Institutional Presentation

Transcription

1 Institutional Presentation

2 SULAMÉRICA BUSINESS MODEL Largest independent Brazilian insurer, with leadership position in different segments 120 years of successful history in Brazil One-stop shop for financial protection (Insurance, Private Pension, Asset Management and Savings Bonds) Disciplined underwriting, focused on profitability Nationwide footprint with expanding geographical reach Client and relationship focus in the value chain Strong independent sales force with largest broker relationship program High levels of client retention and strong product cross selling potential 2

3 STRONG RELATIONSHIP WITH DISTRIBUTION NETWORK Large corporate brokers Financial and retail institutions Large volume of brokers/retailers Strong sales force Independent brokers Sales support infrastructure comprising 90+ branches to assist 30,000+ independent brokers 3

4 SULAMÉRICA REVENUES BREAKDOWN Opportunity and growth Total Consolidated Revenues (% of total 2015) Insurance Premiums (% of total 2015) Other Revenues (12%) 4.7% 0.2% 4.5% 3.2% 2.8% 2.7% 2.4% 22.4% 2.8% 19.7% R$ 17.4 billion 63.0% R$ 15.3 billion Insurance Premiums (88%) 71.7% Health & Dental Auto Other Property & Casualty Life Private Pension ASO Asset Management Savings Bonds 4

5 SULAMÉRICA HEALTH AND DENTAL Reinforcing core and moving beyond core Underwriting Management Profitability focus Price readjustments Evaluation of regional portfolios New sales expansion Claims Management Sourcing of special materials and drugs Second opinion protocols and medical board Constant investments in IT Predictive audit tools Bundling procedures Specialized networks of providers Health Management Well-being partnership Healthways Wellness coaching programs Monitoring programs for patients with chronic diseases and complex cases 5

6 WELL-BEING & HEALTHWAYS PARTNERSHIP New approach which includes programs that promote health and well-being and extensive initiatives to manage chronic diseases FROM TO Triage Promotion Prevention Integrated Management Increased results Healthy, at risk or ill individuals Well-being programs Management of chronic diseases and complex cases Performance and productivity improvements Cost and risk reduction Well-Being Platform Health Coaching Program Active Seniors Program Active Back Care Program Healthy Weightloss Program Health Orientation Program Future Mommy Program Case Management Program 6

7 BRAZILIAN MARKET - HEALTHCARE Low penetration and strong desire for private healthcare assistance across all consumer segments HEALTH INSURANCE: 48.5 million insured members (% of total population, of approx. 200 million) TOTAL MARKET REVENUES (R$ billion) 14.3% CAGR 24% INSURED MEMBERS (million) 3.2% CAGR -3.3% 76% Insured Uninsured Q15 2Q16 Source: ANS (Dec/15 and Jun16) 7

8 BRAZILIAN MARKET DENTAL CARE Strong cross selling potential and sector consolidation opportunities DENTAL: 21.7 million insured members (% of total population, of approx. 200 million) MARKET REVENUES (R$ billion) 11% 14.2% CAGR INSURED MEMBERS (million) 14.7% CAGR 1.9% 89% Insured Uninsured Q15 2Q16 Source: ANS (Dec/15 and Jun/16) 8

9 BRAZILIAN MARKET HEALTH AND DENTAL Increasing members spread into less operators HEALTH & DENTAL OPERATORS 2,004 1, Q16 Health operators with members Health Operators Dental operators with members Dental Operators HEALTH & DENTAL TOTAL MARKET MEMBERS* (Million Jun/16) Jun/16 Individual Health Corporate Health Affinity Health Dental 9 Source: ANS (Mar/16 and Jun/16). *Does not consider other and not informed members in health.

