Storebrand Asa · OSL:STB
Storebrand Asa — Storebrand Livsforsikring — Debt Investor Presentation (February 2025)
52 slides from Storebrand Asa's debt investor presentation, Feb 12, 2025
Slide 1: Restricted Tier 1 Bond Issue Investor Presentation
Storebrand Livsforsikring Restricted Tier 1 Bond Issue Investor Presentation 12 February 2025
Slide 2: Disclaimer (1/2)
Disclaimer (1/2) IMPORTANT: You must read the following before continuing. The attached presentation is in summary form and relates to an offering of securities as currently contemplated and has been prepared solely for information purposes and on the basis of your acceptance of this disclaimer and
Slide 3: Disclaimer (2/2)
Disclaimer (2/2) This presentation is the sole responsibility of the Issuer and has not been approved by any regulatory authority. The information contained in this presentation speaks as of the date hereof and is subject to change, completion and amendment without notice. The information contained
Slide 4: Presentation content
Presentation content Section Page 1. Storebrand overview and strategy 7 2. Capital and solvency 18 3. Group results Q4 2024 27 4. Appendix 37 4
Slide 5: Executive summary
Executive summary • Nordic Savings and Insurance Group Storebrand1 • Leading provider of occupational pensions in Norway and Sweden, Nordic powerhouse in Asset Management and growing Overview and challenger in Norwegian retail market Strategy • Active in structurally growing markets with resilient e
Slide 6: Transaction summary – Indicative key terms
Transaction summary – Indicative key terms Issuer Storebrand Livsforsikring AS Rating (S&P): Issuer: A / Issue: Expected BBB Type of Issue: FRN and/or FXD Storebrand Livsforsikring 2025/Perpetual Restricted Tier 1 Non-Cumulative Callable Bond Issue Status: The Bonds will constitute Restricted Tier 1
Slide 7: Storebrand overview and strategy
1. Storebrand overview and strategy Storebrand overview 2. Capital and solvency and 3. Group results Q4 2024 strategy 4. Appendix 7
Slide 8: 257 years of pioneering the Nordic financial industry
257 years of pioneering the Nordic financial industry Future Storebrand is a capital light business with material group synergies Future Storebrand ILLUSTRATIVE Retail Asset Management Unit Linked Pensions and Savings Guaranteed Pensions 1767 1847 1861 1917 1995 2024 Foundation: P&C Pioneered Pionee
Slide 9: A Nordic Savings and Insurance group
A Nordic Savings and Insurance group 55,000 Pensions & savings Asset management Corporate Market leader World leader in sustainability customers NOK 749bn AuM1 NOK 1,469bn AuM 2,200,000 Individuals Retail banking Insurance Fast growing challenger Fast growing challenger NOK 87bn lending NOK 8.8bn pr
Slide 10: Storebrand Simplified Legal Structure
Storebrand Simplified Legal Structure Diversified cash flow to holding company Storebrand ASA Storebrand ASA Storebrand Storebrand Storebrand Storebrand Livsforsikring AS Forsikring AS Asset Management AS Bank AS Storebrand Storebrand Holding AB Boligkreditt AS SPP Pension & Försäkring AB 10
Slide 11: Transitioned from capital consumptive Guaranteed business to capital light
Transitioned from capital consumptive Guaranteed business to capital light Savings and Insurance business Premiums Storebrand Shift in total Storebrand AuM NOK million NOK billion 44,972 1,469 20% 54% 24,584 15% 68% 36% 442 26% 27% 14% 49% 59% 20% 12% 2012 FY 2024 2012 FY 2024 Guaranteed Savings Ins
Slide 12: Sustainable Nordic Savings and Insurance Group
Sustainable Nordic Savings and Insurance Group A B C Future Storebrand Growth focus in Leading Provider Nordic Powerhouse in Growing Challenger in capital-light business Occupational Pensions Asset Management Norwegian Retail Market areas in front book Norway & Sweden Strategic enablers D People Fir
Slide 13: Occupational pensions in Norway
Occupational pensions in Norway Sticky and growing assets in an immature defined contribution market The Norwegian Product Product Highlights Market AuM pensions system when employed when retired NOK bn 2 Defined Pension capital ▪ Growing and profitable market Contribution certificate ▪ Storebrand i
Slide 14: SPP: A digital leader in the Swedish life & pension market
