PROTECTOR FORSIKRING ASA CAPITAL MARKETS DAY
Oslo 3rd June 2015
Capital market day ambition
- Our focus is operational excellence…
- …you'll learn to know and trust key people
- …you'll understand more about our business and culture
- This time we will not;
- deliver any new figures or focus on figures in different business areas
- update you on investment strategy or practice
- update you on Sweden since our Country Management is closing an important deal today
Agenda
- 13.00 Introduction A profitable growth story Sverre Bjerkeli
- 13.30 Change of ownership Merete C. Bernau
- 14.00 Highlights Denmark Flemming Conrad
- 14.30 Break
- 15.00 Commercial sector Norway Public Scandinavia Henrik Høye
- 15.45 Entry UK Market Entry Finland Summary and Q&A Protector Forsikring
- 16.30 Drinks with management
11 years with profitable growth
Sverre Bjerkeli (55) - CEO:
- Head of consumer/commercial division at Storebrand (If..)
- CEO Storebrand Bank
- IT; Key positions in NOKIA/ICL and CEO Eterra/Ementor
- Last 11 years in Protector
- Handball player and trainer on international level
- Marathon runner and Vasalopp skier "nowadays"
Vision, Business Idea, Main targets and Values
Vision The challenger
Business Idea This will happen through unique relationships, state of the art decision making, and cost effective solutions
Main targets Cost and quality leadership Profitable growth Top 3
Values Trustworthy (Troverdig) Accommodative (Imøtekommende) Brave (Modig) Enthusiastic (Engasjert)
Half the cost of competitors
|
2008 |
2009 |
2010 |
2011 |
2012 |
2013 |
2014 |
| PRF |
11,2 % |
12,1 % |
11,9 % |
10,0 % |
7,7 % |
8,8 % |
7,6 % |
| Tryg |
17,1 % |
17,2 % |
17,0 % |
16,6 % |
16,4 % |
15,6 % |
14,6 % |
| Gjensidige |
17,0 % |
17,7 % |
16,5 % |
16,4 % |
15,5 % |
15,3 % |
15,0 % |
| Top |
14,7 % |
14,9 % |
15,4 % |
15,7 % |
15,8 % |
16,2 % |
15,7 % |
| If |
17,4 % |
17,6 % |
17,2 % |
17,3 % |
16,9 % |
16,8 % |
16,7 % |
| LF |
21,0 % |
22,0 % |
22,0 % |
21,0 % |
21,0 % |
19,0 % |
19,0 % |
| KLP skade |
26,7 % |
29,1 % |
30,4 % |
26,5 % |
26,4 % |
26,2 % |
23,1 % |
| Codan* |
20,2 % |
20,4 % |
19,9 % |
21,5 % |
22,4 % |
22,7 % |
23,6 % |
Avg
ex PRF |
19,2 % |
19,8 % |
19,8 % |
19,3 % |
19,2 % |
18,8 % |
18,2 % |
Volume winner
|
2008 |
2009 |
2010 |
2011 |
2012 |
2013 |
2014 |
Vol.weighte
d
2008-2014 |
| PRF |
9,6 % |
19,5 % |
16,1 % |
19,0 % |
26,1 % |
22,7 % |
27,6 % |
22,0 % |
| KLP skade |
3,4 % |
4,7 % |
5,0 % |
3,0 % |
15,4 % |
10,9 % |
10,7 % |
8,1 % |
| Gjensidige |
4,4 % |
1,3 % |
8,3 % |
2,9 % |
