Storebrand Asa · OSL:STB
Storebrand Asa — Corporate Update (May 2024)
58 slides from Storebrand Asa's corporate update, May 2024
Slide 1: Storebrand ASA: Invest in the future
Storebrand ASA Invest in the future Leading the way in sustainable value creation Nordea Insurance Trip May 2024
Slide 2: Agenda
AGENDA d 1. Short introduction to the Storebrand Group 2. Storebrand Insurance (P&C) 3. Storebrand Life Insurance (Life) 2
Slide 3: Group Strategy: Leading the Way in Sustainable Value Creation
Group Strategy Leading the Way in Sustainable Value Creation
Slide 4: 257 years of pioneering the Nordic financial industry
257 years of pioneering the Nordic financial industry Future Storebrand is a capital light business with material group synergies Future Storebrand ILLUSTRATIVE Retail Asset Management Unit Linked Pensions and Savings Guaranteed Pensions 1767 1847 1861 1917 1995 2023 Foundation: P&C Pioneered Pionee
Slide 5: A Nordic Savings and Insurance group
A Nordic Savings and Insurance group 55,000 Pensions & savings Asset management Corporate Market leader World leader in sustainability customers NOK 655bn AuM NOK 1,281bn AuM 2,200,000 Individuals Retail banking Insurance Fast growing challenger Fast growing challenger NOK 79bn lending NOK 7.8bn pre
Slide 6: Group strategy underpinned by concrete revenue, cost and capital synergies
Group strategy underpinned by concrete revenue, cost and capital synergies Selected group synergies Revenue Synergies Capital Synergies1 Reduced SCR and increased return on GROUP SYNERGIES 21 % Share of pension customers with retail product capital due to diversification effects under SII Significan
Slide 7: Pursuing our Group Strategy
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 Growth focus in Leading Provider Nordic Powerhouse in Growing Challenger in capital-light business Occupational Pensions Asset Management N
Slide 8: Double digit growth continues across the Group
Double digit growth continues across the Group Unit linked (defined contribution) pensions Asset management UL reserves (NOK billion) YOY AuM (NOK billion) YOY 19%2 15%2 +13%1 +18%1 410 1 281 315 380 1 097 1 020 1 212 308 962 268 721 831 220 707 168 179 577 140 2016 2017 2018 2019 2020 2021 2022 202
Slide 9: Storebrand's strategic direction towards 2025
Storebrand's strategic direction towards 2025 Capturing both structural and market driven growth to transform into a high Return on Equity business in line with long-term Group strategy HIGHLY ILLUSTRATIVE Bubble size illustrates Group Profit contribution Capital Intensity Asset management 2023E 202
Slide 10: Increasing group financial ambitions as the equity story unfolds
Increasing group financial ambitions as the equity story unfolds Value creation increases as equity story unfolds Group ambitions Structural and market driven growth ✓ 5 NOK billion >14% Continued cost discipline ✓ Group profit 2025 Return on Equity Increased Return on Equity ✓ Strong solvency ✓ Inc
Slide 11: Completed NOK 0.4bn in share buybacks in Q1, additional NOK 1.1bn for 2024
Completed NOK 0.4bn in share buybacks in Q1, initiating additional share buybacks of NOK 1.1bn for 2024 Overview of executed and planned share buybacks NOK billion Ambition announced on CMD 2023 Planned Executed Storebrand has received new approval from FSA 12.0 regarding additional share buybacks a
Slide 12: Storebrand Forsikring
Storebrand Forsikring P&C company
Slide 13: The P&C offering is a core part of the Norwegian retail go-to-market strategy
The P&C offering is a core part of the Storebrand Norwegian retail go-to-market strategy ~ 500 ~ 570,000 Efficient go-to A challenger in employees customers market strategy the retail market … utilising a profitable business model while Broad product offering… capitalising on group synergies Savings
Slide 14: Growing market share in attractive Norwegian retail market
Growing market share in attractive Norwegian retail market Market size and market growth Banking Savings Insurance Retail mortgages (NOK billion) AuM retail market (NOK billion) Retail premiums (NOK billion) +4% +7% +15% 3,206 3,303 435 51.9 3,076 48.2 2,914 383 45.4 345 42.9 285 2020 2021 2022 2023
