Storebrand Asa · OSL:STB

Storebrand Asa — Q3 2016 Earnings Presentation

24 slides from Storebrand Asa's earnings presentation, Oct 26, 2016

  1. Slide 1: Storebrand 3Q 2016

    Storebrand 3Q 2016 26 Oct 2016 Better pensions Odd Arild Grefstad – CEO Lars Aa. Løddesøl – CFO

  2. Slide 2: Highlights 3Q 2016

    Highlights 3Q 2016 Group result1 18% Unit Linked premium growth3 690 MNOK 209 6% Insurance written premium growth3 481 3Q 2016 Financial items and risk result life Operating profit 28% Retail Bank lending growth3  5% growth in Savings fee and admin income2  6% reduction in Guaranteed fee and admin

  3. Slide 3: The Storebrand investor story

    The Storebrand investor story 1 Manage the guaranteed 2 Continued growth in balance sheet Savings and Insurance >150% SII margin Capital-light and profitable growth  Cost reductions through  Market leading asset gatherer automation and outsourcing with strong Insurance offering  Manage for future

  4. Slide 4: Growth in Savings and Insurance continues

    Manage guaranteed 1 balance sheet 2 Growth in Savings and Insurance Growth in Savings and Insurance continues Unit Linked Asset management 11% 1% 132  Growth weakened 562 570 119  Growth weakened by SEK/NOK; 16% currency adjusted by SEK/NOK; 5% growth currency adjusted  18% premium growth growth

  5. Slide 5: Innovating throughout the customer journey

    Manage guaranteed 1 balance sheet 2 Growth in Savings and Insurance Innovating throughout the customer journey Growth in Savings and Insurance Digitally driven sales front Customer service People and technology Products and concepts 50% of all private savings sold through Medical video digital chann

  6. Slide 6: Medical video consultations on mobile devices launched

    Manage guaranteed 1 balance sheet 2 Growth in Savings and Insurance Medical video consultations on mobile devices launched We move holistic health management a step further by providing integrated communications with health care professionals 6

  7. Slide 7: Fee and administration income shifts from Guaranteed to Savings

    Manage guaranteed 1 balance sheet 2 Growth in Savings and Insurance Fee and administration income shifts from Guaranteed to Savings Operating profit Fee- and admin income 12 months rolling Storebrand Group (NOK mill.) Savings and Guaranteed pension (NOK mill.) 392 544 2,800 489 468 481 Savings 2,700

  8. Slide 8: Key figures

    Group Key figures Result development1 Earnings per share2 Financial items and risk result life Special items MNOK Operating result 798 1.83 690 1.65 275 546 254 272 209 1.23 73 5 123 0.93 489 589 468 508 421 -23 -27 0.37 -217 -291 Q2 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q3 2015 Q4 2015 Q1 2016 Q2 20

  9. Slide 9: SII position Storebrand Group

    SII position Storebrand Group Economic Solvency position(%)1 Estimated Sensitivities Target SII margin 150% 172 165 50 34 Estimated economic SII-margin Q3 2016 131 34 165 122 131 Interest rates -50bp 116 49 165 Q2 2016 Q3 2016 Interest rates +50 bp 145 20 165 Transitional rules SII standard model Ke

  10. Slide 10: Solvency II movement from Q2 2016 to Q3 2016

    Solvency II movement from Q2 2016 to Q3 2016 165% 131% +34.0% +3.2% +2.4% +3.5% 122% -0.2% ~9% solvency generation from own measures, return and results Q2 2016 ex. Model and Asset return Interest rates Mass lapse Q3 2016 ex. Transition Q3 2016 incl. transitionals assumption and results reinsurance

  11. Slide 11: Storebrand Group

    Group Storebrand Group Profit 3Q 01.01 - 30.09 Full year NOK million 2016 2015 2016 2015 2015 Fee and administration income 1 040 1 046 3 097 3 157 4 317 Insurance result 238 198 694 677 820 Operational cost -797 -755 -2 299 -2 357 -3 268 Operating profit 481 489 1 492 1 477 1 869 Financial items an

  12. Slide 12: Storebrand Group

    Group Storebrand Group Profit 3Q 01.01 - 30.09 Full year NOK million 2016 2015 2016 2015 2015 Fee and administration income 1 040 1 046 3 097 3 157 4 317 Insurance result 238 198 694 677 820 Operational cost -797 -755 -2 299 -2 357 -3 268 Operating profit 481 489 1 492 1 477 1 869 Financial items an

