Gjensidige Bank ASA. Presentation. Bergen, 23. April 2008 Oslo, 24 April 2008

Transcription

1 Gjensidige Bank ASA Presentation Bergen, 23. April 2008 Oslo, 24 April 2008

2 Presentation team Tor Magne Lønnum Chairman of the Board Experience: Gjensidige Forsikring SKIPPER Electronics AS Samarbeidende Revisorer AS KPMG AS Gjensidige NOR Forsikring Education: Norwegian School of Management Norwegian School of Economics Jan Kaare Hellevang CEO Experience: Gjensidige Forsikring Education: SkandiaBanken AB, NUF SkandiaBanken Bilfinans AS SkandiaBanken Merkefinans AS Vesta Forsikring/Vesta Finans Norwegian School of Management (BI) Bachelor of management, Masterprogram Strategic Management, Project leadership 2 Frank-Rune Ås Sparebanken Sogn og Fjordane CFO Experience: Lorenzen Lysaker Group Education: Norw. State s Institute of Technology Diary of Sogn og Fjordane Sparebanken Sogn og Fjordane Norwegian School of Management (BI), siv. øk. Norwegian School of Management, Masterprogram Investment and Finance

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

4 Gjensidige Forsikring In brief General Insurance Norway Gross Written Premium ( GWP ) of NOK 12,987 mill (NOK 13,375 mill incl. Norwegian municipal portfolio) (85.3 per cent of Group) in Staff of 2,033 (31 December ) Market shares (Q4 ) 1) : Total 31.0% Private 30.4% Of which Agriculture 74.1% Commercial 32.7% Group Life (2006) 33.7% Marine (2006) 22.4% Customers (Q4 ) Total number of customers 1,051, ,000 customers in private and agricultural markets 70% of private/agricultural customers are members of loyalty or affinity programs, generating 88% of written premium 8% churn rate 2) for loyalty/ affinity customers (13% for all customers, 24% in the mass market) International International operations include: Tennant (Norway and Sweden) Fair and KommuneForsikring (Denmark) Gjensidige Baltic (formerly Parekss) and its agents (the Baltics) GWP of NOK 2,243 mill (14.7%) in Staff of 640 (31 December ) Other Business Units Other operations include Gjensidige Pension and Savings, Gjensidige Bank and Help24 that operate in Norway Staff of around 787 (31 December ) 1) The Norwegian Financial Services Association ( FNH ), general insurance per 31-Dec-. Segments are based on company definitions, but drawn directly from FNH report. Marine numbers are from CFOR 2) Monthly churn rate consists of persons who were customers previous month, but with no insurance policy next month, divided on total amount of customers previous month. Yearly churn rate is computed by adding up the last twelve monthly churn rates. This definition applies throughout this presentation 4

5 Gjensidige Forsikring Leading position strong brand Market Share Private Of which: Agriculture Market Share Commercial 30,4 % 28,3 % 74,1 % 32,7 % 33,3 % 18,1 % 12,7 % 18,2 % 16,5 % 7,3 % 4,4 % Gjensidige If Vesta Sparebank1 Gjensidige If Terra Gjensidige If Vesta Sparebank1 Norwegian Market Share Development since 2002 Market Share Private Market Share Commercial 35 % 35 % 30 % 30 % 25 % 25 % 20 % 20 % 15 % % Gjensidige If Vesta Sparebank1 Gjensidige If Vesta Sparebank1 Source: 5 FNH, general insurance. The definition of Private and Commercial is adjusted to reflect Gjensidige s business model

6 Gjensidige Forsikring Strong financial position NOK mill 2006 Equity (NOK mill) 20,303 19,017 Gross written premium 15,727 13,787 Claims ratio gen. ins. 78.6% 75.9% Cost ratio gen. ins. 17.5% 18.9% 2006 UW result gen. insurance Pre-tax Return on Equity (%) Net financial income 2,820 3, Profit after tax 2,479 4,092 Rating (S&P) Single A Single A

7 The Gjensidige Group Gjensidige Group General Insurance Norway General Insurance Other Nordic¹) General Insurance Baltics Gjensidige Pension and Savings Gjensidige Bank Health Services (Help24 and Other) Commercial Private Commercial Private Private Commercial /Municipal 7,911² ) 5,455² ) 1,810² ) 433² ) New business areas 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 1) Sweden and Denmark 2) GWP in NOK millions, 7

8 Gjensidige Forsikring Expansion Strategy Rationale: Broaden product offering to leverage brand and customer base Geographical expansion RESO (Baltics) Tennant (Sweden) Parekss (Baltics) Gjensidige in Denmark Regulatory approval pending August September 2006 March 2006 acquisition of Fair January acquisition of KommuneForsikring Grow and diversify the Group through Nordic/Baltic platform Norwegian General Help24 Gjensidige Pension and Savings Gjensidige Bank September 2004 January 2006 January Broadened product range 8

9 Gjensidige Forsikring Broadened product range - banking Represents the entry to the retail banking sector Strategic Rationale 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 9

10 Gjensidige Bank Strategy Strategy Challenge the major, established, players by offering A broad range of products Low prices combined with aggressive marketing Differentiate itself from the established banks through the Gjensidige Brand Distribution capacity Free banking model and competitive prices Access to low-cost funding sources Target existing Gjensidige customer relations Large and loyal client base Bundled with other Gjensidige products in Gjensidige loyalty and affinity programs Retain agile organisation Leverage the infrastructure of an existing player to achieve low cost back office and thus more efficient start up Easy access through and supported by a dedicated call centre 10