10 % of Members BRAZILIAN MARKET HEALTH AND DENTAL HEALTH MEMBERS & OPERATORS (Million members - Mar/16) 100% 91% % 72% 62% 52% 43% 35% 24% 16% Number of Operators TOP 5 HEALTH & DENTAL OPERATORS (% of revenues) HEALTH SEGMENT PER REGION (% of members Mar/16) 6.4% 3.7% 59.5% 59.1% 55.9% 57.6% 60.5% 56.3% 38.3% 39.6% 39.7% 41.3% 41.9% 43.5% 13.7% 61.7% Southeast South Northeast 14.4% Midwest North Mar-16 Health Dental Source: ANS (Mar/16) 10

11 BRAZILIAN MARKET HEALTH AND DENTAL Leadership position (3 rd largest) in both Health and Dental segments HEALTH: MARKET SHARE (top 6) (% of total revenues Mar/16) 3.9% 2.9% 9.7% 2.8% 15.0% 12.0% Bradesco Amil SulAmérica Unimed Rio Central Nacional Unimed Intermédica DENTAL: MARKET SHARE (top 6) (% of total revenues Mar/16) 4.2% 2.9% 2.7% Bradesco + 3.3% Odontoprev Amil SulAmérica Interodonto Metlife 12.9% 37.2% Odonto System 46% among the top 6 players 63% among the top 6 players Source: ANS 11

12 SULAMÉRICA HEALTH AND DENTAL INSURANCE PREMIUMS (R$ million) LOSS RATIO (% of earned premiums) +14.3% +14.6% +100 BPS +160 BPS 10,989 8,445 9, % 81.4% 80.5% 83.5% 81.9% 5,225 5, H15 1H H15 1H16 ACQUISITION COST RATIO (% of earned premiums) MEMBERS (Thousands of members) +6.3% +6.4% -10 BPS 0 BPS 6.3% 6.3% 6.3% 6.2% 6.2% 2,668 2,662 2,816 2,741 2, ,229 1,186 1,180 1,202 1, H15 1H H15 1H16 Corporate/Affinity Health SME Health Dental Individual Health ASO 12

13 SULAMÉRICA AUTO STRATEGY Continuous activities which are in constant evolution Underwriting Management Competitive pricing with profitability focus IT investments to improve underwriting services, quotations, and back office services Claims Management Excellence in client claims services Client Loyalty Programs Lower repair costs Roadside assistance Concierge centers Commercial Management Strong broker relationships Development of new distribution channels, through banks and retail partnerships Specialized and innovative products 13

14 BRAZILIAN AUTO SEGMENT INSURED FLEET (% of fleet) 97% 86% 66% 21% 80% Average age of the total fleet: 6.8 years 3% 14% 34% 79% 20% Average age of the insured fleet: 3.4 years Vehicles over 11 years old Vehicles 7 to 11 years old Vehicles 0 to 6 years old New Vehicles Total Brazilian Fleet Source: Fenseg / Denatran (2014) Uninsured fleet Insured fleet AUTO INSURANCE INDUSTRY REVENUES (R$ billion) 2.8% MARKET SHARE 1H16 (% of total premiums) 80% among top 6 players Porto Seguro + Itaú + Azul % 20.0% 28.9% BB + Mapfre Bradesco H15 1H16 Source: SUSEP (June/16) 7.1% 8.4% 9.7% 12.3% 13.6% SulAmérica HDI Tokio Marine Outros 14

15 SULAMÉRICA - AUTO INSURANCE PREMIUMS (R$ million) LOSS RATIO (% of earned premiums) +14.3% -10.2% -50 BPS -730 BPS 2,803 2,997 3, % 60.0% 60.5% 58.9% 66.2% 1,680 1, H15 1H H15 1H16 ACQUISITION COST RATIO (% of earned premiums) INSURED FLEET (Vehicles - thousands) +9.6% +5.0% -40 BPS -20 BPS 21.7% 23.2% 23.6% 23.5% 23.6% 1,544 1,692 1,585 1,664 1, H15 1H H15 1H16 15

16 SULAMÉRICA MASSIFIED PORTFOLIO Strong cross selling with auto segment, through widespread sales distribution Profitability focus in lower risk segments Massified portfolio (Homeowners, Small Business, Condominium) HOMEOWNERS/ HOUSEHOLD 292k Homes insured SMALL BUSINESS 44k Businesses insured CONDOMINIUM 31k Buildings insured R$ 54 million in premiums/year R$ 48 million in premiums/year R$ 54 million in premiums/year 16