Slide 15: Strong result growth, outperformance of CMD targets from 2020
Strong result growth, outperformance of ambitious CMD targets from 2020 Strong profit development since last CMD2… ... and achieved volume growth targets Profit before amortisation and tax (NOK billion) Segment Volume CAGR 2020 CMD ambition '20 – '23 1 Double digit growth +14% 824 822 871 Insurance
Slide 16: Success supported by strong customer offering and group synergies
Success supported by strong customer offering and group synergies Key success Well-known and Combining advisors with Increased Accretive factors respected brand digital distribution distribution power M&A Group Leading asset B2B2C Capital synergies in In-house Synergies manager customer base mortgag
Slide 17: Double digit growth continues across the Group
Double digit growth continues across the Group Unit linked (defined contribution) pensions Asset management UL reserves (NOK billion) YOY AuM (NOK billion) YOY 19%2 15%2 +13%1 +18%1 410 1 281 315 380 1 097 1 020 1 212 308 962 268 721 831 220 707 168 179 577 140 2016 2017 2018 2019 2020 2021 2022 202
Slide 18: Strong organic growth and two bolt-on acquisitions in P&C
Strong organic growth and two small bolt-on acquisitions have led to a solid challenger position in P&C Portfolio premiums P&C and Individual Market share development P&C Comments (NOK million) (%) • A strong brand on back of a solid P&C history in the Norwegian market +24% 6,5% 6,7% • Successful di
Slide 19: Mitigating actions to improve insurance results towards 90-92% combined ratio
Mitigating actions to improve insurance results towards the 90-92% combined ratio target by 2025 Claims development Mitigating actions Repricing Challenging weather (e.g. torrential rain) and increased frequency Increased deductibles Persistently high inflation and Risk selection unfavourable curren
Slide 20: Q&A
Q&A 20
Slide 21: Storebrand Life Insurance
Storebrand Life Insurance Leading Position in the Corporate Market Trond Finn Eriksen, Chief Investment Officer
Slide 22: A Nordic Savings and Insurance group
A Nordic Savings and Insurance group 55,000 Pensions & savings Asset management Corporate Market leader World leader in sustainability customers NOK 655bn AuM NOK 1,281bn AuM 2,200,000 Individuals Retail banking Insurance Fast growing challenger Fast growing challenger NOK 79bn lending NOK 7.8bn pre
Slide 23: Sustainable Nordic Savings and Insurance Group
Sustainable Nordic Savings and Insurance Group A B C Future Storebrand Growth focus in Leading Provider in Nordic Powerhouse in Growing Challenger in capital-light business Occupational Pensions Asset Management Norwegian Retail Market areas in front book Norway & Sweden Strategic enablers D People
Slide 24: Occupational pensions in Norway
A Leading Provider in Occupational Pensions Occupational pensions in Norway Norway & Sweden Sticky and growing assets in an immature defined contribution market The Norwegian Product Product Highlights Market AuM pensions system when employed when retired NOK bn 2 Defined Pension capital ▪ Growing a
Slide 25: Strong capital generation and improved balance sheet composition
Strong capital generation and improved balance sheet composition 18% annual solvency generation since Balance sheet composition significantly initiation of solvency back in 2016 improved, in line with group strategy ILLUSTRATIVE Composition of the solvency capital requirement (SCR) Insurance Bank &
Slide 26: Continue the structural growth journey within unit linked
A Leading Provider in Occupational Pensions Norway & Sweden Going forward, continue the structural growth journey within unit linked and through growth initiatives Capitalising on the structural growth and … while utilising group synergies to further grow our results our market leader position…. A B
Slide 27: Leverage our leading market position in unit linked pensions
