Storebrand Asa · OSL:STB
Storebrand Asa — Q3 2024 Earnings Presentation
30 slides from Storebrand Asa's earnings presentation, Oct 23, 2024
Slide 1: Storebrand Q3 2024
Storebrand Q3 2024 23 October 2024 Odd Arild Grefstad – CEO Lars Aa. Løddesøl – CFO
Slide 2: Highlights Q3 2024
Highlights Q3 2024 Record strong operating profit driven by continued double-digit growth and cost control Group result 1 MNOK 19% AuM growth2; NOK 1 347bn per Q3'24 4 838 1 047 27% growth in unit linked reserves2 1 340 19% growth in insurance premiums2 1 507 563 2 451 944 190% Solvency ratio Q3 202
Slide 3: Sustainable Nordic Savings and Insurance Group
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 Norwegian Retail Market areas in front book Norway & Sweden Strategic enablers D People Fir
Slide 4: 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 27%2 19%2 +13%1 +18%1 449 1 347 380 1 097 1 020 1 212 308 315 962 268 721 707 831 220 577 140 168 179 2016 2017 2018 2019 2020 2021 2022 202
Slide 5: Leading Provider Occupational Pensions Norway & Sweden
Leading Provider Occupational Pensions Norway & Sweden Quarterly Highlights Unit linked (defined contribution) pensions UL reserves (NOK billion) YOY 27%2 SPP selected as best in class within Sustainability by life insurance brokers 3 449 380 +18%1 308 315 268 220 Launched new digital solution for p
Slide 6: Nordic Powerhouse in Asset Management
Nordic Powerhouse in Asset Management Quarterly Highlights Asset management AuM (NOK billion) YOY Operating result up by 20% since Q3 2023, stable top line margin and 19%2 positive flows 1,347 +13%1 1,212 1,097 1,020 962 831 721 707 800 Private equity fund Cubera X closed on a hard cap of EUR 800m 5
Slide 7: Growing Challenger in Norwegian Retail Market
Growing Challenger in Insurance Norwegian Retail Market Portfolio premiums (NOK billion) YOY 19%2 Quarterly Highlights +11%1 6,729 7,405 8,574 5,498 4,682 3,905 3,777 3,737 3,945 Continued growth momentum and double-digit result growth for Storebrand's retail business 2016 2017 2018 2019 2020 2021 2
Slide 8: Accelerating growth drives strong earnings momentum across the group
Accelerating growth drives strong earnings momentum across the group Group result1 development by quarter Group result1 up by 41% • Structural growth • Cost control • Favourable financial market developments 1 507 +41% Operating profit up by 36% 1 2023 563 • Strong volume growth 1 070 1 082 • Scalab
Slide 9: 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 4,59 Special items Cash equivalent earnings from operations 2,249 3,12 384 1,507 2,14 2,09 1,070 1,082 STB 1,047 496 1,73
Slide 10: Solvency position and sensitivities Q3 2024
Group Solvency position and sensitivities Q3 2024 Storebrand Group Solvency position 1 Estimated sensitivities Target SII margin 150% 191 % 190 % SII-margin Q3 190 Interest rates -50bp 186 Interest Q2 2024 Q3 2024 rates +50bp 193 Key takeaways Q3 2024 Equity -25%, SA -14p.p. 198 ▪ Strong cash earnin
Slide 11: Storebrand Group | Profit
Group Storebrand Group | Profit Record strong operating profit amid double-digit growth, continued cost control and gradually improving insurance results Profit 1 Q3 Year to date Full year NOK million 2024 2023 2024 2023 2023 Fee and administration income 1 971 1 768 5 677 5 043 6 782 Insurance resu
Slide 12: Storebrand Group | Profit by line of business
Group Storebrand Group | Profit Profit by line of business Profit 1 Q3 Year to date Full year NOK million 2024 2023 2024 2023 2023 Fee and administration income 1 971 1 768 5 677 5 043 6 782 Insurance result 483 318 1 246 1 057 1 122 Operational cost -1 509 -1 394 -4 472 -4 245 -5 787 Cash equivalen
Slide 13: Savings (non-guaranteed)
Savings Savings (non-guaranteed) Strong earnings development across all business lines Profit Q3 Year to date Full year NOK million 2024 2023 2024 2023 2023 Fee and administration income 1 660 1 420 4 721 4 056 5 443 Operational cost -948 -852 -2 818 -2 611 -3 582 Cash equivalent earnings from opera
