Storebrand Asa · OSL:STB

Storebrand Asa — Q3 2015 Earnings Presentation

26 slides from Storebrand Asa's earnings presentation, Oct 28, 2015

  1. Slide 1: Storebrand 3Q 2015

    Storebrand 3Q 2015 28 October 2015 Better pensions Odd Arild Grefstad – CEO Lars Aa. Løddesøl – CFO

  2. Slide 2: Highlights 3Q 2015

    Highlights 3Q 2015 17% Insurance written Group result premium growth2 MNOK 176 440 27% Unit Linked premium growth2 -264 Q3 2015 Result before profit sharing and loan losses Net profit sharing and loan losses/Longevity provision 67% of longevity  8,5 % growth in fee and strengthening completed admin

  3. 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

  4. Slide 4: Estimated SII position Storebrand Group

    Estimated SII position Storebrand Group Manage guaranteed balance sheet Economic Solvency position(%)1 Estimated Sensitivities2 Target SII margin 154 146 1.1.2016 =130% 40 42 Estimated economic SII-margin Q2 2015 104 42 146 114 104 Interest rates -50bp 87 59 146 Q2 2015 Q3 2015 Interest 119 27 146 T

  5. Slide 5: Fee and administration income shifts from Guaranteed to Savings

    Fee and administration income shifts from Guaranteed to Savings Dual strategy Income growth of 8.5% adjusted for business in run-off1 Storebrand Group income development Fee- and admin income 12 months rolling Q3 2014 compared to Q3 2015 (YTD, NOK mill.) Savings and Guaranteed pension (NOK mill.) 3.

  6. Slide 6: Customer centricity, innovation and efficiency

    Customer centricity, innovation and efficiency Dual strategy Customer centric organization BPO/ITO  Increase profitability  Negotiations with potential partners,  Improve customer centricity including partial ownership change of Storebrand Baltic Customer Areas  Leverage innovation capacity and

  7. Slide 7: Growth in Savings and Insurance continues

    Growth in Savings and Insurance continues Continued growth in Savings and Insurance Unit Linked Asset management 26% 12% 119  27% Premium 562 503  Gathering 94 growth 3Q  Paid-up assets from policies life company w/investment  Strong sales choice adds growth Q3 2014 Q3 2015 Q3 2014 Q3 2015 UL re

  8. Slide 8: Competitive retail bank offering

    Competitive retail bank offering Continued growth in Savings and Insurance 20 year: 10 year: Floating: 3,8% 3,1% 2,1% 8 Note: All figures are nominal interest rates p.a. Floating rate of 2,1% represents best interest rate in Storebrand's "BLU40" offering.

  9. Slide 9: Key figures

    Group Key figures Result development Earnings per share1 Net profit sharing and loan losses Sale discontinued business/change in pension plan MNOK Result before profit sharing and loan losses Longevity provision 1.78 923 25 632 1.08 477 450 459 62 0.78 0.80 58 176 660 661 0.37 541 546 440 -90 -121 -

  10. Slide 10: Storebrand Group

    Group Storebrand Group Profit 3Q 01.01 - 30.09 Full year NOK million 2015 2014 2015 2014 2014 Fee and administration income 1 046 1 045 3 155 3 044 4 160 Risk result life & pensions 40 37 103 157 480 Insurance premiums f.o.a. 894 773 2 708 2 313 3 115 Claims f.o.a. -697 -564 -2 031 -1 614 -2 226 Ope

  11. Slide 11: Storebrand Group

    Group Storebrand Group Profit 3Q 01.01 - 30.09 Full year NOK million 2015 2014 2015 2014 2014 Fee and administration income 1 046 1 045 3 155 3 044 4 160 Risk result life & pensions 40 37 103 157 480 Insurance premiums f.o.a. 894 773 2 708 2 313 3 115 Claims f.o.a. -697 -564 -2 031 -1 614 -2 226 Ope

  12. Slide 12: Savings (non-guaranteed) - strong results growth

    Savings (non-guaranteed) Savings - strong results growth Profit 3Q 01.01 - 30.09 Full year NOK million 2015 2014 2015 2014 2014 Fee and administration income 646 588 1 902 1 696 2 375 Risk result life & pensions -5 7 -4 -1 -11 Operational cost -381 -354 -1 183 -1 075 -1 289 Financial result 0 0 0 0

