2020 Presentation 3M2020 Grupo Catalana Occidente Table of - PowerPoint PPT Presentation

2020 Presentation 3M2020 Grupo Catalana Occidente

Table of contents 01 Keys for the period 02 Economic results 3M2020 • Income statement • Capital, investments and solvency 03 Calendar and annexes @gco_news Download our App Presentation based on the report data at 3M2020 published on 30/04/2020 2

Keys for the period 3

01 Key financial figures Economic and sectoral environment impacted by COVID- 19 +11.3% Turnover � 90.2M Attributed result 3M 2020 � 4,207.6M permanent resources at market value Commitment to shareholder. 4th interim dividend 4

01 Global economic environment COVID-19. Strong negative impact of the pace of business activity. Global +3.6% 18 +2.9% 19 +3.3% 20e Eurozone GDP Post COVID-19 update -3.0% 20e +1.9% 18 +1.2% 19 +1.3% 20e GDP Post COVID-19 update -7.5% 20e United States +2.9% 18 +2.3% 19 +2.0% 20e Spain GDP Post COVID-19 update -5.9% 20e +2.4% 18 +2.0% 19 +1.6% 20e GDP Post COVID-19 update -8.0% 20e Latam +1.1% 18 +0.1% 19 +1.6% 20e Emerging economies and GDP in development of Asia Post COVID-19 update -5.2% 20e +6.4% 18 +5.5% 19 +5.8% 20e GDP Post COVID-19 update +1.0% 20e Source: IMF. January 2019 report. Last reviewed April 2020 5

01 Financial markets Less accommodative monetary policy and high market volatility caused by COVID-19. Interest rates 0.7 0.7 -0.5 0.2 -0.1 -0.7 2008 2010 2012 2014 2016 2018 2020 2008 2010 2012 2014 2016 2018 2020 2008 2010 2012 2014 2016 2018 2020 Spain Bond 10 years Spain bond 1 year Germany bond 10 years Germany bond 1 year USA bond 10 years USA bond 1 year Stock Exchange Revaluation 3M2020 S&P -20.0% MSCI World -19.6% Euro Stoxx 50 -25.6% Ibex 35 -28.9% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Source: Bloomberg. Updated April 2020 6

01 Spanish Insurance Sector Maintains growth in non-life and remains under pressure in life savings Insurance sector premiums ( � million) Insurance sector technical result ( � million) 64,282 64,155 55,777 5,578 5,098 -0.4% +1.3% -2.8% -0.7% 2.1% 12.2% -0.7% 2013 2014 2015 2016 2017 2018 2019 2013 2014 2015 2016 2018 2019 2017 Employees % solvency II ratio Stability in results 241% 237% 237% 234% 226% ROE Combined ratio 47,693 46,557 13.5% 92.0% Motor 94.8% Multi-risk 94.0% Health 94.6% 2012 2013 2014 2015 2016 2015 2016 2017 2018 2019 2017 2018 Insurance sector premiums 3M2020: -6.8% Life -18.5% Non life +2.4% +6.1% +4.6% +4.8% +0.9% -0.4% -24.3% Risk Savings Motor Health Multi-risk Others Source: ICEA April 2020 7

01 Key financial figures Economic and sectoral environment impacted by COVID- 19 +11.3% Turnover � 90.2 M Attributed result 3M 2020 � 4,207.6M permanent resources at market value Commitment to shareholder. 4th interim dividend 8

01 Grupo Catalana Occidente at 3M2020 (figures in � million) % Chg. Income 3M2019 3M2020 19-20 Traditional business 742.1 875.7 18.0% Recurring premiums 648.9 789.6 21.7% Single premiums life 93.2 86.1 -7.6% +2.1% Credit insurance business 592.8 610.5 3.0% Pro forma increase Turnover 1,334.9 1,486.1 11.3% (figures in � million) Results % Chg. 3M2019 3M2020 19-20 Recurring Results Traditional Business 51.4 55.4 7.8% Recurring Results from Credit Insurance Business 62.8 48.3 -23.1% � 90.2 Non-Recurring Result -5.2 -6 15.4% -10.4% Consolidated result 97.7 109.1 million Attributed Result 90.2 -8.3% 98.3 Attributed result 9

01 GCO: Actions during the COVID-19 crisis Employee protection and operational support. • Ensure employee protection and continuity of work. Telework for all our employees. • Operational continuity in extreme conditions. • Maintenance of customer service. • Proactive in our relationship with the customer through telematic means. • Continuity in customer service for expert reports, repairs, agency offices, … • • Measures aimed at traditional business. Flexibility in payment of receipts, instalments and deferment. • Adaptation of prices according to the circumstances of the risk and the customer. • 24 hour medical guidance for ALL our customers. • • Measures aimed at the credit insurance business. Flexibility in payment of receipts, instalments and deferment. • Flexibility in the period of declaration of non-payment, extending it by 30 days. • Discussions with the different governments to support commercial activity through credit insurance. • • Measures to support society Participation with UNESPA in a fund to protect healthcare professionals facing COVID-19. • The Jesús Serra Foundation collaborates with Save the Children and supports the CSIC for research in a future • vaccine. Creation of an innovation programme to overcome the health challenges involved: Beat the Vid. • The Group supports more than 20,000 suppliers affected by COVID-19 through interest-free advances. • 10

