Storebrand Asa · OSL:STB

Storebrand Asa — Q4 2014 Earnings Presentation

27 slides from Storebrand Asa's earnings presentation, Feb 11, 2015

  1. Slide 1: Storebrand Q4 2014

    Storebrand Q4 2014 11 February 2015 Better pensions Odd Arild Grefstad – CEO Lars Aa. Løddesøl – CFO

  2. Slide 2: Highlights 2014

    Highlights 2014 Result  Group result of NOK 923 mill in Q4 and 3 032 mill in 2014  Nominal costs below 3.5 NOK bn2 – 2014 cost target reached  44% annual growth in results within Savings1 Operations  Total AuM 535 NOK bn, up 10% in 2014  892 mill converted to paid-up policies with investment ch

  3. Slide 3: Transformation of the business model continues

    Transformation of the business model continues Dual strategy reiterated and reinforced Manage the guaranteed balance sheet Continued growth in savings and insurance Retail customers Employees Capital Risk optimization reduction Corporate relation >130% Save for Solvency II < retirement Margin Produc

  4. Slide 4: Managing the guaranteed balance sheet

    Managing the guaranteed balance sheet Capital optimization Risk reduction Transfer out of guaranteed products 29 122  Reduced equity exposure  Longevity reserve strengthening 15 093 ahead of plan MNOK  Buffer capital increased 9 955 4 074  Risk segmentation and improved >130% ALM 2012 2013 2014

  5. Slide 5: Estimated SII position and sensitivities

    Estimated SII position and sensitivities Economic Solvency position1 Estimated Sensitivities after 1.1.20162 148 Target SII margin 1.1.2016 =130% 125 SII-margin Q4 2014 148 Interest rates -50bp 129 Q3 2014 Q4 2014 Interest rates +50 bp 164 Key takeaways  Effect of falling interest rates between Q3

  6. Slide 6: Longevity - 50% of reserve strengthening completed

    Longevity - 50% of reserve strengthening completed Reserve strengthening Norwegian guaranteed products Longevity reserve strengthening 2013-2014 (BNOK) 2015-2020 (BNOK)  Total reserve strengthening need 21.3 NOK 12.4 bn  Longevity reserve strengthened by NOK 2.7 bn in 2014 13.4 12.4 3.5  Indirect

  7. Slide 7: Paid up policies is the main challenge in a low interest scenario

    Paid up policies is the main challenge in a low interest scenario and under SII… …But still manageable both short and long term Expected return paid up polices without use of buffers  2015-2020: Longevity reserve 2015-20201 strengthening and interest rate …including reinvestment due and expected is

  8. Slide 8: Good growth in pensions and asset management

    Good growth in pensions and asset management Unit Linked Asset management +25.1% 105 +8.9% 535 85 487 64 442 54 414 2011 2012 2013 2014 2011 2012 2013 2014 UL reserves (BNOK) AuM (BNOK) Save for retirement Insurance Retail loans 2.8% +7.0% 23.7 23.9 23.9 3 115 22.0 3 034 2 707 2 546 2011 2012 2013 2

  9. Slide 9: Strong start paid-up policies with investment choice

    Strong start paid-up policies with investment choice Accumulated sales of paid-up Key takeaways policies with investment choice 1 500 MNOK  Increase your pension through higher expected return on investments  Retain purchasing power on your 900 pension savings 600  Adjust your pension risk with t

  10. Slide 10: Strong sales and continued growth in Unit Linked premiums

    Strong sales and continued growth in Unit Linked premiums Growth in 2015 will come from new customers… Letter of intent signed with Statoil:  ~13 400 employees on a DC scheme  Annual DC premiums of ~1 NOK bn  Administration of closed DB pension fund …and market growth and new sales will ensure co

  11. Slide 11: Leveraging leading sustainability position to create customer value

    Leveraging leading sustainability position to create customer value Sustainability rating on mutual funds Key takeaways Introduced in Sweden in 2014 and in Norway last week Built on leading in-house sustainability competence Most comprehensive system in the market Verified by DNV GL 11

  12. Slide 12: Key figures

    Group Key figures Result development Earnings per share1 Net profit sharing and loan losses Sale discontinued business/change in pension plan MNOK Result before profit sharing and loan losses 1.82 1.78 Longevity provision 1.38 1.33 1,054 923 25 1.08 180 728 750 632 277 40 71 200 477 62 597 707 640 6

  13. Slide 13: Storebrand Group

    Group Storebrand Group Result Q4 Full year NOK million 2014 2013 2014 2013 Fee and administration income 1 090 1 114 4 272 4 253 Risk result life & pensions 323 17 480 17 Insurance premiums f.o.a. 802 796 3 115 3 034 Claims f.o.a. -613 -569 -2 226 -1 940 Operational cost -269 -494 -2 617 -2 938 Fina

