Hordaland på Børs. 22. august 2018 Espen Opedal, Country Manager Norway 24/08/2018

Transcription

1 Hordaland på Børs 22. august 2018 Espen Opedal, Country Manager Norway 1 24/08/2018

2 Tryg at a glance Gross premium split by products 2017 Non-life insurance in Denmark, Norway and Sweden Percentage Norway Market position: #3 Market share: 13.3% CR in Q2 18: 82.8% Sweden Market position: #5 Market share: 3.1% CR in Q2 18: 98.3% Denmark Market position: #1 Market share: 17.9% CR in Q2 18: 77.2% Business split Private Percentage 49 Commercial Corporate 22 Sweden

3 Tryg s equity story a leading Scandinavian non-life insurer Claims Excellence DKK 600m in claims cost reduction Tryg : Strengthening the core, while embracing the future Financial targets 2020 a) Technical result: DKK 3.3bn Combined ratio: 86 Expense ratio: ~14 ROE: 21% Customer targets 2020 TNPS: 70 Number of products per customer: +10% Product & Service Innovation +DKK 1bn in new products by Digital Empowerment of Customers DKK 100m STP on claims: 50% Self-service: 70% Dividend policy Targeting a nominal stable increasing dividend Extraordinary dividend to further adjust the capital structure Distribution Efficiency DKK 150m in technical result impact Long term profitable growth and attractive shareholder value creation a) The targets are conditional upon the authorities approval of the Alka acquisition 3

4 Tryg Norway in brief Tryg Norway Geography Market share 13.3% 1,050 FTE s + ~ 400 FTE s in franchise sales Premium income NOK 8,1 bn Bodø Tromsø Harstad 3rd largest in general insurance Norway 2 brands (Tryg & Enter) Part of Tryg group Norwegian head-office in Bergen Ålesund Førde Bergen Haugesund Stavanger Kristiansand Trondheim Oslo Drammen Fredrikstad Tønsberg Tryg Norway is an ambitious player in the Norwegian insurance market with it s Norwegian head office located in Bergen, and wide geographical presence. Claims handling and Customer Service located in Bergen and Tønsberg. Strong sales- and underwriting presence for the Commercial- and Corporate market in Oslo and Bergen. 4

5 Market share Norwegian Insurance Market Market share traditional players Market share smaller competitors 30% 25% 20% 15% 10% 25.6% 21.2% 13.3% 10.5% 29.7% 5% 5% 4% 4% 3% 3% 2% 2% 4.7% 4.4% 3.0% 3.4% 2.6% 2.9% 2.0% 2.4% 4.3% 5% 1% 1% 0% Gjensidige If Tryg SpareBank 1 Other 0% 5

6 Tryg Norway - Operational and Financial highlights Distribution channels 2017 Gross premium by products 2017 Private Commercial Corporate Percentage mnok Portfolio split 2017 Combined ratio Private Commercial Corporate 6

7 Bolt-on acquisitions in Private/Commercial & Rates increases in Corporate OBOS Forsikring Portfolio of NOK 170m 10 years old company, 35 employees 10,000 private customers, 1050 housing associations One owner OBOS BBL 5 year exclusive distribution agreement private members Portfolio expected to produce returns in line with Retail Norway in a couple of years Norway Corporate rates* under pressure 10% 8% 6% 4% 2% 0% -2% (Q1) -4% -6% -8% -10% -12% Motor Property Sickness etc. Workers' compensation Health Source: FNO statistics, average premium development Troll Forsikring Portfolio of NOK 120m Portfolio is 40% Oslo/Akershus 12,000 customers private only Distribution through web and inbound Purchase price NOK 72m, including a year-end 2017 equity of NOK 44m and a tax asset of NOK 40m (i.e. no goodwill) Tryg Corporate Norway price increases implemented, Q Motor 6.1% Property 5.3% Fish farming 23.1% Health 13.5% Sickness 7.1% Workers Comp 4.3 % 7% 7

8 A strong multichannel distribution BANK CAR CHANNEL FRANCHISE ONLINE PARTNER OUTBOUND INBOUND 9 % 6 % 6 % 32 % Franchise Inbound Car channel 22 % Outbound Bank 25 % Online Online sales at ~20% if initiated sales from online/web to inbound is included With a pricing diversification strategy 8

9 Digital Sales and Self service Digital Sales NOK 150m in 2020* Digital contact ~70% in 2020 My Page log-in: Months * Fully automated, non-assisted sales Tryg NO has already more digital touchpoints than analogue 9

10 Strong Partner Distribution Large and growing partner business Examples; Success criteria Strong relations and common goals Relevant and unique products Strong distribution network locally Tailored web solutions Higher customer life time value (CLTV) Strong marketing push by Tryg & Partner 10

11 Two Brands, strong presence within new car sales 35,0% Forhandlersalg vs portefølje Share of new car sales Personbil insurance privat vs market share 30,0% 25,0% 20,0% 15,0% 10,0% 5,0% 0,0% Enter Enter/Tryg IF Gjensidige Spb 1 Andre 2017 Portfolio 11

12 Super fast claims handling - straight through processing (STP) in 3 seconds Our customers' time is valuable we make it faster and easier to be a Tryg customer No. 1 in Europe with claims handling STP 12

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14 Motor-insurance Cost of claims 4,0% 4% 3,0% 3% 1,0% 1% Inflation 2018 Technology Repair costs 14

15 Driving costs down focusing on continuous improvement Expense Ratio, Tryg Norway Cost Reduction Programme ,7 Staff reductions of 100 FTE in Sourcing agreements with low cost partners. Automate processes, utilizing robotics, application development and new solutions Procurement processes

16 Why invest in Tryg? Pre-tax result by division (YE 2017 data) High insurance penetration in the Nordics Premiums per capita (USD), 2016 Motor combined ratios Nordics vs international Tryg is a dividend stock DKK Total yield (dividend and buy backs / market cap) at year end 16

17 Takk for oppmerksomheten! Espen Opedal, Country Manager Norway 17 24/08/2018