November 16, 2007 - PowerPoint PPT Presentation

farhani
slide1 n.
Skip this Video
Loading SlideShow in 5 Seconds..
November 16, 2007 PowerPoint Presentation
Download Presentation
November 16, 2007

play fullscreen
1 / 46
Download Presentation
November 16, 2007
223 Views
Download Presentation

November 16, 2007

- - - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript

  1. Banorte Investor Day Long Term Savings Sector (BAP) November 16, 2007

  2. Overall Structure Pension Fund Management Annuities Insurance Index

  3. Banorte – Generali Joint Venture • Breakdown of JV: • Grupo Financiero Banorte (51%). • Assicurazioni Generali (49%). • This JV has 3 companies: • Private Pension Fund Management: AFORE Banorte – Generali. • Annuities: Pensiones Banorte – Generali. • Insurance: Seguros Banorte – Generali.

  4. 2. Private Pension Fund Management (AFORE)

  5. Overview

  6. Principal 3,326,545 9% 3,128,846 8% 3,069,626 8% Market Structure Individual Accounts Dec 06 Jun 07 Sep 07 AFORE Rank Accounts % Accounts % Accounts % 1 Banamex (CITIBANK) 5,596,232 15% 5,779,746 15% 5,847,964 15% 2 Bancomer (BBVA) 4,255,568 11% 4,329,497 11% 4,388,103 12% 3 Inbursa 3,630,280 10% 3,534,692 9% 3,476,653 9% 4 Profuturo GNP 3,403,090 9% 3,268,518 9% 3,218,740 9% 5 Banorte Generali 3,282,539 9% 3,112,706 8% 3,153,964 8% 6 Santander 2,996,067 8% 3,064,191 8% 3,136,626 8% 7 8 Afore XXI 2,402,682 6% 2,426,265 6% 2,533,123 7% 9 ING 2,314,651 6% 2,220,900 6% 2,199,476 6% 10 HSBC 1,767,775 5% 1,837,970 5% 1,843,288 5% 4,433,399 12% 4,809,939 14% 5,445,102 13% 11 Others Total 37,408,828 100% 37,513,270 99% 37,826,065 100%

  7. Assets Under Management Biggest Market Players Billion Pesos AUM YoY Growth Total AUM (P$bn) Sep ‘06 Vs Sep ‘07 AFORE Rank % AFORE Rank Sep ‘06 Sep ‘07 Banamex 125.2 153.3 1 Banorte 10.6 23.9% 1 134.6 Bancomer 112.4 2 Profuturo GNP 15.9 23.3% 2 Santander/ING 94.3 108.6 3 Banamex 28.1 22.5% 3 Inbursa 82.2 93.0 4 XXI 8.8 21.5% 4 Profuturo GNP 68.6 84.6 5 Bancomer 22.1 19.7% 5 Banorte 44.6 55.3 6 HSBC 4.8 17.0% 6 XXI 41.1 49.9 7 Santander/ING 14.3 15.1% 7 Principal 30.5 33.7 8 Inbursa 10.7 13.1% 8 HSBC 28.2 32.9 9 Principal 3.9 13.4% 9 Total 627.2 745.9 Total 129.8 18.9%

  8. Assets Under Management Billion Pesos Industry Banorte - Generali 808 672 55 45 561 36 53% 44% Sep-05 Sep-06 Sep-07 Sep-05 Sep-06 Sep-07

  9. Fee Trends Equivalent Fee on Balances Industry Banorte

  10. Operating Income & AUM Operating Income Million Pesos Assets Under Management Billion Pesos 59 1,062 1,003 50 976 39 2005 2006 2007e 2005 2006 2007e

  11. Net Income & ROE Net Income Million Pesos ROE 25% 21% 285 175 102 9% 2005 2006 2007e 2005 2006 2007e

  12. Income Statement Million Pesos Var % 2005 2006 05 Vs. 06 Operating Income 1,062 1,003 (6%) Investment Income 89 80 (10%) Total Income 1,151 1,082 (6%) Expenses 601 784 30% Other Expenses 128 128 0% Total Expenses 729 911 25% Net Income before Taxes 422 171 (59%) Net Income 285 102 (64%)

  13. Perspectives 2008 -2010

  14. Targets & Strategies 2010 Goals • Market share: • 7.25% in AUM. • 11% of individual certified accounts. • Net Income P$450+ million. • ROE > 25% Strategies • Optimize salesforce size. • Banca-AFORE Project. • Customer Loyalty Program. • Voluntary Savings.

