Gjensidige Bank ASA. June 2009

Transcription

1 Gjensidige Bank ASA June 2009

2 Presentation team Geir Bergskaug Chairman of the Board Experience: Gjensidige Forsikring BA Gjensidige NOR Sparebanken NOR ABC Bank Schibsted (Aftenposten) Education: Harvard Business School: General Man. Program Insead, France: MBA Norwegian School of Economics and Business Administration (NHH): Bachelor of Commerce (Siviløkonom) Jan Kaare Hellevang CEO Experience: Gjensidige Forsikring BA SkandiaBanken AB, NUF SkandiaBanken Bilfinans AS/Merkefinans AS Vesta Forsikring AS/Vesta Finans AS Education: Norwegian School of Management (BI): Bachelor of Management, Master Programme in Strategic Management, Master Programme Project Management 2 Frank-Rune Ås Sparebanken Sogn og Fjordane CFO Experience: Lorenzen Lysaker Group Norwegian Institute of Technology Diary of Sogn og Fjordane Sparebanken Sogn og Fjordane Education: Norwegian School of Management (BI): Bachelor of Economics and Business Administration (siviløkonom) Master Programme in Investment and Finance

3 Agenda I. Gjensidige Insurance Group - in brief II. Strategy and concept III. Cooperation with SSF IV. Performance key figures V. Targets and outlook VI. Q&A 3

4 Gjensidige Insurance Group In brief Leading Market Position in Norway Market Shares 1) Total Market 29.6% (#1) Private 2) 28.7% (#1) Of which Agriculture 73.2% (#1) Commercial 3) 31.8% (#2) Customers Total number of customers 1,013, ,000 in the private segment 98,600 in the commercial segment FY2006 (GWP) FY2008 (GWP) Nordic/Baltic Operations Diversification into Nordic/Baltic Region Nordic/Baltic 2.6% Norway 97.4% Nordic/Baltic 17.7% Norway 82.3% RESO Europa (Baltics, May-2008) Fair and KommuneForsikring (Denmark, Mar-2006, Jan-2007) Parekss (Baltics, Sep-2006) Tennant (Norway and Sweden, Aug-2007) Headcount 31 Dec 2008 New Businesses New Business Areas in Norway New Businesses 739 General Insurance Nordic/Baltic 841 General Insurance Norway 2,060 Gjensidige Pensjon og Sparing - Pension and savings Gjensidige Bank - Online retail bank Hjelp24 NIMI - Market leading health care services provider Total: 3,640 1) The Norwegian Financial Services Association ( FNH ), general insurance per 31 Dec Segments are based on company definitions, but drawn directly from FNH report. Gjensidige market shares include Tennant 2) Products sold to private and agricultural customers. Product groups include: motor, property, personal accident, agriculture and other (travel insurance, leisure boats and animals) 3) Products sold to SME and corporate customers. Product groups include: motor, property, personal accident, liability and marine 4

5 Gjensidige Insurance Group Leading position strong brand Norwegian Market Shares 2008 Market Share 2008 Private 29,6 % 28,9 % 17,8 % 9,8 % 13,9 % 28,7% 27,5% 17,8% 12,3% Gjensidige If Skadeforsikring TrygVesta SpareBank 1 Andre Gjensidige If Vesta Sparebank1 Norwegian Market Shares Development since 1994 Market Share 2008 Commercial ,3% 31,8% ,7% Gjensidige If Sparebank1 Vesta 4,5% If Gjensidige Vesta Sparebank1 Source: FNH, general insurance statistics 5

6 Gjensidige Insurance Group Strong financial position MNOK Equity (NOK mill) Gross written premium 17,429 15,727 19,820 20,303 Claims ratio gen. ins. 77.4% 78.6% 15.4 Cost ratio gen. ins. 17.0% 17.5% UW result 1.5 gen. ins Net financial 2008income/(loss) 2007 (220) 2,820 Pre-tax Return on Equity (%) 15.4 Profit after tax 486 2,479 Rating (S&P) Single A Single A

7 The Gjensidige Insurance Group Segments Gjensidige Group General Insurance Norway General Insurance Other Nordic General Insurance Baltic Pension and Savings Online Retail Banking Health Care Services Commercial/ Private Commercial Private Private Commercial Municipal Definitions: Private: Products sold to private and agricultural customers. Product groups include: motor, property, personal accident, agriculture and other (travel insurance, leisure boats and animals) Commercial: Products sold to SME and corporate customers. Product groups include: motor, property, personal accident, liability and marine 7

8 Gjensidige Insurance Group Expansion Strategy Increased Diversification FY 2006 (GWP) Nordic/Baltic 2.6% Geographical Expansion Gjensidige Sweden Gjensidige Baltic Gjensidige in Denmark Norwegian General Insurance August 2007 acquisition of Tennant May 2008 acquisition of RESO Europa September 2006 acquisition of Parekss March 2006 acquisition of Fair January 2007 acquisition of KommuneForsikring Hjelp24 NIMI Gjensidige Pensjon og Sparing Gjensidige Bank Norway Norway 100.0% 97.4% FY 2008 (GWP) Nordic/Baltic 17.7% September 2004 January 2006 January 2007 Norway 82.3% Broadened Product Range 8 Our expansion strategy leverages our brand and market position and seeks to export best practices and niche product expertise

