Protector Forsikring ASA · OSL:PROT
Protector Forsikring ASA — Q1 2010 Earnings Presentation
19 slides from Protector Forsikring ASA's earnings presentation, Apr 29, 2010
Slide 1: Protector Forsikring ASA Q1 results 2010
Protector Forsikring ASA Q1 results 2010 Investor presentation 29 April 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 Q1 2010
Highlights Q1 2010 Continued growth, strong results and increased guiding • 10% growth in GWP – Commercial and public lines of business, up 10% – Change of ownership insurance, up 18% • Net combined ratio 90%, down 7.6 percentage points • Return on investments, NOK 39,4m (2.2%), up from NOK 25,9m (2
Slide 4: Gross written premium Q1 2010
Gross written premium Q1 2010 GWP up 10%, from NOK 388m to NOK 427.9m • 10% growth within commercial and public lines of business - Strong new sales and good access to quotations - 23% growth within the personal lines of business - Weak renewal rate, 78% ( 87% in Q1 09), driven by market share reduc
Slide 5: Claims development Q1 2010
Claims development Q1 2010 Gross claims ratio 79,0%, up from 78,3% in Q1 2009 • A tough winter influences negatively on auto and property – High claims frequency within motor and a large number of water-related claims – No large claims (> NOK 5m) – Q1 normally the weakest quarter Net claims ratio 85
Slide 6: Cost ratio Q1 2010
Cost ratio Q1 2010 Gross cost ratio 18,5%, down from 20,3% in Q1 2009 • No one-off costs – One off costs of NOK 3m in Q1 09 • Slightly increased manning costs – Slightly increase in average manning – 3 year bonus program implemented H2 09, NOK 1,5m in Q1 2010 Net cost ratio 4,1% due to increased (NO
Slide 7: Highlights Q1 2010 - Commercial and public lines of business
Highlights Q1 2010 - Commercial and public lines of business • 10% volume growth Gross written premium (NOKm) 372 - Strong growth and good hit-ratio in the SME market 337 - First Swedish municipality contract signed Jan 1st 2010 266 - 23% growth within the personal lines 185 • Weak renewal rate, 78%
Slide 8: Highlights Q1 2010 - Change of ownership insurance
Highlights Q1 2010 - Change of ownership insurance • Improved market Gross written premium (NOKm) - Real estate prices up 10% relatively to Q1 09 56 - Turnover down from 44 days in March 09 to 54 28 days in March 10 53 52 • Volume up 18% - Slightly increased market share, well above 50% 48 - Hit-rat
Slide 9: Evaluation of Protector among Real Estate Brokers
Evaluation of Protector among Real Estate Brokers 2006 2007 2009 2010 90 What is the value of COI for your client? 89 83 85 90 What is the value of COI for you as a real estate broker? 87 82 81 87 When asked for your opinion on Protector, to what extent 85 will you speak of the company in positive t
Slide 10: Results Q1 2010
Results Q1 2010 MNOK Q1 2010 Q1 2009 2009 Premiums written gross 427,9 388,0 871,4 Premiums earned gross 208,8 180,8 843,1 Claims incurred gross (165,0) (141,7) (649,2) Premiums earned for own account 165,1 139,6 842,6 Claims incurred for own account (141,7) (116,1) (694,7) Operating costs (6,8) (20
Slide 11: Balance sheet Q1 2010
Balance sheet Q1 2010 MNOK 31.03.2010 31.03.2009 31.12.2009 Financial assets 1 899,0 1 362,1 1 634,8 Bank deposits 118,9 154,9 85,6 Other assets 326,4 447,1 252,5 Total assets 2 344,3 1 964,1 1 972,9 Total equity 613,4 438,1 562,7 Total reserves 1 630,6 1 284,0 1 358,7 Other liabilities 100,3 242,0
Slide 12: Investment performance Q1 2010
Investment performance Q1 2010 • Net investment result of NOK 39.4m (NOK 25,9m) • Equities; Return of 6,4% (5,1%), OSEBX 1,4%, • Bond portfolio (inc HTM-Bonds); Return of 1,0% (1,5%), slightly increased risk exposure • Investment portfolio of NOK 1.899m (NOK 1.362m) Return Q1 2010 per asset class Re
Slide 13: Asset allocation
Asset allocation • Bonds 77% of portfolio, Norwegian equities 23% - Exposure in equities reduced in Q2, NOK 100m reallocated (21 April) from equities to bonds Asset allocation 31 March 2010 Asset allocation 31 December 2009 Equities Equities 23,0 % 25,1 % Money Money market market Bonds HTM 50,7 % 5
Slide 14: Portfolio structure and quality bond portfolio
Portfolio structure and quality bond portfolio • Duration (credit) of bond portfolio (ex HTM) is 2,28 years (1,77 years) - Interest duration (ex HTM) 0,17 years (0,27 years) Bond portfolio 31 March 2010 Quality bond portfolio 31 March 2010 Split of fixed income portfolio NOK mill % Money market inst
Slide 15: Combined ratio Q1 2010
Combined ratio Q1 2010 140 % 134,4% 120 % 108,6% 100 % 90,0% 80 % 106,9 % 88,3 % 60 % 85,9 % 40 % 20 % 27,4 % 20,2 % 0% 4,1 % Protector Sparebank1 KLP Gjensidige ¹ If… ¹ Storebrand ¹ TrygVesta ¹ Unison ¹ Cost ratio Claims ratio ¹ Q1 figures not published 15
Slide 16: Shareholder matters April 2010
Shareholder matters 20 April 2010 Shareholder No. shares Percent Odin Norden 7 175 355 8,33 % Option program Bank of New York, Mellon SA/NV 4 479 410 5,20 % Alfred Berg Gambak 3 735 694 4,34 % • Outstanding options: 2.260.293 Ojada AS 3 563 116 4,14 % Strike price of NOK 7,75 Bergtor AS 3 083 300 3,
Slide 17: Outlook 2010, increased
Outlook 2010, increased Guiding 28 February 2010 Guiding 29 April 2010 • GWP up 15% GWP up 15% – Status per Q1, slightly behind schedule • Combined ratio 92% Combined ratio 92% – Status per Q1, on schedule • Return on investments 4,9% Return on investments 6,2% – Status per Q1, ahead of schedule • O
Slide 18: Outlook 2010
Outlook 2010 NOK m 2009 2010 2010 Positive Negative Feb April scenario scenario Premium growth (%) 20 15 15 20 10 Operating profit 258.8 150 180 210 150 Investment income 224.6 88 118 Gross Cost ratio (%) 17.6 16 16 Net combined ratio (%) 96.5 92 92 88 96 Return on solvency capital (%) 38 20 24 Retu
Slide 19: Summary Q1 2010
Summary Q1 2010 • Volume up 10% • Net combined ratio 90% • Operating profit of NOK 56,9m, up from NOK 30,9m • Return on investments, NOK 39,4m (2.2%), up from NOK 25,9m (2.1%) • Increased guiding – Operating profit up from NOK 150m to NOK 180m • Good start on Q2 19