Transcript Skandia Vita - Intermedia Channel

Country, industry and Skandia Vita in a nutshell
Italian Wealth : 8,6k B €
Insurance industry
stalling from 2008 onwards due to the
effects of the Economic crisis :
7% 2% 1%
25%
6k B € of Real Estate
(inc. 84% of domestic homes)
3,5k B € of Financial assets
(inc. 19% of Insurance contracts)
800 B € of Debt
(inc. 42% real-estate loans)
8%
56%
Pension products (PIP)
Ibrid TR+UL (Multiramo)
Guaranteed UL
 Population: 60,6 mln
 GDP: 2.198 bln/$ (8th position, list by IMF) -2.4% (2012 est.)
 2.198 bln/$ (8th position, list by IMF)
 Credit Rating: BBB+
 Public debt: 120,7% of GDP (2012 est.)
 Household savings rate: 12% (2010 est.)
 Household Net Financial Assets and Gross
debt: 5th position (2011) (*)
Bottom 50% of Italian families
hold 9,4% of Italian Wealth ...
Top 10% of Families hold 45,9%
of Italian Wealth
 Life insurance market 2012 :  €53.649mln
(2011: €59.381mln)
 Fas channel:  €11.134mln (2011: €8.001mln)
 Fas channel – classic unit linked only: 
€7.005mln (2011:€2.130mln)
 Growth UL segment: +39% (YoY) 
 Traditional segment: -21% (YoY) 
(*) Global Financial Stability Report, Arpil 2012, IFM
Data: end of 2012
Classic UL
Traditional
Index-linked
Data at end of August 2012
 Mass Market (<100k€) : 
severe outflows
 Affluent (<1 m€) : /
stable, contrasted savings
 High Affluent (1-3 M €) : 
savings + contrasted
revaluation of assets
 Wealthy (> 3 M €) :
in continuous expansion
Skandia Vita on the Italian landscape
Italian Market: sales split per type and distribution
channel (2011) (*)
80%
60%
2
75%
45
40%
20%
53
25%
0%
Traditional and
other
Classic UL
Fas
banks
agents
in Italy
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Italian Company registered in 1997
Nr. of employees: 110
AuM: 4,5 bln/€ (2012)
Nr. of clients: 52.500
Traditional Life : 0 %, UL : 100%
UL market share: 8%
UL Fas market share: 15%
Traditional
Competition
Skandia Vita
 provide a complete
range of products, but
not a real and
continuous product
innovation
 unique and
sophisticated product
requiring a high-level
advice and financial
culture
 exploiting different
business models
(captive networks,
agreements or JV):
they penetrate in all
the networks with a
tailor-made offer
 operating model
through distribution
agreements thus
maintaining an
independent touch (i.e.
such a model is quite
unique on the market)
 potentially affected by
conflicts of interests
 independence ensures
no conflicts of interest
 strong brand
awareness
 low brand awareness
among end-clients,
leverage on our
partner’s brands
(*) Source: IAMA
(**) Data are not referred to the whole Group, but only to the companies within each Group considered as direct
competitors of Skandia, both for product range and distribution model
Skandia Vita business model: positioning evolution
 From inception till 2001, our offer was focused on a
very simple unit linked product (i.e. in-house funds
wrapping bank bonds) distributed mainly through
small/medium local banks
100
90
80
70
60
50
40
30
20
10
0
 Since 2001 the first Fas partnerships have emerged
and since then FAs have become the primary
distribution channel
 In 2005 the guided open architecture platform has
been launched . Since then, dynamic investment
solutions, requiring high-level financial culture and
targeting mostly FAs networks have become our main
and most successful Distribution Channel.
Agenti e brokers
Banche
Financial Advisor
 Small – medium size banks, usually
regional structured
 Target customers: 75K to 100K
 Current AuM: 300 mln/€
 Current nr. of Banks: 15
guided architecture
 Financial advisors network
 Customers: 100K up to 1 mln
 Current nr. of Fas potentially able to
sell Skandia products: 12.000
selected open architecture
 Private Bankers
 Customers: over 1 mln
 Current AuM: 400 mln/€
open architecture
Market structure and key factors of Success (Skandia)
Domestic market structure
Our model of business
Banking groups
Sales structure
Distribution channels
Retail
banking
Private
banking
Products’ factories
FAs’
network
Bancassurance
agreements
Financial Advisors (Fas)
Asset
Mgmt
Insurance
Exclusive
agreements
 Not employees, but work
on commission
 Historically, FAs have
been forced to promote
in-house products, today
they are pressing to
offer third party products
 In direct competition with
Private Banks
 Complete range of products, but poor innovation
 Tailor –made solutions, for segments of clients through specif channels  Clients are loyal to their
Fas not to the bank
 Affected by conficf of interests
Part of an
International Group
 Local presence
 Global capabilities
How we operate:
 We are not fund
managers
3 types of
partnerships:
 We are fund
selectors
1) Financial Advisors
 We do not distribute
directly
 We distribute
through agreements
with high standing
partners
Networks
2) Retail Banking
3) Private Banking
Key success factors:
 Funds and asset managers’ election
Strong Financial Expertise  Regular monitoring on fund range
High-quality
 Additional features: Stop Loss and Dollar Cost Averaging
 Skandia Daily Trading
Product Provider
Flexible
Fast
High-quality
Service Provider
Efficient
Innovative
Local independence
 Tailor-made solutions from a distributor’s perspective
 Freedom of choice
 Capturing market needs
 Quick products adjustments
“Perceived” flexibility
 Insight reporting on our portfolio
 Dedicated infoline and extranet area
 Implementation of automatic tools (front end)
 User friendly monitoring tools
 New investment proposal (funds and asset managers)
 New products features (Stop Loss and PPI)
“Low cost” innovation