Slide 1: Storebrand 1Q 2016
Storebrand 1Q 2016 27 April 2016 Better pensions Odd Arild Grefstad – CEO Lars Aa. Løddesøl – CFO
Slide 2: Highlights 1Q 2016
Highlights 1Q 2016 Group result1 29% Unit Linked premium growth3 546 MNOK 678 8% Insurance written premium growth3 -133 1Q 2016 Result before profit sharing and loan losses Net profit sharing and loan losses 18% Retail Bank lending growth3 1,8 % growth in fee and admin income2 175% Estimated Solve
Slide 3: Transformation of the business model continues
Transformation of the business model continues Dual strategy reiterated and reinforced Manage the guaranteed balance sheet Continued growth in savings and insurance Retail customers Employees Capital Risk optimization reduction Corporate relation >130% Save for Solvency II < retirement margin Produc
Slide 4: Paid up policies book is the main challenge in a low interest scenario
Paid up policies book is the main challenge in a low interest scenario and under SII… Manage guaranteed balance sheet …But still manageable both short and long term Expected return paid up polices without use of buffers 2016-20201 Q1 2016: Built NOK 3bn in new A …including reinvestment due and exp
Slide 5: Estimated SII position Storebrand Group
Estimated SII position Storebrand Group Manage guaranteed balance sheet Economic Solvency position(%)1 Estimated Sensitivities2 Target SII margin 168 175 1.1.2016 =130% 44 58 Estimated economic SII-margin Q4 2015 117 58 175 124 117 Interest rates -50bp 106 69 175 Q4 2015 Q1 2016 Interest 128 47 175
Slide 6: Solvency II movement from Q4 2015 to Q1 2016
Solvency II movement from Q4 2015 to Q1 2016 Manage guaranteed balance sheet Solid solvency generation in the quarter1 3% 4% 124 14% ~7% solvency generation from own measures and results 117% Q4 2015 Derisk/changed Results/other Financial markets/other Q1 2016 asset allocation 6
Slide 7: Growth in Savings and Insurance continues
Growth in Savings and Insurance continues Continued growth in Savings and Insurance Unit Linked Asset management 8% 2% 116 125 29% premium 558 567 growth Q1 2016 Gathering assets Weak financial from life company markets dampens and strong sales growth Weak financial markets dampens growth Q1
Slide 8: Strong development in Storebrand Asset Management in the quarter
Strong development in Storebrand Asset Management in the quarter Continued growth in Savings and Insurance Revenues and costs development (MNOK)1 Comments Turnaround in 2012 with substantial cost reductions and new growth strategy +34% Profits increased by 256 MNOK (127%) since 2012 Larger sha
Slide 9: Fee and administration income shifts from Guaranteed to Savings
Fee and administration income shifts from Guaranteed to Savings Dual strategy Income growth of 1.8% adjusted for business in run-off1 Storebrand Group income development Fee- and admin income 12 months rolling 1Q 2016 compared to 1Q 2015 (NOK mill.) Savings and Guaranteed pension (NOK mill.) 2,800 0
Slide 10: Key figures
Group Key figures Result development1 Earnings per share2 Net profit sharing and loan losses Special items MNOK Result before profit sharing and loan losses 1.65 610 546 605 275 73 59 272 0.93 0.78 0.80 546 661 573 605 440 0.37 -51 -6 -133 -167 -291 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q1 2015 Q2
Slide 11: Storebrand Group
Group Storebrand Group Profit 1Q Full year NOK million 2016 2015 2015 Fee and administration income 1 052 1 046 4 317 Risk result life & pensions 24 9 80 Insurance premiums f.o.a. 947 867 3 642 Claims f.o.a. -728 -652 -2 822 Operational cost -803 -803 -3 268 Financial result 187 79 244 Result before
Slide 12: Storebrand Group