1,7 % |
5,3 % |
8,8 % |
4,6 % |
| LF |
4,2 % |
2,3 % |
2,2 % |
3,3 % |
3,2 % |
3,5 % |
7,4 % |
3,7 % |
| Codan* |
12,8 % |
1,7 % |
0,3 % |
-0,3 % |
7,2 % |
-1,0 % |
-2,3 % |
3,0 % |
| If |
-0,5 % |
-3,7 % |
8,4 % |
5,3 % |
5,7 % |
2,7 % |
-2,1 % |
2,5 % |
| Tryg |
4,4 % |
5,2 % |
9,1 % |
2,4 % |
1,8 % |
-4,0 % |
-4,4 % |
2,3 % |
| Top |
0,8 % |
-3,1 % |
-1,4 % |
1,4 % |
1,0 % |
1,5 % |
2,6 % |
0,3 % |
Avg
ex PF |
4,2 % |
1,2 % |
4,6 % |
2,6 % |
5,1 % |
2,7 % |
3,0 % |
3,5 % |
Protector's growth is organic, while some competitors buys significant portfolios or makes large acquisitions during the period
Best margin in Nordic
|
2008 |
2009 |
2010 |
2011 |
2012 |
2013 |
2014 |
Vol.weighte
d
2008-2014 |
| PRF |
95,8 % |
97,8 % |
94,2 % |
85,3 % |
86,2 % |
86,7 % |
84,5 % |
88,4 % |
| Top |
82,4 % |
91,1 % |
93,3 % |
90,3 % |
88,0 % |
91,5 % |
86,0 % |
88,9 % |
| Tryg |
88,2 % |
92,2 % |
98,8 % |
93,2 % |
88,2 % |
87,7 % |
84,2 % |
90,4 % |
| If |
91,8 % |
92,1 % |
92,8 % |
92,0 % |
89,3 % |
88,1 % |
87,7 % |
90,4 % |
| Gjensidige |
94,4 % |
94,8 % |
95,3 % |
91,9 % |
85,3 % |
89,2 % |
86,0 % |
90,7 % |
| LF |
93,0 % |
96,0 % |
102,0 % |
100,0 % |
98,0 % |
97,0 % |
93,0 % |
96,9 % |
| Codan* |
98,5 % |
100,4 % |
101,8 % |
102,4 % |
94,3 % |
95,3 % |
94,7 % |
98,4 % |
| KLP skade |
97,3 % |
95,5 % |
121,9 % |
118,1 % |
107,8 % |
103,7 % |
91,9 % |
104,6 % |
Avg
ex
PF |
92,2 % |
94,6 % |
100,8 % |
98,3 % |
93,0 % |
93,2 % |
89,1 % |
94,3 % |
Danish insurers included part of their estimated future invested income (discounted) in their combined ratio. The effect is 3-4% lower CR.
Return on investments
|
2008 |
2009 |
2010 |
2011 |
2012 |
2013 |
2014 |
Avg. 2008-
2014 |
| PRF |
-2,1 % |
16,1 % |
9,7 % |
-2,3 % |
8,9 % |
7,0 % |
5,3 % |
6,0 % |
| KLP skade |
0,4 % |
8,3 % |
7,2 % |
4,5 % |
6,5 % |
6,5 % |
6,5 % |
5,7 % |
| If |
-3,1 % |
12,4 % |
7,4 % |
1,8 % |
6,1 % |
5,0 % |
4,1 % |
4,8 % |
| Tryg |
3,5 % |
6,6 % |
4,3 % |
4,8 % |
5,1 % |
2,5 % |
4,3 % |
4,4 % |
| Gjensidige |
-0,6 % |
5,5 % |
5,2 % |
4,4 % |
5,4 % |
4,3 % |
4,3 % |
4,1 % |
| Codan* |
5,6 % |
5,9 % |
3,5 % |
3,0 % |
3,9 % |
-0,4 % |
1,6 % |
3,5 % |
| Top |
-6,9 % |
7,3 % |
4,8 % |
3,1 % |
6,9 % |
4,1 % |
3,4 % |
3,2 % |
| LF |
-14,0 % |
10,0 % |
6,0 % |
-2,0 % |
5,0 % |
6,1 % |
6,5 % |
2,5 % |
Avg
ex PF |
-2,8 % |
8,8 % |
5,7 % |
2,5 % |
5,5 % |
4,1 % |
4,5 % |
4,0 % |
Our assesment is that Protector's risk-adjusted return is above average
WHAT CREATES COST- AND QUALITY LEADERSHIP?
What creates cost- and quality leadership?