17 SULAMÉRICA SAVINGS BONDS Savings instruments with defined maturities and a possibility to win cash and other prizes SulAmérica is one of the largest Savings Bonds operators in Brazil and a leader in the Garantia de Aluguel (Rent Guarantee) product Traditional: payments made over a fixed period over which client may win cash prizes. Upon maturity of the savings bond, holders receive cash back Incentive: raffles associated with commercial promotional events linked to a company/product Garantia de Aluguel (Rent Guarantee): traditional savings bond product that replaces co-signers and rent insurance in a landlord-tenant business relationship 17

18 OTHER SEGMENTS Profitability focus in operations Life and Personal Accident Broad product portfolio for individuals, companies and mass distribution Cross selling with SMEs Private Pension Alternative sales channels Targeting SMEs growth Clients which exhibit more defensive behavior Sinergy with asset management business Asset Management One of the largest independent managers in Brazil Diversified product portfolio (fixed income, multi-strategy, equity, and private equity) Focus on products with lock-up periods 18

19 Financial Highlights

20 CONSOLIDATED FINANCIAL HIGHLIGHTS INSURANCE PREMIUMS (R$ billion) LOSS RATIO (% of earned premiums) +13.4% +30 BPS -60 BPS % 74.8% 74.9% 74.6% 76.5% 77.1% H15 1H H15 1H16 ACQUISITION COST RATIO (% of earned premiums) NET INCOME & ROAE (R$ million) 14.0% 14.7% 17.5% 16.5% 16.4% 15.5% +20 BPS +20 BPS +32.2% % 11.2% 11.0% 11.1% 10.9% % H15 1H H15 1H16 Non-recurring events 20

21 CONSOLIDATED FINANCIAL HIGHLIGHTS (cont.) ASSETS (R$ billion) SHAREHOLDERS EQUITY (R$ billion) +0.7% +6.7% H H16 DEBT AND LEVERAGE RATIO (R$ million / %) (R$ million / %) DIVIDENDS AND PAYOUT 15% 26% 24% 19% 30% 30% 25% 1,037 1, H16 Indebtedness Leverage Ratio Dividends (R$ million) Payout (%)

22 COMBINED AND OPERATING RATIOS COMBINED RATIO (%) OPERATING RATIO (%) +40 BPS +90 BPS 98.8% 99.6% 99.1% 94.8% 94.5% 93.6% COMBINED RATIO (1H16)* (%) OPERATING RATIO (1H16)* (%) -90 BPS -50 BPS 99.7% 100.7% 101.6% 94.3% 95.5% 96.0% H15 1H H15 1H16 *According to SulAmérica s new Financial Statements, adopted since For more information, please see 22

23 SULAMÉRICA PROPRIETARY ASSET ALLOCATION INVESTMENT STRATEGY (ex-pension) 108.8% 101.3% 103.3% 108.1% 94.4% 5.0% 3.1% 1.0% 0.6% 1.0% 5.0% 8.3% 6.1% 7.3% 8.0% 24.0% 16.5% 12.0% 15.0% 12.9% 68.0% 72.1% 80.8% 77.1% 78.1% H15 1H16 Floating Interest Rate (Selic/CDI) Inflation-linked (IPCA) Fixed-rate Equities/Other CDI Yield INVESTMENT ALLOCATION (ex-pension) 0.4% 0.6% 16.1% Brazilian Government Securities R$7.2 billion 83.0% Corporate Debt Equities Other 23

24 Appendices

25 MARKET PERSPECTIVES Insurance Industry Growth vs. GDP Growth 16.4% 16.3% 18.3% 13.3% 12.1% 11.6% 7.5% 7.9% Insurance Premiums Growth 3.9% 1.9% 3.0% 0.1% GDP Growth (PIB) e -3.8% -3.3% REVENUE GROWTH IN ALL SEGMENTS (R$ billion) CAGR = +9.7% 2016e R$394 billion Health Auto R$365 billion Other P&C Life Private Pension R$327 billion Savings Bonds Source: Cnseg, IBGE & Focus Report (07/15/2016) 25

