Storebrand Asa · OSL:STB
Storebrand Asa — Q1 2022 Earnings Presentation
26 slides from Storebrand Asa's earnings presentation, May 4, 2022
Slide 1: Storebrand Q1 2022
Storebrand Q1 2022 4 May 2022 Odd Arild Grefstad – CEO Lars Aa. Løddesøl – CFO 1
Slide 2: Interest rates on the rise after a decade of low and stable inflation and rates
Interest rates on the rise after a decade of low and stable inflation and rates NOK 10y SWAP Consumer Price Index Norwegian policy rate CPI CPI (Expected, MPR 1/22) Policy rate Policy rate (Expected, MPR 1/22) % % % 4.0 5.0 3.0 2.5 4.0 3.0 2.0 3.0 2.0 1.5 2.0 1.0 1.0 1.0 0.5 0.0 0.0 0.0 2 Source: Bl
Slide 3: Highlights Q1 2022
Highlights Q1 2022 Strengthened solvency position and stable operating result in a quarter with volatile financial markets 1 040 bn NOK in assets under management Group result1 19% growth in insurance2 628 15% growth in retail banking2 MNOK 678 -50 184% Solvency ratio Q1 2022 Financial items and ris
Slide 4: Pursuing our Group Strategy: 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: Share buyback program to be initiated
Share buyback program to be initiated Solvency II ratio 184% ▪ Consider share buybacks when solvency ratio is above Current level 180% without material use of transitional capital ▪ The Board has conducted a forward-looking assessment including a consideration of future events 180% and risks. ▪ Ordi
Slide 6: Structural growth paused by FX and weak financial markets in Q1 2022
Structural growth paused by FX and weak financial markets in Q1 2022 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) reserv
Slide 7: P&C insurance growth, fastest growing retail insurer in Norway
P&C insurance growth, fastest growing retail insurer in Norway Portfolio Premiums and Market share - Retail Insurance Portfolio premiums Market share Change in market share in 2021 NOK million1 %2 %-points2 +54% Storebrand Competitors 6.0% +1.5 3 301 4.5% 2 144 3.5% 3.7% 1 915 1 743 +0.4 +0.1 +0.1 +
Slide 8: Integrated Sustainability and Annual Report 2021
Integrated Sustainability and Annual Report 2021 About us Investments Operations People Investments in 318 Purchasing volume from Active dialogues Number of employees in Assets under management, solutions, NOK environmentally certified Storebrand ASA NOK billion billion (% of AUM) related to climate
Slide 9: Strong progress on carbon reduction initiatives and increased investments in solution companies
Strong progress on carbon reduction initiatives and increased investments in solution companies to meet our 2025 targets Carbon footprint equity investments Carbon emissions direct real estate1 Investments in solution companies2 493 AUM (NOK bn) Share of AUM 6,5% 9,6% 11,2% 385 357 +129% Share of AU
Slide 10: Key Figures
Key Figures Strengthened solvency position, stable operating result and solid buffer capital levels Group 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 2.18 121 913 329 870 546 1.56 15
Slide 11: Solvency movement from Q4 2021 to Q1 2022
Solvency movement from Q4 2021 to Q1 2022 Group Storebrand Group 4% 184% 7% 5% -1% 3% 175% -7% Q4 2021 Updated VA, Asset return Interest rates Changes in asset Q1 results Dividend Q1 2022 UFR, and allocation and symmetric updated business equity stress 11
Slide 12: Estimated solvency sensitivities
Estimated solvency sensitivities Group Storebrand Group Solvency position(%)1 Estimated sensitivities Target SII margin 150% 175 184 0 0 SII-margin Q1 184 0 184 175 184 Interest rates -50bp 181 0 181 Q4 2021 Q1 2022 Interest 184 0 184 Transitional rules SII standard model rates +50 bp Key takeaways
Slide 13: More robust capital position with increased spreads above discount rate and reduced duration mismatch
