Storebrand Asa · OSL:STB
Storebrand Asa — Q2 2021 Earnings Presentation
26 slides from Storebrand Asa's earnings presentation, Jul 14, 2021
Slide 1: Storebrand Q2 2021
Storebrand Q2 2021 14 July 2021 Odd Arild Grefstad – CEO Lars Aa. Løddesøl – CFO 1
Slide 2: Highlights Q2 2021
Highlights Q2 2021 26% Unit Linked reserve growth2 Group result 1 2 223 18% AuM growth Asset Management2 893 MNOK 1 353 667 18% Insurance Portfolio Premium growth2 1 331 686 Q2 2021 YTD 2021 172% Solvency ratio3 Financial items and risk result life Operating profit 230 million in Performance Fees ea
Slide 3: Sustainable Nordic Savings and Insurance Group
Group Strategy Sustainable Nordic Savings and Insurance Group A B C Future Storebrand Leading Provider Growth focus in Nordic Powerhouse in Growing Challenger in Occupational Pensions capital-light business Asset Management Norwegian Retail Market Norway & Sweden areas in front book Strategic D Lead
Slide 4: Strong growth
Strong growth Unit Linked Asset management +26% +18% 295 ▪ 26% total reserves growth y/y 1 037 ▪ NOK 157 bn growth y/y 235 880 ▪ 42% retail premium growth y/y ▪ NOK 24 bn net inflow in 2021 (14bn in non-captive assets) Q2 2020 Q2 2021 Q2 2020 Q2 2021 UL reserves (BNOK) AuM (BNOK) Insurance Retail lo
Slide 5: Strong net flows in asset management
Strong net flows in asset management Development Asset under Management Q4 2020 to Q2 2021 - Storebrand Asset Management (NOK billion) 19 1,037 66 962 24 Q4 2020 Net Flow Return FX Q2 2021 Estimated flow and return numbers Including Group internal pension savings Norway and Sweden, Institutional Cli
Slide 6: Exceeded NOK 1000 Billion in Assets Under Management in Q2
Asset Management Exceeded NOK 1000 Billion in Assets Under Management in Q2 Savings Asset under Management (NOK billion) Details • Barrier is broken through a fast growth journey 1,100 1,037 1,000 +12% 5y double digit growth 900 800 • An increasing external share of total AuM 700 44% 600 500 24% 400
Slide 7: Full Cloud Transformation Completed
Digital Frontrunner – Asset Management Full Cloud Transformation Completed Achieved results Large-scale transformation project Future proofing completed in 14 months Improved quality Increased efficiency Move from traditional infrastructure to fully automated cloud services Reduced risk Strengthened
Slide 8: Recognition for Demonstrated Sustainable Impact
Leadership in Sustainability – Asset Management Recognition for Demonstrated Sustainable Impact Excellent Prospera Results Sustainability 20211 Key actions undertaken #1 Institutional Sweden • Active participation TNFD2 #1 Institutional Norway • STB ESG Plus approved for AMX3 #1 Distributors Norway
Slide 9: Continued organic growth and successful transfers from Insr
P&C Insurance Continued organic growth and successful transfers from Insr Portfolio Premiums and Market share - Retail Insurance Details Portfolio premiums Market share NOK million % • A strong position in the market and +30% cross-sales with other lines of business 5,2% 3.053 proves to be strong ba
Slide 10: Key Figures Group
Key Figures Group Result development1 Earnings per share2 Financial items and risk result life Performance related result MNOK Special items Operating profit 2.79 1,353 1,225 121 2.13 1,012 1.90 808 298 870 546 340 217 225 1.23 1.21 228 599 703 709 671 754 -19 -31 -26 -68 Q2 2020 Q3 2020 Q4 2020 Q1
Slide 11: Solvency movement from Q1 2021 to Q2 2021
Solvency movement from Q1 2021 to Q2 2021 Storebrand Group 176% 0% 4% 172% -1% -5% 2% -2% -2% Q1 2021 Model & Interest rates Updtated VA Updated Asset return and Q2 results Dividend Q2 2021 assumptions equity stress business mix 11
Slide 12: SII position Storebrand Group
SII position Storebrand Group Solvency position(%)1 Estimated sensitivities Target SII margin 150% 176 172 0 0 SII-margin Q1 172 0 172 176 172 Interest rates -50bp 163 14 177 Interest Q1 2021 Q2 2021 rates +50 bp 179 0 179 Transitional rules SII standard model Equity -25% 174 7 181 Key takeaways ▪ R
Slide 13: Storebrand Group