SPP: A digital leader in the Swedish life & pension market Core market within occupational Serving clients in Sweden Value proposition and go-to market pensions The Swedish pension system ployees B2B2E Private Em pension savings 350 Women/Men Occupational 55/45 • Collective • Non-collective Multi-ch
Slide 15: Double digit growth continues across the Group
Double digit growth continues across the Group Unit linked (defined contribution) pensions Asset management UL reserves (NOK billion) YOY AuM (NOK billion) YOY 21% 21% +18%1 +13%1 459 1 469 380 1 097 1 020 1 212 308 315 962 268 721 831 179 220 577 707 140 168 2016 2017 2018 2019 2020 2021 2022 2023
Slide 16: On track to reach sustainability targets
On track to reach sustainability targets Science Solution CO2 emissions Other highlights based targets investments Stocks and bonds3 Real estate4 Developing products & services that aim to reduce growth in disability benefit dependent population. Pilot projects involving 500 participants have yielde
Slide 17: Financial and Sustainability goals from Capital Markets Day
Financial and Sustainability goals as presented on Capital Markets Day in December 2023 Group financial ambitions Group sustainability ambitions 5 NOK billion >14% Net-zero investments Workforce participation Group profit 2025 Return on Equity Group-level by 2050 Reduce disability NOK Increasing eve
Slide 18: Capital and solvency
1. Storebrand overview and strategy Capital and 2. Capital and solvency solvency 3. Group results Q4 2024 4. Appendix 18
Slide 19: Consistent Group capital management and dividend policy
Consistent Group capital management and dividend policy Capital management and dividend policy 200% ▪ Intention to return excess capital through share buybacks when Q4 2024 the solvency ratio is above 175% 175% ▪ Ambition is to pay nominally growing dividends per share Solvency II ratio ▪ Maintain i
Slide 20: Solvency position and sensitivities Q4 2024 – Storebrand Group
Solvency position and sensitivities Q4 2024 Storebrand Group Solvency position 1 Estimated sensitivities 190 % 200 % SII-margin Q4 200% Interest 197% rates -50bp Interest 197% rates +50 bp Q3 2024 Q4 2024 Equity -25%, 197% SA -13 p.p. MCR position 1 Spread +50 bp, 190% 422 % VA +15bp 394 % Property
Slide 21: Solvency position and sensitivities Q4 2024 – Storebrand Livsforsikring AS
Solvency position and sensitivities Q4 2024 Storebrand Livsforsikring AS Solvency position 1 Estimated sensitivities 257 % 268 % SII-margin Q4 268 Interest rates -50bp 265 Q3 2024 Q4 2024 Interest rates +50 bp 265 MCR position 1 Equity -25%, SA -14p.p. 252 527 % 560 % Spread +50 bp, VA +15bp 249 Pro
Slide 22: Solid capital position with low leverage and strong liquidity
Solid capital position with low leverage and strong liquidity gives financial flexibility Group capital (NOK billion) and leverage ratio 1 Liquidity position Storebrand ASA Q4 (NOK billion) 5.6 26% 24% 22% 20% 20% 20% 19% 2.4 45.6 3.2 40.8 35.9 13.5 32.9 1.0 11.8 27.6 8.1 24.7 8.1 20.2 4.9 5.7 6.1 3
Slide 23: Solvency capital base Q4 2024
Solvency 2 capital base Q4 2024 SCR and own funds (NOK bn) Own funds % (excluding CRD IV subsidiaries) OF % OF % 56 Regulatory limit of SCR of total CRD IV Capital 7 Tier 3 0 Tier 3 ≤ 15% SCR 1% 0% Tier 2 8 Tier 1 Restricted 2 Tier 2 ≤ 50% SCR 36% 17% ∑ T2+T3 28 6 CRD IV entities Tier 1 ≤ 20% T1 9%
Slide 24: Term structure debt (to ordinary call date)
Term structure debt (to ordinary call date) Term structure sub-debt Storebrand Livsforsikring (bn NOK)1 Term structure senior debt Storebrand ASA (bn NOK)2 3.0 Perpetual 2.7 Non- perpetual 1.3 1.0 1.0 0.9 0.5 0.5 2025 2026 2027 2028 2029 2030 2031 2025 2026 2027 2028 2029 1. Total EUR 300 million, S
Slide 25: BBB+ rating for Storebrand ASA and A rating for Storebrand Livsforsikring AS
BBB+ rating for Storebrand ASA and A rating for Storebrand Livsforsikring AS from S&P Global …reflecting business and capital improvement during the past years Rating and underlying rationale Comments Storebrand Livsforsikring AS • S&P Global has assigned an "A" rating with a stable outlook to Store
Slide 26: High quality assets, with fixed income as the backbone
