Sparebank 1 Ostlandet · OSL:SPOL
Sparebank 1 Ostlandet — SpareBank 1 Gruppen — Q4 2011 Earnings Presentation
34 slides from Sparebank 1 Ostlandet's earnings presentation, Feb 15, 2012
Slide 1: Preliminary accounts for 2011 Q4
Preliminary accounts for 2011 Q4 Presentation of results from SpareBank 1 Gruppen Kirsten Idebøen, CEO 15 February 2012
Slide 2: Volatile securities market and claims led to reduced earnings
Volatile securities market, combined with damage due to natural perils and large claims, claims led to reduced earnings Group pre-tax profit* (MNOK), (MNOK) quarterly • Pre-tax profit for 2011: MNOK 389 (985) Pre-tax profit in Q4: MNOK 142 (343) Q1 • Profit after tax for 2011: MNOK 479 (832) 374 Q2
Slide 3: Record earnings in life insurance; P&C affected by natural perils
Record earnings within life insurance. Earnings within P&C insurance were affected byy natural p perils and large g claims Pre-tax profit per subsidiary (MNOK) • Significantly improved administration result within life assurance. The company has 641 maintained i t i d good d buffers b ff th througho
Slide 4: SpareBank 1 Skadeforsikring Group
SpareBank 1 Skadeforsikring Group High proportion of large claims, flood and storm. Positive portfolio growth 4
Slide 5: High proportion of large claims, flood and storm. Positive portfolio growth
SpareBank 1 Skadeforsikring Group High proportion of large claims, flood and storm. Positive portfolio growth P e ta profit, Pre-tax p ofit quarterly q a te l (MNOK) • Total portfolio growth of MNOK 515, of which MNOK 308 Q1 230 from Unison Forsikring. Portfolio volum as at Q2 31.12.2011 was NOK 5.2
Slide 6: High proportion of large claims, flood, storm and terrorism
SpareBank 1 Skadeforsikring Group High g pproportion p of large g claims,, flood,, storm and terrorism Combined ratio for own account – quarterly (%) Combined ratio for own account (%) 103.4 108.6 105.5 105.8 97.7 94.6 96.2 99.6 100.3 101.9 100.5 94.0 22.9 20.2 89.9 21.0 87.2 21.9 92.9 21.0 22.5 22.
Slide 7: SpareBank 1 Livsforsikring
SpareBank p 1 Livsforsikring Record profit in a demanding market 7
Slide 8: Record profit in a demanding market
SpareBank 1 Livsforsikring Record p profit in a demanding g market • Pre-tax profit for 2011: MNOK 414 (350) and MNOK 98 (73) in Q4 P t Pre-tax profit fit (MNOK), (MNOK) quarterly t l • Administration result for 2011: MNOK -66 (-187) and 206 Q1 MNOK -3 (-62) in Q4 Q2 - Lower operating costs and incr
Slide 9: Good buffers throughout 2011
SpareBank 1 Livsforsikring Good buffers throughout 2011 Buffer capital Buffer capital trend, trend, per per quarter quarter (%) (%) Securities adjustment reserve (MNOK) 14.6 % 15.2 % 14.0 % 14.1 % 617 10.8 % 327 185 Q4 Q1 Q2 Q3 Q4 2010 2011 2011 2011 2011 Core capital in excess of minimum Interim pr
Slide 10: Asset allocation per portfolio as at 31.12.11
SpareBank 1 Forsikring Asset allocation per portfolio as at 31.12.11 (31.12.10) SB1 Livsforsikring SB1 Skadeforsikring Group Investment portfolio Group portfolio Company portfolio 0.0 (0.1) % 13.8 (14.8) % -4.5 (-1.6) % 10.4 ((10.6)) % 0.0 (0.1) % 37.4 (34.8) % -0.2 (0.9) % 18.8 (21.0) % 7.9 (9.4) %
Slide 11: ODIN Forvaltning
ODIN Forvaltning O o a g Weak development in securities markets in 2011 led to reduced total assets 11
Slide 12: Weak development in securities markets reduced total assets
