Storebrand Indeks - Alle Markeder Units -A5- DKK · OMXCOP:STIIAM
Storebrand Indeks - Alle Markeder Units -A5- DKK — Storebrand — Q4 2021 Earnings Presentation
32 slides from Storebrand Indeks - Alle Markeder Units -A5- DKK's earnings presentation, Feb 9, 2022
Slide 1: Storebrand Q4 2021
Storebrand Q4 2021 9 February 2022 Odd Arild Grefstad – CEO Lars Aa. Løddesøl – CFO 1
Slide 2: Highlights Q4 2021
Highlights Q4 2021 #1 sustainable insurance company in the world3 Group result1 15% Unit Linked reserve growth2 4 503 1 372 14% AuM growth Asset Management2 MNOK 1 367 3 130 329 1 038 22% Insurance Portfolio Premium growth2 Q4 2021 FY 2021 Financial items and risk result life 3.50 NOK proposed divid
Slide 3: Storebrand delivers market leading return to Norwegian pension customers
Storebrand delivers market leading return to Norwegian pension customers Norwegian Defined Contribution Pensions Average return last 5 years compared to peers New regulation secures pension offering to more employees from 2022 9,2% Higher pension savings for employees, greatest improvement 8,3% 8,4%
Slide 4: Sustainable Nordic Savings and Insurance Group
Pursuing our Group Strategy: Leading The Way In Sustainable Value Creation to be a leading 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
Slide 5: Progress on strategic growth ambitions
Progress on strategic growth ambitions A B C Leading Provider Occupational Pensions Nordic Powerhouse in Growing Challenger in Norwegian Retail Norway & Sweden Asset Management Market DC pensions (Unit Linked) Insurance Portfolio AuM (BNOK) Lending balance (BNOK) reserves (BNOK) Premiums2 (MNOK) +15
Slide 6: Growth accelerated with selected add-on acquisitions that build on Group synergies
Growth accelerated with selected add-on acquisitions that build on Group synergies A B C Leading Provider Occupational Nordic Powerhouse in Growing Challenger in Norwegian Retail Pensions Asset Management Market Norway & Sweden Bolt-on acquisitions 2017-2021 Strategic ▪ M&A bolt-ons have been used a
Slide 7: The acquisitions of Danica Pension strengthens our position in Norwegian occupational pension market
The acquisitions of Danica Pension strengthens our position in Norwegian occupational pension market Background GWP1 split (YTD Q3 2021) Asset mix (Q3 2021) Guaranteed Unit Link Savings Insurance (NOK 1.3bn) (NOK 27.5bn) ▪ Norwegian life insurance company, founded in 1996, owned by 5% Danske Bank A/
Slide 8: Results in SPP are increasing and capital is released from a mature backbook
Results in SPP are increasing and capital is released from a mature backbook Result before tax and amoritisation Capital release 2015-2021 MSEK 1.286 BSEK Operating profit Repayment loan Financial items and risk result life 480 Dividend 5,0 8,7 836 0,7 778 702 137 654 637 173 4,3 196 87 203 3,7 806
Slide 9: Storebrand reaffirms its commitment to deliver growing ordinary dividends to shareholders
Storebrand reaffirms its commitment to deliver growing ordinary dividends to shareholders Regulatory cancelled due to Covid-19 +8% 3.50 3.25 3.25 ▪ IFRS result growth - Ordinary 3.00 dividends minimum 50% of result 2.50 after tax, with nominal growth. 0.40 1.55 ▪ Capital return from back book. Share
Slide 10: Fungible group capital. IFRS results close to cash
Fungible group capital. IFRS results close to cash Storebrand ASA: ∑ NOK 3 352m Proposed dividends 2021: 3,50kr pr share NOK 3 352m NOK 2160m NOK 86m NOK 948m NOK 158m NOK 1 646m NOK 1 706m Storebrand Storebrand Storebrand Asset Storebrand Livsforsikring AS Forsikring AS Management AS Bank ASA Remit
Slide 11: Key Figures
Key Figures Strong result development and a solid regulatory capital situation with high customer buffers Result development1 Earnings per share2 Financial items and risk result life Performance related result MNOK Special items Operating profit 2.79 1,353 1,367 2.25 1,224 121 2.13 913 329 298 870 5
Slide 12: Strong result in 2021 provides excellent starting point for exceeding the 4 billion result ambitions for 2023
Strong result in 2021 provides excellent starting point for exceeding the 4 billion result ambitions for 2023 2 2021 2 2022 2 2023 ▪ Group Result ambition1 for 2023 ▪ Several organic growth initiatives ▪ Well on track to exceed the Group of NOK 4 billion was achieved in initiated to further strength
Slide 13: Investments in growth, digital and M&A increases cost base
Investments in growth, digital and M&A increases cost base1 Operational cost development1 Comments ▪ Investments in growth, digital and M&A increases cost base. NOK 4.4 bn Cost target 2021 4,7 bn Performance related costs ▪ Growth initiatives include Public Occupational ∼0.4 bn ex. performance 0.3 b
Slide 14: Solvency movement from Q3 2021 to Q4 2021
Solvency movement from Q3 2021 to Q4 2021 Storebrand Group 177% 4% -1% 175% -2% 1% -3% -1% Q3 2021 Model and VA & Symmetric Interest rates Asset return and Result Dividend Q4 2021 Assumptions Equity Stress Business mix 14
Slide 15: Estimated solvency sensitivities