A Leading Provider in Occupational Pensions Norway & Sweden Leverage our leading market position to further grow in unit linked pensions Strong historical growth and Solid market growth for the Storebrand aims to maintain the STB is the market leader foreseeable future leading position in a growing
Slide 28: ESA's preliminary assessment: public occupational pension must be tendered
A Leading Provider in Occupational Pensions ESA's preliminary assessment: Norway & Sweden Public occupational pension must be tendered Large market currently dominated by one player Market size (AuM) and market shares (%) 3% STB: Number of public customers Pension funds • ESA has sent its preliminar
Slide 29: Growing financial result driven by profit sharing from Guaranteed business
Group financial items and risk result life Growing financial result driven by increased profit sharing from Guaranteed business ILLUSTRATIVE Financial items and risk result life Profit sharing Sweden + Profit sharing Norway Group, NOK million NOK million NOK million ~ 300 ~ 300 2 ~ 1,400-1,500 ~ 200
Slide 30: Higher return on equity as the backbook transforms into a financial asset
Higher return on equity as the backbook is transforming into a financial asset Future Run-off Total Storebrand Business Savings & Insurance Guaranteed 2 Group Cash result 1 1 994 1 585 3 579 (NOK million) IFRS shareholder equity 7.1 20.2 27.3 (NOK billion) Return on IFRS 28% 8% 13% shareholder equit
Slide 31: Q&A
Q&A 31
Slide 32: Appendix
@&S Storebrand Appendix -
Slide 33: Solvency movement from Q4 2023 to Q1 2024
Solvency movement from Q4 2024 to Q1 2024 Storebrand Group Net solvency effect from new buffer rules 3% -3% New rules Investment adjustments 2% 4% 7% 192 % 0% 2% 1% 3% 1% 191 %1 2023 Q4 Model & New buffer Interest Market Updated Cash Dividend Share 2024 Q1 assumption rules rates returns & regulatory
Slide 34: Real estate portfolio – Norway
Real estate portfolio – Norway Allocation and distribution - real estate portfolio Fair value adjustments and change in rental income Unit Linked Guaranteed Logistics Hotel Fair value adjustments by year Change in rental income 3% 29 bn NOK Retail 5% 10% 7 25% 4% 4% 5% 4% 4% 2% 0% 3% 1% 22 -4% 68% -
Slide 35: Real estate portfolio - Sweden
Real estate portfolio - Sweden Allocation and distribution - real estate portfolio Fair value adjustments and change in rental income Guaranteed Office Fair value adjustments by year Change in rental income Public Use 11 bn SEK 16% 10% 21% 7% 3% 3% 4% 2% 1% 21% Supermarket 1% 16% Hotel 2% -1% 0% 26%
Slide 36: Asset allocation – Guaranteed products
Asset allocation – Guaranteed products Storebrand Livsforsikring AS (Norway) SPP (Sweden) 70% 70% 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 31.03.2023 8% 12% 4% 14% 61%
Slide 37: Overview of Special items
Overview of Special items Quarter Special Comments items NOKm Q1 2023 71 • NOK ~71m related to the integration cost and severance pay in Danica and Kron Q2 2023 64 • NOK ~56m related to the integration cost and severance pay in Danica and Kron • NOK ~8m in write-downs of shares in smaller subsidiary
Slide 38: Implications from new buffer capital rules
Implications from new buffer capital rules New rules Implications for Storebrand Portfolio management: Increase allocation to risky ▪ The new rules entail the introduction of a pooled and fully assets due to increased risk-absorbing capacity from customer-distributed buffer fund for private guarante
Slide 39: Paid-up policy portfolio profit sharing illustration
1/2: Paid-up policy portfolio profit sharing illustration ILLUSTRATIVE Profit sharing Strategy dynamics for paid- Buffer capital Profit sharing from 2024E up policies level Strategy 3 portfolios The number of paid-up sub- High Build buffers and 11% portfolios increased from 5 to take profit sharing
Slide 40: Expected return for paid-up policies above guaranteed interest rate
2/2: Expected return for paid-up policies is significantly above guaranteed interest rate 3+3 ILLUSTRATIVE portfolios Profit sharing 2 portfolios No profit sharing 132 136 133 132 131 129 127 125 Reserves NOK billion Q3 2020 Q3 2023 2024E 2025E 2026E 2027E 2028E 2029E Interest rate guarantee 3.3% 3.