ODIN Forvaltning Weak development in securities markets in 2011 led to reduced total assets • Pre-tax profit for 2011: MNOK 22 (65) Pre-tax profit (MNOK), quarterly – Management fees of MNOK 304, which is MNOK 14 lower than in 2010 Q1 Q2 24 Q3 • Profit in Q4 was MNOK -9 (16) Q4 17 17 16 16 14 • T t
Slide 13: SpareBank 1 Gruppen Finans Group
SpareBank p 1 Gruppen pp Finans Group Good growth in all business areas in 2011 13
Slide 14: Good growth in all business areas in 2011
SpareBank 1 Gruppen Finans Group Good growth in all business areas in 2011 Pre-tax profit to date this year (MNOK) • Pre-tax profit for 2011: MNOK 27 (9)* and 27 MNOK 5 (7) in i Q4 2010 2011 24 ― Significantly reduced losses and loss provisions within BA Factoring, as well as good growth in client 2
Slide 15: SpareBank 1 Markets
SpareBank 1 Markets I Investments t t iin 2011 – market k t power in i 2012 15
Slide 16: Investments in 2011 – market power in 2012
SpareBank 1 Markets Investments in 2011 – market power in 2012 O Operational i l matters • There was large-scale recruitment and company expansion in 2011, in line with approved strategies and plans, with one of the largest movements in human capital the sector has ever seen • 2011 largely focused o
Slide 17: High level of market activity and profitable operations during 2012
SpareBank 1 Markets High level of market activity and profitable operations during 2012 • SpareBank 1 will have a strong, national capital market environment, where the banking and capital Corporate market sectors interact in the market Top-ranked finance analyst team with team extensive • A clear s
Slide 18: Annualised return on equity among selected Nordic financial institutions
Annualised return on equity among selected Nordic financial institutions Average 2011 0 2010 2009 2009 2011 2009-2011 Handelsbanken 13.5 % 12.9 % 12.6 % 13.0 % Gjensidige* 12 2 % 12.2 13 1 % 13.1 11 1 % 11.1 12 1 % 12.1 DNB 11.4 % 13.6 % 10.6 % 11.9 % Nordea 10.6 % 11.5 % 11.3 % 11.1 % SpareBank 1 G
Slide 19: Outlook
Outlook SPAREBANK 1 GRUPPEN • Volatile financial markets entails increased uncertainty in terms of investment results, which constitute a significant portion of value generation at SpareBank 1 Gruppen. The macro situation, however, is considered to provide reason for cautious optimism. p • SpareBank
Slide 20: The nation's savings bank
The nation nation's s savings bank 20 20
Slide 21: Appendix
Appendix SpareBank 1)
Slide 22: SpareBank 1 Alliance
SpareBank 1 Alliance SpareBank 1 SpareBank 1 SpareBank 1 Sparebanken Samarbeidende LO (Trade Union) SR-Bank SMN Nord-Norge Hedmark Sparebanker (10%) (19.5%) (19.5%) (19.5%) (12%) (19.5%) SpareBank 1 Gruppen AS SpareBank 1 ODIN SpareBank 1 Markets Livsforsikring Forvaltning (97.2%) (100%) (100%) Alli
Slide 23: Key figures
SpareBank 1 Gruppen Key figures Q4 Q3 Q2 Q1 Q4 Year 2011 2011 2011 2011 2010 2011 2010 Group Net result for the period (MNOK) 234.8 -4.8 97.2 151.9 324.0 479.1 831.6 Return on equity (%) 19.2 % -0.3 % 7.8 % 12.4 % 28.3 % 10.0 % 18.7 % Capital adequacy ratio, cumulative (%) 16.0 % 16.3 % 16.2 % 16.1
Slide 24: Profit for 2011
SpareBank 1 Gruppen Profit for 2011 Year Figures in MNOK 2011 2010 Part of result from subsidiaries before tax - SpareBank 1 Livsforsikring 414.1 350.4 - SpareBank 1 Skadeforsikring Group 188.1 641.1 - ODIN Forvaltning 21.8 64.6 - SpareBank 1 Markets -154 154.8 8 -57 57.6 6 - SpareBank 1 Medlemskort
Slide 25: Quarterly profits
