1 / 57

Ras Group 1st Half 2005 Results

Ras Group 1st Half 2005 Results. September 12th, 2005. CEO Paolo Vagnone. Agenda. Group. IAS-IFRS First-Time Adoption 1st half results 2005 Life business P+C business RasBank FAs Capital Allocation Conclusions. Preliminary achievements. Group.

marc
Télécharger la présentation

Ras Group 1st Half 2005 Results

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Ras Group 1st Half 2005 Results September 12th, 2005 CEO Paolo Vagnone

  2. Agenda Group • IAS-IFRS First-Time Adoption • 1st half results 2005 • Life business • P+C business • RasBank FAs • Capital Allocation • Conclusions

  3. Preliminary achievements Group • An effective organisation, with top managers witha long-standing presence in Rasimmediately appointed in all key areas • Relationship with Unicredit reviewed and strengthened: • New P+C products to be launched • Fees no longer based on net inflows but on reserves • Renewed commitment to the proprietary distribution channels • Stabilised RasBank network

  4. The new organisation structure Italy New functions New appointments CEO Vagnone Communication & Imaging Vago Group Marketing Verderosa Other companies Strategic Planning Petrucci Ras Service (Claims) Riches Scarfò Vagnone Santoliquido Distribution Channels PFS and Finance Insurance business Allianz subalpina Ras Asset Mgmt P+C retail clients Agents Santoliquido Group Fin. Investment Life business Genialloyd P+C Corporate clients Santoliquido RasBank FAs IT services Bancass. Scarfo’ Top Managers with a long-standing presence in Ras in charge of Key areas

  5. IAS-IFRS First-Time Adoption

  6. IAS-IFRS First-Time Adoption Group As from 1H05 Ras is the first Italian insurance company to adopt the IAS-IFRS international accounting standards FY04 are the set of figures used for first-time adoption 1H05 results are already fully IAS-IFRS compliant and are compared with restated 1H04 As expected, no major changes in operations or net profit

  7. Impact of IAS-IFRS adoption Group Mln Euro - 31/12/2004 +23.7% 8,834 8,834 +2.5% 4,715 5,355 6,623 691 708 4,119 Italian GAAP IFRS Italian GAAP IFRS Italian GAAP IFRS Net Profit Shareholders’ Equity Life Premiums • Marginal effect on Net Profit • Increase in Shareholders’ Equity due to recognition of financial assets at fair value, with greater volatility likely in the future • Change in representation of the headline with new classification criteria for Life Premiums GPW Investment Contracts accounted for in accordance with IAS 39

  8. Reconciliation of Shareholders’ Equity at 31 Dec. 2004 Group Mln euro FINANCIAL ASSETS 2,362 - 1,105 77 -81 - 121 5,219* 270 - 197 4,014* Italian GAAP Shadow accounting Equalisation reserves Others IAS Fair Value Deferred taxes on Securities Deferred Assets & Liabilities Deferred taxes * Group Shareholders’ Equity, without net profit

  9. Reconciliation Net Profit at 31/12/2004 Group Mln euro 42 -73 708 28 33 -14 26 691 -25 Italian GAAP Deferred Assets & Liabilities Shadow Accounting IAS Others Financial Assets Reversal Provision To Eq. reserve Reversal goodwill amortisation Deferred tax

  10. 1st Half Results 2005

  11. Ras 1st half results Group Top line growth +5.4% to 8,889 million Euro, in line with 3 Year Plan Strong growth in Italian Life business (+13.7%) through agents and bancassurance channels, leveraging on the multichannel business model P+C profitability driven by good performance in Italy, with non-motor lines leading growth In PFS, 9% growth in Assets Under Administration to 21.5 billion Euro

  12. Gross premiums written Group Mln euro - Direct and Indirect Business Life GPW + Inv. Contracts YoY growth P+C GPW YoY growth + 7.6% + 3.0% 4,789 4,100 4,451 3,982 2,135 2,050 2,654 2,401 1H04 1H05 1H04 1H05 IT GAAP IAS - IFRS GWP Investment Contracts

