Protector Forsikring ASA · OSL:PROT
Protector Forsikring ASA — Q2 2021 Earnings Presentation
27 slides from Protector Forsikring ASA's earnings presentation, Jul 9, 2021
Slide 1: Q2 2021 Interim results
Q2 2021 Interim results Investor Presentation Oslo, 9 July 2021 Henrik Høye Chief Executive Officer
Slide 2: Disclaimer
Disclaimer This presentation and the information contained herein have been prepared by and is the sole responsibility of Protector Forsikring ASA (the "Company”). Such information is being provided to you solely for your information and may not be reproduced, retransmitted, further distributed to a
Slide 3: Our DNA
Our DNA Vision The Challenger Business Idea This will happen through unique relationships, best in class decision- making and cost effective solutions Main targets Cost and quality leadership Profitable growth Top 3 Values Credible Innovative/Open Bold Committed
Slide 4: Result highlight Q2 & H1 2021
Result highlight Q2 & H1 2021 Q2: Combined ratio at 83.9% | Investment return at 1.0% | EPS at NOK 3.2 95.1% 4 309 724 (5.1%) 235%* 92.1% 4 116 83.9% 87.4% 167 +5% 190% 161% 1 288 1 429 557 144 (1.0%) +11% 75 69 Q2 H1 Q2 H1 Q2 H1 Q2 ’20 Q4 ’20 Q2 ’21 Net combined ratio Gross written premium (MNOK) I
Slide 5: Claims update
Claims update Q2 claims ratio at 76.3%, 5.6%-points down from last year • Net run off loss at 1.9 % in Q2 21 (-1.9% in Q2 20) Q2 '21 Q2 '21 Q2 '20 Q2 '20 Business unit Gross Net Gross Net Norway 72 % 82 % 80 % 80 % • Large losses1 at 3.9% (5.7%), 3.1%-points lower than normalized Sweden 59 % 63 % 90
Slide 6: Large losses and run off in Q2
Large losses and run off in Q2 Large losses1 of MNOK 55 (3.9%), run off loss at 1.9% Gross large loss ratio excl. WC2 20.4% • Large losses1 at 3.9% (5.7%), 3.1%-points lower than normalized 12.6% 12.0% 11.1% 8.7% 7.6% 6.0% 6.3% 5.7% 4.9% 5.1% 5.0% 5.5% 3.9% 1.9% • Net run off loss at 1.9 % in Q2 21
Slide 7: Volume update
Volume update GWP up 10.9% in quarter, 21.7% in local currency in MNOK • Q2: Second biggest quarter Business unit Q2 '21 Q2 '20 Growth • 2021 growth 10.9% (21.7% in LCY) Norway 262 266 -4 Sweden 402 362 40 • Renewal rate at 94.9 % • Realized price increases at 9.2% Denmark 39 41 - 2 • New sales at M
Slide 8: Cost development
Cost development Cost the real way 11.7% in H1 2021, actions taken across the Nordics • Cost the real way 11.7% H1 2021, 8.9 % in Q2 • Affected by high share price dev. in Q12 • Gross cost ratio 8.7% (10.1%) • Higher broker commission going forward due to growth coming from UK & Sweden • Net cost ra
Slide 9: Country-by-country key metrics
Country-by-country key metrics Q2 combined ratio at 83.9% | Quarterly country volatility must be expected Q2 2021 Norway Sweden Denmark UK Finland Protector Q2 2021 Q2 2020 Q2 2021 Q2 2020 Q2 2021 Q2 2020 Q2 2021 Q2 2020 Q2 2021 Q2 2020 Q2 2021 Q2 2020 Gross premium written 262 266 402 362 39 41 721
Slide 10: Status vs. 2021 guiding
Status vs. 2021 guiding Ahead on profitability, premium growth is picking up Guiding 2021 Result Q1 Results Q2 H1 Net Combined Ratio: 90-92% 91.1% 83.9% 87.4% Return on Equity (ROE): >20% 17.5%* 7.4%* 25.8%* Gross Written Premium (GWP) growth: 10% (LCY) 1.5% (LCY) 21.7% (LCY) 7.0% (LCY) Solvency II
Slide 11: Our DNA
Our DNA Vision The Challenger Business Idea This will happen through unique relationships, best in class decision- making and cost effective solutions Main targets Cost and quality leadership Profitable growth Top 3 Values Credible Innovative/Open Bold Committed
Slide 12: Quality Leadership
Quality Leadership Focus to regain no. 1 position
Slide 13: Quality leader in UK, setback in the Nordics
Quality leader in UK, setback in the Nordics UK far ahead | Focus to regain nr. 1 position in the Nordics Nordic Broker Satisfaction Survey 2021 #1 in 2020 #2 in 2021 #3 in 2021 #4 in 2021 #6 in 2021 13
