Delivering superior customer experiences and stable returns. October 2017

Transcription

1 Delivering superior customer experiences and stable returns October 2017

2 Attractive value proposition Proven track-record Strong position in attractive market place Scalable hard-to-copy business model and loyal customers Efficient capital structure and good financial flexibility Attractive dividend policy Strong value creation since IPO NOK bn driven by solid growth, underwriting and cost discipline NOK bn Q R12m Q317 Earned premiums Combined Ratio (RHS) Target corridor* 25% 20% 15% 10% Equity base Cumulative dividend payments Annualised ROE (RHS) 100% 95% 90% 85% 80% 75% *Long-term target corridor assumes 0pp run-off and and normalised large losses 3

3 Diversified general insurer with growing pan-nordic presence Gjensidige Forsikring ASA Diversified product mix Motor 14% Property 33% Norway Nordic Baltics Accident & Health Other 18% General insurance: NOK15.5bn General insurance: NOK 5.9bn General insurance: NOK 1.0bn 35% 69% Pension and Savings AUM: NOK 38.4bn 26% 5% 80 % direct distribution Retail Bank Gross lending: NOK 41.2bn Direct Brokered and tied agents 20% 80% General insurance numbers are earned premiums AUM and Gross lending as of

4 Market leader in Norway and a strong position in the Nordic/ Baltic region Growth ambition in Nordic/ Baltic region Ambition to secure strong position in Norway Market share top 5 Norway 75% Denmark 62% Sweden 83% Finland 89% Baltic states 79% % If Gjensidige #5 #1 #7 # Tryg Sparebank1 Other Q217 Consolidated market shares for the 5 largest players in each market. Position in each country based on Q22017 Norway, Baltics and Sweden (including Vardia), Q32016 Denmark, and Q42016 Finland. Source: Finance Norway. 25 companies in Other category Q217. 4

5 Attractive market characteristics in the Nordic market provide barriers to entry Cost efficient market place* Cost ratio (%) Other key market characteristics Consolidated market place European GI Rational listed players Strong local brands Automatic renewals Nordic GI Integrated value chains Company Customer *Source: Published figures European players: Direct Line, Country entities Generali (France, Italy, Germany), Aviva GI, RSA UK, Ageas. Nordic players: If, Tryg, Sparebank1,TopDanmark, RSA Scandinavia 5

6 Unique strengths provide competitive advantage Brand awareness and strength Quality mark in a competitive and digitalised environment Loyal customers Low acquisition costs and high-quality portfolio Customer dividend model Gjensidige Gjensidige Foundation Shareholder dividends Customer dividends Building loyalty and preference in Norway Technology platform and analytical capabilities Common legacy system key to analysing Big Data and applying insight 7

7 Set for further value creation in a changing market Digitalisation and demographics key drivers scale increasingly important Attract and develop skills Strategic investments Preferred partner Sources: businessinsider.com, gettyimages.no, telegraph.co.uk 7

8 Delivering superior customer experiences and stable returns continues to be key priority Financial targets Becoming the most customer-oriented general insurance company in the Nordic region Return on equity >15% Efficient operations Strategic partnerships Combined Ratio Cost ratio 86-89%* ~15% Dividends Nominal high and stable (>70%) Business intelligence and analytics Organisational capabilities Profitable growth and stable returns Customer centricity Superior customer experiences Brand development Automation and digitalisation *Combined ratio target on an undiscounted basis, assuming ~ 4 pp run-off gains next years and normalised large losses impact. Beyond the next years, the target is given 0 pp run-off. 8

9 Key operational strategic priorities Digital customer experiences Koncernen har været no teret på Oslo Børs siden I snart 200 år har vi ans at ildsjæl e, som arbejder for at sikre kunde rnes liv, helbred og værdie r. Gjensidige Forsikring Vi er circa medarbejde re, heraf 495 i Danma rk, og vi tilbyder skade forsikring i Norge, Danma rk, Sverige og Baltikum. The best online customer experiences in the Nordic general insurance market Preparing for a strong position in a growing market for health and personal insurance Business intelligence and analytics Analytical use of data to ensure attractive value propositions and profitable operations Organisational capabilities Business-driven development of people and organisation 9