  15. Operating Income & AUM Operating Income Million Pesos Assets Under Management Billion Pesos 1,379 1,254 107 1,097 89 73 2008e 2009e 2010e 2008e 2009e 2010e

  16. Net Income & ROE Operating Income Million Pesos ROE 455 28% 377 27% 23% 259 2008e 2009e 2010e 2008e 2009e 2010e

  17. Income Statement Million Pesos Plan Forecast Forecast Var % Var % 2008 2009 2010 09 Vs. 08 10 Vs. 09 Operating Income 1,097 1,254 1,379 14% 10% Income from Interests 70 71 80 2% 12% Total Income 1,167 1,326 1,459 14% 10% Expenses 746 763 780 2% 2% Other Expenses 60 37 45 (39%) 22% Total Expenses 806 800 825 (1%) 3% Net Income before Taxes 360 526 633 46% 20% Net Income 258 377 455 46% 20%

  18. 3. Annuities

  19. Market Premiums Million Pesos Nov ’07 (Since Jan 2006) Premiums Market Share Bancomer 2,986 32% Banorte Generali 2,448 26% GNP 1,557 17% Banamex 869 9% HSBC 640 7% Principal 296 3% ING 307 3% Inbursa 135 1% Others 2 0% Total 9,238

  20. Market Annuities Sold 2002 decrease due to changes in IMSS internal policies.

  21. Premiums & Market Share Premiums Million Pesos Market Share 2nd 2,035 34.0% 23.9% 992 20.4% 19.6% 874 843 2007e 2007e 2004 2005 2006 2004 2005 2006

  22. Premiums & Technical Reserves Million Pesos Premiums Technical Reserves 9,839 2,035 7,521 6,448 992 874 2007e 2007e 2005 2006 2005 2006

  23. Net Income & ROE Net Income Million Pesos ROE 622 34% 34% 246 21% 614 96 214 8 32 2007e 2007e 2005 2006 2005 2006 Recurring Income Non-recurring Income

  24. Income Statement Million Pesos Var % 2005 2006 05 Vs. 06 Premiums 873 992 14% 870 1,090 25% Change in Technical Reserves Earned Premiums 4 (98) (2795%) Investment income 557 622 12% Other income 79 759 855% Earned Income 640 1,284 101% Technical Expenses 472 513 9% Expenses 64 69 9% Total Expenses 536 582 9% Net Income Before Taxes 104 701 575% Net Income 96 623 548% Annuities Sold (#) 1,591 1,713 8%

  25. Perspectives 2008 - 2010

  26. Targets & Strategies 2010 Goals • 4,275 annuities sold per year. • Net Income P$130 million +. Strategies • Professional and highly trained sales force. • Strategic Asset Allocation of the technical reserves. • Operational expenses between 4% and 5% over premiums.

