Slide 1: Storebrand 4Q 2016
Storebrand 4Q 2016 Storebrand celebrates 250 years in 2017 8 Feb 2016 Odd Arild Grefstad – CEO Lars Aa. Løddesøl – CFO
Slide 2: Storebrand – the world's most sustainable insurer
Storebrand – the world's most sustainable insurer Storebrand was named the world's most sustainable insurance company, and the second most sustainable company in any category, at the World Economic Forum 2017. We are proud and humbled. Proud, because sustainability is at the core of our business. Hu
Slide 3: Highlights 2016
Highlights 2016 Group result1 16% Unit Linked premium growth3 2,913 MNOK 924 32% Retail Bank lending 912 growth3 1,989 384 528 4Q 2016 FY 2016 Financial items and risk result life Operating profit 160% Solvency II ratio4 4% growth in Savings fee and admin income2 12% reduction in Guaranteed fee
Slide 4: Dividend NOK 1.55 pr. share
Dividend NOK 1.55 pr. share Payout ratio >35% The Board proposes a dividend of 35% NOK 1.55 per share for 2016 27% Expected dividend of more than 35 per cent of the result for 20171 Expected development in the Solvency II ratio implies a further gradual increase in the dividend pay- out ratio
Slide 5: Our strategy
Our strategy 1 Manage the guaranteed 2 Continued growth in balance sheet Savings and Insurance >150% SII margin Capital-light and profitable growth Cost reductions through Market leading asset gatherer automation and outsourcing with strong Insurance offering Manage for future capital release
Slide 6: Growth in Savings and Insurance continues
Manage guaranteed 1 balance sheet 2 Growth in Savings and Insurance Growth in Savings and Insurance continues Unit Linked Asset management 15%1 6%1 140 Growth weakened by 571 577 128 Growth weakened SEK/NOK; 9% growth incl. currency effect by SEK/NOK; 1% 16% premium growth growth incl. in 2016
Slide 7: Innovating the customer journey
Manage guaranteed 1 balance sheet 2 Growth in Savings and Insurance Innovating the customer journey Digitally driven sales front Customer service People and technology Products and concepts Launched market leading digital pension manager Customer loyalty at all-time high Improved customer deliveries
Slide 8: Market leading digital pension manager
Manage guaranteed 1 balance sheet 2 Growth in Savings and Insurance Market leading digital pension manager Personalized advisor on how to achieve your desired pension
Slide 9: Key figures
Group Key figures Result development1 Earnings per share2 Financial items and risk result life Special items MNOK Operating result 912 1.83 788 1.65 1.64 676 386 261 537 254 1.23 209 73 5 123 0.93 575 459 495 578 411 -27 -52 -291 -24 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q4 2015 Q1 2016 Q2 2016 Q3
Slide 10: Solvency II position Storebrand Group
Solvency II position Storebrand Group Solvency position(%)1 Estimated sensitivities Target SII margin 150% 165 157 34 13 Estimated economic SII-margin Q4 2016 144 13 157 131 144 Interest rates -50bp 130 30 160 Q3 2016 Q4 2016 Interest rates +50 bp 157 5 162 Transitional rules SII standard model Key
Slide 11: Solvency II movement from Q3 to Q4
Solvency II movement from Q3 to Q4 Q3 2016 +131% Model improvements -3% Increased equity stress/other assumptions and assumptions Interest +15% NOK 10y swap increased almost 50bps rates incl. VA Sub. Debt +3% Issued SEK 750 mill. sub debt Q4 2016 before dividend +146% Transitional rules +13% Reduced
Slide 12: Storebrand Group
Group Storebrand Group Profit1 4Q Full year NOK million 2016 2015 2016 2015 Fee and administration income 1 138 1 160 4 235 4 317 Insurance result 251 143 945 820 Operational cost -861 -926 -3 191 -3 309 Operating profit 528 378 1 989 1 828 Financial items and risk result life 384 -117 924 -107 Prof
Slide 13: Storebrand Group