Storebrand Group Group Profit1 Q2 YTD NOK million 2021 2020 2021 2020 Fee and administration income 1,473 1,301 2,954 2,649 Insurance result 332 255 552 184 Operational cost -1,119 -975 -2,176 -1,999 Operating profit 686 580 1,331 834 Financial items and risk result life 667 228 893 -360 Profit befo
Slide 14: Storebrand Group
Storebrand Group Group Profit1 Q2 YTD NOK million 2021 2020 2021 2020 Fee and administration income 1,473 1,301 2,954 2,649 Insurance result 332 255 552 184 Operational cost -1,119 -975 -2,176 -1,999 Operating profit 686 580 1,331 834 Financial items and risk result life 667 228 893 -360 Profit befo
Slide 15: Savings (non-guaranteed)
Savings (non-guaranteed) Savings Profit Q2 YTD NOK million 2021 2020 2021 2020 Fee and administration income 1,129 974 2,285 2,017 Operational cost -703 -600 -1,373 -1,269 Operating profit 427 374 911 748 Financial items and risk result life 8 22 51 -76 Profit before amortisation 435 396 963 672 Pro
Slide 16: Savings (non-guaranteed)
Savings (non-guaranteed) Savings Reserves and premiums Unit Linked Comments1 5.1 5.2 5.3 5.3 4.9 295 ▪ 4% growth y/y in Unit Linked premiums 279 268 252 ▪ 26% growth y/y in Unit Linked reserves 235 BNOK ▪ 18% growth y/y in overall AuM in Asset Management ▪ 15% lending growth y/y in the Bank Q2 2020
Slide 17: Insurance
Insurance Insurance Profit Q2 YTD NOK million 2021 2020 2021 2020 Insurance premiums f.o.a. 1,279 1,070 2,473 2,090 Claims f.o.a. -946 -816 -1,920 -1,906 Operational cost -214 -175 -416 -350 Operating profit 119 80 137 -166 Financial result 27 44 64 22 Profit before amortisation 145 124 201 -144 Pro
Slide 18: Insurance
Insurance Insurance Combined ratio Comments Combined ratio and results Claims ratio Cost ratio Combined ratio 98% 92% 91% 91% combined ratio, within target range (90-92%). 88% 87% ▪ ▪ Generally solid claims development, but still weak in Group life ▪ Strong cost control maintained with stable cost r
Slide 19: Guaranteed pension
Guaranteed pension Guaranteed Profit Q2 YTD NOK million 2021 2020 2021 2020 Fee and administration income 407 379 790 742 Operational cost -227 -218 -424 -426 Operating profit 180 160 366 316 Risk result life & pensions 21 53 54 27 Net profit sharing 108 -187 212 -242 Profit before amortisation 310
Slide 20: Guaranteed pension
Guaranteed pension Guaranteed Reserves guaranteed products Comments 285 288 288 286 295 30 30 38 ▪ Defined Benefit NO reserves include new Public Occupational 30 37 Pension mandates 143 145 145 144 149 ▪ Guaranteed products SE now include Euroben reserves (previously BNOK under "Other") 12 12 12 11
Slide 21: Other
Other1 Other Profit Q2 YTD NOK million 2021 2020 2021 2020 Fee and administration income 4 0 7 0 Operational cost -43 -35 -90 -65 Operating profit -39 -34 -83 -64 Financial items and risk result life 503 296 511 -91 Profit before amortisation 464 261 428 -155 21 1 Excluding eliminations. For more in
Slide 22: Q&A
Q&A Please follow the operator's instructions to ask questions in the conference call Group CFO Group CEO Group Head of Strategy & Finance Lars Aa. Løddesøl Odd Arild Grefstad Kjetil R. Krøkje 22 22
Slide 23: Appendix
23 Appendix G2 storebrand
Slide 24: Storebrand Life Insurance asset allocation
Storebrand Life Insurance asset allocation 60% 50% 40% 30% 20% 10% 0% Bonds & Bonds at Equities Real estate Loans Money market amortised cost 30.06.2020 6% 11% 16% 15% 52% 30.09.2020 8% 10% 15% 14% 52% 31.12.2020 9% 11% 13% 15% 52% 31.03.2021 10% 11% 12% 13% 55% 30.06.2021 10% 10% 12% 14% 55% 24 Not
Slide 25: SPP asset allocation
SPP asset allocation 70% 60% 50% 40% 30% 20% 10% 0% Bonds & Money Equities Real estate Loans market 30.06.2020 11% 12% 59% 17% 30.09.2020 12% 12% 57% 18% 31.12.2020 13% 12% 57% 17% 31.03.2021 15% 12% 54% 19% 30.06.2021 16% 13% 51% 21% 25 Note: The graph shows the asset allocation for all products wi
Slide 26: Leading the way in sustainable value creation
Leading the way in sustainable value creation Investor Relations contacts Lars Aa Løddesøl lars.loddesol@storebrand.no Group CFO +47 9348 0151 Kjetil R. Krøkje kjetil.r.krokje@storebrand.no Group Head of +47 9341 2155 Finance & Strategy Daniel Sundahl daniel.sundahl@storebrand.no Group Head of +47 9