Storebrand Asa · OSL:STB
Storebrand Asa — Q2 2023 Earnings Presentation
37 slides from Storebrand Asa's earnings presentation, 2023
Slide 1: Storebrand ASA Investor Presentation
Storebrand ASA Investor Presentation 1
Slide 2: Storebrand - A Nordic Savings and Insurance Group
Storebrand - A Nordic Savings and Insurance Group Insurance ▪ P&C, Health and Life insurance Asset Management ▪ NOK 8.3bn in Q2 ▪ NOK 1,142bn AuM 2023 written ▪ 48% external investors premiums ▪ 100% of investments Pension & Savings subject to sustainability ▪ 55k corporate customers screening ▪ 2.2
Slide 3: 250 years of pioneering in the Nordic financial industry
250 years of pioneering in the Nordic financial industry ILLUSTRATIVE - Future Storebrand builds on strategic strengths Future Storebrand Retail Insurance & Bank Asset Management Unit Linked Pensions and Guaranteed pensions Savings 1767 1847 1861 1917 1995 2023 2050 Foundation: P&C Pioneered Pioneer
Slide 4: The shift towards a high ROE Nordic capital-light growth business continues
The shift towards a high ROE Nordic capital-light growth business continues, stronger contribution from higher interest rates going forward FROM TO Norwegian market leader occupational Diversified Nordic capital-light growth pension business Low Return on Equity (ROE) High Return on Equity (ROE) Inc
Slide 5: The Group has transitioned from capital consumptive Guaranteed business to capital light
The Group has transitioned from capital consumptive Guaranteed business to capital light Savings and Insurance business Premiums Storebrand1 Profit Storebrand2 Shift in total Storebrand AUM3 33 309 3 241 1 001 17% 17% 24 584 47% 15% 1 898 36% 67% 22% 65% 442 15% 27% 26% NOK bn NOK m NOK m 14% 49% 63
Slide 6: Continue to grow high ROE business for increased capital and cash generation
Continue to grow high ROE business for increased capital and cash generation Future Run-off Storebrand business ILLUSTRATIVE Savings & Insurance Guaranteed4 Group Cash result1 (NOKm) 2 609 569 3 178 Allocated solvency equity (tangible uT1)2 5.5 21.6 27.0 (NOKbn) Pro forma Return on solvency 48% 3% 1
Slide 7: Double-digit growth in all of Future Storebrand
Double-digit growth in all of Future Storebrand, but financial markets reduce AUM growth in 2022 Unit Linked (Defined Contribution) Pensions Asset management +10% +6% +11% +20% 315 357 1,097 1,020 1,143 308 962 268 831 220 721 707 168 179 487 535 571 577 128 140 442 85 105 64 2012 2013 2014 2015 201
Slide 8: Pursuing our Group Strategy: Leading The Way In Sustainable Value Creation
Pursuing our Group Strategy: Leading The Way In Sustainable Value Creation to be a leading Sustainable Nordic Savings and Insurance Group A B C Future Storebrand Leading Provider Growth focus in Nordic Powerhouse in Growing Challenger in Occupational Pensions capital-light business Asset Management
Slide 9: Storebrand is a leading provider in occupational pension in Norway and Sweden
A Leading Provider Storebrand is a leading provider in occupational pension in Occupational Pensions Norway both Norway and Sweden 1 2 3 Where we play Who we are Why we win The employer The employee Defined Contribution market is in structural growth Clients Aum Public sector occupational pension ma
Slide 10: Double digit growth in Unit linked premium and AUM development
A Leading Provider Occupational Pensions Double digit growth in Unit linked premium and AUM Norway development Year on Year Unit linked premiums Unit linked AUM development Numbers in MNOK Numbers in MNOK +30 % +18 % 6 883 343 6 583 315 302 5 641 291 276 5 288 5 333 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q
Slide 11: A leading multi-boutique asset manager in the Nordics
B A leading multi-boutique asset manager in the Nordics, with strong Nordic Powerhouse in Asset Management international presence 1 2 3 Where we play Who we are Why we win #1 in Sustainable investments- Fund distributors #1 in Sustainable investments- External Asset Management For the 4th consecutiv
Slide 12: Storebrand asset management reached an all-time high AUM in Q2
B Nordic Powerhouse in Storebrand asset management continues its growth, and Asset Management reached an all-time high AUM in Q2 AUM development Top performance relative to Nordic peers in Q1 2023 Numbers in BNOK 123 1 143 AuM-development YTD1 AuM 135 1 097 Nordic Asset Managers (%) € millions 1 020
Slide 13: Storebrand's retail offering leverages cross-selling opportunities
C Growing Challenger in Storebrand's retail offering leverages from the cross-selling Norwegian Retail Market opportunities between insurance, banking and savings 1 2 3 Where we play Who we are Why we win Insurance • Digital one-stop-shop with integrated value propositions and Seamless and individua