  14. Slide 14: Storebrand Group - Specification of special items

    Group Storebrand Group Specification of special items Q4 Full year NOK million 2014 2013 2014 2013 Change in own pension scheme 571 352 571 352 Restructuring costs 2013 -60 -95 Effect on operational cost 571 292 571 257 Dissolved ATP compensation SPP 322 322 Longevity strengthening w/use of REF1 -98

  15. Slide 15: Storebrand Group - Result adjusted for special items

    Group Storebrand Group Result adjusted for special items Q4 Full year NOK million 2014 2013 2014 2013 Fee and administration income 1 090 1 114 4 272 4 253 Risk result life & pensions 99 17 256 17 Insurance premiums f.o.a. 802 796 3 115 3 034 Claims f.o.a. -613 -569 -2 226 -1 940 Operational cost -8

  16. Slide 16: Storebrand Group - Result per line of business

    Group Storebrand Group Result Q4 Full year NOK million 2014 2013 2014 2013 Fee and administration income 1 090 1 114 4 272 4 253 Risk result life & pensions 323 17 480 17 Insurance premiums f.o.a. 802 796 3 115 3 034 Claims f.o.a. -613 -569 -2 226 -1 940 Operational cost -269 -494 -2 617 -2 938 Fina

  17. Slide 17: Savings (non-guaranteed) - strong results growth

    Savings (non-guaranteed) Savings - strong results growth Result Q4 Full year NOK million 2014 2013 2014 2013 Fee and administration income 563 489 2 148 1 888 Risk result life & pensions -10 3 -11 7 Operational cost1 -191 -294 -1 151 -1 279 Financial result - - - - Result before profit sharing and l

  18. Slide 18: Savings - strong growth in UL reserves and premiums

    Savings (non-guaranteed) Savings - strong growth in UL reserves and premiums Reserves and premiums Unit Linked Comments 2 594 2 463 2 483 2 347 2 273  22% premium growth in UL occupational pension premiums1 105.369 MNOK 92.899 93.976 +23%  44% increase in results2 87.105 85.452  Strong developmen

  19. Slide 19: Insurance - continued P&C growth, increased disability claims

    Insurance - continued P&C growth, Insurance increased disability claims Result Q4 Full year NOK million 2014 2013 2014 2013 Insurance premiums f.o.a. 802 796 3 115 3 034 Claims f.o.a. -613 -569 -2 226 -1 940 Operational cost -9 -77 -387 -463 Financial result -22 31 173 143 Contribution from SB Helse

  20. Slide 20: Insurance - Claims ratio affected by disability strengthening

    Insurance Insurance - Claims ratio affected by disability strengthening Combined ratio Comments Claims ratio Cost ratio Combined ratio 1  Increased disability, strengthening of 90% 89% 93% reserves and negative pooling 81% 80% results within Disability Insurance  Weak investment results in Q4, 71%

  21. Slide 21: Guaranteed pension - Risk reducing measures impact results

    Guaranteed pension Guaranteed - Risk reducing measures impact results Result Q4 Full year NOK million 2014 2013 2014 2013 Fee and administration income 457 535 1 842 2 013 Risk result life & pensions1 331 16 483 7 Operational cost2 -84 -199 -921 -1 016 Financial result - - - - Result before profit s

  22. Slide 22: Guaranteed pension - strengthened buffer capital

    Guaranteed pension Guaranteed - strengthened buffer capital Reserves guaranteed products Comments 0%  NOK 15 bn of guaranteed reserves transferred out in 2014 MNOK 264 125 259 799 263 370 264 290 257 425  Buffer capital strengthened by NOK 10 bn in 2014 4Q 2013 Q1 2014 Q2 2014 3Q 2014 4Q 2014 Buff

  23. Slide 23: Other

    Other Other Result Q4 Full year NOK million 2014 2013 2014 2013 Fee and administration income 69 90 282 353 Risk result life & pensions 2 -2 8 3 Operational cost1 14 75 -158 -180 Financial result 29 -21 190 -46 Result before profit sharing and loan losses 115 143 322 129 Net profit sharing and loan

  24. Slide 24: Key takeaways

    Key takeaways  Increased sales  Solvency II position strengthened  Strong results  Cost target reached 24 24 24

  25. Slide 25: Appendix

    Appendix 25 @® storebrand

  26. Slide 26: Storebrand Life Insurance asset allocation

    Storebrand Life Insurance asset allocation 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Bonds at Equities Bonds Money market Real estate Other amortized cost 31.12.2013 9% 19% 12% 42% 11% 6% 31.03.2014 9% 21% 11% 43% 11% 6% 30.06.2014 10% 21% 10% 43% 11% 5% 30.09.2014 9% 20% 10% 44% 11% 6% 31.12.2014 7

  27. Slide 27: SPP asset allocation

    SPP asset allocation 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Alternative investments Bonds Equities 31.12.2013 7% 82% 11% 31.03.2014 7% 82% 11% 30.06.2014 6% 82% 12% 30.09.2014 6% 82% 12% 31.12.2014 6% 84% 10% 1 The graph shows the asset allocation for all products with an interest rate guarantee in

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