The Company undertakes no obligation to update the forward-looking statements made in this presentation or any other forward-looking statements.

Transcription

1 2008 London, 26th. June Achieving results while managing risks Mr. Juan Casanovas, CFO

2 This presentation includes oral and written forward-looking statements with respect to certain plans and its current goals and expectations relating to its future financial condition, performance and results. These forward-looking statements represents a simple forecast whose formulation does not represent a guarantee with respect to the future performance of the Company. By their nature, all forward-looking statements involve risk and uncertainty because they relate to future events and circumstances which may be beyond the Company s control such as general economic conditions, performance of financial markets, the frequency and severity of insured loss events, mortality and morbidity levels and trends, persistency levels, interest rate levels, currency exchange rates, general competitive factors, changes in laws and regulations, changes in the policies of governments or regulatory authorities. The Company undertakes no obligation to update the forward-looking statements made in this presentation or any other forward-looking statements.

3 CONTENTS Grupo Catalana Occidente until 31/12/2007 Quartly information (1Q08) Strategy and Guidelines 3

4 Grupo Catalana Occidente until 31/12/2007 Note that this figures refers to the 2007 year end results where Atradius was consolidated by the equity method 4

5 Overview of Grupo Catalana Occidente Over 140 years of history Stable strategy over time: Well-established insurer Wide range of insurance services Focused on profitable growth Target market: individuals and SMEs Strong national presence over 1,000 offices around 20,000 agents Professional agency network 5

6 Volume evolution Premiums Pension Plans and Mutual Fund Contributions (Life and Non - Life) (figures in million) 58.8% (Commercial Credit) 3,226 1,089 (Commercial Credit) (Funeral) 34.5% 1, % 1, % 2,031 (Auto) 54.2% 31.3% 1, % 0.7% 1,322 1,331 1, % 1, % 1, % 2, % 12.4% ,117 1, % 1, % % 31.1% 12.2% Growth history multiplying by 5.8 6

7 Spanish market share GCO in the Spanish market 2,021 Million of premiums GCO in others markets 1,103 Million of premiums DISTRIBUTION OF SPANISH MARKET BY BIG INSURANCE GROUPS Mapfre 14.4% Grupo Axa 6.4% Re st of Com panies 45.7% Santander Seguros 5.7% Allianz 5.2% Generali 4.6% Source: ICEA Ibercaja 3.0% Zurich 3.4% Caser 3.9% Aviva 4.1% Grupo Catalana Occidente 3.7% 7

8 Spanish market share by product 2007 Ranking Multirisk 6.46% 5 Auto 3.47% 11 Rest of Lines 5.12% 6 Commercial Credit 60.5% 1 Total Non-Life 4.64% 5 Life 2.37% 14 Total 3.69% 8 Source: ICEA 8

9 Highlights Significant improvement in profit after tax ( 16.8%) and attributable profit ( 22.6%). Moderate internal growth. Non-Life GCO 4.5% Sector 5.3% Life GCO 6.9% Sector 2.1% Total GCO 5.1% Sector 3.9% Inclusion of the Atradius Group: Achieving a new dimension 9

10 Demonstrating capacity for growth while improving profitability (figures in million) PROFIT FOR THE YEAR 16.8% ATTRIBUTED TO THE PARENT COMPANY PROFIT under IAS 42.16% ATTRIBUTED TO THE PARENT COMPANY under IAS 22.6% 37.64% % ,82% % % 28.19% % 54,08% 86.34% ,93% % 67.0% ,88% Attributed profit multiplied by

11 Business performance (figures in million) % CHG.. MULTIRISK REST OF LINES AUTO TOTAL NON-LIFE TOTAL LIFE TOTAL PREMIUMS PENSION AND MUTUAL FUND CONTRIBUTIONS TOTAL VOLUME PP + MF 4.7% Business structure ,428 1, ,936 2, ,031 2, PP + MF 4.8% LIFE 25.0% MULTIRISK 17.1% LIFE 25.4% MULTIRISK 16.5% 2006 AUTO 22.0% REST OF LINES 31.3% 2007 AUTO 20.9% REST OF LINES 32.5% Balanced portfolio 11

