Institutional Presentation

Transcription

1 Institutional Presentation

2 SulAmérica and Industry

3 SULAMÉRICA BUSINESS MODEL Largest independent Brazilian insurer Multiline model One-stop shop and strong product cross selling Disciplined underwriting, focused on profitability Leadership position in different segments Client and relationship focus in the value chain Strong sales force Broker incentives and training programs High levels of client retention 3

4 MULTILINE MODEL Opportunity and growth Total Consolidated Revenue (% of total 9M15) Insurance Premiums (% of total 9M15) Other Revenue (12%) 4.6% 2.6% 0.3% 4.6% 3.3% 2.7% 2.4% 23.2% 2.9% 20.4% R$ 13.0 billion 62.2% Insurance Premiums (88%) R$ 10.0 billion 70.7% Health & Dental Auto Other Property & Casualty Life Private Pension ASO Asset Management Savings Bonds 4

5 SULAMÉRICA - HEALTH AND DENTAL Continuous activities which are in constant evolution Underwriting Management Profitability focus Price readjustments Evaluation of regional portfolios New sales expansion Claims Management Direct purchases Second opinion protocols and medical board New IT and audit tools Procedures in packages Health Management Well-being partnerships - Healthways 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 initatives to manage chronic diseases 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 SULAMÉRICA - HEALTH Low penetration and strong desire for private health assistance across all consumer segments HEALTH INSURANCE: 50.3 million insured members (% of total population) MARKET REVENUE (R$ billion) 15.2% CAGR 13.4% 25% M14 9M15 INSURED MEMBERS (millions) 4.7% CAGR -0.3% 75% Insured Uninsured M14 9M15 Source: ANS SEPTEMBER/2015 7

8 SULAMÉRICA - DENTAL Strong cross selling potential and sector consolidation opportunities DENTAL: 21.9 million insured members (% of total population) 11% MARKET REVENUE (R$ billion) 21.8% CAGR % M14 9M15 INSURED MEMBERS (millions) 16.9% CAGR 5.0% 89% Insured Uninsured M14 9M15 Source: ANS SEPTEMBER/2015 8

9 MARKET HEALTH AND DENTAL Leadership position in the Health and Dental Segments HEALTH: MARKET SHARE (top 6) (% of total premiums Sep/15) 4.1% 2.7% 9.4% 2.3% 15.0% 11.5% Bradesco Amil SulAmérica Unimed Rio Central Nacional Unimed Unimed BH DENTAL: MARKET SHARE (top 6) (% of total premiums Sep/15) 4.0% 3.0% 3.0% Bradesco + 3.4% Odontoprev Amil SulAmérica Intermédica Metlife 12.5% 36.5% Caixa Seguros 45% among the top 6 players 63% among the top 6 players 2,004-53% NUMBER OF HEALTH & DENTAL OPERATORS M15 Source: ANS SEP/ Health Operators Dental Operators

10 SULAMÉRICA HEALTH AND DENTAL INSURANCE PREMIUMS (R$ million) LOSS RATIO (% of earned premiums) +13.8% +14.9% -20 BPS +190 BPS 7,360 8,445 9,610 7,044 8, % 81.2% 81.4% 85.0% 83.1% GROSS MARGIN (% of earned premiums) -30 BPS 12.8% 12.6% 12.3% 8.8% +190 BPS 10.6% MEMBERS (Thousands of members) +7.1% -0.2% ,187 1,229 1,187 1,184 1,202 Corporate/Affinity SME Dental Individual ASO 10

11 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 Managment Excellence in client claims services Client Loyalty Programs Lower repair costs Commercial Management Strong broker relationships Development of new distribution channels, through banks and retail partnerships Specialized and innovative products 11

12 SULAMÉRICA - AUTO SEGMENT VEHICLE PENETRATION (vehicles/population) INSURED FLEET (% of fleet) 83% 96% 82% 58% 13% 78% Average age of the total fleetl: 8.8 years 59% 15% 22% 28% 4% 18% Vehicles over 11 years old Vehicles 7 to 11 years old 42% Vehicles 0 to 6 years old 87% New Vehicles 22% Total Brazilian Fleet Average age of the insured fleet: 3.5 years Brazil Argentina France Mexico USA Source: ANFAVEA Uninsured fleet Insured fleet Source: Fenseg / Denatran MARKET REVENUE (R$ billion) MARKET SHARE 9M15 (% of total premiums) 3.9% 80% among top 6 players Porto Seguro + Itaú + Azul 20.4% 26.6% BB + Mapfre % Bradesco SulAmérica HDI 9M14 9M15 8.4% 15.1% Liberty Seguros Source: SUSEP 10.7% 12.1% Outros 12

13 Selic SulAmérica & Industry Loss Ratios SULAMÉRICA - AUTO Loss Ratios vs. Interest Rate (Selic) 16.0% 70.0% 14.0% 12.0% 10.0% 65.0% 8.0% 6.0% 60.0% 4.0% 2.0% 0.0% 1T10 3T10 1T11 3T11 1T12 3T12 1T13 3T13 1T14 3T14 1T15 3T % Selic SulAmérica Loss Ratio Industry Loss Ratio Source: SUSEP & Brazilian Central Bank 13

14 SULAMÉRICA - AUTO INSURANCE PREMIUMS (R$ million) +6,9% +16,5% LOSS RATIO (% of earned premiums) -30 BPS +160 BPS 2,287 2,803 2,997 2,283 2, % 59.7% 60.0% 61.3% 59.7% GROSS MARGIN (% of earned premiums) INSURED FLEET (Vehicles - thousands) 16.0% 18.6% -180 BPS 16.8% 15.6% +120 BPS 16.8% 1,400 1, % +9.3% 1,647 1,618 1,767 14