More robust capital position with increased spreads Group above discount rate and reduced duration mismatch Expected investment return above Reduced duration gap (years), discount rate (%), Solvency II1 Solvency II2 ∼1.3 % 2.6 1.2 Duration gap ∼0.7 % GUARANTEED NORWAY 6.0 5.7 Asset duration CMD 2020
Slide 14: Storebrand Group: Stable operating profit and positive tax effect
Storebrand Group Stable operating profit and positive tax effect Group Profit1 Q1 Full year NOK million 2022 2021 2021 Fee and administration income 1 457 1 482 6 607 Insurance result 365 220 1 201 Operational cost -1 145 -1 057 -4 678 Operating profit 678 645 3 130 Financial items and risk result l
Slide 15: Storebrand Group: Stable operating profit
Storebrand Group Stable operating profit Group Profit1 Q1 Full year NOK million 2022 2021 2021 Fee and administration income 1 457 1 482 6 607 Insurance result 365 220 1 201 Operational cost -1 145 -1 057 -4 678 Operating profit 678 645 3 130 Financial items and risk result life -50 225 1 372 Profit
Slide 16: Savings (non-guaranteed)
Savings (non-guaranteed) Growth paused by FX and volatile financial markets Savings Profit Q1 Full year NOK million 2022 2021 2021 Fee and administration income 1 136 1 156 5 215 Operational cost -702 -671 -2 927 Operating profit 434 485 2 288 Financial items and risk result life -30 43 67 Profit be
Slide 17: Savings (non-guaranteed)
Savings (non-guaranteed) Growth paused by FX and volatile financial markets Savings Reserves and premiums Unit Linked Retail bank balance and net interest margin (%) 5.3 5.3 5.2 5.4 5.3 Life insurance balance sheet Bank balance sheet 1.10 1.14 1.22 1.19 1.22 308 296 56 57 59 295 291 52 54 MNOK 279 4
Slide 18: Insurance
Insurance Continued growth and improved results Insurance Profit Q1 Full year NOK million 2022 2021 2021 Insurance premiums f.o.a. 1 397 1 194 5 175 Claims f.o.a. -1 032 -974 -3 974 Operational cost -251 -202 -875 Operating profit 114 18 326 Financial result -5 37 97 Profit before amortisation 109 5
Slide 19: Insurance
Insurance Continued growth and improved results Insurance Combined ratio Key Takeaways Combined Ratio and Results Claims ratio Cost ratio Combined ratio 98% 96% 91% 90% 92% ▪ 92% overall combined ratio (target 90-92%), 91% in P&C & Individual life ▪ Improved claims ratio 82% 74% 74% 78% 74% 17% 17%
Slide 20: Guaranteed pension
Guaranteed pension Stable operating profit and strong risk result Guaranteed Profit Q1 Full year NOK million 2022 2021 2021 Fee and administration income 391 383 1 631 Operational cost -202 -197 -890 Operating profit 189 186 741 Risk result life & pensions 82 32 187 Net profit sharing -39 104 504 Pr
Slide 21: Guaranteed pension
Guaranteed pension Stable operating profit and strong risk result Guaranteed Reserves guaranteed products Key Takeaways 286 295 292 291 281 33 32 ▪ Continued run-off of guaranteed reserves. 29 34 28 Customer buffers 25 25 25 26 28 Actively sold ▪ Growth in public occupational pensions contribute NOK
Slide 22: Other
Other1 Market turbulence gives negative financial result in the quarter, but higher yields going forward Other Profit Q1 Full year NOK million 2022 2021 2021 Fee and administration income 6 4 21 Operational cost -64 -47 -246 Operating profit -59 -44 -225 Financial items and risk result life -57 9 51
Slide 23: Q&A
Q&A Please join the MS Teams Webinar to participate in the Q&A session. 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 23 23
Slide 24: Appendix
Appendix 24 G2 storebrand
Slide 25: Asset allocation – Guaranteed products
Asset allocation – Guaranteed products Storebrand Livsforsikring AS (Norway) SPP (Sweden) 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 31.03.2021 10% 11% 12% 13% 55% 31.03
Slide 26: 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