12 Combined ratio 125.0% 120.0% 117.7% Excellent performance Combined ratio declined 20 points 115.0% 110.0% 108.2% 109.3% 110.4% 105.0% 100.0% 95.0% 90.0% 85.0% 104.7% 102.3% 102.6% 104.6% 101.2% 99.9% 99.7% 99.6% 98.5% 99.3% 99.1% 96.7% 93.6% 92.6% 91.8% 95.0% 95.7% 91.1% 92.4% 88.8% 92.7% 90.8% 88.0% 87.1% 94.5% 92.5% 90.2% 88.3% 89.6% 87.3% 87.7% MULTIRISK 93.2% 91.0% 88.6% 87.4% AUTO TOTAL NON-LIFE COMMERCIAL CREDIT 80.0% 81.3% 82.7% 78.4% 79.7% 80.6% REST OF LINES 75.0% 78.9%

13 Change in equity Equity at 12/31/2006 1,343.2 M Profit for the year ended 13/31/ Dividends paid Movement in treasury shares Change in valuation adjustments (capital gains) Change in valuation of investments in subsidiaries and others TOTAL CHANGE IN EQUITY M Total equity at December ,533.9 M Unrealised capital gains on property assets: 493 M ( 432 M in 2006) Solid Balance Sheet 13

14 Funds under management conservative approach December 2006 December 2007 Managed Funds client risk: Managed Funds company risk: Total M 5,979.1 M 6,823.7 M Managed Funds client risk: Managed Funds company risk: Total M 6,306.4 M 7,292.6 M Distribution of company risk assets including capital gains on investment properties Other Investments Deposits and 9.2% cash 13.9% Investment in subsidiaries 8.5% Investment properties 13.5% Equity securities 9.4% Fixed income securities 45.5% * Distribution of company risk assets including capital gains on investment properties Other Investments Deposits and 8.1% cash 17.1% Investment in subsidiaries 9.2% Investment properties 13.9% Equity securities 9.4% Fixed income securities 42.3% * Conservative investment policy * Source: Valuation done by INMOSEGUROS (DGS s authorized agency) 14

15 Properties Valued by a DGS s authorized agency OWN USE 52.9% ON RENT 47.1% INVESTMENT 182 M UNREALISED GAINS 185 M INVESTMENT 163 M UNREALISED GAINS 308 M Used DGS valuation rules (restricted market value) Obligatory to value properties each three years (51% in last year). Source: 100% valuations done by INMOSEGUROS (DGS authorized agency) 15

16 Technical s provisions coverage December 2006 December 2007 Surplus 1,587 M Surplus 1,763 M Eligible assets: 6,222 M Technical Prov. to be recorded: 4,635 M Eligible assets: 6,580 M Technical Prov. to be recorded: 4,817 M Significant Surplus 16

17 Solvency I December 2006 December ,050 1,900 1,750 1,600 1,450 1,300 1,150 1, AVAILABLE CAPITAL 1,667 M MINIMUM CAPITAL REQUIREMENT 338 M EXCESS CAPITAL 1,329 M 393.8% AVAILABLE CAPITAL 1,975 M Sector % MINIMUM CAPITAL REQUIREMENT 347 M EXCESS CAPITAL 1,628 M 469.0% 17

18 Standard & Poor s: Segmented rating FINANCIAL STRENGTH RATING MAIN OPERATIVE COMPANIES A Stable And Subsidiaries FINANCIAL STRENGTH RATING SCO & SB A - Stable 18

19 Embedded Value Figures after taxes in million Year 2006 Year , Equity 2006 VIF CoC FOG EEV 2006 Equity 2007 VIF CoC FOG EEV Certified by Watson Wyatt 2007 Calculated by GCO pending of WW s certification Note that this value refers to the life, savings and funeral insurance business areas EEV: European Embedded Value VIF: Value in Force Coc: Cost of Capital FOG: Financial options and guarantees High and growing portfolio s value 19