10 Premium growth and underwriting discipline offset challenging investment environment Continued solid premium growth expected Organic growth in line with nominal GDP growth over time Continued complementary growth through M&A Conservative investment approach balanced investment portfolio** 2% 6% 2% 2% 6% 3% 6% 8% 32% Solid underwriting increasingly important NOK bn* R12m Q317 UW result Investment income Other 8% Match portfolio NOK 34.6bn Free portfolio NOK 18.9bn 25% Money market Bonds at amortised cost Current bonds Money market Other bonds High Yield bonds Convertible bonds Current equities PE funds Property Other *Split of pre-tax profits ** Investment portfolio as at 30 September

11 Solid capital position capital discipline supports dividend growth over time Strong capital position Capital available (NOK bn) Solvency margin: 110% 173% 145% S&P rating model (GI) Partial Internal Model (Group) Capital requirement Capital > Capital requirement Standard Formula (Group) Dividend policy High and stable nominal dividends Pay-out ratio over time of at least 70% of profit after tax Expected future capital need taken into account when determining the size of the dividend Excess capital will be paid out over time Special Regular Figures as at The Solvency II regulation is principle based. Calculations are based on Gjensidige s understanding of the Solvency II regulation and how it is implemented in Norway, including the current view of the Norwegian FSA on the guarantee provision. If the Guarantee provision had been treated as solvency capital, the Group s PIM and SF solvency margins would be 177% and 148%, respectively. The figures related to the S&P rating model are based on Gjensidige s interpretations of the model. The figures are adjusted for a formulaic dividend pay-out ratio of 70 per cent of net profit. 11

12 Attractive value proposition Proven track-record Strong position in attractive market place Scalable hard-to-copy business model and loyal customers Efficient capital structure and good financial flexibility Financial targets Return on equity >15% Combined ratio* 86-89% Cost ratio ~15% Dividend Nominal high and stable (>70%) Attractive dividend policy *Combined ratio target on an undiscounted basis, assuming ~4 pp run-off gains next years and normalised large losses impact. Beyond the next years, the target is given 0 pp run-off.

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14 Disclaimer This presentation and the information contained herein have been prepared by and is the sole responsibility of Gjensidige Forsikring ASA (the "Company ). Such information is being provided to you solely for your information and may not be reproduced, retransmitted, further distributed to any other person or published, in whole or in part, for any purpose. Failure to comply with this restriction may constitute a violation of applicable securities laws. The information and opinions presented herein are based on general information gathered at the time of writing and are therefore subject to change without notice. The Company assumes no obligations to update or correct any of the information set out herein. These materials may contain statements about future events and expectations that are forward-looking statements. Any statement in these materials that is not a statement of historical fact including, without limitation, those regarding the Company s financial position, business strategy, plans and objectives of management for future operations is a forward-looking statement that involves known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Company s present and future business strategies and the environment in which the Company will operate in the future. The Company assumes no obligations to update the forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements. This presentation does not constitute or form part of, and is not prepared or made in connection with, an offer or invitation to sell, or any solicitation of any offer to subscribe for or purchase any securities and nothing contained herein shall form the basis of any contract or commitment whatsoever. No reliance may be placed for any purposes whatsoever on the information contained in this presentation or on its completeness, accuracy or fairness. The information in this presentation is subject to verification, completion and change. The contents of this presentation have not been independently verified. While the Company relies on information obtained from sources believed to be reliable, it does not guarantee its accuracy or completeness. Accordingly, no representation or warranty, express or implied, is made or given by or on behalf of the Company or any of its owners, directors, officers or employees or any other person as to the accuracy, completeness or fairness of the information or opinions contained in this presentation. None of the Company, its affiliates or any of their respective advisors or representatives or any other person shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with the presentation. The Company's securities have not been and will not be registered under the US Securities Act of 1933, as amended (the "US Securities Act ), and are offered and sold only outside the United States in accordance with an exemption from registration provided by Regulation S of the US Securities Act. This presentation should not form the basis of any investment decision. Investors and prospective investors in securities of any issuer mentioned herein are required to make their own independent investigation and appraisal of the business and financial condition of such company and the nature of the securities. Any decision to purchase securities in the context of a proposed offering of securities, if any, should be made solely on the basis of information contained in any offering documents published in relation to such an offering. For further information about the Company, reference is made public disclosures made by the Company, such as filings made with the Oslo Stock Exchange, periodic reports and other materials available on the Company's web pages. 14

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16 Investor relations Janne Flessum Head of Investor Relations, Capital Management and M&A Mobile: Anette Bolstad Investor relations officer Mobile: Katharina H. Hesbø Investor relations officer Mobile: Address: Schweigaards gate 21, PO Box 700 Sentrum, 0106 Oslo, Norway