11 Gjensidige Bank Concept Gjensidige establishes 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 2 jan 11 jan 12 jan 31jan 1 feb 6 feb 20 feb 15 may- 8 jun 15jul-15aug 29oct 1dec 15 dec 1 jan Launch for the bank employees and for Tekna Launch for other employees in Gjensidige Launch for YS Nationwide launch Summer campaign Autumn campaign Launch for NITO 1,000 customers 3,000 customers Launch of advantage program 9,000 customers Launch of sales through Gjensidige branches 18,000 customers 22,000 customers 2,000 customers 4,000 customers 13,000 customers 20,000 customers Awareness 10% Awareness 12.6% Awareness 14.6% 12

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

14 Gjensidige Bank Performance key figures Loans (NOK mill) Deposits (NOK mill) 3,381 1,701 1, ,033 2, Q 3M 6M 9M 12M 4Q 3M 6M 9M 12M Deposit Ratio (%) Customer Development ,996 22,244 10,466 6,248 5,398 4Q 3M 6M 9M 12M 4Q 3M 6M 9M 12M 14 Status as of 19 March 2008 Loans NOK 4,450 mill Deposits NOK 3,101 mill Deposits ratio 69.7 per cent Customers 29,287

15 Gjensidige Bank Goals & Targets It is expected that the bank will initially be loss-making as it achieves scale results in 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 In 2008 Gjensidige is targeting a quarterly run rate for customer addition between 5,000 and 6,000 Growth in customer base 3Q: 5,530 customers Growth in customer base 4Q: 6,248 customers 1 1 Targets Gjensidige Bank have earlier communicated that the bank should have a capital adequacy ratio of around 16 %, which is high compared to statutory provisions of 8 %. By the end of the bank had a capital adequacy ratio of 20.8%. In the future the bank will put more emphasis on risk profile and growth plans when deciding on level of capital adequacy ratio, but the bank still intends to have a good margin compared to statutory provisions. 1. Customers or persons registered as interested in becoming customers 15

16 Gjensidige Bank Outlook The bank s adopted strategy will continue and will be developed during the coming year. There will be a special focus on product development and the improvement of customer processes to remain competitive. Efforts to adapt the bank to the new capital adequacy requirements (Basel II) and enhancement of the efficiency of internal processes will continue. In the bank decided to start a pilot project in financial distribution to evaluate different service models that can improve the efficiency of the Group s distribution system. This work will continue in Recruitment of new employees in step with the bank s growth and development will also be a priority area in

17 VI. Q&A

18 VI. Appendices

19 Organisation CEO Jan Kaare Hellevang BUSINESS- SUPPORT PRODUCT CREDIT SALES AND MARKETING BUSINESS- DEVELOPMENT (5 FTE) (1 FTE) (17 FTE) (13 FTE) (4 FTE) Jan Kåre Raae Atle Kristian Hornnes Gunnar Klakegg Synnøve M Ø Iversen Frode Schanke 19

20 Board of Directors cv Tor Magne Lønnum Trond Rino Delbekk Chairman of the Board Board member (Nestleder) Gjensidige Forsikring, SKIPPER Electronics AS, Samarbeidende Revisorer AS, KPMG AS, Gjensidige NOR Insurance. Norwegian School of Management, Norwegian School of Economics Nordea, Sparebanken NOR Bachelor of economics, Master`s degree from the Norwegian School of Management Ingun Ranneberg- Nilsen Arvid Andenæs Board member Board member Gjensidige Forsikring Sparebanken NOR ASM AS Handelsøkonom (BI) Management program (Dialog markedsføring, Elektronisk handel) Master of Technology, MBA Sparebanken Sogn og Fjordane, Fokus Bank, KPMG Consulting, Sparebanken Nord Norge Siviløkonom, Norwegian School of Management (BI), Master of Management 20

21 Board of Directors CV Roger Nedrebø Marianne B. Einarsen Board member (Employee representative) Sparebanken Sogn og Fjordane Diplomøkonom BI Board member NSB, Personmarked DnB NOR, Sparebanken NOR, Storebrand, UNI Forsikring Master of Mangement (BI), Diplommarkedsøkonomi BI/NMH, DH-kandidat Agder Distriktshøgskole 21

22 Management CV Jan Kaare Hellevang Synnøve M. Iversen CEO Manager of marketing and sales Gjensidige Forsikring, SkandiaBanken AB, NUF Skandiabanken Bilfinans AS, SkadiaBanken Merkefinans AS, Vesta Forsikring/Vesta Finans Bachelor Norwegian School of Management (BI), Masterprogram Strategic management, Project leadership Orkla Foods - Stabburet Naustdal Kommune Master of marketing management Handelshøyskolen BI-NMH Frode Schanke Jan Kåre Raae Manager of business Development Accenture Manager business support Høyskolen i Sogn og Fjordane, Deloitte AS, Odda Smelteverk AS Bachelor of Commerce (Siviløkonom) The Norwegian School of Economics and Business Administration (NHH) Master program Agder University College 22

23 Management CV Gunnar Klakegg Atle Kristian Hornnes Manager Credit Product Manager DnB NOR Norsk Havfisk AS Klakegg Eiendom AS Cubus Diplomøkonom, BI Fjaler Sparebank, Dale of Norway, Kaizen AS Bachelor of Commerce (Siviløkonom) The Norwegian School of Economics and Business Administration (NHH) 23