UPDATE ON IF P&C AND THE NORDIC MARKET

Transcription

1 Sampo Capital Market Day UPDATE ON IF P&C AND THE NORDIC MARKET Torbjörn Magnusson, CEO of If P&C

2 THE NORDIC P&C MARKET The market In brief Premium income of EUR 25 billion Average market growth of 3% since 2005 High retention levels Highly efficient market High internet penetration Premium by country Sweden 31% Norway 26% Denmark 27% Finland 16% Consolidation top 4 insurers Market structure 80% 70% 90% 56% Small/local 26% Large mutual 18% Large listed 56% Sweden Norway Finland Denmark 2

3 IF P&C AT A GLANCE If P&C In brief Business areas, % GWP Largest P&C insurer in the Nordic region GWP 2016: EUR 4,5 billion Commercial 26% Owned by Sampo Group since 2004 Return on equity >17,5% Industrial 12% Private 59% Baltic 3% Market share by country Premium by country, % GWP 2% Finland 22% 8% Sweden 36% 18% 21% 23% 6% 16% Denmark 9% Sweden Norway Finland Denmark Nordic average Including Topdanmark market share (49,3% ownership) Norway 30% Baltic 3% 3

4 PERFORMANCE UPDATE EUR m 6M-17 6M-16 Change Premiums written, gross ,9% Technical result ,5% Investment result ,8% Operating result ,9% Result for the period ,2% Risk ratio 64,5% 61,6% +2,9%-p Cost ratio 22,0% 22,2% -0,2%-p Combined ratio 86,5% 83,7% +2,8%-p Return on equity 30,5% 16,2% +14,3%-p 4

5 COMBINED RATIO AND PREMIUM GROWTH BY BUSINESS AREA Private Commercial 83,9% 81,2% 22,0% 22,2% 93,8% 87,8% 22,6% 22,7% 61,9% 59,1% 71,2% 65,2% 6M-17 6M-16 6M-17 6M-16 Risk ratio Cost ratio Risk ratio Cost ratio Premium growth: 1,9% Premium growth: 0,3% Industrial Baltic 85,1% 89,5% 21,7% 22,3% 89,7% 90,5% 28,1% 28,6% 63,5% 67,2% 61,6% 61,9% 6M-17 6M-16 6M-17 6M-16 Risk ratio Cost ratio Risk ratio Cost ratio Premium growth: -1,5% Premium growth: 3,2% 5

6 NORDIC P&C MARKET OVERVIEW Total Nordic P&C market, EUR bn +4,2% +3,5% +4,5% +1,7% +1,4% 24,7 25,2 25,5 22,9 23,7 4,4 4,3 4,3 3,9 4,1 5,4 5,7 5,9 6,0 6,0 6,8 6,8 7,0 7,0 7,1 Finland Norway Denmark 6,8 7,0 7,4 7,8 8,1 Sweden

7 NORDIC P&C COMPETITOR LANDSCAPE P&C insurers with a Nordic market share above 5% If P&C Other 34% 18% 10% Länsförsäkringar 6% 6% OP Group Folksam 8% 9% Gjensidige 9% Tryg RSA Scandinavia 7

8 0,3% 1,1% 0,8% 1,5% 1,8% 1,6% 1,7% 2,2% 2,0% 1,8% 2,5% 2,9% 2,8% 3,0% 3,8% INTEREST RATE AND NORDIC MACRO DEVELOPMENT Nordic government bond yield 5y Nordic GDP E 2,5% 2,0% 1,5% 1,0% 0,5% 0,0% -0,5% -1,0% Aug Sweden Norway Finland Denmark Sweden Norway Finland Denmark Weighted average E 8

9 92,8 96,1 92,0 96,1 88,9 91,5 88,1 91,3 87,7 88,5 85,4 88,9 84,4 87,6 PROFITABILITY DEVELOPMENT IN NORDIC P&C Combined ratios If and Nordic weighted average If P&C Nordic market (excl. If) 9