- A well defined and consistent strategy
- Value chains supporting strategy
- Competent people to implement
- This is a good start, but……
…..«the secret» is;
• Vision, business idea, main targets and values
• Hard work to live vision, business idea, main targets and values every day
66 development projects running
Vision, Business Idea, Main targets and Values
Vision The challenger
Business Idea This will happen through unique relationships, state of the art decision making, and cost effective solutions
Main targets Cost and quality leadership Profitable growth Top 3
Values Troverdig (Trustworthy) Imøtekommende (Accommodative) Modig (Brave) Engasjert (Enthusiastic)
NORDIC CHAMPION:
Agenda
- 13.00 Introduction A profitable growth story Sverre Bjerkeli
- 13.30 Change of ownership Merete C. Bernau
- 14.00 Highlights Denmark Flemming Conrad
- 14.30 Break
- 15.00 Commercial sector Norway Public Scandinavia Henrik Høye
- 15.45 Entry UK Market Entry Finland Summary and Q&A Protector Forsikring
- 16.30 Drinks with management
Management group
Sverre Bjerkeli, CEO
CHANGE OF OWNERSHIP INSURANCE
Merete Christensen Bernau
Merete Christensen Bernau (48) – Dir. Change of Ownership insurance
- Employee since 01.09.2005
- Lawyer from UiO (1994)
- Lawyer at if insurance 1994-2005
Change of ownership
- Distribution through Real Estate Brokers
- Documented quality leader
- Claims Handling Quality leadership through;
- Critical mass, claims ratio as "leading star", structure and competent people
- Cost leadership through;
- Slimmer and different value chain
- High entry barriers for new entrants;
- Reputation, distribution access and claims handling as challenges
Strong organization – established management
- Strong and stable team with many years experience together
- The team is recruited internally within the company
- The team is built around professional competence
- Hands-on leadership and operational managers
The product
Based on Norwegian legislation (1992)
A liability insurance linked to the property
- Sellers liability for substantial hidden defects for 5 years
- False information, or information withheld might result in liability, significant deviation (5-6% av sales price)
May be subscribed on all houses, flats, apartments and vacation homes with few exceptions
No underwriting requirements
Maximum claim is limited to MNOK 5
Premium is based on property sales sum
• The product is not sensitive to price
Haugesund
Drammen
Sales & Distribustion
653 offices 2250 brokers
• 4 people
Sandefjord
- 547 office meetings
- Continuing education points 5629
- 45 social gatherings
•Eiendomsmegler 1, Privatmegleren, Krogsveen, and others…
Steinkjer
Kristiansund
Lillestrøm
The moment of truth – claims handling
- Claims handling a challenge
- House buying emotionally charged
- High level of technical «know-how» required what will a claim cost?
- Under COI you do not replace old with new, but reimburse for the reduced sales-value
- Detective work as «false or withheld» are discretionary judgements
- 4.500 claims per year
- 350+ cases before appeal panels (FinKn,KKFE)
- 500+ law suits or litigations per year
- Win draw losses: 60% 20% 20%
- 35 lawyers, 4 technical experts (+management&support) working full-time
Satisfaction among real-estate brokers at all time high
Hvor tilfreds er du med Protector som leverandør av eierskifteforsikring? How satisfied are you with Protector as a supplier of COI?
forventninger til produktet eierskifteforsikring? To what extent has Protector met your expectations to the product COI?
Hva er sannsynligheten for at du kommer til å anbefale din neste kunde en eierskifteforsikring fra Protector? What is the probabilty of you recommending COI from Protector to your next client?
du omtale selskapet positivt? When asked for your opinion on Protector, to what extent will you speak of the company in positive terms?
megler? What is the value of COI for you as a real estate broker?
Hvilken verdi mener du din kunde får ved å tegne eierskifteforsikring? What is the value of COI for your client?
…and very satisfied end-customers
Change of Ownership – Seller satisfaction
Vision, Business Idea, Main targets and Values
Vision The challenger
Business Idea This will happen through unique relationships, state of the art decision making, and cost effective solutions
Main targets Cost and quality leadership Profitable growth Top 3
Values
Trustworthy (Troverdig) Accommodative (Imøtekommende) Brave (Modig) Enthusiastic (Engasjert)
Highlights Q1 2015 - Change of ownership insurance
- Volume up 25%
- No. of policies sold up 17%
- Strong real estate market
- High turnover, no. properties sold up 13,2%
- Real-estate prices up 7,9%¹
- Acceptable profitability
- Cost ratio on a high level due to seasonality
- Weak recovery level, significantly behind the strong Q1 2014
- Conflict level reduced 2004-2014
- Reduced from claims frequency of 22% in 2004 to 14% in 2014
- Real estate brokers have contributed through quality improvements
- Weaker results in court, but a short period of measurement
- Win draw losses: 29% 38% 32%
- The real-estate prices are expected to flatten
- 20 % volume growth expected in 2015
¹ Source: Eiendom Norge
GWP Q1 2011 – Q1 2015 (NOKm)
|
|
Claims
freq. |
|
|
|
|
| Year |
No. ESF |
Houses |
|
|
|
|
| 2004 |
13 095 |
22 % |
|
|
|
|
| 2005 |
43 793 |
19 % |
|
|
|
|
| 2006 |
36 658 |
18 % |
|
|
|
|
| 2007 |
38 699 |
17 % |
|
|
|
|
| 2008 |
35 624 |
15 % |
|
|
|
|
| 2009 |
35 582 |
15 % |
|
|
|
|
| 2010 |
40 995 |
16 % |
|
|
|
|
| 2011 |
45 842 |
14 % |
|
|
|
|
| 2012 |
47 391 |
14 % |
|
|
|
|
| 2013 |
47 179 |
14 % |
|
|
|
|
| 2014 |
52 015 |
14 % |
|
|
|
|
| Total |
436 873 |
|
|
|
|
|
| Source: Protector Forsikring ASA, actuary report |
|
|
|
|
|
|
Konfliktnivået er 2 %
En henvendelse på et boligkjøp er ikke en konflikt.