9 Gjensidige Insurance Group Broadened product range - banking Strategic Rationale Represents the entry to the retail banking sector Allows Gjensidige to: Offer a new range of products and services to existing clients Protect general insurance market share against bancassurers entering the general insurance market space Provides opportunity to gain new customers to broaden the group s overall customer base Gjensidige Bank aims to be profitable without any financial support from the Group Products Main products include Banking accounts Mortgages and consumer loans Visa and Master Card Targeted markets are the private and agricultural markets The bank only issues loans to private and agricultural customers 80% of the loans are secured by mortgages of 80% or less of the value of the property 9

10 Gjensidige Bank Strategy Growth Positioning Strategy Offer Gjensidige s customers a banking alternative Target existing Gjensidige customers Establish Gjensidige Bank as an online retail bank Utilise Gjensidige s distribution capacity Competitive prices Key Initiatives Increase the product offering - Meet the product demands of the affinity market Bundle bank offering with other Gjensidige products in the loyalty and affinity programs Low prices combined with aggressive marketing Utilise the power of the Gjensidige brand Low costs Maintain agile organisation Reduce funding costs Leverage the infrastructure of an existing player to achieve low cost back office Easy access through Support by dedicated call centre Establish covered bonds program 10

11 Gjensidige Bank Concept Internet bank for the retail market Customers meet Gjensidige Bank in the "Gjensidige Portal" Internet bank with phone support from support centre in Førde Self-service concept with attractive terms Easy to use web pages which give a good customer experience A cost effective, modern and agile internet bank with full product spectrum Differentiated from other traditional banks and internet banks primarily through connection with: Brand Customer base Distribution Established in co-operation with Sparebanken Sogn og Fjordane 11

12 Gjensidige Bank Development Jan 2 Feb 1 May 15 June 30 Sept 31 Dec 31 March 31 June 30 Sept 31 Dec 31 Mar 31 Launch for the bank employees and for Tekna YS avtale Launch for YS Nationwide launch Nettavisen 25.sept Best org offer Autumn Campaign Launch for Nito Silver Dagbladet April 6 Launch of advantage program Launch of sales through Gjensidige branches customers customers customers customers customers customers customers customers customers customers Awareness 10% Awareness 16% 12

13 Gjensidige Bank Cooperation with SSF Gjensidige Bank Holding AS Synergies Board Management Mutual staff resources Mutual research and development More power in negotiations Board Management Gjensidige Bank ASA Main deliveries Accounts/bookkeeping Finance Legal Deposit department Property administration Human Resources Foreign exchange Debt collection IT - Support 13

14 Gjensidige Bank Key Figures Loans (MNOK) Deposits (MNOK) 7,215 6,711 6,243 6,131 Addition in the period Addition in the period 503 1,181 1,404 Q Q Deposit Ratio (%) YE Q Q YTD 2009 YE 2008 Customer Development Addition in the period ,647 44, Addition in the period ,234 7,800 Q Q YE 2008 Q Q YTD 2009 YE

15 Gjensidige Bank Financing Debt securities as at March 31, 2009 MNOK Commercial paper and other short-term borrowings 600 Bond debt 300 Own bonds, not amortised (100) Total debt incurred through the issue of securities 800 One of the issued securities is payable in November 2009 (MNOK 150) Establishment of mortgage lending company Gjensidige Bank plans to establish a mortgage lending company that will issue covered bonds The plan is to set up the company in 2009 The mortgage lending company is expected to provide the Bank with reasonable long-term financing 15

16 Gjensidige Bank Lending Q Gross lending of MOK 7,215 at the end of Q Provision of MNOK 1.5 for individual impairment losses Provision for losses for groups of loans of MNOK 12.9 Total impairment loss represented 0.2 per cent of gross lending at the end of Q Portfolio The bank primarily issues loans secured by mortgages According to the indexes of Eiendomsverdi AS the Bank has during 2008 had more than 90% of its credit exposure in municipalities with a good turnover rate. The bank only issues loans to private and agricultural customers The average loan commitment is just over MNOK 1 There is no single exposure over MNOK 10 16

17 Gjensidige Bank Capital adequacy At the close of Q the capital adequacy ratio was 17.9 percent The legal minimum requirement is eight percent Gjensidige Bank aim to maintain its capital adequacy ratio well above the legal requirement MNOK Paid-up equity Other equity (76) (111) (62) Total equity Deferred tax assets (31) (34) (25) Other intangible assets (40) (44) (41) Core capital Additional capital Total equity and subordinated loan capital Risk-weighted capital 3,769 2,562 3,696 Minimum requirement for equity Core capital ratio (%) Capital adequacy ratio

