Storebrand Asa · OSL:STB

Storebrand Asa — Q4 2010 Earnings Presentation

24 slides from Storebrand Asa's earnings presentation, Feb 16, 2011

  1. Slide 1: Storebrand Result Q4 2010

    Storebrand Result Q4 2010 16 February 2011 Idar Kreutzer - CEO Odd Arild Grefstad - CFO

  2. Slide 2: Highlights 2010

    Highlights 2010 RESULT  Group result of NOK 664 mill in Q4, 1 608 mill 2010  Administration results improved by 373 mill in Life and Pension  Strong result development in asset management OPERATIONS  Operational improvements ahead of schedule  New group organisation and cross border synergies 

  3. Slide 3: Storebrand Group

    Storebrand Group Q4 Full year NOK mill. 2010 2009 2010 2009 Life and Pensions Norway 301 193 877 759 Life and Pensions Sweden (SPP) 214 307 464 487 Asset management 168 138 333 240 Storebrand Bank 34 24 158 63 P&C and health insurance 9 -15 8 -49 Storebrand ASA / other -62 -64 -231 -255 Group Profit

  4. Slide 4: Delta One - operational improvements in all business areas

    Delta One - operational improvements in all business areas Target improvements in 20101 Achieved improvement 20101 MNOK 550 MNOK 588 30 208 190 MSEK 223 MSEK 210 40 96 110 95 2010 2010 Life and Pensions Norway Asset Management Other Life and Pensions Sweden Bank 1 Result improvement, measured agains

  5. Slide 5: Life and Pensions Norway - customer buffers increased with 2.7 bn in 2010

    Life and Pensions Norway - customer buffers increased with 2.7 bn in 2010 Q4 Full year  Administration result to owner improved by 188 in NOK mill. 2010 2009 2010 2009 2010 Administration result 18 -19 19 -169 Risk result  New risk reservation model 6 61 212 229 will increase quality of Finance re

  6. Slide 6: Life and Pensions Norway - competitive returns

    Life and Pensions Norway - competitive returns Return Defined Benefit portfolios Value adjusted Booked Equity returns returns proportion DB - High 7.4 % 4.9% 25% DB - Standard 6.5 % 4.6% 18% DB - Low 5.5 % 4.5% 9% Individual 6.0 % 6.0% 12% Paid up Policies 6.0 % 4.9% 11%* * Average numbers, underlyi

  7. Slide 7: Life and Pensions Norway - efficiency improvements

    Life and Pensions Norway - efficiency improvements Cost / customer funds 1,20 %  Customer funds increased with 1,01 % 1,06 % 15 bn to 191 bn 1,00 % 0,88 % 0,87 % 0,80 % 0,75 %  Administration costs reduced with 7% (NOK 100 mill) 0,60 % 0,40 %  Administration income 2006 2007 2008 2009 2010 increa

  8. Slide 8: Life and Pensions Norway - pension web application 2.0

    Life and Pensions Norway - pension web application 2.0  New customer application makes pension easy to understand  Allow the customers to calculate their pensions and start pay out, using internet banking functionality on pension  Increases customers satisfaction and reduces administration expens

  9. Slide 9: Life and Pensions Sweden (SPP) - administration results improved by NOK 185 mill

    Life and Pensions Sweden (SPP) - administration results improved by NOK 185 mill Q4 Full year  More normalised risk results NOK mill. 2010 2009 2010 2009 Administration  Conditional Bonuses 14.5% result 11 -37 84 -101 of guaranteed customer Risk result reserves 51 82 311 253 Finance result 137 245

  10. Slide 10: Life and Pensions Sweden (SPP) - operational improvements

    Life and Pensions Sweden (SPP) - operational improvements Cost / customer funds 1,00 %  Customer funds increased with 0,88 % NOK 13 bn to 125 bn 0,79 % 0,80 % 0,73 %  Administration costs reduced with 10% (SEK 100 mill) 0,60 % 0,40 %  Administration income 2008 2009 2010 increased with 9% (SEK 12

  11. Slide 11: Life and Pensions Sweden (SPP) - growth in unit linked

    Life and Pensions Sweden (SPP) - growth in unit linked Sales unit linked (APE) 683 504  35 % increase in unit linked 395 sales in 2010, 64% increase in Q4  Premium income from unit 2008 2009 2010 linked up 12 % in 2010 Unit linked share of premiums (12 months rolling)  Unit linked 53% of total 55