En konflikt oppstår ved uenighet i oppgjøret.
Eksempel:
436 873 Eierskiftepoliser 7 864 konflikter
Merete Christensen Bernau (48) – Dir. Change of Ownership insurance
- Employee since 01.09.2005
- Lawyer from UiO (1994)
- Lawyer at if insurance 1994-2005
Change of ownership
- Distribution through Real Estate Brokers
- Documented quality leader
- Claims Handling Quality leadership through;
- Critical mass, claims ratio as "leading star", structure and competent people
- Cost leadership through;
- Slimmer and different value chain
- High entry barriers for new entrants;
- Reputation, distribution access and claims handling as challenges
SWEDEN
- Market entry Jan 1st 2011
Hans Didring (35) - Country Manager Sweden
Education:
M.Sc. in Business Administration and Economics B.Sc. in Computer Engineering Bachelor thesis completed in Germany
Relevant experience: 7 years of experience; If and Länsforsäkringar
Sweden
- "Copying" a winning formula through;
- Vision, business Idea, objectives, values and broker promise
- Right people on board
- Adjustments for local differences
- Cost leadership
- Quality leadership
- Critical mass in 2015
Strong organization – established management
Protector's SEK 8 bln insurance market by broker
Approximately half of the volume SEK 3-5 bln is within Protector's risk appetite on short term
- The five largest brokers in Sweden are dominant with above 80 % share
- Aon and Willis constant volume
- Marsh decreasing
- Söderberg & Partners increasing
- Our broker strategy: Developing unique relations through being:
- Easy to do business with
- Commercially attractive
- Trustworthy
- and best at social events
Protector's SEK 8 bln insurance market by competitor
Approximately half of the volume SEK 3-5 bln is within Protector's risk appetite on short term
- Our five largest competitors in Sweden is dominant with 65 % share
- Trygg-Hansa decreasing
- If, Länsförsäkringar, Moderna and Zurich constant
- Other increasing
Some public customers: Some commercial customers:
Setting new quality standard in Sweden
Protector receives the highest score when brokers are asked to rank insurance companies according to how satisfied they are with their service and offerings
Vision, Business Idea, Main targets and Values
Vision The challenger
Business Idea This will happen through unique relationships, state of the art decision making, and cost effective solutions
Main targets Cost and quality leadership Profitable growth Top 3
Values Trustworthy (Troverdig) Accommodative (Imøtekommende) Brave (Modig) Enthusiastic (Engasjert)
Highlights Q1 2015 – Sweden
- 39% growth
- Representing 7 percentage points of the growth on company level
- 3 large wins, one large non-renewal
- No. 2 in the municipality segment
- Strong renewal rate >100%
- Net combined 76,6%
- Reinsurance commissions driving CR down in Q1 as always
- 32 employees, strong organization
- Product mix: Auto: 50% Prop: 30% Liability 11% Other 9%
- Very strong volume start on Q2
- 2 very large and 2 large wins
GWP Q1 2011 – Q1 2015 (NOKm)
Product mix GWP Q1 2015
Hans Didring (35) - Country Manager Sweden
Education:
M.Sc. in Business Administration and Economics B.Sc. in Computer Engineering Bachelor thesis completed in Germany
Relevant experience: 7 years of experience; If and Länsforsäkringar
Sweden
- "Copying" a winning formula through;
- Vision, business Idea, objectives, values and broker promise
- Right people on board
- Adjustments for local differences
- Cost leadership
- Quality leadership
- Critical mass in 2015
DENMARK
- Market entry Jan 1st 2012
Flemming Conrad (58) – Country Manager Denmark
Education:
Insurance Academy FX1 & FX2, Copenhagen Business School, Merkonom (O), Executive IEP Insead, HD (1), Corporate Management for executives (VL).