01 Diversification Grupo Catalana Occidente 12M2019 Balanced portfolio, complete offer Traditional business 57.4% Credit insurance 42.6% Life 21.6% Other 6.9% Motor 14.5% Multi-risk 14.5% Credit insurance 3..4% Information services 3,0% Surety insurance 3.0% Inward reinsurance 3.2% 31.8% retained business _____________________ 11

01 Global presence In over 50 countries Western Southern Central and Europe Europe 3,1% Asia and rest Northern 16,2% of the world … Europe 8,5% America 2,4% Spain More than 1,600 offices 67,1% Through 17,300 intermediaries Over 7,400 employees 12

01 Key financial figures Economic and sectoral environment impacted by COVID- 19 +11.3% Turnover � 90.2M Attributed result 3M 2020 � 4,207.6M permanent resources at market value Commitment to shareholder. 4th interim dividend 13

01 Evolution of the share price Grupo Catalana Occidente’s shares close the first quarter of 2020 at � 18.4/share 36.9 32.6 31.2 32.0 31.1 24.0 27.5 22.9 26.0 14.7 15.7 18.4 14.5 12.9 12.3 13.8 8.8 4.9 3.9 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 TACC Profitability (YTD) 3M2019 3M2020 2002 - 3M20 GCO -2.45% -40.87% 9.84% Ibex 35 8.20% -28.94% 0.68% EuroStoxx Insurance 12.13% -35.81% 1.61% * Annual Compound Growth Rate 14

01 Commitment to our shareholder. Commitment to shareholder. 4th interim dividend 3.22 2.93 2.73 2.46 2.23 2.02 1.84 1.75 1.67 1.51 0.87 0.84 60% 34% 33% 28% 34% 28% 31% 30% 32% 25% 29% 0.57 0.52 0.51 0.51 0.82 0.57 0.72 0.78 21% 0.59 0.67 0.63 0.68 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Dividend per share Profit per share Pay-out Oct 2019 Feb 2020 May 2020 Total of dividends for 2019 July 2019 � 19.06 million � 19.06 million � 24.34 million � 81.5 million � 19.06 million 15

Information 3M2020 16

Income statement Traditional business Credit insurance business Capital, investments and solvency 17

02 Traditional business +21.7% � 789.5 million +8.0% � 59.2 million +7.8% � 55.4 million Recurring premiums Technical result Recurring result Traditional business distribution Life-Single 9.8% Multi-risk 21.8% Funerals 4.4% Health 13.8% Motor 22.2% Life-Periodic 17.1% Others 10.9% Combined ratio Traditional commissions 29,4% Business + expenses (-0,4 p.p.) 89,2 % Technical 59,8% cost (0,0p.p.) (-0,4 p.p.) 18

02 Traditional business. Multi-risk Written Combined ratio premiums 90.5% +4.3% (figures in � million) 3M2019 3M2020 % Chg. Multi-risk 12M2019 19-20 Written premiums 183.2 191.1 4.3% 661.6 1.4 % Technical cost 55.7% 57.1% 55.3% 0.3 % Commissions 20.8% 21.1% 20.9% -0.7 % Expenses 13.0% 12.3% 13.3% 1.0 % Combined ratio 89.5% 90.5% 89.5% Technical result after expenses 16.8 15.7 -6.5% 68.6 % on earned premiums 10.5% 9.5% 10.5% Earned premiums 160.1 166.1 3.7% 653.3 19

02 Traditional business. Motor Written Combined ratio premiums 91.2% +2.6% (figures in � million) 3M2019 3M2020 % Chg. Motor 12M2019 19-20 Written premiums 189.1 194.0 2.6% 657.3 -1.5 % Technical cost 69.2% 67.7% 70.0% 0.0 % Commissions 11.1% 11.1% 11.1% -0.3 % Expenses 12.7% 12.4% 12.9% -1.8 % Combined ratio 93.0% 91.2% 94.0% Technical result after expenses 11.4 14.5 27.2% 39.6 % on earned premiums 7.1% 8.9% 6.0% Earned premiums 160.3 163.6 2.1% 655.2 20

02 Traditional business. Others Written premiums Combined ratio 82.5% +3.3% (figures in � million) 3M2019 3M2020 % Chg. Others 12M2019 19-20 Written premiums 92.2 95.3 3.3% 311.7 0.3 % Technical cost 48.7% 49.0% 50.1% -1.2 % Commissions 21.1% 19.9% 20.1% 0.6 % Expenses 13.0% 13.6% 14.3% % Combined ratio 82.8% 82.5% -0.3 84.6% Technical result after expenses 13.3 13.7 3.0% 48.0 % on earned premiums 17.3% 17.5% 15.4% Earned premiums 77.0 78.2 1.6% 311.8 21