Protector Forsikring ASA · OSL:PROT
Protector Forsikring ASA — Q2 2011 Earnings Presentation
17 slides from Protector Forsikring ASA's earnings presentation, Jul 15, 2011
Slide 1: Q2 results 2011 Investor presentation
Q2 results 2011 Investor presentation 15 July 2011
Slide 2: Facts about Protector
Facts about Protector • A focused non-life Norwegian insurance company • Ownership; ODIN, Franklin Mutual Funds, • Established Jan.1, 2004. (Listed on Oslo Stock Exchange May 2007) Alfred Berg Norge/Gambak, DnB NOR SMB, Nordea, employees, etc. • Vision: “Protector will be the challenger to the estab
Slide 3: Highlights Q2 2011
Highlights Q2 2011 Another strong quarter • 25 % growth in GWP • Strong net combined ratio, 80.6%, down 4.5 percentage points – Pole position in the Norwegian market (H1) • Operating profit, NOK 35.1m, up from NOK - 7.4m • Return on investments, NOK - 11.8m (-0.5%), up from NOK - 38.7m (-2.1%) – 25%
Slide 4: Gross written premium Q2 2011
Gross written premium Q2 2011 GWP up 25%, from NOK 231.3m to NOK 289.1m • GWP up 26% within the commercial and public lines of business – Underlying trend weaker – Renewal rate , 96%, up from 85% in Q2 2010 – Renewal rate H1, 87%, up from 83% in H1 2010 • Change of ownership insurance, 25% growth –
Slide 5: Claims development Q2 2011
Claims development Q2 2011 Net claims ratio 71.3%, up from 70.9% • Gross claims ratio 70.4%, up from 67.9% • Strong development within the commercial and public lines of business - Acceptable within change of ownership insurance • Run-off-gains of NOK 10.4m – Stable reserves in H1 (Run-off-losses of
Slide 6: Cost ratio Q2 2011
Cost ratio Q2 2011 Gross cost ratio 12,6%, down from 14,2% in Q2 2010 • Administration costs lower than in Q2 2010 (in nominal value) • Guided gross cost ratio 16%, ahead of schedule – New guiding; 15% year-end 2011 • Net cost ratio 7.6% (H1), seasonality effect and will increase • Strong developmen
Slide 7: Highlights Q2 2011 - Commercial and public lines of business
Highlights Q2 11 - Commercial and public lines of business • Volume up 26% – Underlying trend 23%, one contract moved from Q4 10 to Q2 11 Gross written premium (NOKm) – Norwegian municipality sector stabilized 679 – 1 large win in the Swedish municipality sector 621 507 – Still fast growing in the c
Slide 8: Highlights Q2 2011 - Change of ownership insurance
Highlights Q2 2011 - Change of ownership insurance • Strong real estate market Gross written premium (NOKm) – Real estate prices in June 11 up 8,8% from Dec 10 332 and 9,1% up from June 10 191 – Average sales time down from 25 days in June 10 to 152 119 23 days in June 11 96 • Volume up 25% Q2 2011
Slide 9: Results Q2 2011
Results Q2 2011 NOKm Q2 2011 Q2 2010 YTD 2011 YTD 2010 2010 Premiums written gross 289,1 231,3 811,9 659,2 1 011,0 Premiums earned gross 314,3 256,4 575,9 465,1 987,7 Claims incurred gross (221,2) (174,2) (406,4) (339,2) (743,7) Premiums earned for own account 242,3 204,6 441,8 369,7 792,3 Claims in
Slide 10: Balance sheet Q2 2011
Balance sheet Q2 2011 NOKm 30.06.2011 30.06.2010 31.12.2010 Financial assets 2 229,6 1 783,6 2 021,5 Bank deposits 143,0 123,5 99,9 Other assets 417,7 334,6 264,5 Total assets 2 790,3 2 241,7 2 386,0 Total equity 506,5 476,5 587,5 Total reserves 2 075,2 1 648,3 1 689,4 Other liabilities 208,6 117,0
Slide 11: Investment performance Q2 2011
Investment performance Q2 2011 • Net investment result of NOK -11.8m, -0.5% return (NOK -38.7m, -2.2%) • Equities, return of -5.8% (6.4%), OSEBX – 5.4% • Bond portfolio, return of 1.0% (0.7%) • Investment portfolio of NOK 2.230m (NOK 1.784m), 25% growth Return Q2 2011 per asset class Return H1 2011
Slide 12: Asset allocation
Asset allocation • Bonds 78.9% of portfolio, Norwegian equities 21.1% Allocation of investments 30.06.2011 Allocation of investments 31.12.2010 Equities 21,1 % Bond funds; Equities; Bond funds 20,5 % 24,6 %; 31,9 % Bonds 47,0 % Bonds; 54,9% Total financial assets; NOK 2 230m Total financial assets;
Slide 13: Portfolio structure and quality bond portfolio
Portfolio structure and quality bond portfolio • Duration (credit) of bond portfolio is 2,50 years (2,53 years) - Interest duration 0,22 years (0,33 years) Bond portfolio 30 June 2011 Quality bond portfolio 30 June 2011 Split of fixed incom e portfolio NOK m ill % Norwegian funds; Norwegian Bonds 1
Slide 14: Shareholder matters July 2011
Shareholder matters 8 July 2011 Shareholder No. shares Percent Related parties shareholding ODIN NORDEN 7 189 155 8,34 % MSF-MUTUAL FINANCIAL SERVICES FD 4 479 410 5,20 % • Management’s direct and indirect shareholding totals 4,4m shares or 5,2 % DNB NOR LUXEMBOURG SA 3 724 209 4,32 % of current out
Slide 15: Outlook 2011, changed
Outlook 2011, changed Guiding 5 May 2011 Guiding 15 July 2011 • GWP up 18% GWP up 18% – Status per Q2, ahead of schedule • Combined ratio 88% Combined ratio 86% – Status per Q2, ahead of schedule • Return on investments 5,5% Return on investments 4,6% – Status per Q2, behind schedule • Operating pro
Slide 16: Outlook 2011, changed
Outlook 2011,changed • Combined ratio 86%, down from 88% NOKm Feb May July 2010 2011e 2011e 2011e Premium growth 16 15 18 18 (%) Operating profit 234 230 230 230 Return assumptions H2 2011: Investment Income 176.1 125 125 105 Equity allocation approx. 20% Return equities: 10% Return bonds: 2,5% Gros
Slide 17: Summary Q2 2011
Summary Q2 2011 • 25 % growth in GWP • Strong net combined ratio, 80.6%, down 4.5 percentage points – Pole position in the Norwegian market (H1) • Operating profit, NOK 35.1m, up from NOK - 7.4m • Return on investments, NOK - 11.8m (-0.5%), up from NOK - 38.7m (-2.1%) – 25% growth in the investment