20 Embedded Value Value movement 2007 Figures after taxes in million ,075.5 EEV 2006 Model s Business Financial s Expected Changed 2007 New Change in EEV 2007 changes Hypothesis Hypothesis Profit experience production FOG Added dividend out of Value hypothesis 2006 Certified by Watson Wyatt 2007 Calculated by GCO pending of WW s certification Note that this value refers to the life, savings and funeral insurance business areas High value portfolio 20

21 Shareholders Long term commitment Co. Sociedad de Gestión y Participación 5% Free Float (*) 39% Corporación Catalana Occidente 26% La Previsión 96, S.A. 25% Jusal, S.A. 5% * GCO was listed in 1996 on the Spanish Continuous Market and is quoted in the following indexes: - Spain MA Financial Services and Real State - Ibex Medium Cap - Wisdomtree International MidCap - S&P Citigroup Expended Market Index 21

22 Stock Market performance % Annual change /6/2008 GCO IBEX DOW JONES EUROPE STOXX INSURANCE MM. GCO has performed better than the market MM PROFIT ATTRIBUTED TO THE PARENT COMPANY MM MM MM MM MM /12/ /12/ /12/ /12/ /12/ /12/ /12/ /06/2008 The share price on each of the dates indicated appears in parentheses Prices for 2001 and 2005 are recalculated based on the number of shares in 2006 Base 100 at 1/1/02 Source: Bloomberg 22

23 Main performance indicators and shareholder s remuneration Attributed earnings per share < 22.6% ROE (12/31 attributed profit / 2006 average equity 2007) (*) MARKET ROE 18.8% PER (price at 2007 / attributed earnings per share) (*) Dividend per share ( ) Yield (dividend/price at 12/31) < 20.0% Pay Out (dividend / attributed profit) (*) Figures under IFRS from

24 Quartly information 1Q08 Note that this figures refers to the 2007 year end results where Atradius was consolidated by the fully method 24

25 Group s structure SCO (Life and Non Life) SB (Life and Non Life) SCO (Life and Non Life) SB (Life and Non Life) FULLY CONSOLIDATED COMPANIES CATOC VIDA (Life) COSALUD (Healthcare) FULLY CONSOLIDATED COMPANIES CATOC VIDA (Life) COSALUD (Healthcare) NH (Funeral) NH (Funeral) DEPSA (Legal liability) DEPSA (Legal liability) CRÉDITO Y CAUCIÓN 43.18% (Commercial Credit) ATRADIUS 64.2% (45.2%) (Commercial Credit) COMPANIES CONSOLIDATED USING THE EQUITY METHOD ATRADIUS 49.99% (Commercial Credit) COMPANIES CONSOLIDATED USING THE EQUITY METHOD 25

26 International dimension EEC = 95.4% Italy 4.0% UK 5.4% Rest EEC 6.3% Netherland 4.0% Germ any 5.6% Rest Countries 4.6% COUNTRIES % Spain France 3.61 UK 5.42 Italy 3.97 Germany 5.59 Netherland 4.03 Rest EEC 6.29 Rest Countries 4.64 France 3.6% Spain 66.5% 100% 1/3 GCO s portfolio in the international market 26

27 Second player in commercial credit market Rest 16% Coface 19% Atradius 30% Euler-Hermes 35% Market value (approximately) M 27

28 Atradius - Sectorial diversification ECONOMIC SECTORS % Textiles 4.7% Contruction Materials 4.0% Agriculture 2.2% Services 6.3% Finance 3.6% Paper 2.5% Consumer durables 11.2% Metals 11.4% Consumer durables Metals Chemicals 8.2 Construction Electronics 7.98 Food 9.78 Transport 5.93 Machines 7.58 Construction Materials 4.01 Textiles 4.68 Services 6.26 Agriculture 2.19 Finance 3.64 Paper 2.51 Machines 7.6% Chemicals 8.2% 100% Transport 5.9% Construction 14.7% Food 9.8% Electronics 8.0% Benefits of the diversification 28

