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Q3 2006 resultsNovember 9, 2006
Visit www.trygvesta.com for further information
Webcast
2
Highlights Q3 2006
• Solid premium growth in Corporate, Finland and Sweden
• Unique customer benefit launched in Denmark: extended warranty insurance
• New pan-Nordic CRM alarm system implemented
• Request filed to the Norwegian authorities to establish Vesta as a TrygVesta branch. Decision expected end 2006
• Dansk Kaution to provide its services outside Denmark under the brand TrygVesta Garanti
• 10,000 insurances sold in Sweden (October 2006)
• Changes in management to optimise organisational structure
Gross premium income DKK 4.1bn, up 2.5%
Combined ratio of 85.3%
Technical result DKK 740m, up DKK 85m
Outlook for 2006 upgraded
Gross premium income DKK 4.1bn, up 2.5%
Combined ratio of 85.3%
Technical result DKK 740m, up DKK 85m
Outlook for 2006 upgraded
3
Income summary statement
Q3 Q3 Q3 Change Q3 1-3 Q 1-3 Q 1-3 Q Change 1-3 Q
2006 2005 2004 2005/2006 2006 2005 2004 2005/2006
Gross premiums earned 4,071 3,975 3,810 2.4% 12,036 11,744 11,446 2.5%
Claims ratio 64.1 65.2 65.9 1.1 67.4 72.7 67.3 5.3
Business ceded as a percentage of gross premiums4.6 3.6 4.8 -1.0 3.4 -1.6 5.4 -5.0
Claims ratio, net of ceded business 68.7 68.8 70.7 0.1 70.8 71.1 72.7 0.3
Expense ratio 16.6 16.6 17.2 0.0 16.8 17.0 17.2 0.2
Combined ratio 85.3 85.4 87.9 0.1 87.6 88.1 89.9 0.5
Technical result 740 655 586 85 1,919 1,632 1,416 287
Investment income 376 360 90 16 557 616 105 -59
Profit before tax 1,110 1,008 664 102 2,461 2,235 1,503 226
Profit after tax 995 722 483 273 2,092 1,601 1,052 491
Return on equity before tax and discontinued and divested business 38.0 41 34
Return on equity after tax and discontinued and divested business 33.0 29 24
BV 131.0 107 88
In DKKm
4
Key ratios
Gross earned premiums, DKKm
3,810
3,975
4,071
3.600
3.850
4.100
Q3 2004 Q3 2005 Q3 2006
Combined ratio in %
85.387.991.1 89.0
85.4
70
85
100
115
2004 2005 Q3 2004 Q3 2005 Q3 2006
Claims ratio net of ceded business, in %
68.768.870.7
72.174.0
60
64
68
72
76
80
2004 2005 Q3 2004 Q3 2005 Q3 2006
Expense ratio in %
17.1 16.917.2
16.6 16.6
15
16
17
18
19
2004 2005 Q3 2004 Q3 2005 Q3 2006
5
Gross Premium Drivers- Change from Q3 2005
3.800
3.850
3.900
3.950
4.000
4.050
4.100
Group Q3 05 P&C DK P&C NO Corp. Finland Group Q3 06
DKKm
+2.5%
6
Technical Result Drivers- Change from Q3 2005
400
500
600
700
800
Group Q3 05 P&C DK P&C NO Corp. Finland Group Q3 06
DKKm
+13%
7
Result distribution
Technical result/geography
276 355
383393
0
200
400
600
800
Q3 2005 Q3 2006
DKKm
Danmark Norge
• Good growth in earnings balanced between business areas
• 33% return on equity after tax
• Strong improvement in Corporate – particularly in Norway
• Large claims of gross YTD DKK 468m against DKK 416m in full year 2005
• Run-offs affect result positively YTD with gross DKK 289m and net DKK 279m
• Higher technical interest rate affects result positively with DKK 202m
Technical result/business areas
248 252
159
277240 231
120
170
220
270
P&E DK P&N NO Industri
DKKm
Q3 2005 Q3 2006
8
Performance of claims
Claims ratio, net of ceded business
68.7
72.174.0
78.3
83.6
80.1
60
65
70
75
80
85
2001* 2002* 2003* 2004 2005 Q32006
In %
Claims ratio, net of ceded business
68.767.4
76.474.9
68.868.5
76.077.7
70.770.4
77.0
60
65
70
75
80
Q104
Q204
Q304
Q404
Q105
Q205
Q305
Q405
Q106
Q206
Q306
In %
Run-offs, gross
-262-410
-588
-17
263353 289
-800
-600
-400
-200
0
200
400
600
2001 2002 2003 2004 2005 YTD05
YTD06
DKKm
Run-offs, net
-262
-410-515
-161
181
319 279
-600-500-400-300-200-100
0100200300400
2001 2002 2003 2004 2005 YTD05
YTD06
DKKm
* Danish GAAP
9
Frequency in Denmark
70
80
90
100
110
2002 2003 2004 2005 YTD 05 YTD 06
Index
Auto Building
Frequency in Norway
60
70
80
90
100
110
2002 2003 2004 2005 YTD 05 YTD 06
Index
Auto Building
Average claims in Denmark
80
90
100
110
120
2002 2003 2004 2005 YTD 05 YTD 06
Index
Auto Building
Performance of claims
Average claims in Norway
90
100
110
120
130
140
2002 2003 2004 2005 YTD 05 YTD 06
Index
Auto Building