  13. Slide 13: Savings (non-guaranteed) - strong growth in UL premiums

    Savings (non-guaranteed) Savings - strong growth in UL premiums Reserves and premiums Unit Linked Comments1 3,2 3,0 2,9 2,6 2,5  27% premium growth in UL 117 119 premiums2 116 105  12% top line growth in Savings3 BNOK 94  Strong result development in Asset Management continues Q3 2014 Q4 2014 Q1

  14. Slide 14: Insurance - continued P&C growth

    Insurance Insurance - continued P&C growth Profit 3Q 01.01 - 30.09 Full year NOK million 2015 2014 2015 2014 2014 Insurance premiums f.o.a. 894 773 2 708 2 313 3 115 Claims f.o.a. -697 -564 -2 031 -1 614 -2 226 Operational cost -122 -122 -387 -378 -387 Financial result 45 48 181 195 173 Result befor

  15. Slide 15: Insurance - strong top line development

    Insurance Insurance - strong top line development Comments Combined ratio and Combined ratio Claims ratio Cost ratio Combined ratio financial result 1 93% 90% 92% 89% 87%  Combined Ratio 92%  Financial result affected by adverse 73% 76% 75% 72% 78% market development during 3Q 1 16% 16% 15% 15% 14

  16. Slide 16: Guaranteed pension - negative results due to weak financial markets

    Guaranteed pension Guaranteed - negative results due to weak financial markets Profit 3Q 01.01 - 30.09 Full year NOK million 2015 2014 2015 2014 2014 Fee and administration income 428 471 1 317 1 384 1 842 Risk result life & pensions 20 26 83 152 483 Operational cost -266 -275 -824 -837 -921 Financi

  17. Slide 17: Guaranteed pension - Key figures

    Guaranteed pension Guaranteed - Key figures Reserves guaranteed products Comments 264 263 261 259  Excess value in bonds at amortised cost 257 increased BNOK  Negative profit sharing result in SPP due to low interest rates and weak equity and credit markets 3Q 2014 4Q 2014 1Q 2015 2Q 2015 3Q 2015

  18. Slide 18: Longevity - 2/3 of reserve strengthening completed

    Longevity Guaranteed - 2/3 of reserve strengthening completed Reserve strengthening Norwegian guaranteed products Negative result impact in the quarter 2013-3Q 2015 (BNOK) 2015-2020 (BNOK) 3Q 2015 (MNOK) 17.0 96 12.4 11.1 3.5 8.3 2.7 2.1 4.1 4.5 1.4 Total reserve 20131 2014 Prel. booked Remaining Av

  19. Slide 19: Estimated IFRS result impact from longevity reserve strengthening revised down

    Estimated IFRS result impact from longevity Guaranteed reserve strengthening revised down MNOK 500 Longevity strengthening need - sources of funding Total remaining reserve strengthening (BNOK) Estimated annual IFRS result impact (MNOK) Estimated direct IFRS result impact reduced 4.1 from 90MNOK to

  20. Slide 20: Paid up policies is the main challenge in a low interest scenario

    Paid up policies is the main challenge in a low Guaranteed interest scenario and under SII… …But still manageable both short and long term Expected return paid up polices without use of buffers 2015-20201 …including reinvestment due and expected issuance  2015-2020: Longevity reserve of new paid up

  21. Slide 21: Other - Financial results affected by increased credit spreads

    Other1 Other - Financial results affected by increased credit spreads Profit 3Q 01.01 - 30.09 Full year NOK million 2015 2014 2015 2014 2014 Fee and administration income 31 57 111 174 233 Risk result life & pensions 25 4 25 6 8 Operational cost -46 -51 -137 -158 -138 Financial result -135 48 -115 1

  22. Slide 22: Highlights 3Q 2015

    Highlights 3Q 2015 17% Insurance written Group result premium growth2 MNOK 176 440 27% Unit Linked premium growth2 -264 Q3 2015 Result before profit sharing and loan losses Net profit sharing and loan losses/Longevity provision 67% of longevity  8,5 % growth in fee and strengthening completed admin

  23. Slide 23: Appendix

    Appendix @® storebrand

  24. Slide 24: 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 30.09.2014 9% 20% 10% 44% 11% 6% 31.12.2014 7% 20% 12% 45% 11% 5% 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%

  25. Slide 25: SPP asset allocation

    SPP asset allocation 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Alternative investments Bonds Equities 30.09.2014 6% 82% 12% 31.12.2014 6% 84% 10% 31.03.2015 5% 86% 9% 30.06.2015 6% 86% 9% 30.09.2015 6% 86% 8% 1 The graph shows the asset allocation for all products with an interest rate guarantee i

  26. Slide 26: 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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