29 1Q08 Business performance (figures in milion) 1Q2007 1Q2008 % CHG. MULTIRISK COMMERCIAL CREDIT REST OF LINES AUTO TOTAL NON-LIFE TOTAL LIFE TOTAL PREMIUMS SERVICE REVENUES TOTAL VOLUME RETURN ON INVESTMENTS TOTAL REVENUES 665 1, PENSION PLANS CONTRIBUTIONS MUTUAL FUND CONTRIBUTIONS Business structure TOTAL LIFE 26.3% MULTIRISK 18.2% TOTAL LIFE 18.1% MULTIRISK 11.9% 1Q07 AUTO 20.6% COMMERCIAL CREDIT 21.3% 1Q08 AUTO 13.6% REST OF LINES 9.1% COMMERCIAL CREDIT 47.3% REST OF LINES 13.6% 29

30 1Q08 Combined ratio 125,0% 120,0% 117,7% The benefits of the diversification 115,0% 110,0% 105,0% 100,0% 95,0% 90,0% 85,0% 80,0% 75,0% 92,6% 88,8% 108,2% 102,3% 109,3% 110,4% 88,0% 104,7% 99,9% 91,1% 102,6% 104,6% 101,2% 99,7% 99,6% 91,8% 90,8% 99,1% 99,3% 96,7% 98,5% 93,6% 92,5% 95,7% 95,0% 92,7% 92,4% 87,1% 78,9% 81,3% 87,3% 89,6% 94,5% 90,2% 87,7% 82,7% 79,7% 78,4% 88,3% 93,2% 91,0% 88,6% 87,4% 80,6% MULTIRISK 94,5% 92,3% 90,7% 89,7% COMMERCIAL CREDIT er. Trim ,9% 1er. Trim ,2% 93,3% 93,0% 92,3% 84,7% AUTO TOTAL NON-LIFE REST OF LINES 30

31 1Q08 Profit and Loss Account 1Q Q 2008 (figures in million) % CHG.. Premiums Premiums acquired TECHNICAL RESULT Expenses TECHNICAL RESULT AFTER EXPENSES Financial income Interest paid to life policyholders(*) Realised capital gains FINANCIAL RESULT PROFIT BEFORE TAX Corporate income tax PROFIT AFTER TAX PROFIT ATTRIBUTED TO THE PARENT COMANY (*) Includes increment capital gains / capital loss holder s risk 31

32 1Q08 Funds under management conservative approach December Q08 Distribution of company risk assets including capital gains on investment properties Distribution of company risk assets including capital gains on investment properties Deposits and Cash 17.1% Investment in Subsidiaries 9.2% Other Investments 8.1% Fixed Income Securities 42.3% Equity Securities 9.4% Other Investments Investment Properties (*) 7.6% Investment (*) 13.9% Properties 13.4% Investment in Subsidiaries 2.1% Deposits and Cash 11.4% Fixed Income Securities 47.1% Equity Securities 18.4% * Source: Valuation done by INMOSEGUROS (DGS s authorized agency) 32

33 Strategy and Guidelines 33

34 Strategy EXPANSION PROFITABILITY SOLVENCY 34

35 2008 Guidelines EXPANSION INTERNAL Guidance to growth Improve customers and agents service Support to the commercial activity Rise commercial productivity Network EXTERNAL PROFITABILITY MAINTAINING TECHNICAL COST AND COMBINED RATIO PRODUCTIVITY INCREMENT Improvement of technical and administrative management Improvement of resources management GROUP EXPENSES Severity SYNERGIES IMPROVEMENT SOLVENCY Maintaining Pay Out 25% SOLVENCY IMPLEMENTING NEW METHODOLOGIES Risk Control / Internal, QIS4 and Solvency II OBTAINING S&P RATING DEVELOPMENT CAPITAL MODEL 35

36 Thank you for your attention For further information please contact:

37 2008 London, 26th. June Achieving results while managing risks Mr. Juan Casanovas, CFO