Storebrand Asa · OSL:STB
Storebrand Asa — Q3 2011 Earnings Presentation
19 slides from Storebrand Asa's earnings presentation, Oct 26, 2011
Slide 1: Storebrand Result Q3 2011
Storebrand Result Q3 2011 26 October 2011 Idar Kreutzer – CEO Lars Aa. Løddesøl - CFO
Slide 2: Highlights Q3 2011
Highlights Q3 2011 RESULT Group result of NOK -52 mill in Q3, NOK 1 004 mill YTD Weak financial result in SPP following market turmoil Insurance with strong result of NOK 95 mill in Q3 and NOK 204 mill YTD OPERATIONS Drop in equity markets reduces AuM Booked return above interest guarantee
Slide 3: Storebrand Group
Storebrand Group Q3 01.01. - 30.09 Full year NOK mill. 2011 2010 2011 2010 2010 Storebrand Life Insurance 0 257 289 469 730 SPP -203 304 357 250 464 Asset management 73 69 203 165 333 Bank 48 60 155 123 158 Insurance 95 74 204 105 155 Storebrand ASA / other -65 -55 -204 -169 -231 Group Profit -52 70
Slide 4: Storebrand Life Insurance - competitive customer investment return
Storebrand Life Insurance - competitive customer investment return 01.01. - Full Booked return above average Q3 30.09 year interest guarantee in all NOK mill. 2011 2010 2011 2010 2010 customer portfolios Administration result 16 20 46 36 58 Longevity reserves strengthening of 231 mill YTD, accor
Slide 5: Life Insurance - return by asset class and main portfolios
Storebrand Life Insurance - return by asset class and main portfolios Return by asset class Q3 and YTD (%) % of total Return Defined Benefit portfolios portfolio Q3 YTD Value adjusted Booked Equity returns Returns proportion 1.5 (Q3/YTD) (Q3/YTD) 30.09.2011 Real estate 17% 5.6 DB - High -2.5% / 0,1%
Slide 6: Storebrand Life Insurance - reinvestment yield well above guarantee
Storebrand Life Insurance - reinvestment yield well above guarantee 10 year Norwegian government bond 6 Illustrative 5 4 3,5% Rate (%) 3 Interest rate guarantee 2 1 0 NOK gov NOK swap Covered Credit 10Y 10Y bonds bonds 6
Slide 7: SPP - negative financial result
SPP - negative financial result 01.01. - Full Q3 30.09 year Administration result NOK mill. 2011 2010 2011 2010 2010 improvement slowed by equity market fall Administration result 44 39 128 73 84 Risk result 49 106 168 260 311 Strong investment return in customer portfolios Financial result -322
Slide 8: SPP - strengthened market position
SPP - strengthened market position Market shares new Unit Linked sales* SPP Skandia 14.5% 13.4% (11.7%) (14.1%) Folksam-KPA Other 2.7% (3.2%) 5.3% (3.8%) Danica 5.1% (4.5%) 19.1% Länsfors. (23.1%) 11.1% Movestic (10.4%) 4.4% (3.0%) 2.7% Handelsbanken (3.4%)3.3% 18.6% Nordea (3.5%) (19.4%) Swedbank S
Slide 9: Asset Management - AuM reduction following market turmoil
Asset Management - AuM reduction following market turmoil 01.01. - Full Q3 30.09 year AuM decreased with 4 bn in Q3 NOK mill. 2011 2010 2011 2010 2010 Growth in operating revenues of Operating revenue 184 175 521 478 645 6% in Q3, 9% YTD Operating cost -118 -103 -359 -310 -450 Cost development
Slide 10: Bank - high quality loan book
Bank - high quality loan book 01.01. - Full Q3 30.09 year Increased number of active NOK mill. 2011 2010 2011 2010 2010 customers Net interest income 113 113 339 344 457 Net fee and commission income 18 20 55 55 74 Cost affected by increased Other operating marketing and accrual 21 33 89 66 101
Slide 11: Storebrand insurance - strong development
Storebrand insurance - strong development 01.01. - Full Q3 30.09 year Premium growth 10% in Q3 NOK mill. 2011 2010 2011 2010 2010 and YTD Premiums earned, 460 420 1351 1224 1 651 net1 Claims ratio Q3: 69% Claims incurred, net -316 -304 -986 -955 -1 278 Operation costs excl amortization -84 -71 -
Slide 12: Group – operational reporting
Storebrand Group – operational reporting Full Q3 01.01. - 30.09 year Result before profit sharing NOK mill. 2011 2010 2011 2010 2010 and loan losses provides an Fee and administration 997 1.021 3.030 2.883 3.868 earnings stream with lower income market correlation Operational cost -698 -653 -2.139
Slide 13: Key figures
Key figures Result development Earnings per share* NOK mill. 708 2.37 664 159 514 542 432 173 120 1.54 549 422 396 1.24 232 341 1.10 Net profit sharing and loan losses -448 Result before profit sharing and loan losses -52 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 -0.15 Q3 2010 Q4 2010 Q1 2011 Q2 2011
Slide 14: Storebrand Life Insurance
Storebrand Life Insurance Defined Individual Group contribution and paid- defined and up Company Result Q3 YTD Full year NOK mill. benefit * unit linked* policies** portfolio 2011 2011 2010 Administration result - 16 10 21 0 16 46 58 Risk result 45 -5 7 0 47 71 131 Financial result1 -1 12 - 127 - 57
Slide 15: SPP - financial result affected by market turmoil
SPP - financial result affected by market turmoil Swedish interest rates Financial markets: − High equity and interest rate volatility − 10 year interest rates down 100 bp in Q3 − Equity market drop of more than 15% in Q3 Result effects: − ~-200 mill from equity market fall − - 54 mill in revers
Slide 16: SPP Group Solvency ratio affected by market turmoil
SPP Group Solvency ratio affected by market turmoil A) Different discounting curves for financial result and solvency B) Swedish government bond at historical level accounting give different interest rate sensitivities Illustrative Solvency I – Market rate 10y Assets Liabilities financial result – M
Slide 17: Life and Pensions - increased allocation to bonds at amortised cost
Life and Pensions - increased allocation to bonds at amortised cost Asset allocation guaranteed products Asset allocation guaranteed products Storebrand Life Insurance1 SPP1 2% 4% 12% (17%) 8 %(7%) (2%) (4%) 12 % (27%) 17% (16%) 22% (22%) 8% (6%) 37% (33%) 81 % (66%) Equity Bonds Equity Bonds Other
Slide 18: Summary
Summary Competitive customer returns Results affected by market turmoil Return above guarantee in all portfolios with one year interest rate guarantee Strong customer buffers 18
Slide 19: Storebrand vision statement
Storebrand shall be the leading and most respected institution in the Nordic market for long-term savings and insurance. 19