Relevant experience:
30 years of experience in on Life Insurance. Gjensidige, Nykredit, Provinzial Versicherung, Hafnia Insurance and Protector
Denmark
- "Copying" the winning formula through;
- Vision, business idea, objectives, values & broker promise
- Right people on board
- Adjustments for local differences
- Cost leadership
- Quality leadership
- Less competition than Norway and Sweden
- Critical mass in 2015
Key personell and organization established
Growth in Personnel Q3 2012 – Q1 2015
Total brokered insurance market - MDKK 8.000
- whereas Protector's risk appetite corresponds with approx. MDKK 6.000
Front runner on quality in Denmark
Protector receives the highest score when brokers are asked to rank insurance companies according to how satisfied they are with their service and offerings
Vision, Business Idea, Main targets and Values
Vision The challenger
Business Idea
This will happen through unique relationships, state of the art decision making, and cost effective solutions
Main targets Cost and quality leadership Profitable growth Top 3
Values Trustworthy (Troverdig) Accommodative (Imøtekommende) Brave (Modig) Enthusiastic (Engasjert)
Highlights Q1 2015 – Denmark
- 74% growth
- Representing 11 percentage points of the growth on company level
- 3 very large wins, no large non-renewals
- Strong renewal rate, 97 %
- Net combined ratio 84.1 %
- Reinsurance commissions driving CR down in Q1 as always
- 21 employees
- Product mix: WComp: 54% Prop: 32% Auto 11% Other 3%
- Relationship with leading brokers continues to develop
- Slow volume start on Q2
Flemming Conrad (58) – Country Manager Denmark
Education:
Insurance Academy FX1 & FX2, Copenhagen Business School, Merkonom (O), Executive IEP Insead, HD (1), Corporate Management for executives (VL).
Relevant experience:
30 years of experience in on Life Insurance. Gjensidige, Nykredit, Provinzial Versicherung, Hafnia Insurance and Protector
Denmark
- "Copying" the winning formula through;
- Vision, business idea, objectives, values & broker promise
- Right people on board
- Adjustments for local differences
- Cost leadership
- Quality leadership
- Less competition than Norway and Sweden
- Critical mass in 2015
COMMERCIAL NORWAY & MARKET LEADER PUBLIC SCANDINAVIA
Henrik Høye Director Commercial and Public
Dir. Commercial and Public Sector
Education:
MSc in Finance, Leeds School of Business (University of Colorado), BSc in Economics, College of Arts and Sciences (University of Colorado)
Relevant experience:
8 years of experience from insurance and projects in Protector
Commercial and public lines of business, Norway
- Cost leadership
- Quality leadership
- Claims handling and customer services strengthens both quality and UW
- Underwriting quality in commercial sector
- UW leadership public lines
- "Preferred by the broker" leads to volume Henrik Wold Høye (33) -
Strong organization – established management
- Management experience > 6 years on average in Protector
- Stable and strong team
- Hands-on with in-depth knowledge and competence
- Ambassadors for Protector's culture
Highlights Q1 2015 – Norwegian Commercial/public lines
- Volume up 9 %
- 11% growth in the public sector
- 2 large wins, 0 large non-renewals
- 8 % growth in the commercial sector
- 5 large wins and 7 large non-renewals
- Personal lines of business , 65% of total volume
- 7 % growth in Q1
- 11 % growth other lines
- Renewal rate 93 % , unchanged from Q1 2014
- Renewal rate 99% in the municipality sector
- Renewal rate in the commercial sector 89 %
- Continued rate pressure within the personal lines of business
- Slow volume start to Q2
GWP Q1 2011 – Q1 2015 (NOKm)
Weekly underwriting cycle – all segments
Underwriting Process - Municipality
Consistent underwriting philosophy – three steps
-
- Analytical approach (medium- to large-sized databases)
-
- Inspections of selected buildings
-
- Qualitiative assesment (publicly available data, research and tender information)
Analytical UW Approach
Underwriting based on an analytical approach