High quality assets, with fixed income as the backbone, provide secure returns for guaranteed pensions and company capital Invested assets 1 on Storebrand's balance sheet Bonds Bonds and at amortised cost Money Market NOK billion Equities Real Estate Average rating Book yield Average rating 204 12%
Slide 27: Group results Q4 2024
1. Storebrand overview and strategy Group 2. Capital and solvency results 3. Group results Q4 2024 Q4 2024 4. Appendix 27
Slide 28: Good progress during 2024, strong value creation
Good progress during 2024, strong value creation for customers and shareholders Value accretive M&A and divestments Delivered NOK ~84bn in returns to our customers Helseforsikring Supported customers in ~200 thousand insurance related cases Leading player within sustainability, digital and people -
Slide 29: Highlights for Q4 and the full year 2024
Highlights for Q4 and the full year 2024 Continued successful growth execution and solid dividend increase Group result 1 NOK 1 469bn in assets under management MNOK 21% growth in unit linked reserves2 Financial gain related to 5 904 the divestment of Storebrand Helse 4 856 NOK 1 047m 1 704 19% grow
Slide 30: Key Figures
Group Key Figures Improved financial result and a solid solvency position Result development 1 Earnings per share 2 Special items Performance related result 4.59 Financial items and risk result life Cash equivalent earnings from operations 2,249 3.12 1,047 1,507 2.14 2.09 1,082 67 1,065 1.66 728 496
Slide 31: Storebrand Group | Profit
Group Storebrand Group | Profit Strong income growth & financial result, improving insurance results Profit 1 Q4 Full year NOK million 2024 2023 2024 2023 Fee and administration income 1 908 1 739 7 585 6 782 Insurance result 394 64 1 640 1 122 Operational cost -1 600 -1 542 -6 072 -5 787 Cash equiv
Slide 32: Savings (non-guaranteed)
Savings Savings (non-guaranteed) Key figures Reserves and premiums Unit Linked Retail bank balance and net interest margin (%) Unit Linked Reserves Unit Linked Premiums Life insurance balance sheet Bank balance sheet Interest margin 7.3 7.5 7.7 7.6 7.7 1.52 1.60 1.60 1.57 1.44 449 456 79 82 85 87 77
Slide 33: Insurance
Insurance Insurance Key figures Combined ratio Key takeaways combined ratio and results Claims ratio (per quarter) Cost ratio (per quarter) Combined ratio (LTM) ▪ P&C and Group life results negatively affected by NOK ~100 102% 102% 102% 100% 97% million caused by run-off losses and large losses abov
Slide 34: Guaranteed pension
Guaranteed Guaranteed pension Key figures Reserves guaranteed products Key Takeaways Customer buffers Actively sold Run-off ▪ Profit sharing above expectations, Sweden particularly strong 284 285 288 294 291 26 29 29 31 31 30 33 34 35 35 ▪ There was limited number of tenders within public occupation
Slide 35: Asset allocation – Guaranteed products
Asset allocation – Guaranteed products Storebrand Livsforsikring AS (Norway) SPP (Sweden) 70% 70% 60% 60% 50% 50% 40% 40% 30% 30% 20% 20% 10% 10% 0% 0% Bonds & Bonds at Bonds & Real Equities Money Loans amortised Equities Real estate Money Loans estate market cost market 31.12.2023 6% 11% 9% 14% 61%
Slide 36: For further information
For further information Contact us Information 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 Investor relations website Financial reports and information Johannes Narum johannes.narum
Slide 37: Appendix
1. Storebrand overview and strategy 2. Capital and solvency Appendix 3. Group results Q2 2024 4. Appendix 37
Slide 38: Storebrand Group | Profit
Group Storebrand Group | Profit Profit by line of business Profit 1 Q4 Full year NOK million 2024 2023 2024 2023 Fee and administration income 1 908 1 739 7 585 6 782 Insurance result 394 64 1 640 1 122 Operational cost -1 600 -1 542 -6 072 -5 787 Cash equivalent earnings from operations 702 262 3 1
Slide 39: Other
Other Other 1 Lower financial result due to negative mark to market effects in the fourth quarter, positive development for the full year Profit Q4 Full year NOK million 2024 2023 2024 2023 Fee and administration income 8 1 23 18 Operational cost -59 -109 -271 -411 Cash equivalent earnings from oper