Slide 41: Asset allocation – Guaranteed products
Asset allocation – Guaranteed products Storebrand Livsforsikring AS (Norway) SPP (Sweden) 70% 70% 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 31.12.2022 5% 12% 15% 14% 54
Slide 42: For further information
For further information Contact us Information 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 Investor relations website Financial reports and information Johannes Narum johannes.narum
Slide 43: Important Information
Important Information This document contains 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 the Storebrand Group’s control. As a result, the Storebrand Group’s actual futur
Slide 44: Thank you
Thank you Financial calendar 12 July 2024 Results Q2 2024 23 October 2024 Results Q3 2024 44
Slide 45: Storebrand Q1 2024
Storebrand Q1 2024 24 April 2024 Odd Arild Grefstad – CEO Lars Aa. Løddesøl – CFO
Slide 46: Highlights Q1 2024
Highlights Q1 2024 Strong improvement in operating and financial result Group result 1 MNOK Record high AuM of NOK 1 281bn +31% 1 082 19% growth in unit linked reserves2 826 394 255 14% growth in insurance premiums2 688 571 191% Solvency ratio Q1 2023 Q1 2024 Financial items and risk result life Ini
Slide 47: Recognised within sustainable finance across the Nordics
Storebrand continues to be recognised within sustainable finance across the Nordics Storebrand Asset Management Most sustainable player within Placed nr. 1 on the honored with award as best investments by Södeberg & asset manager in Denmark Partners 47
Slide 48: Key Figures
Group Key Figures Strong improvement in operating and financial result, solid solvency position Result development 1 Earnings per share 2, 6 Financial items and risk result life Cash equivalent earnings from operations 2.16 2.14 2.09 Special items 1.82 1.73 1,070 1,082 826 856 378 728 394 255 264 46
Slide 49: Solvency position and sensitivities Q1 2024
Group Solvency position and sensitivities Q1 2024 Storebrand Group Solvency position 1 Estimated sensitivities Target SII margin 150% 192 % 191 % SII-margin Q1 191 Interest rates -50bp 185 Interest Q4 2023 Q1 2024 rates +50 bp 193 Key takeaways Q1 2024 Equity -25%, SA-15% 196 ▪ A strong post tax res
Slide 50: Storebrand Group | Profit
Group Storebrand Group | Profit Strong improvement in operating and financial result Profit 1 Q1 Full year NOK million 2024 2023 2023 Fee and administration income 1 818 1 605 6 782 Insurance result 367 357 1 122 Operational cost -1 498 -1 391 -5 787 Cash equivalent earnings from operations 688 571
Slide 51: Profit by line of business
Group Storebrand Group | Profit Profit by line of business Profit 1 Q1 Full year NOK million 2024 2023 2023 Fee and administration income 1 818 1 605 6 782 Insurance result 367 357 1 122 Operational cost -1 498 -1 391 -5 787 Cash equivalent earnings from operations 688 571 2 117 Financial items and
Slide 52: Savings (non-guaranteed)
Savings Savings (non-guaranteed) Continued growth and positive result development Profit Q1 Full year NOK million 2024 2023 2023 Fee and administration income 1 494 1 287 5 443 Operational cost -947 -861 -3 582 Cash equivalent earnings from operations 547 426 1 861 Financial result 20 -12 1 Cash equ
Slide 53: Savings (non-guaranteed) key figures
Savings Savings (non-guaranteed) Key figures Reserves and premiums Unit Linked Retail bank balance and net interest margin (%) Unit Linked Reserves Unit Linked Premiums Life insurance balance sheet Bank balance sheet Interest margin 7.0 7.1 7.2 7.5 6.9 1.39 1.43 1.46 1.44 1.52 410 73 75 77 79 70 380
Slide 54: Insurance
Insurance Insurance Moderate insurance results due to challenging weather in P&C Profit Q1 Full year NOK million 2024 2023 2023 Insurance premiums f.o.a. 1 875 1 672 6 908 Claims f.o.a. -1 508 -1 315 -5 787 Operational cost -327 -310 -1 251 Cash equivalent earnings from operations 40 47 -129 Financi
Slide 55: Insurance key figures
Insurance Insurance Key figures Reserves and premiums Unit Linked Key takeaways combined ratio and results Claims ratio Cost ratio Combined ratio ▪ 98% overall combined ratio in the quarter. Weak results in P&C 115% and Group life segments, and strong in Pension related disability 97% 96% 99% 98% ▪
Slide 56: Guaranteed pension
Guaranteed Guaranteed pension Continued stable result development Profit Q1 Full year NOK million 2024 2023 2023 Fee and administration income 391 378 1 600 Operational cost -215 -192 -822 Cash equivalent earnings from operations 175 186 778 Risk result life & pensions 44 81 296 Net profit sharing 7
Slide 57: Guaranteed pension key figures
Guaranteed Guaranteed pension Key figures Reserves guaranteed products Key Takeaways Customer buffers Actively sold Run-off ▪ Stable result development from operations 283 279 278 284 287 26 29 ▪ Declining risk result, still at solid levels 26 25 23 30 30 29 30 33 ▪ Solid profit-sharing result in Sw
Slide 58: Other
Other Other 1 Strong financial result driven by tighter credit spreads in the quarter and continued high interest rate levels Profit Q1 Full year NOK million 2024 2023 2023 Fee and administration income 6 6 18 Operational cost -81 -94 -411 Cash equivalent earnings from operations -74 -88 -393 Financ