Presentation 2nd quarter 2007

Transcription

1 Presentation 2nd quarter 2007

2 Highlights of second quarter Profit before tax was NOK 1,031 million in the second quarter, compared with NOK 604 million for the corresponding period last year. Profit before tax year to date was NOK 1,532 million. The general insurance business is marked by a greater number of mediumsized and large claims than last year. The combined ratio, net of reinsurance, for general insurance was 98.1 in the second quarter, compared with 93.6 in the corresponding period last year. Good financial results group's return on investment for the quarter was 9.0 per cent, compared with 1.6 per cent last year. Good flow of customers to Gjensidige Bank after nationwide marketing started. Acquisition of Tennant Insurance Group AB in Sweden was completed in May. Work to study a possible listing of primary capital certificates for Gjensidige continues. 2

3 Financial information Income statement Gjensidige Forsikring consolidated 2nd quarter 1st half year NOK mill Premiums written, net of reinsurance Earned premiums, net of reinsurance Claims incurred, net of reinsurance Net operating expences Premiums discounts and other profit agreement Total financial income Other income and costs Profit before tax Tax Profit for the period

4 Financial information Gjensidige Forsikring group, balance sheet ASSETS (NOK mill) Goodwill 1.039,1 605,8 557,2 Intangible assets 905,8 372,8 586,9 Investments in associates 6,4 7,4 6,8 Buildings and real estate 933,6 941,9 930,9 Investment property 5.835, , ,9 Financial assets Financial assets at fair value through profit or loss , , ,4 Financial assets held to maturity , , ,4 Loans and other receivables 1.540,2 859,9 539,6 Financial assets available for sale 2.455, , ,1 Reinsurance deposits 668,3 364,4 415,2 Tax asset -156,1 0,0 0,0 Receivables arising out of direct insurance operations 3.612, , ,0 Other receivables 1.446,0 505,9 542,0 Tangible fixed assets other than buildings and real estat 312,6 284,2 252,1 Cash and cash equivalents 3.432, , ,8 Prepaid expenses and accrued interests 393,3 242,8 279,3 TOTAL ASSETS , , ,7 4

5 Financial information Gjensidige Forsikring group, balance sheet (cont.) EQUITY (NOK mill) Equity fund , , ,3 Gjensidige fund 300,0 0,0 300,0 TOTAL EQUITY , , ,3 LIABILITIES Provision for premium, gross 7.724, , ,9 Claims provisions, gross , , ,7 Provision for premium disc ounts 26,4 219,3 25,2 Pension liabilities 940,8 970,2 946,7 Other provisions 260,9 115,4 306,6 Deposits from and debt to customers 387,9 0,0 0,0 Other liabilities 2.115, , ,7 Deferred tax 1.205, , ,4 Liabilities arising out of direc t insuranc e operations 315,7 307,8 253,7 Accrued expenses and prepaid income 209,4 160,1 156,5 TOTAL EQUTIY AND LIABILITIES , , ,7 5

6 Segment results 2nd q nd q st half year st half year General Insurance, private Norway 348,6 256,7 442,3 343,5 804,2 General Insurance business Norway 94,0 209,4 130,1 270,7 915,3 General Insurance other Nordic -10,5-17,8 27,5-17,8-40,7 General Insurance Baltic States 6,6-8,2 - -0,3 Underwriting result General Insurance 1) 438,7 448,4 608,1 596, ,5 Banking -36, ,1 - - Pension and Savings -22,6-21, ,4-73,8 Return on investment beyond allocation 657,6 168, ,8 703, ,2 Unallocated -6 8,9-25,8 5,6-56,4 Consolidated profit before tax 1.031,20 604, , , ,50 1) Premium income and allocated return on investments less claims incurred and allocated operating expenses. 6

7 Key figures: General Insurance business Combined ratio 115,0 110,0 105,0 100,0 95,0 90,0 85,0 7 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 More large and medium sized claims than last year and what could be expected due to prior years experience Positive change in operating costs Figures for the fourth quarter of 2006 and the first quarter of 2007 comply with IFRS. Other periods have not been revised in accordance with IFRS and are therefore not comparable.