  13. Slide 13: Savings (non-guaranteed) - continued top line growth

    Savings (non-guaranteed) Savings - continued top line growth Profit 3Q 01.01 - 30.09 Full year NOK million 2016 2015 2016 2015 2015 Fee and administration income 681 646 2 014 1 902 2 662 Operational cost -431 -381 -1 250 -1 183 -1 638 Operating profit 249 266 763 719 1 025 Financial items and risk

  14. Slide 14: Savings - strong growth in retail lending

    Savings (non-guaranteed) Savings - strong growth in retail lending Reserves and premiums Unit Linked Comments 3,7 3,5 3,4 3,2 3,2  18% premium growth in UL 132 premiums1 128 128 125  5% top line growth in Savings2 BNOK 119  28% retail lending growth2 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Retail

  15. Slide 15: Insurance - result growth

    Insurance Insurance - result growth Profit 3Q 01.01 - 30.09 Full year NOK million 2016 2015 2016 2015 2015 Insurance premiums f.o.a. 962 894 2 871 2 708 3 642 Claims f.o.a. -724 -697 -2 177 -2 031 -2 822 Operational cost -150 -122 -429 -387 -538 Operating profit 89 76 265 290 282 Financial result 74

  16. Slide 16: Insurance - combined ratio on target level

    Insurance Insurance - combined ratio on target level Comments Combined ratio and Combined ratio results Claims ratio Combined ratio Cost ratio 101% 92% 92% 91% 87% 90%  Combined Ratio 91%  On-going shift to more cost-effective 78% 85% 77% 75% 75% distribution gives temporary lower growth 14% 16% 1

  17. Slide 17: Guaranteed pension - reduced income according to plan

    Guaranteed pension Guaranteed - reduced income according to plan Profit 3Q 01.01 - 30.09 Full year NOK million 2016 2015 2016 2015 2015 Fee and administration income 403 428 1 190 1 317 1 777 Insurance result - - - - - Operational cost -257 -266 -721 -824 -1 156 Operating profit 146 162 469 493 621

  18. Slide 18: Guaranteed pension - conversion to DC schemes continues

    Guaranteed pension Guaranteed - conversion to DC schemes continues Reserves guaranteed products Comments 263 267 266 266 262 58 56 51 49 48 104 109 112  As companies convert to DC schemes, 99 115 the migration from DB to lower-margin paid up policies continues to reduce fee BNOK 16 15 15 15 15 90 9

  19. Slide 19: Other

    Other Other1 Profit 3Q 01.01 - 30.09 Full year NOK million 2016 2015 2016 2015 2015 Fee and administration income 31 31 102 111 129 Insurance result - - - - - Operational cost -35 -46 -107 -137 -188 Operating profit -3 -15 -5 -26 -59 Financial items and risk result life 159 -118 457 -117 -16 Result

  20. Slide 20: Outlook

    Outlook Operations  On track to deliver capital-efficient growth and cost reductions  Balance sheet shift continues, 54% of AuM non-guaranteed Market factors  Low interest rate environment  Continued individualisation of pensions Regulatory §  New 'finance payroll tax' proposed in Norway  Stil

  21. Slide 21: Appendix

    Appendix 21 @® storebrand

  22. Slide 22: Storebrand Life Insurance asset allocation

    Storebrand Life Insurance asset allocation 60% 50% 40% 30% 20% 10% 0% Bonds at Equities Bonds Money market Real estate Other amortized cost 30.09.2015 5% 22% 10% 49% 11% 2% 31.12.2015 6% 22% 8% 51% 12% 2% 31.03.2016 5% 26% 7% 49% 12% 1% 30.06.2016 5% 29% 5% 49% 11% 1% 30.09.2016 5% 28% 6% 50% 11% 1%

  23. Slide 23: SPP asset allocation

    SPP asset allocation 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Alternative investments Bonds Equities 30.09.2015 6% 86% 8% 31.12.2015 6% 87% 7% 31.03.2016 5% 89% 6% 30.06.2016 6% 88% 6% 30.09.2016 7% 89% 4% Note: The graph shows the asset allocation for all products with an interest rate guarantee

  24. Slide 24: Investor Relations contacts

    Investor Relations contacts Lars Aa Løddesøl Group CFO lars.loddesol@storebrand.no +47 9348 0151 Sigbjørn Birkeland Finance Director sigbjorn.birkeland@storebrand.no +47 9348 0893 Kjetil R. Krøkje Head of IR kjetil.r.krokje@storebrand.no +47 9341 2155

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