY 2018
Life: business volume in HY 2018 (in CHF million; currency- Investment- Deposits1) Total Traditional Total Total Total adjusted growth against linked investment- life2) individual life group life life HY 2017) linked 128 27 156 275 431 2,113 2,543 Switzerland 6.2% n.a. 19.7% -6.9% 1.2% 1.1% 1.1% 207
Slide 32: Life: new business margin
Life: new business margin Higher VNB despite increased risk discount rate (in CHF million) HY 2017 HY 2018 ∆ 18/17 thanks to better profitability and higher new Value of new business (VNB) 20 23 16.5% business volume New business volume (in PVNBP) 1,643 1,715 4.4% Higher PVNBP in all life units
Slide 33: Life: interest margin and guarantee buckets
Life: interest margin and guarantee buckets Direct yields and guarantees in life business Group (CHF) Switzerland (CHF) Europe (EUR) Guarantee buckets Group 100% 2.45%4) 2.52%4) 2.34%2) 2.23%2) 2.37%4) 90% 2.18%2) 2.32%3) 2.18%3) 2.15%3) 0.35% 0.49% 80% 0.47% 70% 0.98% 0.91% 0.89% 1.11% 60% 1.01 % 0
Slide 34: Life: reserves
Life: reserves (as of 30/06/2018; in CHF billion) 0.25% interest guarantee 21% of Swiss life reserves are subject to the BVG EU minimum interest rate 7.7 1.00% interest guarantee Individual life 11.4 CH Other 29.1 6.3 Group life 5.3 extra-mandatory 17.7 Retirement assets 11.4 mandatory 6.1 34
Slide 35: Investments: stable new and re-investment yield
Investments: stable new and re-investment yield Investment performance: total portfolio (yields not annualised) Investment (in CHF million) Equities Bonds Mortgages Other Total1) property Current income 50 1.9% 273 0.9% 121 1.7% 43 0.8% 20 506 1.0% G/L -3 77 -1 0 -73 0 Investment result 47 1.8% 350
Slide 36: Investment portfolio by IFRS category
Investment portfolio by IFRS category 4% 15% 50% CHF Available for sale (AFS) 14% 52.2 bn Loans and receivables (LAR) Investment property Trading / Derivatives 17% Held to maturity (HTM) 31/12/2017 30/06/2018 Hedge Acc.1) Hedge Acc.1) Investment Investment Associates Associates Trading / T
Slide 37: Sustainable investments: MSCI ESG risk profile
Sustainable investments: MSCI ESG risk profile Investment portfolio ESG risk profile: A rating CHF 52.2 bn as of 30/06/2018 3% Equities Main asset classes in scope for the analysis1) 30% 57% 14% 10% 7% 5% Bonds Alternative investments / investment funds / derivatives Bonds Investment property 67% Mo
Slide 38: Equity walk: SST to IFRS to statutory equity
Equity walk: SST to IFRS to statutory equity Reconciliation SST to IFRS to statutory equity Local GAAP equity amounts to 50% of IFRS equity (as of 01/01/2018; in CHF billion) Investment valuation differences – i.e. unrealised 7.9 -2.7 gains and losses, which are not payable as 5.2 -3.5 0.9 divid
Slide 39: Helvetia capital management approach (1/2)
Helvetia capital management approach (1/2) Managing capital generation To pay out dividends, we need the following conditions: Do the legal entities have free statutory Free statutory shareholder reserves that can shareholder reserves? be dividended out Surplus above our minimum solvency ratio
Slide 40: Helvetia capital management approach (2/2)
Helvetia capital management approach (2/2) What determines dividend payments Capital distributable to shareholders is determined This is the maximum distributable capital predominantly by the free shareholders' reserves we can pay. It is lower than the excess Free distributable solvency margin, be
Slide 41: Appendix II. Additional information
Kapiteltrenner Appendix II. Additional information. oder Fazit auf Farbfläche Flexible Schriftgrösse Arial Black 0.9 ZA 41 Optional Bereichsbezeichnung | Thema/Projekt | Referent 11.01.2019
Slide 42: Executive Management structure
Executive Management structure Corporate Secretary1) CEO Internal Audit1) Christophe Niquille Philipp Gmür Simon Schneider Support Human Resources 1) Reports to the Chairwoman functions of the Board of Directors Roland Bentele Corporate Centre Members of the Executive Corporate Management Kaspar Har
Slide 43: Product portfolio (1/2)
Product portfolio (1/2) Non-life Premiums by business line (2017) Property (incl. engineering) CH DE IT ES AT FR LI 8% 10% Motor vehicle • • • • • • • Liability Property 34% 9% Motor vehicle • • • • • • 8% Accident / Health Liability • • • • • • 31% Transport (incl. art) Accident / Health
Slide 44: Product portfolio (2/2)
Product portfolio (2/2) Life Group life Occupational pension plans (BVG) (Switzerland only) Individual life Management pension scheme solutions via Helvetia Collective Foundation CH DE IT ES AT All risks and benefits in occupational pension plans are assured and guaranteed by Helvetia Insurance. Ass
Slide 45: Switzerland: market positions
Switzerland: market positions (as of 2017) Life Non-life Total 1. Swiss Life 1. Axa 1. Axa 2. Axa 2. Mobiliar 2. Swiss Life 3. 3. Zurich 3. 4. Baloise 4. Allianz 4. Baloise 5. Allianz 5. 5. Zurich 45 |
Slide 46: Europe: market positions
Europe: market positions (as of 2017) Germany: CHF 866 million Non-life No. 27* Life No. 36* Transport No. 10* No. 29* Austria: CHF 551 million Non-life No. 8 Life No. 7 Household No. 6* No. 8 Spain: CHF 453 million Non-life (incl. health) No. 20 No. 25 Life No. 31 Burial insurance No. 11 No. 27 Ita
Slide 47: How does non-life insurance work?
How does non-life insurance work? (greatly simplified) Customer Helvetia Policy Premium Insurance process Claims and costs Current claim payments Current claim payments Premium Provisions and future claims Investments Combined ratio Acquisition costs / administration costs Return Insurance benefits
Slide 48: How does life insurance work?
How does life insurance work? (greatly simplified) Customer Helvetia Policy Premium Insurance process Risk process Savings process Cost process Risk premium Savings premium (investments) Cost premium Risk benefits (death, disability) Risk benefits (death, disability) Return on investments Acquisitio
Slide 49: Calendar and contact
Calendar and contact Important dates 06/03/2019 Publication of financial results 2018 03/05/2019 Ordinary Shareholders’ Meeting 2019 29/08/2019 Publication of half-year results 2019 Contact details Investor Relations Corporate Communications & PR Susanne Tengler Philipp Schüpbach Claudia Saute
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