  12. Slide 12: Storebrand asset management - increased quality of earnings

    Storebrand asset management - increased quality of earnings  Increased volume based Q4 Full year income NOK mill. 2010 2009 2010 2009  Net performance fees of Total income 283 283 618 586 NOK 83 mill in 2010 Total costs -146 -170 -422 -429 Net financial/other 31 26 137 83  Assets under management

  13. Slide 13: Storebrand asset management - consistent result improvements

    Storebrand asset management - consistent result improvements Result development 800 NOK mill 700 600 500 400 300 200 100 - Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 2006 2006 2007 2007 2008 2008 2009 2009 2010 2010 Rolling 12 months result before tax Rolling 12 months income* Rolling 12 months costs *) Incl. ne

  14. Slide 14: Storebrand Bank - improved interest margin

    Storebrand Bank - improved interest margin Q4 Full year  Full year net interest NOK mill. 2010 2009 2010 2009 margin improved 0,15% to Net interest income 113 104 457 423 1,1% Net fee and 19 20 74 76 commission income  59 mill in reduced cost in Other income 35 57 101 148 2010 Total income 166 181

  15. Slide 15: Storebrand P&C - profitable growth

    Storebrand P&C - profitable growth Q4 2010 Full year  Premium income NOK mill. 2010 2009 2010 2009 increased by 46% Premiums earned, 112 82 405 278 net1 Claims incurred, net -91 -67 -350 -230  Costs reduced by 6% Operation costs excl -23 -29 -88 -94 amortization  High customer satisfaction Invest

  16. Slide 16: Life and Pensions Norway

    Life and Pensions Norway Defined Individual Group contribution and paid- defined and Risk up Company NOK mill. benefit * unit linked* products policies** portfolio Q4 Full year Administration result -18 34 -3 5 18 19 Risk result 8 -13 16 -6 6 212 Finance result1 -37 28 179 -36 135 119 Profit from ri

  17. Slide 17: Life and Pensions Norway - strengthened customer buffer capital

    Life and Pensions Norway - strengthened customer buffer capital 170% 167% 164% 161% 159% 158% 154% 148% 4,6% 3,8% 3,8% 1,2% 0,8% 0,9% 3,4% 3,1% 3,0% 2,9% 2,7% 2,0% 2,2% 1,7% Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Marked Value Adjustment Reserve in % of customer funds * Addit

  18. Slide 18: Life and Pensions Norway - interest rates picking up

    Life and Pensions Norway - interest rates picking up Norwegian interest rates Increased interest rates gives: % 5,00  Higher expected return for 4,50 customers and owners 4,00 3,50  Increased risk capacity 3,00 2,50  Embedded value positive 2,00 1,50 1,00 Storebrand has the financial 0,50 strengt

  19. Slide 19: Life and Pensions Sweden (SPP) - increasing interest rates

    Life and Pensions Sweden (SPP) - increasing interest rates Swedish interest rates %  Increasing interest rates gives 4,50 higher expected return for 4,00 customers and owners 3,50 3,00  Interest rate sensitivities 2,50 reduced through asset liability 2,00 duration matching 1,50  Embedded Value po

  20. Slide 20: Life and Pensions Sweden (SPP) - strong equity markets

    Life and Pensions Sweden (SPP) - strong equity markets Development equity markets 115,00 110,00 8.3%  Financial markets: 105,00 6.2% − Strong equity markets − Increased interest rate levels 100,00 − Small increase in SWAP spreads 95,00 90,00 30.9. 31.10. 30.11. 31.12.  Balance sheet effects: − Ass

  21. Slide 21: Life and Pensions - risk adjusted asset allocation

    Life and Pensions - risk adjusted asset allocation Asset allocation guaranteed products Asset allocation guaranteed products Life and Pensions Norway1 Life and Pensions Sweden1 2 %4 % 6% 14 % 26 % 16 % 25 % 26 % 70 % 14 % Equity Bonds Equity Bonds Other Money market Bonds at amortised cost Real esta

  22. Slide 22: Awarded: The worlds most sustainable insurance company

    Awarded: The worlds most sustainable insurance company1 Total rank 9th 2011  Yearly ranking of the worlds most sustainable companies1  Storebrand awarded the worlds 9th most sustainable company  Awarded most sustainable insurance company1 1 Corporate knights ”Global 100 most sustainable corporati

  23. Slide 23: Summary

    Summary  Increased quality of earnings from operational improvements  Growth in defined contribution  Customer buffer capital rebuild to 1 year interest guarantee  Higher interest rates 23

  24. Slide 24: Storebrand shall be the leading and most respected institution in the Nordic market

    Storebrand shall be the leading and most respected institution in the Nordic market for long-term savings and insurance. 24

Storebrand — Q4 2010 Earnings Presentation on 6ix