Storebrand Asa · OSL:STB
Storebrand Asa — Debt Investor Presentation (September 2016)
29 slides from Storebrand Asa's debt investor presentation, September 2016
Slide 1: Company presentation September 2016
company presentation September 2016 1
Slide 2: 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 Storebrand’s control. As a result, Storebrand’s actual future financial cond
Slide 3: Contents
Contents Page: 1. Storebrand Group overview and strategy 4 2. Storebrand Livsforsikring AS 20 3
Slide 4: Key Takeaways
On a transition from capital consuming guarantees to capital- light asset gatherer Growth and profitability from Savings and Insurance replace Key Takeaways run-off business Back book run off and front book solvency generation enable future capital release New capital management policy with >150% SI
Slide 5: Storebrand an integrated financial services group - Norway and Sweden core markets
Storebrand an integrated financial services group - Norway and Sweden core markets Life and pensions Asset management 40k corporate customers NOK 569bn in AuM of which 24% 1.9m individual customers external assets NOK 393 bn of reserves of which 100% of investments assessed by approx. 1/3 Unit Linke
Slide 6: Strong growth in Nordic pension market
Strong growth in Nordic pension market - supported by a solid macro environment and increased savings rates within the Norwegian defined contribution pension framework Unit Linked pension premium growth1 Norway, NOK bn 52 Sweden , SEK bn 46 42 37 20 17 CAGR 17% 15 13 29 32 CAGR 9% 25 27 2012 2013 20
Slide 7: Record low interest rates
Record low interest rates Interest rates in Norway and Sweden (%) 4,00 3,50 3,00 2,50 2,00 1,50 1,00 0,50 0,00 -0,50 -1,00 31.12.2012 30.06.2013 31.12.2013 30.06.2014 31.12.2014 30.06.2015 31.12.2015 30.06.2016 NOK SWAP 10Y SEK SWAP 10Y Key policy rate Norway Repo rate Sweden 7
Slide 8: Strategic response in a low interest rate environment
Strategic response in a low interest rate environment 1 Manage the guaranteed 2 Continued growth in balance sheet Savings and Insurance Continued transfer out of Leading position in occupational guaranteed reserves pensions Further cost reductions through Asset gatherer with strong automation and ou
Slide 9: Paid up policies book is the main challenge in a low interest scenario
Manage guaranteed 1 balance sheet 2 Growth in Savings and Insurance Paid up policies book 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 2016-20201 Q2 2016: Built NOK 3.1 bn in …inc
Slide 10: Manage the guaranteed balance sheet - From guaranteed to non-guaranteed pension savings
Manage guaranteed 1 balance sheet 2 Growth in Savings and Insurance Manage the guaranteed balance sheet - From guaranteed to non-guaranteed pension savings Premium income Storebrand Life Insurance1 Storebrand Life Insurance2 Share of reserve distributed by age of policy-holder 10 000 NOKm Guaranteed
Slide 11: Long term balance sheet shift
Manage guaranteed 1 balance sheet 2 Growth in Savings and Insurance Long term balance sheet shift Forecast assets under management (NOKbn) ILLUSTRATION 800 700 600 500 400 300 200 100 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Company capital and Other Low capital consumptive Guar
Slide 12: Continued growth in Savings and Insurance (1/2)
Manage guaranteed 1 balance sheet 2 Growth in Savings and Insurance Continued growth in Savings and Insurance (1/2) Unit Linked Asset management 128 +8% 571 24% 105 535 85 487 442 64 414 54 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 UL reserves (BNOK) AuM (BNOK) Insurance Retail loans 5% +10%
Slide 13: Continued growth in Savings and Insurance (2/2)
Manage guaranteed 1 balance sheet 2 Growth in Savings and Insurance Continued growth in Savings and Insurance (2/2) Unit Linked Asset management 9% 3% 128 17% premium 552 569 117 Gathering assets growth 2Q 2016 from life company Weak financial and strong sales markets dampens growth in reserves Weak
Slide 14: Defined Contribution - Leading position in Norway and strong contender in Sweden
Manage guaranteed 1 balance sheet 2 Growth in Savings and Insurance Defined Contribution - Leading position in Norway and strong contender in Sweden Norway – market leader defined Sweden – growing in defined contribution (private sector)1 contribution (private sector)2 34% 15% 15% 15% 14% 28% 11% 15
Slide 15: Group Capital Management Policy protects creditors
Manage guaranteed 1 balance sheet 2 Growth in Savings and Insurance Group Capital Management Policy protects creditors - Plans to hold a solid margin to solvency capital requirement Solvency II Incl. transitional rules Consider increased pay out Consider share buy-backs 180% Dividend pay out Q2: Mai
Slide 16: Solvency II position Storebrand Group - transitional rules reduce sensitivity
Manage guaranteed 1 balance sheet 2 Growth in Savings and Insurance Solvency II position Storebrand Group - transitional rules reduce sensitivity to market movements Economic Solvency position(%)1 Estimated Sensitivities Q2 2016 175 172 Target SII margin 150% 58 50 Estimated economic SII-margin Q4 2
Slide 17: A solid and profitable company
Manage guaranteed 1 balance sheet 2 Growth in Savings and Insurance A solid and profitable company Group result1 Comments 3,423 Exiting public sector Defined 473 2,935 Benefit 277 314 1,952 416 1,762 Exiting Corporate Banking 398 NOK mil 1,612 1,279 Lower interest rates 158 1,344 2,636 196 2,242 2,2
Slide 18: Group financial targets
Group financial targets Target Status Q2 2016 Return on equity1 > 10% 9,5% Dividend ratio1 > 35% n/a Solvency II margin Storebrand Group2 > 150% 172% 18 1 Before amortisation after tax. 2 Including transitional rules.