  13. Net income growth Group Mln euro FY net income YoY growth +18 % 475 402 390 1H04 1H05 IT GAAP IAS IFRS IAS - IFRS

  14. Statutory results IAS/IFRS Group Mln euro 1H 04 1H 05 YoY Net Premiums and management fees + 4.6% 5,497 5,257 Claims & Change in Technical Reserves - 4,843 - 4,506 +7.5% Operating expenses - 1,013 - 1,067 +5.3% +23.0% Net financial income 939 1,155 Other Income & Charges - 53 23 Earnings before taxes & minorities 624 765 + 22.6% Taxes and minorities - 222 - 290 Net Income 402 475 + 18.1%

  15. Life Business development

  16. Life 1H05 results Group Strong domestic growth (+13.7%), taking total gross premiums written to 4.8 billion Euro Continuous agency up-grading, with a sizeable increase in new business premiums (+38%) Important quality improvement in bancassurance thanks to product innovations and solid increase in recurrent premiums (+21%)

  17. Life GPW Group Mln euro Life GPW + Inv. Contracts YoY growth + 7.6 % Mln euro YoY growth (2) 4,789(1) 692 - 1.6% Switzerland 4,451 - 10.1% 1,018 - 4.5% 169 1,133 Abroad Austria 120 - 37.2%(3) Spain +13.7% 3,771 3,318 Italy 36 - 3.5% Portugal 1H04 1H05 (1) Of which 2,634 million Euro of investment contracts in Italy and 20 million Euro abroad (2) On like-for-like basis (3) In 1H04, Spain recorded a one-off single premium of 163 million Euro relating to the outsourcing of the Banco Popular Espanol pension fund

  18. Life new business volumes Italy Mln euro Ras Agents YoY growth RasBank FAs YoY growth Ras Bancass. YoY growth +38% 0% +10% 2,443 2,227 356 209 209 258 1H04 1H05 1H04 1H05 1H04 1H05 (1) (1) (1) -24% Mkt growth +25% +28% Mkt growth Mkt growth (1) Mkt data source: Ania statistics as of June 2005, Bancassurance includes Postevita

  19. Agents: new business premiums Italy Mln euro - Individual business Life NB Premiums +38% +53% 155 356 101 Top Agencies (25% of total agencies) (1) +10% 64 258 58 Recurrent Premium 292 +7% +47% Of which Recurrent +12% 199 Single Premium 69 High potential (30% of total agencies) (1) 64 1H04 1H05 Mkt share (2) 1H04 1H05 7.3% 7.9% (1) Ras spa - 841 agencies, (2) on Agency new production, source ANIA June 2005, excl. Index

  20. Bancassurance: new business premiums Italy Mln euro - Individual business – gross of minorities Life NB Premiums +10% Launch of new products with higher protection content for the client and larger insurance component ... 2,443 +21% 2,227 88 Recurrent Premium 73 2,355 … recurrent premiums combining Life coverage and innovative P+C products +9% 2,154 Single Premium 1H04 1H05

  21. P+C Business development

  22. P+C 1H05 results Group Group combined ratio at 97.6%, on track with 3 Year Plan target Italian premiums growth sustained by non- motor segment (+6.9%), thanks to new product offer targeting retail and SME segments Technical improvement of Italian Motor business sustained by declining number of claims (-1.8%)

  23. Total P+C GPW Group Mln euro - direct + indirect business Focus by country P+C GPW YoY growth +3.0% YoY growth GPW 4,100 949 +2.2% 3,982 Switzerland 2,184 +2.4% Other countries 2,133 563 +0.6% Austria 510 +5.8% Spain 1,916 Italy 1,849 +3.6% 162 - Portugal 1H04 1H05

  24. Technical development Group Group Consolidated Combined ratio (1) Focus by Country - % 1H05 FY04 IAS - IFRS IAS - IFRS 97.9% 98.3 97.5 Italy 97.6% 100.2 101.7 Switzerland 98.6 98.5 Austria 91.6 91.7 Spain FY04 1H05 IAS - IFRS (1) Net of reinsurance business, including “other technical items”, calculated on Net Earned premiums

  25. Total P+C GPW Italy Mln euro - direct business P+C GPW YoY growth Focus by LoB - % +3.8% 1H05 FY04 IAS - IFRS 1,907 IAS - IFRS 1,837 +2.2% 1,242 Total 98.3 97.5 1,215 Motor 96.6 97.0 Motor 665 +6.9% Non-Motor 622 98.4 Non Motor 99.9 1H04 1H05