- Homogeneous market uniform coverage and portfolios
- Cost effective
4-step model – analytical approach
- Based on an extensive database of claims-history
- Norway: ~7 years avg history, ~ 100 % of the market
- Sweden: ~5,5 years avg history, ~ 80 % of the market
- Denmark: ~4,5 years avg history, ~ 50 % of the market
- Detailed risk-evaluation per product BC- & large loss-rate as factors for analytical premium-level
- Each municipality categorized based on its BC-rate relative to the average BC-rate
- Group analysis size, geography, publicly available data, win/loose
Loss prevention information - example
Examples of consequences
Market leader Scandinavian municipality market
Quality leader among insurance brokers eight years in a row
Protector receives the highest score when brokers are asked to rank insurance companies according to how satisfied they are with their service and offerings
Protector & Municipalities
- First municipality in 2005 "Tønsberg kommune"
- Scandinavia's largest public sector insurer
- Customer relationship to 253 Norwegian, 179 Swedish and 23 Danish municipalities
- Underwrite, fire and rescue services, housing, education and health service. We are in general interested in all available public sector insurance products
Vision, Business Idea, Main targets and Values
Vision
The challenger
Business Idea This will happen through unique relationships, state of the art decision making, and cost effective solutions
Main targets Cost and quality leadership Profitable growth Top 3
Values Trustworthy (Troverdig) Accommodative (Imøtekommende) Brave (Modig) Enthusiastic (Engasjert)
Dir. Commercial and Public Sector
Education:
MSc in Finance, Leeds School of Business (University of Colorado), BSc in Economics, College of Arts and Sciences (University of Colorado)
Relevant experience:
6 years of experience from insurance and projects in Protector
Commercial and public lines of business, Norway
- Cost leadership
- Quality leadership
- Claims handling and customer services strengthens both quality and UW
- Underwriting quality in commercial sector
- UW leadership public lines
- "Preferred by the broker" leads to volume Henrik Wold Høye (32) -
ENTRY UK MARKET
Scandianvian municipality market leader enters UK
Entry in the UK decided
Market Analysis Country ranking and results
Public & muni
|
Ranking |
Total score |
| 1 |
UK |
4,45 |
| $\overline{2}$ |
Netherlands |
4,18 |
| 3 |
Norway |
4,00 |
| 4 |
Belgium |
3,78 |
| 5 |
Denmark |
3,63 |
| 6 |
Sweden |
3,60 |
|
Finland |
3,35 |
| 8 |
Germany |
3,13 |
| 9 |
Switzerland |
3,08 |
| Ю |
Poland |
3,05 |
|
Austria |
1,85 |
SME
|
Ranking |
Total score |
|
Netherlands |
3,90 |
| $\overline{2}$ |
Belgium |
3,88 |
| 3 |
Germany |
3,79 |
| 4 |
UK |
3,60 |
| 5 |
Denmark |
3,58 |
| 6 |
Norway |
3,48 |
|
Sweden |
3,38 |
| 8 |
Poland |
3,15 |
| 9 |
Finland |
3,12 |
| 10 |
Switzerland |
2,99 |
|
Austria |
2,10 |
• High scores given to:
- Markets with high cost ratios
- Markets where broker penetration is high
- Markets with little competition or in a oligopoly situation
- Markets where quality of service are assumed to be poor (difficult to measure from the outside)
- It is our opinion that Norway and the Nordics are ranked somewhat high
- Discussed with Board of directors during the process – ready to go
- The UK public sector, Holland and part of Belgium seems to be a good starting point
- UK public sector entry 2015/16
Project C4 UK
| Sub-Project |
Status |
Comment |
Start |
Stop |
Lead |
Market
Analysis |
|
Several
stages, EU 7, Nordic 4 and UK
study |
01.03.2014 |
01.08.2015 |
Henrik Høye |
Business
planning |
|
UK market study available |
01.10.2014 |
11.04.2015 |
Henrik Høye |
| Go to Market |
|
Market information and tender documents
available. Broker introductions started |
01.01.2015 |
01.01.2016 |
Henrik Høye |
Formal
Establishment |
|
FSA
approval process started |
01.12.2014 |
01.01.2016 |
Ditlev de Vibe Van |
| Recruitment |
|
Unsufficient
flow of candidates.