SpareBank 1 Gruppen Quarterly profits Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Figures in MNOK 2011 2011 2011 2011 2010 2010 2010 2010 2009 Part of result from subsidiaries before tax - SpareBank 1 Livsforsikring 98.1 77.7 109.0 129.4 72.5 85.8 100.3 91.9 81.0 - SpareBank 1 Skadeforsikring Group 170.8 -89.3 56.2
Slide 26: Profit for 2011 – Livsforsikring
SpareBank 1 Livsforsikring Profit for 2011 Q4 Q3 Q2 Q1 Q4 Year Figures in MNOK 2011 2011 2011 2011 2010 2011 2010 Insurance risk income 348 4 348.4 321 6 321.6 333 0 333.0 335 8 335.8 328 3 328.3 1 338.7 338 7 1 292.6 292 6 Insurance risk claims -303.6 -249.9 -252.6 -255.5 -266.2 -1 061.7 -939.0 Ris
Slide 27: Profit by portfolio for 2011
SpareBank 1 Livsforsikring Profit by portfolio for 2011 Previously Group established Investment choice Company Figures in MNOK portfolio individual products portfolio portfolio Total Risk result 247.3 -3.7 -2.1 0.0 241.4 Administration result 67.0 -37.7 -95.2 0.0 -65.9 Net investment result 285.0 77
Slide 28: Premium income trends
SpareBank 1 Livsforsikring Premium income trends Q4 Q3 Q2 Q1 Q4 Year Figures in MNOK 2011 2011 2011 2011 2010 2011 2010 Individual annuity and pension insurance 72.1 68.7 71.1 73.1 79.8 284.9 306.7 Individual endowment insurance 147.7 143.3 141.1 138.5 133.7 570.6 519.1 Group pension insurance 94.4
Slide 29: Return on customer portfolios with guarantee
SpareBank 1 Livsforsikring Return on customer portfolios with guarantee as at the end of the quarter Value-adjusted return excluding l di change h i value in l construction: t ti Booked return: Q3 Q4 Q3 Q4 Q3 Q4 Q3 Q4 Q3 Q4 Q3 Q4 Q3 Q4 Q3 Q4 2011 2011 2011 2011 2011 2011 2011 2011 2011 2011 2011 201
Slide 30: Return on ordinary customer portfolio with guarantee
SpareBank 1 Livsforsikring Return on ordinary y customer portfolio p with guarantee g as at 31.12.2011 Percent Norwegian shares -20.0 Foreign shares -7.6 Money market 3.5 Norwegian bonds 4.6 Foreign bonds 86 8.6 Hold to maturity 5.1 Real estate 5.1 30
Slide 31: Balance Sheet 2011
SpareBank 1 Livsforsikring Balance Sheet 2011 Year Figures in MNOK 2011 2010 Intangible assets 107 42 Investments 2 881 2 862 Reinsurance's ' part off insurance obligations bl 223 22 221 Accounts receivable 225 153 Other assets 281 335 Prepayed liabilities and accrued income 0 0 Investments group po
Slide 32: Limitation of tax exemption model for shares owned by life insurers
SpareBank 1 Livsforsikring Limitation of tax exemption model for shares etc. owned by life insurance companies Proposall Consequences • The Ministry of Finance proposes that the • The Group may see an increase in taxes in t tax exemption ti model d l should h ld nott apply l to t years with i h good
Slide 33: Profit for 2011 – Skadeforsikring Group
SpareBank 1 Skadeforsikring Group Profit for 2011 Q4 Q3 Q2 Q1 Q4 Year Figures in MNOK 2011 2011 2011 2011 2010 2011 2010 Gross written premium 1 281.4 1 142.9 1 380.6 1 553.3 1 175.6 5 358.2 4 731.8 Net earned premium 1 226.8 1 230.6 1 137.7 1 100.8 1 135.1 4 695.9 4 184.4 Net incurred claims -913.9
Slide 34: Profit for 2011 – ODIN Forvaltning
ODIN Forvaltning Profit for 2011 Q4 Q3 Q2 Q1 Q4 Year Figures in MNOK 2011 2011 2011 2011 2010 2011 2010 Management fees 61.8 69.4 85.5 86.8 82.0 303.5 317.9 Total operating income 61.8 69.4 85.5 86.8 82.0 303.5 317.9 Salaries 25.5 26.4 27.5 29.2 27.3 108.5 104.2 Depreciations 10.2 5.1 4.4 3.9 3.6 23