10
Storm and large claims
Storm and weather related claims
84184
73 111
911
93
0
200
400
600
800
1000
2001 2002 2003 2004 2005 YTD2006
DKKm
Large claims
278
739
236
461416
301
468
0
200
400
600
800
2001 2002 2003 2004 2005 YTD2005
YTD2006
DKKm
11
Outlook for 2006 and 2007- Outlook upgraded for 2006
Medium Term Targets: Combined Ratio: 91-93%Return on Equity (After-tax): 18-20%
Medium Term Targets: Combined Ratio: 91-93%Return on Equity (After-tax): 18-20%
Outlook 2006 upgraded due to an improved investment result and a
satisfactory development in the technical result
Outlook 2006 upgraded due to an improved investment result and a
satisfactory development in the technical result
Outlook 2007: gross premium growth of about 3 percent and a
combined ratio of 90-92 assuming zero run-offs
Outlook 2007: gross premium growth of about 3 percent and a
combined ratio of 90-92 assuming zero run-offs
DKKmRealised 2005
Expected 02.28.2006
Expected 05.11.2006
Outlook 17.08.2006
Outlook 09.11.2006
Favorable scenario
Negative scenario
Premium growth 2.9% 4% 4% 3% 3%
Technical result 2,053 1,800 2,100 2,300 2,450 2,600 2,300
Investment income 888 400 730 350 700
Result before tax and discontinuedbusiness 2,913 2,200 2,800 2,650 3,150 3,300 3,000
Result after tax and discontinued business 2,097 1,650 2,150 2,200 2,650 2,750 2,550
Combined ratio (%) 89 91 89 89 88 87 89
12
P&C Denmark
Combined ratio in %
85.289.8
93.290.7 88.3
70
85
100
115
2004 2005 Q3 2004 Q3 2005 Q3 2006
Expense ratio in %
17.8 17.7
19.5
17.8 18.2
15
16
17
18
19
20
2004 2005 Q3 2004 Q3 2005 Q3 2006
Claims ratio, net of ceded business, in %
75.472.1 71.2
67.470.1
55
60
65
70
75
80
2004 2005 Q3 2004 Q3 2005 Q3 2006
• GEP adjusted for discounts up 2,1% to DKK 1,606m
• Unique customer benefit; extended warranty insurance
• Price adjustments in certain auto segments have triggered slight reduction in average premiums
• Rain storm in August amounted to DKK 71m
13
P&C Norway
Combined ratio in %
80.783.183.285.3 83.0
50
70
90
110
2004 2005 Q3 2004 Q3 2005 Q3 2006
Claims ratio net of ceded business, in %
63.660.0
64.562.762.4
50
55
60
65
70
2004 2005 Q3 2004 Q3 2005 Q3 2006
Expense ratio in %
20.8 20.4 20.8 20.7
19.4
18
19
20
21
22
2004 2005 Q3 2004 Q3 2005 Q3 2006
• GEP down 3.2% to DKK 1,142m – adjusted for currency down 2.7%
• Positive development in new sales since June and continued improvement in retention
• Additional customer benefits to multi product customers
14
Corporate
Combined ratio, in %
89.792.4
94.6
85.781.8
75
80
85
90
95
100
2004 2005 Q32004
Q32005
Q32006
Claims ratio net of ceded business, in %
71.4
79.375.6
81.082.9
65
70
75
80
85
2004 2005 Q32004
Q32005
Q32006
Expense ratio, in %
10,410,410,1
11,411,7
9
10
11
12
13
2004 2005 Q32004
Q32005
Q32006
• GEP up 7.5% to DKK 1,264m• Positive development in direct sales in DK
and in broker sales in DK and NO • Sales levels are very satisfactory in all
channels • Very low expense level – auto and liability
affect positively
15
Finland
• Gross premium income up 42.1% to DKK 54m
• Claims ratio, net of ceded business 67.4 % vs. 76.3%
• Expense ratio 35.3% vs. 36.8%
• Combined ratio 102.7% vs. 113.1%
Financial highlightsFinancial highlights
• First positive technical result with DKK 2m
• New sales continues at very satisfactory levels
• Sales through auto dealers proceeds satisfactorily
Operational highlightsOperational highlights
16
Investment income
Asset allocation as of September 30, 2006, in %
79.8
6.313.9
Bonds Equities Real estate
• Investment income before other financial income and expenses of DKK 1,198m YTD
• DKK 36.3b in investment assets at the end of Q3 2006
17
Capitalisation - Stable financial platform
4,268
6,010 6,1676,852
9,974
6,018
7,755
8,797
7,571
8,682
10,390
7,885
41.8%51.5% 55.8%
49.7% 52.9%
93.7%
125.3%
148.0%
121.3%128.5%
150.9%
65.9%
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
2002 2003 2004 2004 IFRS 2005 IFRS Q3 2006
DKKm
0%
25%
50%
75%
100%
125%
150%
175%
Capital less dividend Rating capital Solvency ratio S&P CAR
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