hordaland på børs - bergen næringsråd · 8/22/2018 · •part of tryg group ... gjensidige if...
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24/08/20181
Hordaland på Børs22. august 2018Espen Opedal, Country Manager Norway
Tryg at a glance
Non-life insurance in Denmark, Norway and Sweden
NorwayMarket position: #3
Market share: 13.3%CR in Q2 18: 82.8%
SwedenMarket position: #5Market share: 3.1%CR in Q2 18: 98.3%
DenmarkMarket position: #1
Market share: 17.9%CR in Q2 18: 77.2%
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22
21
8
Private
Commercial
Corporate
Sweden
Business split 2017
Gross premium split by products 2017
Percentage
Percentage
Claims Excellence
DKK 600m in claims cost reduction
Claims Excellence
DKK 600m in claims cost reduction
Digital Empowerment
of Customers
DKK 100mSTP on claims: 50%Self-service: 70%
Digital Empowerment
of Customers
DKK 100mSTP on claims: 50%Self-service: 70%
Tryg 2018 – 2020:
Strengthening the core, while embracing the futureProduct & Service
Innovation
+DKK 1bn in new products by 2020+
Product & Service
Innovation
+DKK 1bn in new products by 2020+
Distribution Efficiency
DKK 150m in technical result impact
Distribution Efficiency
DKK 150m in technical result impact
Financial targets 2020 a)
• Technical result: DKK 3.3bn
• Combined ratio: ≤86
• Expense ratio: ~14
• ROE: ≥21%
Customer targets 2020
• TNPS: 70
• Number of products per customer: +10%
Dividend policy
• Targeting a nominal stable increasing dividend
• Extraordinary dividend to further adjust the capital structure
Long term profitable growth and attractive shareholder value creation
Tryg’s equity story – a leading Scandinavian non-life insurer
a) The targets are conditional upon the authorities’ approval of the Alka acquisition
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• Market share 13.3%
• 1,050 FTE’s + ~ 400 FTE’s in franchise sales
• Premium income NOK 8,1 bn
• 3rd largest in general insurance Norway
• 2 brands (Tryg & Enter)
• Part of Tryg group
• Norwegian head-office in Bergen
Tryg Norway in brief
Geography
Trondheim
Haugesund
Tromsø
Bergen
Bodø
Oslo DrammenFredrikstad
Tønsberg
Førde
Harstad
Kristiansand
Stavanger
Ålesund
Tryg Norway
Tryg Norway is an ambitious player in the Norwegian insurance market with it’sNorwegian head office located in Bergen, and wide geographical presence.
Claims handling and Customer Service located in Bergen and Tønsberg.Strong sales- and underwriting presence for the Commercial- and Corporate market in Oslo and Bergen.
4.7%
4.4%
3.0%
3.4%
2.6%
2.9%
2.0%
2.4%
4.3%
0%
1%
1%
2%
2%
3%
3%
4%
4%
5%
5%
Market share Norwegian Insurance Market
25.6%
21.2%
13.3%
10.5%
29.7%
0%
5%
10%
15%
20%
25%
30%
Gjensidige If Tryg SpareBank 1 Other
Market share traditional players Market share smaller competitors
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Tryg Norway- Operational and Financial highlights
Gross premium by products 2017
PercentagePrivate Commercial Corporate
Distribution channels 2017
0
1 000
2 000
3 000
4 000
5 000
Private Commercial Corporate
Portfolio split 2017 Combined ratio 2013 - 2017mNOK
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Bolt-on acquisitions in Private/Commercial & Rates increases in Corporate
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Norway Corporate rates* under pressure
-12%
-10%
-8%
-6%
-4%
-2%
0%
2%
4%
6%
8%
10%
2015 2016 2017 2018 (Q1)
Motor Property Sickness etc. Workers' compensation Health
Source: FNO statistics, average premium development
Tryg Corporate Norway price increases implemented, Q1 2018
Motor 6.1%
Property 5.3%
Fish farming 23.1%
Health 13.5%
Sickness 7.1%
Workers’ Comp 4.3 % 7%
• Portfolio of NOK 170m
• 10 years old company, 35 employees
• 10,000 private customers, 1050 housing associations
• One owner – OBOS BBL
• 5 year exclusive distribution agreement – private
members
• Portfolio expected to produce returns in line with
“Retail” Norway in a couple of years
OBOS Forsikring
• Portfolio of NOK 120m
• Portfolio is 40% Oslo/Akershus
• 12,000 customers – private only
• Distribution through web and inbound
• Purchase price NOK 72m, including a year-end 2017 equity of
NOK 44m and a tax asset of NOK 40m (i.e. no goodwill)
Troll Forsikring
A strong multichannel distribution
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32 %
25 %
22 %
9 %
6 %6 %
Car channel
Online
Outbound
Bank
Inbound
Franchise
With a pricing diversification strategy
CAR CHANNEL
ONLINE
BANK
PARTNER
FRANCHISE
INBOUND
OUTBOUND
Online sales at ~20% if initiated sales from
online/web to inbound is included
Digital Sales and Self service
Digital contact ~70% in 2020Digital Sales NOK 150m in 2020*
“My Page” log-in: 2016-2018
Months
Tryg NO has already more
digital touchpoints than analogue* Fully automated, non-assisted sales
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Strong Partner Distribution
Large and growing partner business Success criteria
❑ Strong relations and common goals
❑ Relevant and unique products
❑ Strong distribution network locally
❑ Tailored web solutions
❑ Higher customer life time value (CLTV)
❑ Strong marketing push by Tryg & Partner
Examples;
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Two Brands, strong presence within new car sales
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0,0%
5,0%
10,0%
15,0%
20,0%
25,0%
30,0%
35,0%
Enter Enter/Tryg IF Gjensidige Spb 1 Andre
Forhandlersalg vs porteføljePersonbil privat
2017 Portfolio
Share of new car sales insurance vs market share
Super fast claims handling - straight through processing (STP) in 3 seconds
Our customers' time is valuable …… we make it faster and easier to be a Tryg customer
No. 1 in Europe with claims handling STP
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Motor-insurance – Cost of claims
14
3,0%1,0%
4,0%
Inflation 2018 Repair costsTechnology
3%
4%
1%
15.3
14,7
2013 2017
Driving costs down – focusing on continuous improvement
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Expense Ratio, Tryg NorwayExpense Ratio, Tryg Norway
• Staff reductions of 100 FTE in 2016.
• Sourcing agreements with low cost partners.
• Automate processes, utilizing robotics, application development and new solutions
• Procurement processes
Cost Reduction ProgrammeCost Reduction Programme
Why invest in Tryg?
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Pre-tax result by division (YE 2017 data)
Tryg is a dividend stockMotor combined ratios Nordics vs international
Total yield (dividend and buy backs / market cap) at year end
DKK
High insurance penetration in the NordicsPremiums per capita (USD), 2016
24/08/201817
Takk for oppmerksomheten!Espen Opedal, Country Manager Norway