Estimated solvency sensitivities Storebrand Group Solvency position(%)1 Estimated sensitivities Target SII margin 150% 178 175 1 0 SII-margin Q4 175 0 175 177 175 Interest rates -50bp 171 12 183 Interest Q3 2021 Q4 2021 rates +50 bp 178 0 178 Transitional rules SII standard model Equity -25% 179 1 1
Slide 16: Storebrand Group
Storebrand Group Growth in Fee and administration income main driver for improved results Group Profit1 Q4 FY NOK million 2021 2020 2021 2020 Fee and administration income 2 108 1 674 6 607 5 676 Insurance result 307 338 1 201 825 Operational cost -1 377 -1 086 -4 678 -4 068 Operating profit 1 038 9
Slide 17: Storebrand Group
Storebrand Group Profit improvement in all lines of business for the full year Group Profit1 Q4 FY NOK million 2021 2020 2021 2020 Fee and administration income 2 108 1 674 6 607 5 676 Insurance result 307 338 1 201 825 Operational cost -1 377 -1 086 -4 678 -4 068 Operating profit 1 038 926 3 130 2
Slide 18: Savings (non-guaranteed)
Savings (non-guaranteed) Strong revenue and profit growth Savings Profit Q4 FY NOK million 2021 2020 2021 2020 Fee and administration income 1 748 1 336 5 215 4 392 Operational cost -838 -704 -2 927 -2 611 Operating profit 910 633 2 288 1 781 Financial items and risk result life 6 31 67 -51 Profit b
Slide 19: Savings (non-guaranteed)
Savings (non-guaranteed) Revenue increase explained by volume growth across pension, banking and asset management Savings Reserves and premiums Unit Linked Retail bank balance and net interest margin (%) 5.3 5.3 5.4 Life insurance balance sheet Bank balance sheet 5.2 5.2 1.13 1.10 1.14 1.22 1.19 308
Slide 20: Insurance
Insurance Continued strong volume growth Insurance Profit Q4 FY NOK million 2021 2020 2021 2020 Insurance premiums f.o.a. 1 366 1 136 5 175 4 331 Claims f.o.a. -1 059 -799 -3 974 -3 506 Operational cost -253 -194 -875 -712 Operating profit 54 143 326 113 Financial result 6 32 97 91 Profit before amo
Slide 21: Insurance
Insurance Continued strong volume growth Insurance Combined ratio Key Takeaways Combined Ratio and Results Claims ratio Cost ratio Combined ratio 98% 96% 87% 91% 90% ▪ 94% combined ratio, higher than target (90-92%) ▪ Continued weak claims ratio in Group life ▪ Increased cost ratio in the fourth qua
Slide 22: Guaranteed pension
Guaranteed pension Good financial results and profit sharing Guaranteed Profit Q4 FY NOK million 2021 2020 2021 2020 Fee and administration income 418 389 1 631 1 511 Operational cost -248 -218 -890 -861 Operating profit 169 171 741 650 Risk result life & pensions 63 14 187 19 Net profit sharing 253
Slide 23: Guaranteed pension
Guaranteed pension Strong results and a shrinking share of the pensions balance sheet Guaranteed Reserves guaranteed products Key Takeaways 288 291 270 273 31 34 Customer buffers ▪ New Public Occupational Pensions mandates of NOK 5.5 bn in reserves 20 25 won during 2021 – will be booked in January 2
Slide 24: Increased buffer capital and actively sold products have increased overall guaranteed reserves
Increased buffer capital and actively sold products have increased Guaranteed overall guaranteed reserves, despite run-off of old products Reported Total Guaranteed Reserves (NOK bn) Guaranteed reserves Norway (NOK bn) 198 291 187 288 179 183 20 Customer Buffers 11 14 18 11 3 3 3 Smart guarantees 27
Slide 25: Other
Other1 Modest market returns in the quarter Other Profit Q4 FY NOK million 2021 2020 2021 2020 Fee and administration income 8 9 21 9 Operational cost -103 -30 -246 -120 Operating profit -96 -21 -225 -111 Financial items and risk result life 0 11 518 83 Profit before amortisation -95 -10 293 -28 25
Slide 26: Q&A
Q&A Please follow the operator's instructions to ask questions in the conference call Group CFO Group CEO Group Head of Head of Strategy & Finance Investor Relations & Rating Lars Aa. Løddesøl Odd Arild Grefstad Kjetil R. Krøkje Daniel Sundahl 26 26
Slide 27: Appendix
2/7 Appendix G2 storebrand
Slide 28: Solvency movement from Q4 2020 to Q4 2021
Solvency movement from Q4 2020 to Q4 2021 Storebrand Group 6 181 12 175 -6 166 8 -4 8 -12 -2 2020 Q4 Model and Regulatory M&A Interest rates Asset return Result Subordinated 2021 Q4 Dividend 2021 Q4 assumptions assumptions and business debt pre dividend mix 28
Slide 29: Danica Pensjonsforsikring – Key financials
Danica Pensjonsforsikring – Key financials 2019 2020 YTD Q3 2021 Administration income NOKm 188 186 152 Insurance income NOKm 85 120 71 Asset management income NOKm 113 121 105 Total income NOKm 386 427 328 Net operating expenses NOKm -293 -300 -227 Net operating income NOKm 94 127 101 Net financial
Slide 30: 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 31.12.2020 9% 11% 13% 15% 52% 31.03.2021 10% 11% 12% 13% 55% 30.06.2021 11% 10% 11% 14% 54% 30.09.2021 11% 11% 10% 13% 55% 31.12.2021 10% 11% 13% 14% 52% 30 N
Slide 31: SPP asset allocation
SPP asset allocation 60% 50% 40% 30% 20% 10% 0% Bonds & Money Equities Real estate Loans market 31.12.2020 13% 12% 57% 17% 31.03.2021 15% 12% 54% 19% 30.06.2021 15% 13% 52% 21% 30.09.2021 15% 13% 51% 21% 31.12.2021 16% 13% 49% 22% 31 Note: The graph shows the asset allocation for all products with a
Slide 32: 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