Slide 14: Quality Leadership in 2022
Quality Leadership in 2022 All employees involved in targets and actions Targets set for 2022 Target 2021/20 2019/18 2017 Tender & new sales 80 78 75 69 Customer Care and Service 80 79 75 69 BNO Targets Claims Handling 75 70 69 68 BSI total quality leader 1st 2nd 1st 1st BSI Claims Handling quality
Slide 15: Our DNA
Our DNA Vision The Challenger Business Idea This will happen through unique relationships, best in class decision- making and cost effective solutions Main targets Cost and quality leadership Profitable growth Top 3 Values Credible Innovative/Open Bold Committed
Slide 16: Investments
Investments Investment is core
Slide 17: Investment performance and statistics
Investment performance and statistics 1.0% return in Q2 | Bond portfolio yield at 1.8%, before cost of risk Q2 and H1 investment results • Q2 return on investment portfolio at 1.0%, or MNOK 144 31.6% Q2 • Equity portfolio, ex. put options, returning 3.5%, or MNOK 82 H1 • Bond portfolio returning 0.6
Slide 18: Our DNA
Our DNA Vision The Challenger Business Idea This will happen through unique relationships, best in class decision- making and cost effective solutions Main targets Cost and quality leadership Profitable growth Top 3 Values Credible Innovative/Open Bold Committed
Slide 19: Profit and loss Q2 (&H1)
Profit and loss Q2 (&H1) Profit of MNOK 267 (840) – EPS at NOK 3.2 (10.2) NOKm Q2 2021 Q2 2020 H1 2021 H1 2020 FY 2020 Gross premiums written 1 428,6 1 288,0 4 308,8 4 116,0 5 516,3 Earned premiums. net of reinsurance 1 219,3 1 154,9 2 394,6 2 277,3 4 613,5 Claims incurred. net of reinsurance (930,7
Slide 20: Balance Sheet
Balance Sheet SCR-ratio at 235% post Q2 special dividend In millions 30.06.2021 30.06.2020 31.12.2020 Owner-occupied property 0.0 12.6 0.0 SCR-ratio composition Financial assets 13 379.0 11 168.1 11 988.6 Derivatives 63.3 25.9 47.9 SCR-ratio: Bank deposits 108.8 274.2 263.2 5 000 235% Other assets 4
Slide 21: Solvency II
Solvency II SCR ratio at 235% Composition of SCR: Eligible SII capital: • Net insurance risk 62% • Accumulated dividend subtracted from eligible capital • Net market risk 28% • Guarantee provision subtracted from own funds • Other risks 10% SCR composition Eligible SII capital 4 000 6 000 85 738 289
Slide 22: Capital allocation – maximize shareholder return
Capital allocation – maximize shareholder return Priority 1: Always profitable growth in insurance, if possible Main capital allocation alternatives: 1 2 3 4 5 Investments Insurance underwriting Cash as an option Buy backs Dividends Equities & Bonds 1 Allocation towards profitable growth is preferre
Slide 23: Dividend policy
Dividend policy A new special dividend of NOK 1.67 per share – Flexible shareholder distribution policy Solvency II ratio Current level • Capital over 180% in SCR ratio distributed over time = 235% 180% • Shareholder distribution normally 20%-80% of net profit Normal Range • Quarterly decisions, all
Slide 24: Our DNA
Our DNA Vision The Challenger Business Idea This will happen through unique relationships, best in class decision- making and cost effective solutions Main targets Cost and quality leadership Profitable growth Top 3 Values Credible Innovative/Open Bold Committed
Slide 25: Management transition – Deputy CEO in Hans Didring
Management transition – Deputy CEO in Hans Didring Fredrik Landelius stepping up as Country Manager Sweden 25
Slide 26: Result summary Q2 & H1 2021
Result summary Q2 & H1 2021 Q2: Combined ratio at 83.9% | Investment return at 1.0% | EPS at NOK 3.2 Q2 H1 • Net combined ratio 83.9% 87.4% • Gross written premium MNOK 1 429 MNOK 4 309 (+10.9%) (+4.7%) • Investment return MNOK 144 MNOK 724 (1.0%) (5.1%) • Profit for the period MNOK 267 MNOK 840 • E
Slide 27: PROTECTOR
PROTECTOR insurance