Slide 40: Risk factors
Risk factors Investing in bonds involves inherent risks. Prior to making an investment decision, prospective investors should carefully consider, among other things, the main risk factors – non exhaustive list below. A prospective investor should carefully consider all the risks related to the Issue
Slide 41: Risk factors
Risk factors The company portfolios consists of capital in excess of what is needed to cover customer obligations. The market risk in the company portfolios has a direct impact on the profit. Storebrand Livsforsikring aims to take low market risk for the company portfolios, and most of the assets ar
Slide 42: Risk factors
Risk factors Credit risk/ counterparty risk The Issuer has credit risk/ counterparty risk in relation to third parties. Storebrand investment returns are susceptible to changes that impact the general creditworthiness of the issuers of the debt securities held in its investment portfolios. Storebran
Slide 43: Risk factors
Risk factors Insurance risk Insurance risk (underwriting risk) is the risk of higher than expected claims and/or unfavourable changes in the value of an insurance liability due to the actual development differing from what was expected when premiums or provisions were calculated. Longevity risk is t
Slide 44: Risk factors
Risk factors Business risk General deterioration in major economics throughout the world would reduce the level of demand for the products and services of the Issuer. It may lead to reduced savings rates from corporates in defined contribution occupational pension schemes down to the mandatory minim
Slide 45: Risk factors
Risk factors The Issuer is highly reliant on computer systems for its business operations. The Issuer is also dependent on its ability to adapt its computer systems to new products and business needs. Technical implementation can be extensive and complicated. Storebrand is facing a major technologic
Slide 46: Risk factors
Risk factors Changes in government policy, legislation or regulatory interpretation applying to the financial services industry in the markets in which the Issuer operates may adversely affect the Issuer's product range, distribution channels, capital requirements and, consequently, reported results
Slide 47: Risk factors
Risk factors Liquidity risk Liquidity risk is the risk that the Issuer is unable to fulfil its obligations without incurring substantial additional expenses in the form of reduced prices for assets that must be realized, or in the form of expensive financing. For Storebrand Livsforsikring, insurance
Slide 48: Risk factors
Risk factors All investments in interest bearing securities have risk associated with such investment. The risk is related to the general volatility in the market for such securities, varying liquidity in a single bond issue as well as company specific risk factors. The Bonds may not be a suitable i
Slide 49: Risk factors
Risk factors Under certain conditions, interest payments under the Bonds may be optionally or mandatorily deferred Cancellation of payments: (a) Payment of interest may be cancelled, at any time and for an unlimited period, in whole or in part, at the option of the Issuer in its sole discretion. (b)
Slide 50: Risk factors
Risk factors Changes in ranking and terms No limitation on issuing further debt and guarantees There is no restriction on the amount of debt which the Issuer may issue ranking equal or senior to the obligations. Such issuance of further debt may reduce the amount recoverable by the Bondholders upon
Slide 51: Risk factors
Risk factors In respect of issuance with a specific use of proceeds, such as a ‘Green Bond’, the application of the net proceeds of such Notes might not meet investor expectations or be (or remain) suitable for the investment criteria of an investor Issuance described as “Green Bonds”, will be the I
Slide 52: Important information
Important information This document may contain forward-looking statements. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances that may be beyond the Storebrand Group’s control. As a result, the Storebrand Group’s actual fu
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