18 Gjensidige Bank Goals & Targets It is expected that the bank will initially be loss-making as it achieves scale results in 2008 and Q according to plan Goals Growth is expected to be relatively high for the first few years, until the bank reaches a level where growth will stabilise at a more normal level, in line with the established players Targets Gjensidige is targeting a quarterly run rate for customer addition between 5,000 and 6,000 Growth in customer base 2008: 22,169 registered customers The number of registered customers increased with 2,234 persons in Q The definition of registered customers has been changes as of January 1, The real number of person registered as potential customers in the quarter was 5, Registered customers include customers who have signed up to be customers during the last three months (started the become a customer process) and customers that actively use the bank 18

19 Gjensidige Bank Outlook Gjensidige Bank has experienced satisfactory growth during a period of financial market turbulence The foundations have been laid for continuing to grow and develop the business The Bank will continue to focus on organisation development, skills development, marketing, product and concept development and the automation of processes in order to grow its customer base and develop its business By offering attractive interest rates on deposits, the Bank has reduced its dependency on external financing, but it will in all likelihood nevertheless need to refinance existing loans, as well as take up new loans, in order to continue growing The planned mortgage lending company is expected to provide the Bank with reasonable long-term financing 19

20 VI. Q&A

21 VI. Appendices

22 Organisation CEO Jan Kaare Hellevang BUSINESS- SUPPORT RISK MANAGEMENT CREDIT SALES AND MARKETING BUSINESS- DEVELOPMENT (5 FTE) (2 FTE) (18 FTE) (21 FTE) (7FTE) Jan Kåre Raae Atle Kristian Hornnes Ivar Rekve Synnøve M Ø Iversen Frode Schanke 22

23 Board of Directors CV Name: Geir Bergskaug Role: Chairman of the Board Background:Gjensidige Forsikring BA, Gjensidige NOR, Sparebanken NOR, ABC Bank, Schibsted, Walt Disney Corp. Education: Harvard Business School: GMP Insead, France: Master of Business Administration Norwegian School of Economics and Business Administration (NHH): Bachelor of Commerce (Siviløkonom). Name: Arvid Andenæs Role: Board member Background: Sparebanken Sogn og Fjordane, Fokus Bank, KPMG Consulting, Sparebanken Nord Norge Education: Norwegian School of Management (BI): Master of Business Administration (Siviløkonom), Master of Management Name: Ingun Ranneberg- Nilsen Role: Board member Background: Gjensidige Forsikring BA Sparebanken NOR ASM AS Education: Norwegian School of Management (BI): Bachelor of Business Administration, Master Programme in Dialogue Marketing and Electronic Commerce NTNU Master of Technology, MBA Name: Marianne B. Einarsen Role: Board member Background: Norwegian State Railways (NSB), DnB NOR Private market, Sparebanken NOR, Storebrand, UNI Forsikring Education: Norwegian School of Management (BI): Master of Management, Norwegian School of Management (BI) / Norwegian School of Marketing (NMH): Master of Marketing Agder University College, College graduate 23

24 Board of Directors CV Name: Roger Nedrebø Role: Board member (Employee representative) Background: Sparebanken Sogn og Fjordane Education: Norwegian School of Management (BI): Bachelor of Business Administration Name: Britt Tjønneland Role: Deputy Board member (Employee representative) Background: Den Norske Bank ASA Sunnfjord Energi If Skadeforsikring Education: Norwegian College of Banking 24

25 Management CV Name: Jan Kaare Hellevang Role: CEO Background:Gjensidige Forsikring BA, SkandiaBanken AB, NUF Skandiabanken Bilfinans AS, SkadiaBanken Merkefinans AS, Vesta ForsikringAS /Vesta Finans AS Education: Norwegian School of Management (BI): Bachelor of Management, Master Programme in Strategic Management, Master Programme in Project Management Name: Synnøve M. Iversen Role: Manager Marketing and Sales (Banksjef) Background:Orkla Foods Stabburet Naustdal Municipality Education: Norwegian School of Management (BI) Norwegian School of Marketing (NMH): Master of Marketing Management Name: Frode Schanke Role: Manager Business Developmen t (Banksjef) Background: Accenture Education: The Norwegian School of Economics and Business Administration (NHH): Bachelor of Commerce (Siviløkonom) Name: Role: Jan Kåre Raae Manger Business Support (Banksjef) Background:Sogn og Fjordane University College, Deloitte AS, Odda Smelteverk AS Education: Agder University College: Master Programme (Siviløkonom) 25

26 Management CV Name: Ivar Rekve Role: Manager Credit (Banksjef) Background:Sparebanken Sogn og Fjordane Education: University of Bergen Economist/Master degree (Samfunnsøkonom) Name: Atle Kristian Hornnes Role: Manager Risk Management (Banksjef) Background:Fjaler Sparebank, Dale of Norway, Kaizen AS Education: The Norwegian School of Economics and Business Administration (NHH): Bachelor of Commerce (Siviløkonom) 26