Slide 19: Contents
Contents Page: 1. Storebrand Group overview and strategy 4 2. Storebrand Livsforsikring AS 20 19
Slide 20: Storebrand Group structure (simplified)
Storebrand Group structure (simplified) Legal structure (simplified) Storebrand ASA Storebrand Livsforsikring AS Storebrand Bank ASA Storebrand Asset Storebrand Forsikring management AS AS Storebrand Holding AB Benco Reporting structure Storebrand ASA SPP Pension & Försäkring AB Savings (non- Guaran
Slide 21: Solvency II position Storebrand Livsforsikring AS
Solvency II position Storebrand Livsforsikring AS Economic Solvency position(%)1 Main differences between the Storebrand 215 212 Group solvency and Storebrand Livsforsikring AS solo calculation 75 65 SPP and Benco are treated as strategic participations 140 147 Under SII there is a 22% capital charg
Slide 22: Key figures Storebrand Livsforsikring Group
Key figures Storebrand Livsforsikring Group IFRS Results 1 Total IFRS capital 2 Special items MNOK Bn NOK 31.2 30.7 Net profit sharing 29.3 27.1 Equity Result befor profit sharing and loan losses 23.9 2,770 T1 2,437 257 376 UT2 368 21.9 23.7 23.4 1,846 1,344 20.3 LT2 383 17.3 865 2,069 2,137 1,742 6
Slide 23: Key Takeaways
On a transition from capital consuming guarantees to capital- light asset gatherer Growth and profitability from Savings and Insurance replace Key Takeaways run-off business Back book run off and front book solvency generation enable future capital release New capital management policy with >150% SI
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 Lars Kramer VP Capital Management lars.Kramer@storebrand.no +47 9006 8287 Kjetil R. Krøkje Head of IR kjetil.r.krokje@st
Slide 25: Appendix
Appendix @9 storebrand
Slide 26: Summary of Indicative Terms And Conditions
Summary of Indicative Terms And Conditions Summary Terms & Conditions Issuer Storebrand Livsforsikring AS Parent: Storebrand ASA (direct 100% owner of the Issuer) Bonds: SEK [•]FRN Storebrand Livsforsikring AS Callable Subordinated Bond Issue 2016/2046 Expected Bond Rating: [BBB-] (S&P) Maturity Dat
Slide 27: Guaranteed asset allocation Q2 2016
Guaranteed asset allocation Q2 2016 Sweden NOK 91 bn Norway NOK 176 bn Comment on oil exposure: 1% of total asset allocation with direct oil exposure, whereof 0,3% Norwegian exposure 88% 49% 34% 11% 6% 6% 6% Equities Fixed Real estate Equities Fixed Bonds at Real estate income income amortised cost
Slide 28: Storebrand Group capital structure Q2 2016
Storebrand Group capital structure Q2 2016 SCR and own funds 1H 2016 (NOK bn) Own funds in % of SCR (excluding CRD IV subsidiaries) 47,0 OF % OF % of 2,9 Regulatory limit of SCR total 0,9 4,0 2,3 Tier 3 ≤ 15% SCR 3% 2% 27,3 CRD IV capital requirements 2,4 Tier 2 ≤ 50 % SCR ∑ T2+T3 16% 9% 37,0 Tier 1
Slide 29: Storebrand Group term structure debt
Storebrand Group term structure debt Net debt ratio Storebrand ASA (Holding company) Outstanding bonds by maturity/call dates Storebrand Bank Group % 12% MNOK Senior bonds 12 Net debt ratio Covered bond 11 Dated subordinated loan capital 10 9% 9% 3,437 Hybrid tier 1 capital 9 8% 8 2,950 2,900 1,037
Storebrand — Debt Investor Presentation (September 2016) on 6ix