Protector Forsikring ASA · OSL:PROT
Protector Forsikring ASA — Q2 2013 Earnings Presentation
18 slides from Protector Forsikring ASA's earnings presentation, Jul 12, 2013
Slide 1: Q2 results 2013 Investor presentation
Q2 results 2013 Investor presentation 12 July 2013
Slide 2: Facts about Protector
Facts about Protector • A focused Norwegian non-life insurance company • Vision: “Protector will be the challenger to the established insurance • Established Jan.1, 2004. (Listed on Oslo Stock Exchange May 2007) companies” • Entered the Swedish market in 2011 and Denmark 1 Jan. 2012 • Main targets:
Slide 3: Highlights Q2 2013
Highlights Q2 2013 13% growth, increased margins and increased guiding • GWP up 13 % • Net combined ratio, 81.5%, up from 80.7% • Return on investments, NOK 19.4m (0.4%), up from NOK 7.9m (0.3%) – 23% growth in investment portfolio • Operating profit, NOK 87.2m, up from 63.6m • Further investments i
Slide 4: Gross written premium Q2 2013
Gross written premium Q2 2013 GWP up 13%, from NOK 398.7m to NOK 448.5m • GWP up 14% within the Norwegian commercial and public lines of business – Good renewal rate, 100%, up from 84% in Q2 2012 – Good access to quotations but hit-ratio slowing down in commercial sector • GWP in Sweden and Denmark,
Slide 5: Claims development Q2 2013
Claims development Q2 2013 • Gross claims ratio¹ 68.7%, down from 75.6% • Group life and property Norway slightly behind schedule • All other products in Norway doing well • Sweden and Denmark improved, but slightly behind schedule • 3 large claims (2 property claims and 1 liability claim), more tha
Slide 6: Cost ratio Q2 2013
Cost ratio Q2 2013 • Gross cost ratio¹ 11.5 %, up from 10.1% – Increased manning in the commercial sector in Norway and in Sweden/Denmark • Critical mass not reached in Sweden/Denmark • Increased no. of employees continues in Q3 – Increased cost level within change of ownership insurance • Net cost
Slide 7: Highlights Q2 2013 – Norwegian Commercial/public lines
Highlights Q2 13 – Norwegian Commercial/public lines • Volume up 14% GWP Q2 2009 – Q2 2013 (NOKm) – 57 % growth in the municipality sector (small volume quarter) 287 – 7 % growth in the commercial sector 252 143 165 135 • Personal lines of business , 78% of volume Q2 2009 Q2 2010 Q2 2011 Q2 2012 Q2
Slide 8: Highlights Q2 2013 – Sweden and Denmark
Highlights Q2 13 – Sweden and Denmark GWP Q2 2011 – Q2 2013 (NOKm) • Continued growth in Sweden and Denmark 23 – 2 percentage points of the growth on company level 16 • Sweden and Denmark; building up for hunting season 5 – 15 on board in Sweden per 30.06, 9 on board in Denmark Q2 2011 Q2 2012 Q2 20
Slide 9: Highlights Q2 2013 - Change of ownership insurance
Highlights Q2 2013 - Change of ownership insurance • Volume up 6% GWP Q2 2009- Q2 2013 (NOKm) – Stable market share well above 50% 139 131 – Hit-ratio stable on a high level, approx. 80% 119 96 – Real estate prices in H1 up 6,9% relatively to H1 2012¹ 72 – High turnover rate • Profitable in Q2 Q2 20
Slide 10: Results Q2 2013
Results Q2 2013 NOKm Q2 2013 Q2 2012 H1 2013 H1 2012 FY 2012 Premiums written gross 448,5 398,7 1 352,5 1 067,2 1 517,0 Premiums earned gross 477,4 386,3 877,6 713,8 1 464,2 Claims incurred gross (354,4) (312,1) (704,2) (567,7) (1 171,0) Premiums earned for own account 362,8 299,6 663,2 546,3 1 107,
Slide 11: Balance sheet Q2 2013
Balance sheet Q2 2013 NOKm 30.06.2013 30.06.2012 31.12.2012 • Investment portfolio, 23% growth Financial assets 3 793,4 3 079,8 3 192,8 Bank deposits 112,0 115,2 141,9 Other assets 724,8 547,1 430,9 Total assets 4 630,1 3 742,0 3 765,6 Total equity 624,9 521,6 582,1 Subordinated loan capital 148,1 -
Slide 12: Investment performance Q2 2013
Investment performance Q2 2013 • Net investment result of NOK 19.4 m, 0.4% return (NOK 7.9m, 0.3%) - H1; Net investment result of NOK 97.3m, 2.7% return (NOK 96.6m, 3.7%) • Equities, return of -1.2% (-3.8%), OSEBX -0.5%, OSEFX 0.1% • Bond portfolio, return of 0.6% (1.0%), increased risk exposure • I
Slide 13: Asset allocation
Asset allocation • Bonds 89.9% of portfolio, Norwegian equities 10.1% Allocation of investments 30.06.2013 Allocation of investments 31.12.2012 Equities Equities 10,1 % 8,9 % Bond funds Bond funds 60,9 % 59,3 % Bonds and cash Bonds and 31,8 % cash 29,0 % Total financial assets; NOK 3.793m Total fina
Slide 14: Portfolio structure and quality - bond portfolio
Portfolio structure and quality - bond portfolio • No currency risk • Duration 0,97 years (0,5 years), average maturity is 3,42 years (2,53 years) • Increased risk in non rated funds Bond portfolio 30 June 2013 Quality bond portfolio 30 June 2013 Norwegian Split of fixed incom e portfolio NOK m ill
Slide 15: Shareholder matters July 2013
Shareholder matters 8 July 2013 Shareholder No. shares Percent ODIN NORDEN 6 809 171 7,90 % MSF-MUTUAL FINANC IAL SERVI FD 4 479 410 5,20 % Related parties shareholding PROTEC TOR FORSIKRING ASA 3 570 661 4,14 % OJADA AS 3 563 116 4,14 % HANSARD EUROPE LTD 3 268 585 3,79 % • Management’s direct and
Slide 16: Outlook 2013, changed
Outlook 2013, changed Guiding 14 May 2013 Guiding 12 July 2013 • GWP up 20% GWP up 22 % – Status per Q2, ahead of schedule • Combined ratio 91% Combined ratio 88% – Status per Q2, ahead of schedule • Return on investments 5.4 % Return on investments 4,9% – Status per Q2, behind schedule • Operating
Slide 17: Outlook 2013, changed
Outlook 2013, changed NOKm Res 29 28 Feb Feb 14 7 May May New 2011 2012 2012e 2013e 2012e 2013e 2013e Premium growth (%) 19 26 18 18 22 20 22 Return assumptions 2013: Operating profit 82.9 393 270 250 270 310 340 Equity allocation approx. 10 % Investment Income -51.4 246 125 160 136 200 180 Return e
Slide 18: Summary
Summary 13% growth, increased margins and increased guiding • Profitable growth continues • 23% growth in investment portfolio • Further investments in management and employees development programmes highlighted • Outlook 2013 increased • Recruitments on historical high level in order to prepare for