Storebrand Asa · OSL:STB
Storebrand Asa — Q2 2013 Earnings Presentation
20 slides from Storebrand Asa's earnings presentation, Jul 12, 2013
Slide 1: Storebrand Q2 2013
Storebrand Q2 2013 12 July 2013 Odd Arild Grefstad – CEO (in Oslo) Lars Aa. Løddesøl – CFO (in London) 1
Slide 2: Highlights Q2 2013
Highlights Q2 2013 Result Group result of NOK 518 mill in Q2, NOK 1 070 mill YTD Fee and administration income increased with 8% Cost program preceding according to plan Operations 27% growth in Unit Linked reserves from Q2 2012 New organisational and reporting structure 6.1% return in D
Slide 3: Our strategic response to changing market conditions
Our strategic response to changing market conditions We work hard to reach our vision: Recommended by our customers Managing the balance sheet Developing the business Concepts Capital Risk Employees optimisation reduction Corporate relation Managing business Save for without raising < retirement new
Slide 4: Managing the balance sheet
Managing the balance sheet Capital optimization Risk reduction Transfer out of Guaranteed products Optimized real-estate portfolio – sold 7 shopping centers (13% of real MNOK 7.279 estate portfolio) 1.360 998 654 420 2Q 2012 3Q 2012 4Q 2012 1Q 2013 2Q 2013 Product optimisation Cost reduction Accum
Slide 5: New Group organisational structure
New Group organisational structure Group CEO Odd Arild Grefstad Finance Business support Lars Aa. Løddesøl Heidi Skaaret Managing the Developing the business balance sheet Commercial Commercial Guaranteed Savings Insurance Norway Sweden pension Robin Kamark Sarah McPhee Staffan Hansén Hege Hodnesdal
Slide 6: Storebrand Group - top line growth and cost control
Storebrand Group Group - top line growth and cost control Result Q2 01.01 - 30.06 Full year NOK million 2013 2012 2013 2012 2012 Fee and administration income 1 077 999 2 122 1 962 3 907 Underwriting result 259 270 483 561 1 072 Operational cost -837 -861 -1 671 -1 692 -3 647 Financial result -36 11
Slide 7: Key figures Group
Key figures Group Result development Earnings per share1 Net profit sharing and loan losses MNOK 1.43 Result before profit sharing and loan losses Provisions for cost program 1.03 458 0.87 489 552 518 131 346 94 55 0.52 181 0.38 419 509 458 463 322 -73 -14 -181 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 201
Slide 8: Savings (non-guaranteed) - solid result improvements
Savings (non-guaranteed) Savings - solid result improvements Result Q2 01.01 - 30.06 Full year NOK million 2013 2012 2013 2012 2012 Fee and administration income 461 417 909 807 1 638 Risk result life & pensions 4 3 4 0 3 Operational cost -320 -334 -657 -656 -1 417 Financial result - - - - - Result
Slide 9: Savings (non-guaranteed) - strong growth in Unit Linked
Savings (non-guaranteed) Savings - strong growth in Unit Linked Reserves and premiums Unit Linked Comments 2.768 2.439 2.480 2.318 Strong Unit Linked sales (APE) +25% 2.121 1. half 2013 73.542 70.458 MNOK 63.387 Strengthened market leader position +27% 61.007 57.897 Positive result development
Slide 10: Insurance - strong group life result
Insurance Insurance - strong group life result Result Q2 01.01 - 30.06 Full year NOK million 2013 2012 2013 2012 2012 Insurance premiums f.o.a. 665 600 1382 1199 2510 Claims f.o.a. -448 -408 -1004 -804 -1774 Operational cost -120 -107 -238 -215 -470 Financial result 34 28 66 43 150 Result before pro
Slide 11: Insurance - stable growth in premiums
Insurance Insurance - stable growth in premiums Combined ratio Comments Claims ratio Cost ratio Combined ratio 99% 94% 86% 88% 86% 68% 66% 81% 78% 67% Steady increase in premiums in 22% all segments 18% 18% 17% 18% 2Q 2012 3Q 2012 4Q 2012 1Q 2013 2Q 2013 Written premiums Strengthened reserves in
Slide 12: Guaranteed pension - maintained revenue margins
Guaranteed pension Guaranteed - maintained revenue margins Result Q2 01.01 - 30.06 Full year NOK million 2013 2012 2013 2012 2012 Fee and administration income 522 476 1 037 942 1 861 Risk result life & pensions 32 71 92 161 318 Operational cost -295 -316 -591 -632 -1 375 Financial result - - - - -
Slide 13: Guaranteed pension - reduced reserves
Guaranteed pension Guaranteed - reduced reserves Reserves guaranteed products Comments Transfer out of guaranteed products of 8.3 bn YTD +2% Booked and value adjusted return MNOK 261.502 254.063 259.671 259.858 258.654 of 1.9% in SBL YTD Consolidation ratio of 110% in DB portfolio SPP 2Q 2012
Slide 14: Other
Other Other Result Q2 01.01 - 30.06 Full year NOK million 2013 2012 2013 2012 2012 Fee and administration income 94 106 176 213 408 Risk result life & pensions 6 5 9 5 14 Operational cost -102 -104 -184 -189 -385 Financial result -70 -17 -79 -3 26 Result before profit sharing and loan losses -72 -11
Slide 15: Summary
Summary Top line growth continues: +8.2% YTD Nominal cost flat: cost program on plan Transfer from guarantees: 8.3bn YTD Solvency ratio: 174% 15
Slide 16: @d storebrand
@d storebrand @9 storebrand
Slide 17: Appendix
Appendix: ” @9 storebrand
Slide 18: Storebrand Life Insurance asset allocation
Storebrand Life Insurance asset allocation 45% 40% 35% 30% Allocation (%) 25% 20% 15% 10% 5% 0% Bonds at Equities Bonds Money market Real estate Alpha Other amortized cost 30.09.2012 10% 18% 14% 38% 14% 1% 5% 31.12.2012 6% 22% 18% 34% 14% 1% 5% 31.03.2013 7% 21% 16% 37% 14% 1% 5% 30.06.2013 7% 20% 1
Slide 19: Storebrand Life Insurance - return by asset class
Storebrand Life Insurance - return by asset class Return by asset class YTD Q2 2013 (%) -2,0% 0,0% 2,0% 4,0% 6,0% 8,0% 10,0% Real estate 2,4% Bonds at amortized cost 2,5% Money market 1,3% Equities 8,3% Alternative investments 0,7% Bonds -1,0% Credit 1,3% 19
Slide 20: SPP asset allocation
SPP asset allocation 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Alternative investments Bonds Equities 30.09.2012 8% 80% 12% 31.12.2012 8% 82% 11% 31.03.2013 8% 81% 12% 30.06.2013 7% 81% 12% 1 The graph shows the asset allocation for all products with an interest rate guarantee in SPP. 20