10 Standard deviation UNDERWRITING EXCELLENCE AND SCALE BENEFITS Nordic peers Quarterly data % 7% 6% 5% 4% 3% 2% 1% 0% 85% 86% 87% 88% 89% 90% 91% 92% 93% 94% Combined ratio 10

11 17,6% 18,8% 17,2% 18,3% 17,3% 18,0% 16,9% 18,1% 16,8% 17,3% 16,7% 17,2% 16,6% 17,5% 16,6% 17,2% CONTINUOUS EFFICIENCY IMPROVEMENT Expense ratio, if vs nordic weighted average If Cost ratio, including all operating expenses 24,1 23,7 23,5 23,0 22,8 22,5 22,3* 22,1 22,0 * If P&C Nordic market (excl. If) *) excluding one-offs If 11

12 MARKET DEVELOPMENT SWEDEN Combined ratio, % Market share, % 130% 120% 110% 100% 90% 100% 80% 60% 21% 20% 20% 15% 15% 15% 16% 17% 16% Other RSA Scandinavia Folksam 80% 70% 60% If LF Folksam RSA Scandinavia 40% 20% 0% 30% 30% 30% 18% 18% 18% Q LF If 12

13 MARKET DEVELOPMENT NORWAY Combined ratio, % Market share, % 130% 100% 120% 110% 100% 90% 80% 70% 60% If Gjensidige Tryg SpareBank 1 80% 60% 40% 20% 0% 29% 30% 30% 10% 10% 10% 13% 13% 13% 25% 26% 26% 22% 21% 21% Q Other SpareBank 1 Tryg Gjensidige If 13

14 GROWTH DEVELOPMENT NORWAY If Norway Growth, % 1,2-1,1-2, M Change in number of customers 6M, % 0,5 0,6-0, vs vs 2016 Last quarter 14

15 MARKET DEVELOPMENT FINLAND Combined ratio, % Market share, % 130% 120% 110% 100% 100% 80% 60% 9% 9% 10% 10% 25% 26% Other Fennia 90% LähiTapiola 80% 70% 60% If OP Group LähiTapiola Fennia 40% 20% 0% 32% 32% 24% 23% OP Group If 15

16 MARKET DEVELOPMENT DENMARK Combined ratio, % Market share, % 130% 100% 120% 110% 80% 38% 38% Other Alm. Brand 100% 90% 80% 70% 60% If Tryg Topdanmark RSA Scandinavia 60% 40% 20% 0% 10% 10% 11% 11% 17% 17% 18% 18% 6% 6% RSA Scandinavia Topdanmark Tryg If Alm. Brand 16

17 EFFICIENT AND CUSTOMER CENTRIC DISTRIBUTION Customer centre structure in if Number of branch offices Trondheim leading insurer online esales: 20% Eservice: 40% ecustomers grimstad Gothenburg Turku Eclaims: 40% Stamholmen Flagship customer centres 17

18 CONTINUED EXTREME FOCUS ON DIGITALISATION total IT development cost, EUR m Early adopter First webshop launched

19 UNDERWRITING EXCELLENCE AND MODERN IT Efficiency one integrated price and production system serving all markets Initiated in 2005 Business value delivering underwriting excellence in practice Quality world class competence and technology platform Status one nordic IT platform Private Commercial Industrial 19

20 CUSTOMER SATISFACTION IN A DIGITAL ERA NPS If Nordic contact center NPS If Nordic claims

21 SHAREHOLDER PERSPECTIVE Return on equity, % Dividend paid, EUR m 53,2% 39,8% 36,9% ,2% 12,4% 24,4% 25,3% 25,0% 21,5% 18,1% 181-0,8% 21

22 CONTINUED VALUE CREATION THROUGH UNDERWRITING EXCELLENCE Stable returns through underwriting excellence and scale advantages Financial discipline and best-in-risk Management commitment to continuous improvement Financial incentives focused on underwriting result 22

23 THANK YOU