26 HISTORY OF INNOVATION AND SUSTAINABLE GROWTH Sul América is founded as a life insurer, assuming New York Life Insurance Company s businesses 1929 Savings bonds introduced with Sul América Capitalização (SulaCap) 1970 Company enters the healthcare business (ASO), with Ford as first client 1978 Holding Sul América S.A. is created with SulaCap, Satma and Salic 1987 Beginning of private pension operation through SulaPrev 1989 Health insurance plans and 24- hour assistance products are launched 1994 Acquisition of Iochpe Seguradora 1995 SulAmérica s Centenary Beginning of P&C activities, with the acquisition of Anglo Sul Americana and the launch of Sul América Terrestres e Marítimos SulAmérica starts its automobile insurance operations 1977 Foundation of Gerling Industrial (partnership with Gerling Konzern, from Germany) and of SAI (partnership with the Italian Societá Assicuratrice, from Fiat Group) 1979 Acquisition of Companhia Bandeirante de Seguros Gerais 1989 Creation of Sul América Multiserviços S.A., a partnership with GMF Group, from Paris 1995 Partnership in health with Banco do Brasil (Brasilsaúde) is formed 26

27 INNOVATION AND SUSTAINABLE GROWTH HISTORY 1996 Creation of SAMI as a result of the acquisition of Brasilpar Administração de Recursos, beginning of asset management operation 1997 Creation of Seguradora Brasileira de Crédito à Exportação, in partnership with other insurance companies 2001 Dutch ING acquires Aetna s stake 2006 Distribution partnership with AXA Corporate Solutions 2010 Acquisition of Brasilsaúde and sale of Brasilveículos to Banco do Brasil ING sells stakes to IFC (7.8%) and Swiss Re (14.9%) ING sells its remaining 10% stake in a block trade Joint venture with Healthways Acquisition of Santa Cruz Seguros and Itatiaia Seguros 1997 Partnership with BB, starting Brasilveículos operation and joint venture with Aetna International (health, life and pension) ING changes ownership to the holding company 2007 SulAmérica s IPO at the BM&FBovespa Exchange 2011 Acquisition of Dental Plan and partnership with Caixa in auto insurance 2013 Acquisition of SulaCap 2015 Large risks portfolio sale to AXA Corporation and mortgage insurance (part of the portfolio) sale to Pan Seguros 27

28 CORPORATE GOVERNANCE SULASA 100.0% Total free float (3) 70.6% Related Persons SULASAPAR IFC SWISS RE Other (1) 2.2% 25.2% (2) 7.8% 14.9% 49.9% BEST PRACTICES 6 out of 10 board members (60%) are independent Role of Board of Directors supported by 5 statutory committees (Audit, Investment, Compensation, Governance and Sustainability) Participation of shareholders in General Meetings highly incentivized Corporate policies for insider trading, disclosure, compensation, related party transactions and corporate governance (1) Treasury, management and free float shares (2) Equivalent to 50.3% of total voting shares (3) Total free float excluding Sulasapar, treasury, related persons, board of directors, and management 28

29 DISCLAIMER This material is a presentation of general background information about Sul América S.A. ("SulAmérica") as of the date of the presentation or as otherwise indicated. It is information in summary form and does not purport to be complete. It is not intended to be complete nor relied upon as advice to potential investors and does not form the basis for an informed investment decision. This presentation is strictly confidential and may not be disclosed to any other person. No representation or warranty, express or implied, is made concerning, and no reliance should be placed on, the accuracy, fairness, or completeness of the information presented herein. This presentation may contain statements that are forward-looking. Such forward-looking statements are only predictions and are not guarantees of future performance. Investors are cautioned that any such forward-looking statements are and will be, as the case may be, subject to many risks, uncertainties and factors relating to the operations and business environments of SulAmérica and its subsidiaries that may cause the actual results of the companies to be materially different from any future results expressed or implied in such forward-looking statements. No person has any responsibility to update any such information. This presentation does not constitute an offer, or invitation, or solicitation of an offer, to subscribe for or purchase any securities. Neither this presentation nor anything contained herein shall form the basis of any contract or commitment. 29

30 Investor Relations Version: August/