goldman sachs european financials conference growth .../media/files/... · wealth creation 3...
TRANSCRIPT
Goldman Sachs European Financials Conference
Growth Opportunity in Ireland
David Went, Chief ExecutiveIrish Life & Permanent plc
Barcelona June 2006
Agenda
2 Goldman Sachs European Financials Conference
Drivers of Growth
Target markets
Irish Life – Strategy & Delivery
Growth Today
Growth Tomorrow
•j
•j
•j
•j
•j
Wealth Creation
3 Goldman Sachs European Financials Conference
20,000
40,000
60,000
80,000
100,000
120,000
1997 1998 1999 2000 2001 2002 2003 2004 2005
Fig
ures
in 0
00s
Source: ESRI
Average GDP Growth 7.4% p.a.
Employment Growth
4 Goldman Sachs European Financials Conference
1,000
1,200
1,400
1,600
1,800
2,000
1997 1998 1999 2000 2001 2002 2003 2004 2005
Fig
ures
in 0
00s
Source: ESRI
35% Increase in Employment
Baby Boomers Come of Age
5 Goldman Sachs European Financials Conference
0 50,000 100,000 150,000 200,000 250,000 300,000 350,000
0-4
10-14
20-24
30-34
40-44
50-54
60-64
70-74
80-84
90-94
Ag
e
Source: ESRI
900,000 in 20-34 year
cohort
Inward Migration
6 Goldman Sachs European Financials Conference
0
10
20
30
40
50
60
70
80
1987 1989 1991 1993 1995 1997 1999 2001 2003 2005
Fig
ures
in 0
00s
Source: NCB
Inflow
Outflow
Public Policy Support
7 Goldman Sachs European Financials Conference
•j
•j
•j
Policy support for long and short term savings
Extensive tax incentives for pensions
Low taxation on investments
Sensible regulatory environment
•j
Market Opportunities
8
Drivers Financial Needs Demand
Baby Boom/ Migration + Mortgages = Life Protection / Savings
Employment Growth + Rising incomes / bonuses = Investments / Pensions
SME success + Wealth management = Pensions
Asset appreciation + Inherited wealth = Investments
Goldman Sachs European Financials Conference
Irish Life
•j
•j
Products Distribution Market
Packaged Investment Products • Savings • Brokers • Individuals• Pensions• Bonds • Sales Force • Co.Directors
Protection Products • Mortgage • Bancassurance • Self-employed• Family
• Employees
9 Goldman Sachs European Financials Conference
Irish Life Market Share
10
Retail Market Share 22.6% in 2005
Irish Life +6.5%
Bank of Ireland +4.4%
Ark Life -7.4%
Hibernian -4.4%
Share winners/losers over last 5 years
•j
Goldman Sachs European Financials Conference
Why?
11
Distribution
Reach
Depth
Technology
Point of Sale
After sales service
Brand
Customer Proposition
Investment story
Goldman Sachs European Financials Conference
Distribution Reach & Depth
12
Productivity Segmentation Buy in Selling Direct Selling ptsb& Process from Bank Sales process process
Direct Sales Brokers Bancassurance Onesource Institutions
Goldman Sachs European Financials Conference
Technology Investment
13
• Electronic Sales Process• Engaging customer experience• Every activity measured• Fully integrated with Call Centre
• Online application and underwriting• High quality service experience• Trebling new business processing productivity
• Integrated customer centric Back Office system• Enable launch of self service facilities• Doubling existing business productivity
CR
MeP
OS
Bac
kO
ffic
e
Goldman Sachs European Financials Conference
Brand -Treating Customers Fairly
14
Product Transparency
• Only financial company in Ireland or UK to have
“Plain Englished” full product range.
Needs-based advice
• Award winning Siebal point of sale advice process
• 94% of customers say they would recommend
Customer Satisfaction
• Focus on doing best what matters most to customers
• Customer Satisfaction Index increased +2.6% to 79.1% in 2005
• Staff profit share payout linked to improvements in customer satisfaction
Goldman Sachs European Financials Conference
Brand - Investment Competence
15
•j
•j
•j
ILIM - Moneymate Awards
Fidelity
Bloxham
Property
•j
Goldman Sachs European Financials Conference
Brand - Promoting Consensus
16 Goldman Sachs European Financials Conference
Strategy
17
Market Share Gains
+
Growth in Value of New Business
Distribution
+Technology
+Brand
Goldman Sachs European Financials Conference
Growth Today
18
2005
Sales +33%
Market Share +1.4%
Life VNB +72%
Goldman Sachs European Financials Conference
Growth Tomorrow
19 Goldman Sachs European Financials Conference
200,000
220,000
240,000
260,000
280,000
300,000
320,000
2005 2010 2015 2020 2025 2030
Fig
uer
s in
000
s
2,000
2,400
2,800
3,200
3,600
4,000
Source: ESRI
Ireland (rhs)
EU-25
Active Population: Ireland v EU
“Economy has potential to grow at between 4–5% a year until 2010.”
Growth Tomorrow
20
External Retail Results
Mortgages
New Distribution
Pensions
SSIAs
•j
•j
•j
•j
Irish Life Best Placed
Goldman Sachs European Financials Conference
Demographics drive mortgages
0
20
40
60
80
100
1971 1976 1981 1986 1991 1996 2001 2006 2011 20160
20
40
60
80
100
Housing Supply & Demand
Over 25 Completions (rhs)
Source: NCB
21 Goldman Sachs European Financials Conference
Adding Retail Distribution
22 Goldman Sachs European Financials Conference
Newinstitutionalpartner with
102 branches / agencies
New Wealth boosts pensions
23
0
50
100
150
200
250
300
350
400
450
1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th
Pension Fund
Domestic Services
Hotels & Expenditure Abroad
Private Health Insurance
Meals Away from Home
Clothing & Footwear
Entertainment
Mortgage Repayments & Home Insurance
Personal Services
Food
Rent & Other Charges
Fuel & Light
Tobacco
Spending by Income Decile
Source: NCB
Goldman Sachs European Financials Conference
SSIA opportunity
24 Goldman Sachs European Financials Conference
Please contact our Investor Relations Department for any further
information or visit our group website at www.irishlifepermanent.ie
Contact details:
Barry Walsh [email protected] +353 1 704 2678
Orla Brannigan [email protected] +353 1 704 1345
Contact Information
25 Goldman Sachs European Financials Conference