Helvetia Baloise Holding Ag · SIX:HBAN
Helvetia Baloise — Helvetia Group — J.P. Morgan European Insurance Conference 2018
47 slides from Helvetia Baloise's conference presentation, May 2018
Slide 1: Strong business. Profitable growth. Investor value.
Strong business. Profitable growth. huber.huber: Habitat_2, 2017, Collage and acrylic spray on cardboard, 70 x 54.2 cm (image section) Investor value. J.P. Morgan European Insurance Conference 2018 Helvetia Group May 2018
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 23.08.2018
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 market positions
Our market positions Germany: CHF 866 million Non-life No. 27 Life No. 36 Property No. 18 Austria: CHF 551 million No. 29 Non-life No. 8 Switzerland: CHF 4,978 million Life No. 7 Niche position Non-life No. 5 Household No. 8 No. 2 Life No. 3 No. 8 No. 3 France: CHF 211 million No. 25 Spain: CHF 453
Slide 7: Our strength is a well developed sales network with excellent partners…
Our strength is a well developed sales network with excellent partners… Own sales force Agents Brokers Partners Direct sales/new media 960 sales agents 1,410 agents 1,160 broker agreements Swisscanto online@helvetia.ch CH Raiffeisen smile.direct Vontobel AT 240 sales agents 490 agents 1,200 brokers
Slide 8: …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 8 |
Slide 9: 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 10: Key investment highlights
Key investment highlights 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) 422 439 492 502 21.
Slide 11: Strategy helvetia 20.20
Kapiteltrenner Strategy helvetia 20.20. oder Fazit auf Farbfläche Flexible Schriftgrösse Arial Black 0.9 ZA 11 Optional Bereichsbezeichnung | Thema/Projekt | Referent 23.08.2018
Slide 12: 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 13: Progressing towards a tailor-made customer journey along all touchpoints
Progressing towards a tailor-made customer journey along all touchpoints 360° customer view Strengthening of core business 13 |
Slide 14: "Home" ecosystem – everything from a single source
ʺHomeʺ ecosystem – everything from a single source Establishing new business models 14 |
Slide 15: Strong diversification in many respects
Strong diversification in many respects Strong business mix Balanced portfolio mix1): active in non-life (property & casualty, 47%) and life (53%) insurance as well as in Specialty Markets (specialty insurance and reinsurance business) Regional diversification Beneficial geographic diversificati
Slide 16: Financials
Kapiteltrenner Financials. oder Fazit auf Farbfläche Flexible Schriftgrösse Arial Black 0.9 ZA 16 Optional Bereichsbezeichnung | Thema/Projekt | Referent 23.08.2018
Slide 17: Where we are today (1/2): sustainable solid development of volume, profit and combined ratio
Where we are today (1/2): sustainable 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 8,641 422 439 7,767 2014 2015 2016 2017 2014 2015 2016 2017 Net combined ratio (non-life
Slide 18: Where we are today (2/2): a sustainable payout of dividends with an attractive yield
Where we are today (2/2): a sustainable payout of dividends with an attractive yield Shareholders’ equity1) Solvency Our focus (in CHF million) (as of 01/01/2018) Financial strength SST ratio: 212% 5,229 140-180% 4,963 4,655 4,813 0% 100% 200% Target range 2014 2015 2016 2017 Dividend per share Di
Slide 19: Non-life: We focus on retaining the good portfolio quality by pursuing a cautious underwriting policy
Non-life: We focus on retaining the good portfolio quality by pursuing a cautious underwriting policy 93.6% 93.5% 92.1% 91.6% 91.8% 9.2 8.7 9.0 8.9 9.0 Disciplined underwriting strategy 21.0 21.9 20.4 20.3 20.7 Selective underwriting of large risks Portfolio optimisation if necessary 63.4 62.9
Slide 20: Life: In the current low interest rate environment we focus on stabilising the interest margin