8 Key figures: General Insurance business Cost ratio, net of reinsurance 25,0 24,0 23,0 22,0 21,0 20,0 19,0 18,0 17,0 16,0 15,0 8 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 Positive development in costs Reduction in nominell costs compared to last year, when corrections regarding changes in organisation and pension effect in 2006 are made. Figures for the fourth quarter of 2006 and the first quarter of 2007 comply with IFRS. Other periods have not been revised in accordance with IFRS and are therefore not comparable.

9 Key figures: General Insurance business Loss ratio 100,0 95,0 90,0 85,0 80,0 75,0 70,0 65,0 60,0 9 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 Higher loss ratio in second quarter of 2007 compared to last year due to more large and medium-sized claims Claim frequency stable but value of average claim has increased within household segment Figures for the fourth quarter of 2006 and the first quarter of 2007 comply with IFRS. Other periods have not been revised in accordance with IFRS and are therefore not comparable.

10 Allocation of and return on investment Return on investment Shares 10,5 % Money market 2,3 % Bonds (hold to maturity) 1,9 % Other bonds 0,2 % Hedge fund 4,0 % Property* 2,5 % *includes property companies Return on investment 9,0 % Year to date 7,3 % The return on investment applies to ordinarily managed capital, exclusive of subsidiaries and strategic investments 10

11 Private Segment: Norway Satisfactory growth in premium in the second quarter Gross written premium NOK million (NOK million second quarter 2006) Underwriting result before tax NOK 348,6 million (NOK 256,7 million) The personal and vehicle product groups are dominant in the Norwegian private sector 11

12 Private segment: Norway Private Norway Loss ratio in respect of claims this year 73,3 (70,1 for the second quarter last year). 100 % Private 2000 Written premium increased by 2,8 % from same quarter last year. 80 % 60 % 40 % 20 % 0 % 70,8 % 69,3 % Market share of portfolio premium per for non-marine private- and business was 31,4 %; 0,2 points reduction from last quarter. 2Q 2006 Net Earned Premium MNOK 2Q 2007 Loss Ratio Net 12

13 Business segment: Norway Gross written premium NOK million ( NOK million second quarter 2006) Underwriting result before tax NOK 94,0 million (NOK 209,4 million) More large and medium sized claims than last year Personal insurance in the commercial sector is lower than last year, partly becauseof thedemandfor profitable business Growth in marine, property and liability insurance 13

14 Business segment: Norway Business Norway Loss ratio in respect of claims for year 93,6 (80,9 for the second quarter last year). Written premiums fell by 6,0 % compared with the second quarter of last year. Market share of portfolio premium per for non-marine private- and business was 31,4 %; 0,2 points reduction from last quarter. 100 % 80 % 60 % 40 % 20 % 0 % Commercial & Industrial ,8 % 94,6 % Q Q 2007 Net Earned Premium MNOK Loss Ratio Net 14

15 Other Nordic Countries Gross written premium NOK 89 million in the second quarter Underwriting result before tax NOK -10,5 million Commercial and occupational injuries are dominated by the consumer sector and supplied by KommuneForsikring The decrease in municipal insurance compared to last year is due to the restructuring of the public sector in Denmark The private portfolio is part of Fair Forsikring 15

16 The Baltic states Gross written premium NOK 117 million in the second quarter Underwriting result NOK 6,6 million Vehicles are the dominant product in the Baltic region Progress in other areas in line with improvement in living standards generally 16

17 Gjensidige Pension og Savings The company is in a start-up phase Underwriting result before tax negative NOK 22,6 million ( NOK -21,2 million) The develpment in costs is as expected 17

18 Gjensidige Bank Business launched on 2 January 2007 Nationwide marketing started in the second quarter Works closely with Sparebanken Sogn og Fjordane Loss before tax of NOK -36,5 million Gross lending totalling NOK million at the end of the quarter Total loans comprised NOK 388 million at the end of the second quarter Sucessful start-up with more than 10,000 customers 18

19 Outlook Poorer underwriting result in second quarter compared with last year due primarily to a higher number of medium-sized and large claims. The loss of the anchor handling vessel the Bourbon Dolphin had a negative impact of over NOK 125 million on the results for the second quarter. It is expected that the large claim situation will normalise in the second half of the year and that the profitability will gradually improve. The investment income will be heavily influenced by the development of the Norwegian and global economy. Sharpened competition for good customers will challenge Gjensidige's position as the market leader low growth in premiums in the Norwegian general insurance market. 19