Manchester has been targeted. Include
non Scandinavians |
20.11.2014 |
01.07.2015 |
Henrik Høye |
| Reinsurance |
|
Capacity challenge, quota share multiple
lines |
10.03.2015 |
TBA |
Sverre
Bjerkeli |
| IT & Systems |
|
Estimated start up July |
01.07.2015 |
TBA |
Marius Austnes |
|
|
|
|
|
|
Capital
requirements |
|
It
is not necessary, but increased capital
seems suitable |
29.04.2015 |
TBA |
Ditlev de Vibe Vanay |
Risks, key & summary
Factor Probability Consequence • Poor reinsurance Low Very high • Wrong people Medium High • Poor risk-selection Medium, but… High • No volume Medium Low • High cost-level Low Medium • Opportunity cost Medium Medium
Key factor; Right people on board, train in Protector's UW methodology
Medium risk - High reward
ENTRY FINLAND
Entry Finland decided
- Part of the Nordics, natural part of Protector's Nordic business
- The insurance brokers have a low market share (<10%)
- Potential is thus low
- Entrypoint is public sector and some grouped insurance
- Market dominated by the four largest players «fat & lazy»
- Project lead for will be Country Manager Sweden
- Very limited volume in 2016
IT – the challenger's approach
- In-house development
- All insurance systems designed & developed internally short time-to-market
- IT operations insourced in 2012
- higher security level better support (both to developers and end-users)
- I&ITA 1.000 innovations and improvements a year
- Facts:
- Cost%: < 1 %
-
UK IT: est. 1.500 h
-
Finland: est. 1.000 h
- Automated claims handling: from 0 to 100 in 2 years
SUMMARY
Vision, Business Idea, Main targets and Values
Vision The challenger
Business Idea This will happen through unique relationships, state of the art decision making, and cost effective solutions
Main targets Cost and quality leadership Profitable growth Top 3
Values Trustworthy (Troverdig) Accommodative (Imøtekommende) Brave (Modig) Enthusiastic (Engasjert)
Highlights Q1 2015
25% growth and increased guiding
- GWP up 25% (24% in local currencies)
- Sweden/Denmark, 199 mill growth
- Gross cost ratio down to 7.5% (8,1%)
- Net combined ratio 82.4% (79.9%)
- Reinsurance commissions driving CR down in Q1 as always
- 2.2 % return on the investment portfolio (1,9%)
- Net return on investments NOK 122.2m (83.8m)
- Operating profit of NOK 210,5m (162,4m)
- Best ever quarterly profit
- Entry UK decided
- Guiding 2015 increased
- Operating profit NOK 600 m, up from previously guided ~ NOK 500m
- CR 86 %, down from 88-90%
- 22 % growth in GWP, up from 18%
Highlights Q1 2015 – Sweden
- 39% growth
- Representing 7 percentage points of the growth on company level
- 3 large wins, one large non-renewal
- No. 2 in the municipality segment
- Strong renewal rate >100%
- Net combined 76,6%
- Reinsurance commissions driving CR down in Q1 as always
- 32 employees, strong organization
- Product mix: Auto: 50% Prop: 30% Liability 11% Other 9%
- Very strong volume start on Q2
- 2 very large and 2 large wins
GWP Q1 2011 – Q1 2015 (NOKm)
Highlights Q1 2015 – Denmark
- 74% growth
- Representing 11 percentage points of the growth on company level
- 3 very large wins, no large non-renewals
- Strong renewal rate, 97 %
- Net combined ratio 84.1 %
- Reinsurance commissions driving CR down in Q1 as always
- 21 employees
- Product mix: WComp: 54% Prop: 32% Auto 11% Other 3%
- Relationship with leading brokers continues to develop
- Slow volume start on Q2
25 106 182 316 Q1 2012 Q1 2013 Q1 2014 Q1 2015 GWP Q1 2012 – Q1 2015 (NOKm)
Market leader Scandianvian municipality market
Summary
- Half the cost of competitors
- Quality Leader in the Nordic market
- Fastest growing company last 7 years, 22% year
- Best Combined Ratio last 7 years
- Average Return on Solvency Capital HTD 21.5%
- IT is key for cost and quality leadership
- Entry UK & Finland decided
- Double digit growth expected next 3 years We've only started
