IF P&C Sampo Capital Market Day
Ricard Wennerklint, Deputy CEO of If P&CLondon, 11 September 2015
DIGITALISATION
DESIGN OVERHAUL AND RESPONSIVE SITESAll policies available online
CUSTOMER CENTRIC WEBSHOPS INCREASE ONLINE SALES
WE MEET THE CUSTOMER IN THE CHANNEL OF THEIR CHOICE
NUMBER OF CONTACTSPER CHANNEL
SHARE OF VISITS TO IF.SE FROM MOBILE DEVICES
0%
5%
10%
15%
20%
25%
30%
35%
40%
Q1 2
01
1
Q2 2
01
1
Q3 2
01
1
Q4 2
01
1
Q1 2
01
2
Q2 2
01
2
Q3 2
01
2
Q4 2
01
2
Q1 2
01
3
Q2 2
01
3
Q3 2
01
3
Q4 2
01
3
Q1 2
01
4
Q2 2
01
4
Q3 2
01
4
Q4 2
01
4
Q1 2
01
5
-
2
4
6
8
10
12
14
16
2009 2010 2011 2012 2013 2014
Mill
ion
s
Inbound calls Visits to if.xx
DIGITAL CUSTOMER JOURNEY
SERVICE
CLAIMS
SALES
25% eCustomers
Customers withdigital payment and digital policy letters on all their policies
23% increase in online sales(last 6 months)
40% of claims arereported online
INTERNET IS THE FASTEST GROWING DISTRIBUTION CHANNELBA Private
NORDIC ONLINE SALES, PREMIUM ONLINE SALES BY COUNTRY 6M-15, PREMIUM
2012 2013 2014
Sweden
38%
Finland
26%
Norway
19%
Denmark
17%
Sweden
38%
Finland
22%
Norway
32%
Denmark
8%
TOTAL PREMIUM BY COUNTRY 6M-15
EFFICIENCY THROUGH ONLINE CLAIM REPORTS
29%33% 34% 35%
40%
2011 2012 2013 2014 6M 2015
62%
33%28% 27%
Finland Denmark Norway Sweden
NORDIC SHARE OF ONLINE CLAIMS ONLINE CLAIMS BY COUNTRY 6M-15
SIGNIFICANT INVESTMENT IN ONLINE SOLUTIONS
ONLINE INVESTMENTS AS % OF TOTAL IT DEVELOPMENT COST
13%11%
18%
19%
2012 2013 2014 6M 2015
13%11%
18%19%
2012 2013 2014 6M 2015
Online investments - share of IT development cost
SOLVENCY
SOLVENCY II DELIVERIES
2016
1 Jan 2016: Solvency II comes into effect
201520142011 - 2013
Preparatory SII reporting delivered according to plan
Internal model pre application processApplication
process
First ORSA
Full SII reports
Own Risk and Solvency Reports (ORSA-reports)
IF CAPITAL AND CAPITAL REQUIREMENT Q2 2015
1 9391 779
2 267
3 063
3 8003 965
3 806 3 866
0
1 000
2 000
3 000
4 000
Capital requirement
Capital
MEUR
Economic Capital and Adjusted
Solvency Capital
Partial Internal Model Solvency
Capital Requirement and
Eligible Own Funds
Standard formula Solvency
Capital Requirement and
Eligible Own Funds
Rating S&P (A-rating level)
223% 168%196% 126%
STILL UNCERTAINTY AROUND SOLVENCY II
Element Solvency Capital Requirement
Internal model regulatory approval Increased Solvency Capital Requirement through capital add on or use of standard
formula
Risk reducing effect of deferred tax MEUR 160
Element Eligible Own Funds
Norwegian natural perils fund MEUR 328
Norwegian tax on Solvency II valuation of technical provisions
Increased tax paid. Impact depends on overall tax position and tax mitigating tools
These open questions are expected to be clarified during 2015 or beginning of 2016 at the latest
IF PARTIAL INTERNAL MODEL SOLVENCY CAPITAL REQUIREMENT PER RISK Q2 2015
575
1 416220
215
607
120 1 939
160
1 779
3 965
0
1 000
2 000
3 000
4 000
MEUR
223% 224% 222%228%
218% 218%228%
213%220% 215%
0%
50%
100%
150%
200%
250%
SOLVENCY II STRESS TESTS
+10% -10% +25 bps -25 bps +50 bps -50 bps
IF RATING CAPITAL REQUIREMENT Q2 2015High liability risk charges and low diversification benefits in S&P model
1 636
1 882
3 063
2 382
3 314
3 866
257198
0
1 000
2 000
3 000
4 000
MEUR
Asset risks Liability risks
Diversification M-factor adjustment
Total A capital charge
Total BBB capital charge
Total AA capital charge
S&P capital base
IF S&P RATING – DETAILED VIEW
Assessment
Overall rating A with stable outlook
Business Risk Strong
Financial Risk Strong
Anchor a
Enterprise Risk Management and Management and Governance
a+
Group support a
THANKS FOR LISTENING
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