  27. Premiums & Technical Reserves Million Pesos Premiums Technical Reserves 16,088 13,710 11,362 2,250 2,250 2,250 2007e 2010e 2005 2006 2008e 2009e

  28. Net Income Million Pesos 131 113 77 2008e 2009e 2010e

  29. Income statement Million Pesos Plan Forecast Forecast Var % Var % 2008 2009 2010 09 Vs. 08 10 Vs. 09 Premiums 2,250 2,250 2,250 0% 0% Change in Technical Reserves 2,318 2,347 2,378 1% 1% Earned Premiums (68) (97) (128) 44% 31% Investment Income 961 1,182 1,378 23% 17% Earned Income 894 1,084 1,251 21% 15% Total Expenses 787 928 1,069 18% 15% Net Income before Taxes 107 156 181 47% 16% Net Income 77 112 131 47% 16% Annuities Sold (#) 4,275 4,275 4,275 0% 0%

  30. 4. Insurance

  31. Market Growth Premiums vs. GDP

  32. Evolution of Premiums Millions of Pesos Rank 19° 21° 9° 17° 19° 16° 14° 12° 8° 7° 6°

  33. Market (Premiums) Millions of Pesos Ranking 6th

  34. Premiums & Market Share Millions of pesos 8,044 7,198 553 461 955 1,070 1,957 4,269 1,588 3,337 520 Health 4,569 528 P&C 1,478 4,079 1,444 Auto 1,943 Life 1,190 Market Share 2.2% 3.0% 4.5% 5.0%

  35. Premiums & Technical Reserves Million Pesos Premiums Technical Reserves 7,675 8,044 5,522 3,629 7,197 4,270 2007e 2007e 2005 2006 2005 2006

  36. Net Income & ROE Net Income Million Pesos ROE 432 58% 325 69 325 27% 21% 363 2007e 2007e 2005 2006 2005 2006 Recurring Income Non-recurring Income

  37. Income Statement Million Pesos Var % 2005 2006 05 Vs. 06 Retained Premiums 3,552 5,888 66% Change in Technical Reserve 141 1,957 1283% Earned Premium 3,411 3,931 15% Investment Income 321 440 37% Other Income 263 209 (20%) Earned Income 3,994 4,580 15% Net Claim Cost 2,687 3,253 21% Net Acquisition Cost 531 583 10% Operational expenses 211 261 23% Total Expenses 3,429 4,097 19% Net Income before Taxes 566 483 (15%) Net Income 432 325 (25%)

  38. Perspectives 2008 - 2010

  39. Targets & Strategies 2010 Goals • 6% Market Share. • Profits of over $600 million pesos. • ROE close to 24%. Strategies • Organic Growth in Bank Assurance in traditional products. • New insurance products for SMEs. • Personal line products to be sold by insurance agents. • Products for the brokers channel market. • Up-sale and cross-sale strategies. • Strategic Asset Allocation for the technical reserves. • Low operating costs.

  40. Premiums Millions of Pesos 10,781 722 9,761 8,854 660 1,425 8,044 604 1,251 Health 1,099 553 3,115 955 P&C 2,668 2,285 1,957 Auto 5,519 4,866 5,182 4,569 Life

  41. 12,239 10,884 10,781 9,625 9,762 8,854 2010e 2007e 2008e 2009e 2005 2006 Premiums & Technical Reserves Million Pesos Premiums Technical Reserves

  42. Net Income & ROE Net Income Million Pesos ROE 618 522 30% 463 26% 24% 2008e 2009e 2010e 2008e 2009e 2010e

  43. Income Statement Million Pesos Plan Forecast Forecast Var % Var % 2008 2009 2010 09 Vs. 08 10 Vs. 09 Premiums Retained 7,555 8,323 9,186 10% 10% Change Technical Reserve 1,949 2,098 2,260 8% 8% Earned Premiums 5,606 6,225 6,926 11% 11% Income from interests 714 796 891 12% 12% Other Income 274 302 333 10% 10% Earned Income 6,593 7,323 8,150 11% 11% Net Claim Cost 4,870 5,376 5,946 10% 11% Net Acquisition Cost 771 873 989 13% 13% Operational expenses 308 349 367 13% 5% Total Expenses 5,949 6,598 7,302 11% 11% Net Income before Taxes 644 725 847 13% 17% Net Income 463 522 618 13% 18%

  44. 5. Final Comments

  45. Certain statements in this document are “forward-looking statements”. These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from those included in these statements due to a variety of factors.