Life: In the current low interest rate environment we focus on stabilising the interest margin Sustainable balance sheet structure due to efficient asset-liability matching Group interest margin 2.37%2) 2.33%2) Limited long-term liabilities within our Swiss 2.23%2) group pension business due to
Slide 21: Individual life: new business mix continues to improve
Individual life: new business mix continues to improve Individual life single premiums Individual life regular premiums (New business; in CHF million) (New business; in CHF million) Share of capital- 42% 52% 73% 52% 50% 78% light business1) 848 835 113 111 810 106 39 41 51 315 429 519 24 19 10 12 4
Slide 22: Our investment portfolio is well diversified and we have a good ALM
Our investment portfolio is well diversified and we have a good ALM Portfolio by asset class Bonds CHF 49.6 bn Investment property 60% 14% 9% 6% 5% 2%2%2% 5% 31/12/2016 6% Mortgages Market risk PH Equities 1) CHF 52.3 bn Loans 58% 14% 10% 7% 5% 2%2%2% 31/12/2017 Alternative investments
Slide 23: Group SST ratio improved thanks to business and capital market performance and new hybrid
Group SST ratio improved thanks to business and capital market performance and new hybrid 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
Slide 24: Risk-bearing capital: sensitivities
Risk-bearing capital: sensitivities (as of 31/12/2017; in CHF million, sensitivities on RBC) Market risk sensitivities Shift 31/12/2016 31/12/2017 ∆ 17/16 Interest rates -50 bp -166 -150 +16 Spreads +50 bp -526 -620 -94 Equities -10 % -156 -202 -46 Real estate -10 % -545 -593 -48 FX EUR/CHF +10 % -7
Slide 25: Overview of bonds issued by Helvetia
Overview of bonds issued by Helvetia Nominal Accounting Issue Coupon Eligibility Maturity Issuer Comments volume treatment date Debt, interest booked - Senior bond CHF 150 mn 1.125% 2013 08/04/2019 Helvetia Holding AG - as financing costs Helvetia Schweizerische SII: Tier 2 Subordinated bond 4.0% p.
Slide 26: We target a shareholder structure with long-term focus
We target a shareholder structure with long-term focus Shareholder structure (as of 31/12/2017) Free float by geography Swiss investors 37.5% Investors based abroad Free float 34.1% 62.5% Patria Mutual 65.9% Free float by investor type Private Other institutional individuals 29.5% investors 45.6% Ba
Slide 27: Appendix I. Full-year results 2017
Kapiteltrenner Appendix I. Full-year results 2017. oder Fazit auf Farbfläche Flexible Schriftgrösse Arial Black 0.9 ZA 27 Optional Bereichsbezeichnung | Thema/Projekt | Referent 23.08.2018
Slide 28: Pre-tax synergies of CHF 137 million realised
Pre-tax synergies of CHF 137 million realised FTE development Realised synergies (pre-tax) (as of 31/12/2017; in CHF million) -474 FTE development 137 204 Staff reduction by 474 FTEs since start of synergy Basler AT 118 tracking Money- 104 Park Nationale 1,831 Thereof 439 FTEs left as a conseque
Slide 29: Underlying earnings increased by 2.2% – life and non-life business with strong performance
Underlying earnings increased by 2.2% – life and non-life business with strong performance Underlying earnings (in CHF million) 492 502 35% Life1) Non-life1) 65% 363 341 193 174 -22 -54 2016 Total Non-life Life Other activities 2017 ∆ +2.2% +6.7% +11.3% n.a. 1) Share on total earnings excl. othe
Slide 30: Stronger results from Switzerland and Europe, resilient earnings in SpM despite NatCats
Stronger results from Switzerland and Europe, resilient earnings in SpM despite NatCats Underlying earnings (in CHF million) SpM 3% 22% 492 502 CH Europe 410 366 75% 113 120 36 17 -24 -43 2016 Total CH Europe Specialty Markets Corporate 2017 ∆ +2.2% +11.9% +5.4% -53.7% n.a. 1) Share on total ear
Slide 31: Non-life: business volume in 2017
Non-life: business volume in 2017 (in CHF million; currency-adjusted Property thereof Motor Liability Accident / Transport / ARI Total NL growth against 2016) Engineering vehicle Health Art 537 - 604 152 168 4 - 1,465 Switzerland 1.9% - 1.1% -2.0% 4.4% -4.7% - 1.4% 632 29 648 181 180 88 - 1,729 Euro
Slide 32: Non-life: overview of net combined ratios