  26. Motor business development Italy Number of claims reported /000 1st Half development • Decline in number of claims reported (-1.8%) • Increase in number of policies (+2.4%) thanks to the positive contribution of the direct channel (+11.3%) • Motor other damage portfolio growth (+8.2%) driven by the contribution of the agent channel (+6.2%) 250.1 240.7 236.3 June’03 June’04 June’05

  27. Genialloyd Italy Mln euro - Direct Business GPW YoY growth Technical results +10% 1H04 1H05 Number of contracts 394,920 442,295 118 107 Combined ratio 100.3% 93.2% Expense ratio 20.1% 17.0% 1H04 1H05

  28. RasBank FAs performance

  29. RasBank 1H05 results Italy Slight decrease in net inflows (-3%) as a result of slower performance towards the end of the period Continued growth in Assets Under Administration, with FAs exits limited to marginal portfolios Recovery of +12% in Life new business for the year to August (stable in June yoy, counter to the market trend)

  30. RasBank FAs performance Italy Mln euro Assets under administration Net Inflows and Life New business (1) - 3% +9% 21,529 405 393 19,800 4,599 Life New business 16,930 209 209 4,280 3,010 15,520 196 184 2,333 139 288 Banking 259 13,920 13,187 57 Asset Mgmt (104) 1H04 1H05 1H04 1H05 (1) Net Inflows: Assets under Management and banking assets

  31. RasBank FAs: new business premiums Italy Mln euro - Individual business Life NB Premium YoY growth (Aug.‘05) Life NB Premiums YoY growth +0% +12% 274 209 209 245 31 -19% -6% 23 28 33 Recurrent Premium Single Premium 181 212 186 243 +3% +14.6% 1H04 1H05 08/04 08/05 Mkt share (1) 14.0% 17.3% (1) on Agency new production, source ANIA June 2005, excl. Index

  32. FAs exits on marginal portfolios Italy Mln euro - data as of June 2005 Mix of FAs out AUM retention(1) # of FAs out # of FAs FAs profile AUM per FAs Of which Ex BNLI > 10 mln 335 2.4% 98.1% 4 2 5-10 mln 425 8.8% 98.8% 15 6 2-5 mln 660 21.9% 99.2% 37 21 0-2 mln 1,368 66.9% 99.0% 113 33 100% 99.2% 2,788 169 Total 62 (1) Retention based on AUM at year end

  33. Capital Allocation

  34. Capital allocation Group Capital position remains solid, with expected absorption by business growth both in Life and P+C Increase in Financial risk capital due to higher equity exposure Capital absorption from increased volatility in strategic investment

  35. Capital Requirement Group Mln euro FY04 1H05 3,625 185 189 PFS 3,441 1,104 Life 706 771 Other Countries 1,051 P+C 1,340 1,396 2,516 Strategic Invest. 653 735 2,390 Italy (494) (576) Diversif. 2,390 2,516 TOTAL 1H05 FY04

  36. Conclusions

  37. Conclusions Group • Sound business performance in 1H05, confirming that shaped strategy leads to value creation • Strong and motivated management team already in place, ensuring execution • Encouraging achievements in recent months Enhanced our commitment to achieve our business plan targets

  38. Cautionary Note Regarding Forward-Looking Statements Certain of the statements contained herein may be statements of future expectations and other forward-looking statements that are based on management’s current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. In addition to statements which are forward-looking by reason of context, the words “may, will, should, expects, plans, intends, anticipates, believes, estimates, predicts, potential, or continue” and similar expressions identify forward-looking statements. Actual results, performance or events may differ materially from those in such statements due to, without limitation, (i) general economic conditions, including in particular economic conditions in RAS Spa’s core business and core markets, (ii) performance of financial markets, including emerging markets, (iii) the frequency and severity of insured loss events, (iv) mortality and morbidity levels and trends, (v) persistency levels, (vi) interest rate levels, (vii) currency exchange rates including the Euro - U.S. dollar exchange rate, (viii) changing levels of competition, (ix) changes in law and regulations, including monetary convergence and the European Monetary Union, (x) changing in the policies of central banks and/or global basis. The matters discussed in this release may also involve risks and uncertainties described from time to time in Allianz’s filings with the U.S. Securities and Exchange Commission Allianz assumes no obligation to update any forward-looking information contained in this release.