Group Storebrand Group Profit 1Q Full year NOK million 2016 2015 2015 Fee and administration income 1 052 1 046 4 317 Risk result life & pensions 24 9 80 Insurance premiums f.o.a. 947 867 3 642 Claims f.o.a. -728 -652 -2 822 Operational cost -803 -803 -3 268 Financial result 187 79 244 Result before
Slide 13: Savings (non-guaranteed) - strong underlying results growth
Savings (non-guaranteed) Savings - strong underlying results growth Profit 1Q Full year NOK million 2016 2015 2015 Fee and administration income 697 628 2 662 Risk result life & pensions -2 -4 -3 Operational cost -412 -408 -1 638 Financial result 0 0 0 Result before profit sharing and loan losses 28
Slide 14: Savings (non-guaranteed) - strong growth in UL premiums
Savings (non-guaranteed) Savings - strong growth in UL premiums Reserves and premiums Unit Linked Comments1 3,7 3,2 3,2 3,0 2,9 29% premium growth in UL 128 125 premiums2 119 9% top line growth in Savings3 BNOK 117 116 18% retail lending growth Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Retail ba
Slide 15: Insurance - results affected by increased disability rate
Insurance Insurance - results affected by increased disability rate Profit 1Q Full year NOK million 2016 2015 2015 Insurance premiums f.o.a. 947 867 3 642 Claims f.o.a.1) -728 -652 -2 822 Operational cost 2) -144 -128 -538 Financial result 47 72 206 Result before amortisation 122 159 488 Profit per
Slide 16: Insurance - reduced growth
Insurance Insurance - reduced growth Comments Combined ratio and Combined ratio Claims ratio Combined ratio results Cost ratio 101% 93% 92% 92% 90% 87% Combined Ratio 92% Results negatively affected by 75% 72% 78% 85% 77% increased disability rate 15% 15% 14% 16% 15% 1Q 2015 2Q 2015 3Q 2015 4Q 2
Slide 17: Guaranteed pension - results affected by weak financial markets
Guaranteed pension Guaranteed - results affected by weak financial markets Profit 1Q Full year NOK million 2016 2015 2015 Fee and administration income 404 432 1 777 Risk result life & pensions 4 16 89 Operational cost1 -271 -277 -1 156 Financial result - - - Result before profit sharing and loan lo
Slide 18: Guaranteed pension - conversion to DC schemes continues
Guaranteed pension Guaranteed - conversion to DC schemes continues Reserves guaranteed products Comments 261 259 263 267 266 56 51 61 60 58 Weak equity markets and lower interest rates negatively affect SPP financial 109 98 98 99 104 result BNOK 16 16 16 15 15 87 85 90 92 91 As companies convert
Slide 19: Other
Other Other1 Profit 1Q Full year NOK million 2016 2015 2015 Fee and administration income 17 45 129 Risk result life & pensions 22 -4 -6 Operational cost -42 -48 -188 Financial result 140 7 38 Result before profit sharing and loan losses 137 0 -27 Net profit sharing and loan losses -7 -8 -48 Result
Slide 20: Highlights 1Q 2016
Highlights 1Q 2016 Group result1 29% Unit Linked premium growth3 546 MNOK 678 8% Insurance written premium growth3 -133 1Q 2016 Result before profit sharing and loan losses Net profit sharing and loan losses 18% Retail Bank lending growth3 1,8 % growth in fee and admin income2 175% Estimated Solve
Slide 21: Appendix
Appendix 21 @® storebrand
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 31.03.2015 8% 22% 11% 43% 11% 4% 30.06.2015 7% 23% 9% 47% 11% 2% 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
Slide 23: SPP asset allocation
SPP asset allocation 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Alternative investments Bonds Equities 31.03.2015 5% 86% 9% 30.06.2015 6% 86% 9% 30.09.2015 6% 86% 8% 31.12.2015 6% 87% 7% 31.03.2016 5% 89% 6% 1 The graph shows the asset allocation for all products with an interest rate guarantee in
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