Professional Documents
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Suncorp Group Investor Day Presentation ASX - Final
Suncorp Group Investor Day Presentation ASX - Final
28 May 2013
Q&A
Conclusion
Simplification program
4,225
CAGR 8.7%
45,763
CAGR 7.3%
3,563
38,766
642
GI GWP
FY10
FY11
FY12
GI Underlying ITR
NPAT
Additional Simplification benefits Businesses deliver value from points of difference 4Cs drive competitive advantage Meet or beat 12% underlying ITR 10%+ ROE by FY15
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Simplification achievements
Relentless execution
Simplified legal structure
Part 9 Life licence consolidation Single General Insurance licence court approval Moved Suncorp Insurance onto one policy and online system
Simplified platforms
Simplified organisation
$m
150 100 50 0 (50) (100) (150) Revised project costs Original one-off project costs Original Simplification benefits
FY16
Growth
7% to 9% per annum growth across the business lines Leverage the Groups 9 million customers Multi-brand, multi-channel approach Simplification benefits
Pricing
Flat expenses
Competition
New entrants and retailers with strong brands Challenger brands targeting profitable customers
Technology
Changing customer expectations Distribution channels evolving
Improved risk selection and pricing Suncorp leading disaster mitigation conversation
Focus Areas
Further Simplification New sources of value Customers
Manage expenses Manage expenses Maintain margin Maintain margin Retention and and growth Retention growth
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Cost leadership
Margin
Results
Commercial Insurance GWP Growth
6.4%
7.6%
9.7%
13.4%
CTP 36%
SME 30%
Corporate 24%
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Customer segments
Global, Corporate, MidMarket, Market, Small Business, Micro Global, Corporate, Mid Small Business, Micro
Our channels
Broker
Advisor
Direct
Brands
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supported by
will deliver
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Key issues
Industry restructuring Cost and premium escalation Back to the future underwriting changes Government fiscal and monetary policy EQC reform
AA Insurance
Third largest direct brand Personal lines motor and home 18%+ market share of private passenger vehicle market Current market share 5%
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Focus
2013+ New Three Year Plan Clear strategic direction aligned with reshaped insurance market Effective Operating Model Ongoing Simplification Consistent value added via profitable growth
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Agribusiness
How we specifically service the needs of our Agribusiness customers
Commercial Insurance
How the multi-brand, mutil-channel approach targets the needs of the Australian Commercial Insurance market
Suncorp Bank
Our Big bank capability coupled with small bank connection shows why are customers are satisfied
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Suncorp Bank
Core Bank growth opportunities
Current operating environment
Solid outlook for the Australian economy Credit growth below historical averages Low interest rates and fiscal policy should support business investment
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Suncorp Bank
AB&F Australian Financial Institution of the year (non-major) Total customer base of 1,079,000, growth of 20% Complete customer growth of 35% Access to 1,121 more ATMs
Branch, Business Centre and ATM data as at April 2013. Growth from 2009. Customer figures at April 2013. Growth from Jan 2010
Cost
Leveraging the Groups scale and investment in backoffice efficiency
Capital
A+/A1 credit rating provides lower cost debt and hybrid funding
Customer
Improving CRM capability and launching DirectSuper
Culture
Better Way in Bank and more robust risk culture
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Suncorp Bank
Well ahead of the majors in customer satisfaction Customer Advocacy* Retail Customer Satisfaction (%)**
Suncorp Bank Major 1 Major 2 Major 3 Major 4 -15 -10 -5 0 5 10 15 90 85
Up 16 points in 2 years
Up 5% in 2 years
Suncorp Bank
Major 4
Money Magazine
Bank of the Year top of the second-tier and regional banks Gold Award for My Home Package
* Roy Morgan single source Net Promoter Score March 2013 (6mma) ** Roy Morgan single source Retail Satisfaction March 2013 (6mma)
CANSTAR
Five star ratings for business and personal products
Suncorp Bank
Enhance risk management capabilities with Basel II Advanced Accreditation Execute Banking Platform Program Achieve profitable growth Simplification program Enhance sales & service with Better Way program Resolve the Non-core Bank
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Suncorp Life
Superannuation fund and trustee rationalisation Created a single Life company Released over $150 million capital
39
Suncorp Life
Structural challenges, significant opportunities
Double digit system growth Improving economic cycle Industry sustainability Impetus for structural change Fungibility of Group capital Scale benefits on infrastructure 9m Group customers Enabled and engaged people
OPPORTUNITIES
C C C
CHALLENGES
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Sustainable advice
Industry Leadership Create Sustainable Futures High Performance Partnerships
Our how
Customer
Outcomes
@ the Forefront
Cost
Simplified & Scalable
Capital
Double Digit RoCET1
Culture
Engaged & Enabled
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COST
Simplification benefits
CAPITAL
Improved risk systems
Culture
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$m
150 100 50 0 (50) (100) (150) Revised project costs Original one-off project costs Original Simplification benefits
FY16
45
100%
74%
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Capital Strategy
$770 million
General Insurance
CPS 2 $110 million (planned)*
Life
Sub Debt $100 million (planned)*
Bank
CPS 2 $450 million Sub Debt $670 million (planned)*
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Capital Strategy
Further evolve our Risk Based Capital capability across the Group Deliver Advanced Accreditation for the Bank & General Insurance Articulate the clear diversification benefits Deliver value from Life Direct products
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Capital Strategy
Risk Based Capital will allow us to:
Quantify risk and optimise return Enhance decision making Understand diversification benefits
Diversification Potential
Life
Bank
Group Total
Group Total
GI
Regulatory Minimum Operating target Surplus to operating target
Key commitments
1
2 3 4 5 6
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21.1
15
10
5.4 1.4
5.5
4.8
0
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Simplification
Reduced Risk
Increased ROE
Reduced Capital
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Suncorp transformation
Life & Vero NZ
Core Businesses
Non-core Bank
2009
2010
2011
2012
2013
2014
2015
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Important disclaimer
This report contains general information which is current as at 28 May 2013. It is information given in summary form and does not purport to be complete. It is not a recommendation or advice in relation to the Group or any product or service offered by Suncorp or any of its subsidiaries. It is not intended to be relied upon as advice to investors or potential investors, and does not take into account the investment objectives, financial situation or needs of any particular investor. These should be considered, with or without professional advice, when deciding if an investment is appropriate. This report should be read in conjunction with all other information concerning Suncorp filed with the Australian Securities Exchange (ASX). The information in this report is for general information only. To the extent that the information may constitute forwardlooking statements, the information reflects Suncorps intent, belief or current expectations with respect to our business and operations, market conditions, results of operations and financial condition, capital adequacy, specific provisions and risk management practices at the date of this report. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks and uncertainties, many of which are beyond Suncorps control, which may cause actual results to differ materially from those expressed or implied. Suncorp undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this report (subject to ASX disclosure requirements).
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