Non-life: overview of net combined ratios CH Europe Specialty Markets Group Claims ratio (net) 57.1 64.6 66.0 62.1 Cost ratio (net) 26.0 30.8 34.1 29.7 Combined ratio 2017 (net) 83.1 95.4 100.1 91.8 Combined ratio 2016 (net) 82.9 97.1 96.9 91.6 Change from 2016 0.1 -1.8 3.3 0.2 DE IT ES AT SpL FR AR
Slide 33: Non-life: net combined ratio split
Non-life: net combined ratio split +0.2% pts 91.6% 91.8% -3.1% +2.0% +0.6% 29.2% +0.8% 29.7% 0.6% 2.6% 65.5% 62.4% -3.7% -2.9% CR 2016 ∆ Underlying ∆ NatCat ratio ∆ Prior year ∆ Cost ratio CR 2017 claims ratio1) claims development Underlying claims ratio NatCat ratio Prior year claims Cost ratio 1)
Slide 34: Life: business volume in 2017
Life: business volume in 2017 (in CHF million; currency- Investment- Deposits1) Total Traditional Total Total Total adjusted growth against linked investment- life2) individual life group life life 2016) linked 265 26 291 631 922 2,591 3,513 Switzerland 8.3% 93.5% 12.7% -12.3% -5.7% -3.5% -4.1% 381
Slide 35: Life: NBM improved to 1.8% thanks to de-risking and focused sale of capital-light products
Life: NBM improved to 1.8% thanks to de-risking and focused sale of capital-light products VNB: increased significantly due to revised New business (in CHF million) 2016 2017 ∆ 17/16 guarantee concepts in traditional savings products Value of new business (VNB) 33 49 50% and focused sale of capita
Slide 36: Life: reserves
Life: reserves (as of 31/12/2017; in CHF billion) 0.25% interest guarantee 21% of Swiss life reserves are subject to the BVG EU minimum interest rate 7.6 1.00% interest guarantee Individual life 11.5 CH Other 29.0 6.3 Group life 5.2 extra-mandatory 17.5 Retirement assets 11.2 mandatory 6.0 36
Slide 37: Investments: resilient new and re-investment yield
Investments: resilient new and re-investment yield Investment performance: total portfolio Investment (in CHF million) Equities Bonds Mortgages Other Total1) property Current income 68 2.8% 569 1.9% 242 3.5% 88 1.8% 35 1,001 2.1% G/L 201 162 33 -1 -48 347 Investment result 269 11.8% 731 2.4% 275 4.0
Slide 38: Sustainable investments: MSCI ESG risk profile
Sustainable investments: MSCI ESG risk profile Investment portfolio ESG risk profile: A rating CHF 52.3 bn as of 31/12/2017 3% Equities Main asset classes in scope for the analysis1) 28% 58% 14% 10% 7% 5% Bonds Alternative investments / 69% investment funds / derivatives Bonds Investment property Mo
Slide 39: Equity walk: IFRS to statutory equity
Equity walk: IFRS to statutory equity Reconciliation IFRS to statutory equity (in CHF billion) 5.2 -3.5 Local GAAP equity amounts to 50% of IFRS equity Investment valuation differences – i.e. unrealised 0.9 2.6 gains and losses, which are not payable as dividends – reflect around 67% of IFRS equ
Slide 40: Risk sensitivities
Risk sensitivities Risk sensitivities (as of 31/12/2017; in CHF million) Interest rate risk sensitivities Interest rate level Interest rate level +10 bp -10 bp Income statement 1.7 -2.9 Equity -82.7 83.9 Equity price risk sensitivities Equity price Equity price +10% -10% Income statement 102.5 -93.4
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 23.08.2018
Slide 42: Our Executive Management structure strengthens integration of all market areas
Our Executive Management structure strengthens integration of all market areas 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
Slide 43: Our product portfolio (1/2)
Our 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 / Hea
Slide 44: Our product portfolio (2/2)
Our 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.
Slide 45: 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 46: 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 47: Calendar and contact
Calendar and contact Important dates 04/09/2018 Publication of half-year results 2018 06/03/2019 Publication of financial results 2018 03/05/2019 Ordinary Shareholders' Meeting 2019 Contact details Investor Relations Corporate Communications & PR Susanne Tengler Philipp Schüpbach Claudia Saute
Helvetia Group — J.P. Morgan European Insurance Conference 2018 on 6ix