Slide 14: 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 7,5 7,7 7,6 7,1 7,2 1,46% 1,44% 1,52% 1,60% 1,60% 449 77 79 82 85 4
Slide 15: Insurance
Insurance Insurance Gradual profitability improvement from repricing measures Profit Q3 Year to date Full year NOK million 2024 2023 2024 2023 2023 Insurance premiums f.o.a. 2 044 1 734 5 874 5 132 6 908 Claims f.o.a. -1 561 -1 415 -4 628 -4 075 -5 787 Operational cost -351 -305 -1 014 -923 -1 251 C
Slide 16: Insurance key figures
Insurance Insurance Key figures Reserves and premiums Unit Linked Key takeaways combined ratio and results Claims ratio Cost ratio Combined ratio 115% ▪ 94% overall combined ratio in the quarter, improving results in 99% 98% 97% 94% P&C despite continued high claims inflation ▪ Gradual profitability
Slide 17: Guaranteed pension
Guaranteed Guaranteed pension Increased results driven by higher profit sharing Profit Q3 Year to date Full year NOK million 2024 2023 2024 2023 2023 Fee and administration income 385 413 1 163 1 179 1 600 Operational cost -223 -209 -649 -617 -822 Cash equivalent earnings from operations 162 204 514
Slide 18: Guaranteed pension key figures
Guaranteed Guaranteed pension Key figures Reserves guaranteed products Key Takeaways ▪ Continued improvement in profit-sharing result from both Customer buffers Actively sold Run-off Sweden and Norway 278 284 285 288 294 23 26 29 29 31 ▪ Somewhat lower income level within paid-up polices in the 29 3
Slide 19: Other
Other Other 1 Strong financial result, neutral profit contribution from Lysaker Park Profit Q3 Year to date Full year NOK million 2024 2023 2024 2023 2023 Fee and administration income 4 5 15 17 18 Operational cost -65 -99 -212 -302 -411 Cash equivalent earnings from operations -61 -93 -197 -285 -39
Slide 20: Leading the way in sustainable value creation
Leading the way in sustainable value creation Group financial ambitions Group sustainability ambitions 5 NOK billion >14% Net-zero investments Workforce participation Group profit 2025 Return on Equity Group-level by 2050 Reduce disability NOK Increasing every year 1.5 billion per year 50/50 Science
Slide 21: Q&A
Q&A Please join the MS Teams Webinar to participate in the Q&A session Lars Aa. Løddesøl Odd Arild Grefstad Kjetil R. Krøkje Johannes Narum Group CFO & Group CEO Group Head of Head of Executive Vice Strategy & Finance Investor Relations President 21
Slide 22: Appendix
@&S Storebrand Appendix SS
Slide 23: Solvency movement from Q2 2024 to Q3 2024
Solvency movement from Q2 2024 to Q3 2024 Storebrand Group 4% 3% 191 % 190 %1 3% 2% 5% 5% 3% 2024 Q2 Model & Growth in Market Interest rates Updated Cash Dividend 2024 Q3 assumption unit-linked returns & and currency regulatory earnings changes and retail business mix effects VA & SA banking 23 1. A
Slide 24: Real estate portfolio – Norway
Real estate portfolio – Norway Allocation and distribution - real estate portfolio Fair value adjustments and change in rental income Other Hotel Unit Linked Guaranteed Fair value adjustments by year Change in rental income Logistics 2% 29 bn NOK 5% 4% 10% 8 Retail 7% 21% 4% 4% 5% 4% 2% 2% 3% 1% 21
Slide 25: 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 15% 10% 21% 7% 5% 3% 2% 3% 21% Supermarket 1% 1% 16% Hotel 2% -1% 0% 26%
Slide 26: 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 30.09.2023 6% 11% 9% 14% 60%
Slide 27: Overview of Special items
Overview of Special items Quarter Special Comments items NOKm Q3 2023 - 44 • NOK ~44m related to the integration cost and severance pay in Danica and Kron Q4 2023 - 81 • NOK ~55m related to the integration cost and severance pay in Danica and Kron • NOK ~10m related to liquidation of branches in Ass
Slide 28: 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 the Storebrand Group’s control. As a result, the Storebrand Group’s actual fu
Slide 29: 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 30: Thank you
Thank you Storebrand Q3 2024 23 October 2024 30