Sabre Insurance Group Plc · LSE:SBRE
Sabre Insurance — FY2017 Earnings Presentation
24 slides from Sabre Insurance's earnings presentation, Mar 22, 2018
Slide 1: Annual Results Presentation 2017
Annual Results Presentation 2017 22nd March 2018
Slide 2: Disclaimer
Disclaimer LEGAL NOTICE This presentation has been prepared to inform investors and prospective investors in the secondary markets and other market participants about Sabre Insurance Group plc and its subsidiaries (the "Group") and does not constitute an offer of securities under any applicable legi
Slide 3: Today's agenda
Today’s agenda 1 2017 Highlights Geoff Carter 2 Financial Results Adam Westwood 3 The Sabre Story Geoff Carter 4 Summary & Outlook Geoff Carter - Q&A
Slide 4: 2017 Highlights
2017 Highlights Geoff Carter
Slide 5: Financial highlights
Financial highlights LOSS RATIO % Leading underwriting performance... 50.8% 47.7% 46.5% • Loss ratio of 46.5% • Expense ratio of 22.0% 2015 2016 2017 • Combined operating ratio of 68.5% EXPENSE RATIO % ...delivering strong profitability and returns... • 6% increase in underwriting profit 24.
Slide 6: Operational highlights
Operational highlights IPO Completed successful IPO whilst maintaining service levels to customers and brokers High quality PLC board now in place, completed with appointment of Andy Pomfret as SID Operational Direct websites re-designed to improve customer journey and sales improvements conve
Slide 7: Financial Results
Financial Results Adam Westwood
Slide 8: Results summary
Results summary 2017 Summary financial performance 2017 2016 Change Gross written premium £210.7m £196.6m 7% Controlled growth in premiums Strong combined operating ratio of Net earned premium £186.9m £182.1m 3% 68.5%, below the long term average Combined operating ratio 68.5% 69.3% (0.8pp) In
Slide 9: Leading underwriting performance
Leading underwriting performance Combined operating ratio evolution Focus on underwriting profitability continues to yield results, 69.3% 68.5% with a 0.8pp reduction in the combined operating ratio to (0.8pp) 21.6% 22.0% 68.5% 47.7% 46.5% Loss ratio fell 1.2pp from 47.7% to 46.5% Benefitted f
Slide 10: Conservative approach to risk
Conservative approach to risk Investment portfolio breakdown Investments continue to be held in UK government 0.2% bonds, in line with our conservative approach to risk 12.4% Gilts Investment portfolio managed in house and focused Corporate bonds on capital preservation to support our profitable
Slide 11: Attractive capital generation
Attractive capital generation Return on opening SCR We continue to benefit from strong profitability and an 92% return on opening SCR efficient capital model 57.9 53.3 2017’s adjusted profit after tax was equivalent to 92% of the opening solvency capital requirement Strong capital generation l
Slide 12: Delivering against our IPO targets
Delivering against our IPO targets LOSS RATIO % Leading underwriting performance... 50.8% 47.7% 46.5% 2015 2016 2017 ...delivering strong profitability and returns... EXPENSE RATIO % 24.0% 22.0% 21.6% ...and attractive capital generation... 2015 2016 2017 COMBINED OPERATING RATIO % 74.8%
Slide 13: The Sabre Story
The Sabre Story Geoff Carter
Slide 14: The Sabre story
The Sabre story Broad underwriting footprint with unique business model biased toward the specialist, Market leading 72.3% higher premium segments underwriting 10 YEAR AVERAGE performance COMBINED OPERATING Disciplined actuarially driven pricing strategy RATIO Proprietary and agile prici
Slide 15: Strategy and key business principles
Strategy and key business principles Maintaining a broad underwriting footprint and unique business model biased toward the specialist, higher premium segments Market leading <80% Continuing to apply a disciplined and actuarially driven underwriting COMBINED OPERATING approach to pricing per
Slide 16: Summary & Outlook
Summary & Outlook Geoff Carter
Slide 17: Market update
Market update Average comprehensive shoparound premium(1) Significant increase in average premiums in early £ 2017, reflecting impact of the Ogden rate change 800 700 600 Increasingly competitive pricing environment in 500 the last few weeks of 2017, going into the first 400 two months of this y
Slide 18: 2018: Continued focus on core principles
2018: Continued focus on core principles £ Controlled Market leading Strong and attractive underwriting returns and growth performance cash across the generation cycle Deliver a strong underwriting performance with a combined operating ratio, in line with, or better than, our historical average
Slide 19: Q&A
Q&A
Slide 20: Appendices
Appendices
Slide 21: Broad underwriting footprint
Broad underwriting footprint Quotes provided across the risk spectrum, but a bias towards higher premium segments 11. As a result of its experience and expertise, Sabre is comfortable providing quotes in response to nearly all the requests it receives across the risk spectrum 22. Typically fewer pee
Slide 22: Reconciliation to KPIs
Reconciliation to KPIs Loss, expense and combined operating ratio Adjusted profit after tax 2017 2016 2017 2016 Net insurance claims £92.9m £92.7m Profit for the year £45.3m £52.3m Claims handling expenses (£6.0m) (£5.9m) Amortisation £0.9m £1.6m £86.9m £86.8m Exceptional items (post-tax) £7.1m - Ne
Slide 23: Balance sheet
Balance sheet Balance sheet 2017 2016 Goodwill & intangible assets £156.8m £157.7m Reinsurance assets £110.5m £51.5m Insurance and other receivables £38.8m £37.0m Financial investments £244.0m £234.3m Cash and cash equivalents £34.4m £10.5m Other asset £21.4m £20.2m Total assets £606.0m £511.2m Tota
Slide 24: Claims Development
Claims Development Net Insurance Liabilities 2010 2011 2012 2013 2014 2015 2016 2017 Total Accident year £'k £'k £'k £'k £'k £'k £'k £'k Estimate of ultimate claims costs: At end of accident year 61,912 94,171 89,901 77,316 74,609 97,288 104,808 106,478 One year later 69,055 90,742 81,403 64,071 65,