15 SULAMÉRICA MASSIFIED PORTFOLIO Strong cross selling with auto segment, through widespread sales distribution Profitability focus in lower risk segments Massified portfolio (Residential, Business, Condominium) RESIDENTIAL BUSINESS CONDOMINIUM 238 k Residences insured 47 k Businesses insured 34 k Buildings insured R$ 49 million in premiums/year R$ 64 million in premiums/year R$ 56 million in premiums/year 15

16 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 Social mobility opens up opportunities to expand into retail segment 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 landlordtenant business relationship 16

17 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 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 period 17

18 Financial Highlights

19 CONSOLIDATED FINANCIAL HIGHLIGHTS INSURANCE PREMIUMS (R$ billion) LOSS RATIO (% of earned premiums) % % % -10 BPS 74.8% 74.9% 77.7% +130 BPS 76.4% GROSS MARGIN (% of earned premiums) GENERAL & ADMINISTRATIVE EXPENSES (% of retained premiums) -30 BPS +150 BPS +10 BPS +40 BPS 15.2% 14.2% 13.9% 11.1% 12.6% 9.5% 9.2% 9.1% 8.9% 8.5% 19

20 CONSOLIDATED FINANCIAL HIGHLIGHTS (cont.) ASSETS (R$ billion) SHAREHOLDERS EQUITY (R$ billion) +8.0% +8.3% M M15 NET INCOME & ROAE (R$ million) 15.1% 13.8% 14.4% 14.9% 17.7% DIVIDENDS AND PAYOUT 30% 30% 30% 30% % % M15 20 Dividends (R$ million) Payout (%)

21 KEY FINANCIAL INDICATORS COMBINED RATIO (%) INVESTMENT INCOME RATIO (%) -80 BPS +150 BPS 99.4% 98.8% 99.6% 101.8% 100.4% +100 BPS +30 BPS 5.4% 5.0% 5.1% 5.4% 4.0% OPERATING RATIO (%) +170 BPS DEBT AND LEVERAGE RATIO (R$ million / %) Indebtedness (R$ Million) 2,400 Leverage Ratio (Debt/Shareholders' Equity) 94.0% 94.8% +20 BPS 94.6% 96.7% 95.0% 1,900 1, % % 26% 1,037 20% M15 21

22 SULAMÉRICA PROPRIETARY ASSET ALLOCATION INVESTMENT STRATEGY (ex-pension) INVESTMENT ALLOCATION (ex-pension) 6.3% 0.4% 0.1% 0.4% 12.1% 17.9% R$ 6.8 billion 81.0% R$ 6.8 billion 81.6% Floating interest rate (Selic/CDI) Fixed-rate Other Inflation-linked (IPCA) Equities Brazilian Government Securities Corporate Debt Equities 22

23 Appendix

24 MARKET PERSPECTIVES Revenue Growth vs. GDP Growth (PIB) 16.4% 16.3% 18.3% 13.3% 12.1% 12.4% 10.6% 7.5% Insurance Premiums Growth 2.7% 1.0% 2.5% 0.1% GDP Growth (PIB) e 2016e -3.2% -2.0% REVENUE GROWTH IN ALL SEGMENTS (R$ billion) CAGR = +10.9% 2016e R$ 402 billion Health Auto 2015e R$ 363 billion Other P&C Life R$ 327 billion Private Pension Savings Bonds Source: Cnseg, IBGE & Focus Report (11/20/2015) 24

25 HISTORY OF INNOVATION AND SUSTAINABLE GROWTH SulAmérica expands to auto and other P&C lines SulAmérica enters into health business with ASO operations SulAmérica starts its asset management operations ING buys Aetna s stake and becomes an associate of SulAmérica Acquisition of Dental Plan Acquistion of SulaCap ING sells remaining 10.0% stake through block trade to the market SulAmérica & Healthways form joint venture in health and wellbeing SulAmérica is founded as a life insurance company in Brazil SulAmérica begins its private pension operations SulAmérica & Aetna International form joint venture SulAmérica raises R$775 MM in IPO ING sells 7.8% stake to IFC and 14.9% to Swiss Re SulAmérica announces sale of large risks portfolio to AXA Corporation SulAmérica announces sale of a part of the mortgage insurance portfolio to Pan Seguros 25

26 CURRENT SHAREHOLDING STRUCTURE SULASA Total Free float (3) 70.6% 100.0% Related Persons SULASAPAR IFC SWISS RE Other (1) 2.2% 25.2% (2) 7.8% 14.9% 49.9% BEST PRACTICES OF BM&FBOVESPA - LEVEL 2 100% tag-along rights for all shareholders 5 out of 10 board members (50%) are independent Role of Board of Directors supported by 5 statutory committees (Audit, Investment, Compensation, Governance and Sustainability) Management compensation aligned with the shareholders long-term view 26 (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

27 SUSTAINABILITY 2008 Adoption of GRI guidelines for annual reporting 2009 Company joins Sustainability index of the BM&FBovespa for the first time SulAmérica Investimentos becomes part of the PRI st GHG Emissions Investory 2012 SulAmérica becomes a Global Companct signatory and a GRI OS member SulAmérica joins UNEP-FI and is one of the founding companies for the PSI 2014 SulAmérica revises its Stakeholders Map and approves its Stakeholders Engagement Policy Creation of the Sustainability Committee and Corporate Sustainability area Support to waterbased paint in the auto segment Online, paperless billing for health, electronically certified transactions Sustainability Committee reports directly to the Board of Directors SulAmérica approves its Corporate Sustainability Policy Approval of the Sustainability Strategy Initiative SulAmérica approves its Environmental Policy regarding Climate Change 27

28 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. 28

29 Investor Relations Version: November/