  39. IAS/IFRSFirst-Time Adoption Milan, September12th , 2005

  40. Agenda Introduction Impact on the Balance Sheet Impact on Profit and Loss Conclusion Appendix

  41. Introduction

  42. Group IAS-IFRS implementation Adoption phases At 12 September • Shareholders’ Equity & Net profit reconciliation • FY04 Balance Sheet & P&L based on IAS-IFRS principles • 1H05 results fully IAS-IFRS compliant • Restatement of 1H04 Italian GAAP release From 1998 2003 2003-2005 • Early adopter of IAS principles in accordance with Allianz Group • Formation of IAS-IFRS taskforce • Proactive involvement in ongoing industry discussions FY05 results fully compliant, with complete comparability

  43. Impact of IAS-IFRS adoption Group Mln Euro - 31/12/2004 +23.7% 8,834 8,834 +2.5% 4,715 5,355 6,623 691 708 4,119 Italian GAAP IFRS Italian GAAP IFRS Italian GAAP IFRS Net Profit Shareholders’ Equity Life Premiums • Marginal effect on Net Profit • Increase in Shareholders’ Equity due to recognition of financial assets at fair value, with greater volatility likely in the future • Change in representation of the headline with new classification criteria for Life Premiums GPW Investment Contracts accounted for in accordance with IAS 39

  44. Premiums: Ras approach - IFRS 4 Group Mln Euro - 31/12/2004 IAS reclassified amount Italian GAAP IAS IFRS P&C Premiums Premiums Premiums 7,298 Life Premiums • Traditional Life policies 4,014 Premiums Premiums 105 Premiums • Unit-linked policies Premiums Investment contracts 4,715 Transparency Rigorous approach consistent with international benchmarks

  45. Segment reporting - IAS 14 Group Mln euro - 31/12/2004 Consolidation adjustment LIFE P&C PFS Total Balance Sheet Assets 52,466 18,775 4,358 -1,977 73,622 Liabilities 49,295 14,025 4,047 - 369 66,999 Shareholders’ Equity 3,171 4,750 311 -1,608 6,623 P&L Account Net Profit 338 471 13 -114 708 Under Italian GAAP consolidated with the equity method, now line by line

  46. Impact on the Balance Sheet

  47. Balance sheet Group Mln euro - 31/12/2004 MAIN IMPACTS Italian GAAP ASSETS IAS Switch to measurement at fair value and change in consolidation practice Invested Assets 60,742 64,482 DAC 297 655 Other Intangibles 531 584 Marginal net impact on Assets-Liabilities Other Assets 6,574 7,901 Total assets 68,144 73,622 Italian GAAP LIABILITIES IAS Mainly reflects measurement of invested assets at fair value Shareholders’ Eq. 5,355 6,623 DFI (1) - 276 Tec. Reserves 57,014 42,024 Switch of Technical Reserves into Financial Liabilities (for investment contracts) and change in consolidation method Financial Liabilities 2,717 19,541 Other Liabilities 3,058 5,158 Total Liabilities 68,144 73,622 (1)Deferred fee income

  48. Invested Assets -IAS 32 & 39 Group Mln euro - 31/12/2004 1. Financial Assets Area of Impact Significance Item Measurement Amount Financial assets at fair value through P&L Fair value P&L 17,660 Neutral Available for sale Fair value 35,297 Sh. equity High • bonds 89% • equities 11% Held to maturity P&L Amortised cost 1,827 Neutral Loans & receivables P&L Amortised cost 6,733 Neutral 61,518 No impact on P&L Greater volatility of shareholders’ equity due to recognition of Unrealised Gains & Losses

  49. Invested Assets - IAS 16 & 40 Group Mln euro - 31/12/2004 2. Property Area of Impact Significance Item Measurement Amount Balance sheet For investment 2,196 Neutral Deemed cost Balance sheet Own use Deemed cost 556 Neutral 2,752 Marginal impact of deemed cost on first-time application

  50. Technical Reserves and Financial Liabilities - IFRS 4 & IAS 39 Group Mln euro - 31 Dec. 2004 Area of Impact Amount Significance Item Measurement Balance sheet Technical Reserves Cost (1) 42,024 High Financial Liabilities at Fair Value through P&L Balance sheet Fair Value 16,103 High 58,127 Neutral Different presentation and classification, zero net impact on the Balance Sheet (1) Italian Accounting Principles

More Related