Group Storebrand Group Profit 4Q Full year NOK million 2016 2015 2016 2015 Fee and administration income 1 138 1 160 4 235 4 317 Insurance result 251 143 945 820 Operational cost -861 -926 -3 191 -3 309 Operating profit 528 378 1 989 1 828 Financial items and risk result life 384 -117 924 -107 Profi
Slide 14: Savings (non-guaranteed) - continued growth
Savings (non-guaranteed) Savings - continued growth Profit 4Q Full year NOK million 2016 2015 2016 2015 Fee and administration income 744 761 2 758 2 662 Operational cost -426 -459 -1 700 -1 657 Operating profit 319 301 1 058 1 006 Financial items and risk result life 3 -5 5 -4 Profit before amortis
Slide 15: Savings - strong growth in retail lending
Savings (non-guaranteed) Savings - strong growth in retail lending Reserves and premiums Unit Linked Comments 3,7 3,5 3,4 3,5 3,2 16% premium growth in UL 140 premiums1 132 128 128 32% retail lending growth2 BNOK 125 4% top line growth in Savings2 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Retail
Slide 16: Insurance - profitable growth
Insurance Insurance - profitable growth Profit 4Q Full year NOK million 2016 2015 2016 2015 Insurance premiums f.o.a. 957 934 3 828 3 642 Claims f.o.a. -706 -791 -2 883 -2 822 Operational cost -168 -153 -602 -543 Operating profit 83 -9 342 277 Financial result 60 25 233 206 Profit before amortisatio
Slide 17: Insurance - combined ratio on target level
Insurance Insurance - combined ratio on target level Comments Combined ratio and Combined ratio Claims ratio results Cost ratio Combined ratio 101% 92% 91% 91% 90% Combined Ratio 91% On-going shift to more cost-effective 85% 77% 75% 75% 74% distribution gives temporary lower growth 16% 15% 14% 1
Slide 18: Guaranteed pension - strong quarter but long term run off
Guaranteed pension Guaranteed - strong quarter but long term run off Profit 4Q Full year NOK million 2016 2015 2016 2015 Fee and administration income 376 460 1 566 1 777 Operational cost -260 -333 -981 -1 156 Operating profit 116 128 585 621 Risk result life & pensions -13 7 -37 89 Net profit shari
Slide 19: Guaranteed pension - reserves in decline
Guaranteed pension Guaranteed - reserves in decline Reserves guaranteed products Comments 267 266 266 262 259 56 51 49 47 46 104 109 112 115 116 As companies convert to DC schemes, the migration from DB to lower-margin BNOK 15 15 15 15 15 paid up policies continues to reduce fee 92 91 89 84 82 inc
Slide 20: Other
Other Other1 Profit 4Q Full year NOK million 2016 2015 2016 2015 Fee and administration income 43 17 145 129 Operational cost -33 -59 -141 -203 Operating profit 10 -41 4 -75 Financial items and risk result life -54 101 401 -16 Profit before amortisation -45 60 405 -91 Profit per product line 4Q Full
Slide 21: Appendix
Appendix 21 @® storebrand
Slide 22: Storebrand Life Insurance asset allocation
Storebrand Life Insurance asset allocation 60% 50% 40% 30% 20% 10% 0% Bonds at Equities Bonds Money market Real estate Other amortized cost 31.12.2015 6% 22% 8% 51% 12% 2% 31.03.2016 5% 26% 7% 49% 12% 1% 30.06.2016 5% 29% 5% 49% 11% 1% 30.09.2016 5% 28% 6% 50% 11% 1% 31.12.2016 5% 27% 4% 52% 11% 1%
Slide 23: SPP asset allocation
SPP asset allocation 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Alternative investments Bonds Equities 31.12.2015 6% 87% 7% 31.03.2016 5% 89% 6% 30.06.2016 6% 88% 6% 30.09.2016 7% 89% 4% 31.12.2016 8% 86% 5% Note: The graph shows the asset allocation for all products with an interest rate guarantee
Slide 24: Investor Relations contacts
Investor Relations contacts Lars Aa Løddesøl Group CFO lars.loddesol@storebrand.no +47 9348 0151 Sigbjørn Birkeland Finance Director sigbjorn.birkeland@storebrand.no +47 9348 0893 Kjetil R. Krøkje Head of IR kjetil.r.krokje@storebrand.no +47 9341 2155 This document contains Alternative Performance M