Slide 14: Storebrand is gaining market share across the product portfolio
C Growing Challenger in Storebrand is gaining market share across the product portfolio and Norwegian Retail Market establishing itself as a strong challenger in a growing market Market share mutual funds % Market share P&C insurance % 6.4 4.6 5.9 4.5 4.4 3.4 3.2 ~8% ~4% 2.5 annual market 4.5 annual
Slide 15: Storebrand has invested sustainably since 1995
D Leadership in Storebrand has invested sustainably since 1995 Sustainability 25 years of Top 10% most Nr.1 sustainable Top 100 sustainable sustainable company investments in Norway, company globally1 investments in the world2 Sweden, and Denmark3 Decision to integrate Next Commitment to Sustainabil
Slide 16: Storebrand continues the digital journey and leadership
E Digital Frontrunner Storebrand continues the digital journey and leadership What we have done What we will do Cloud Transformation Accelerating our adoption of Artificial Intelligence (AI) • Building on broad experience and unique in- house competence Core Renewal • Mobilizing the organization to
Slide 17: Delivered on the capital management strategy and well under way to reach 2030 ambition
Storebrand has delivered on the capital management strategy and is well under way to reach the 2030 ambition Growing ordinary dividends I II NOK ∼10bn in share buybacks by 2030 III Additional capital generation from earnings NOK billion ∼10 Growth in entities outside of 3,70 Organic growth +8% Solve
Slide 18: Appendix: Q2 2023 results
Appendix: Q2 2023 results 18 G2 storebrand
Slide 19: Highlights Q2 2023
Highlights Q2 2023 Record-high solvency and AUM, weak insurance results year to date. Share buyback amounting to NOK 1bn approved for H2 2023 NOK 1 143bn in assets under management Group result 1 19% growth in insurance premiums f.o.a. 2 1 550 519 MNOK 777 16% growth in retail bank's lending volume
Slide 20: Key Figures
Key Figures Improved financial result and a solid solvency position Group Result development1 Cash Earnings per share2 Financial items and risk result life Performance related result MNOK Special items Cash equivalent earnings from operations 2.16 841 773 777 1.83 1.82 583 672 219 255 264 105 1.16 1
Slide 21: Solvency movement from Q1 2023 to Q2 2023
Solvency movement from Q1 2023 to Q2 2023 Storebrand Group 4% 4% 196% 5% -2% -2% 7% 179% 1% Q1 2023 Model & Updated Interest rate Market returns Cash earnings Dividend Restriction Q2 2023 assumption regulatory & business mix Tier 2 changes VA and SA 21 21
Slide 22: SII position Storebrand Group
SII position Storebrand Group Solvency position(%)1 Estimated sensitivities 196 Target SII margin 150% 179 SII-margin Q2 196 196 Interest rates -50bp 191 191 Q1 2023 Q2 2023 Interest rates +50 bp 198 198 Key takeaways Equity -25% 187 187 ▪ Strong post tax result Spread +50 bp, VA +15bp 187 187 ▪ Inc
Slide 23: Storebrand Group
Storebrand Group Solid result development driven by higher financial results Group Profit1 Q2 YTD NOK million 2023 2022 2023 2022 Fee and administration income 1 591 1 456 3 143 2 914 Insurance result 382 427 739 799 Operational cost -1 460 -1 181 -2 851 -2 326 Cash equivalent earnings from operatio
Slide 24: Full consent for Storebrand in ruling from Tax Appeals Committee
Full consent1 for Storebrand in ruling from Tax Appeals Committee Important milestone that eliminates downside for the uncertain tax position – NOK 440m tax income booked in the quarter Q1 2022 Q4 2022 Q2 2023 P&L tax case effect P&L tax case effect P&L tax case effect 568m 440m 202m Tax income from
Slide 25: Storebrand Group: Profit by line of business
Storebrand Group Profit by line of business Group Profit1 Q2 YTD NOK million 2023 2022 2023 2022 Fee and administration income 1 591 1 456 3 143 2 914 Insurance result 382 427 739 799 Operational cost -1 460 -1 181 -2 851 -2 326 Cash equivalent earnings from operations 513 703 1 031 1 387 Financial
Slide 26: Savings (non-guaranteed)
Savings (non-guaranteed) Stable profit development despite high performance related cost and fewer transaction fees in Asset management. Savings Strong result in Retail banking business Profit Q2 YTD NOK million 2023 2022 2023 2022 Fee and administration income 1 269 1 130 2 503 2 266 Operational co
Slide 27: Savings (non-guaranteed)
Savings (non-guaranteed) Stable profit development despite high performance related cost and fewer transaction fees in Asset management. Savings Strong result in Retail banking business Reserves and premiums Unit Linked Retail bank balance and net interest margin (%) 6.9 7.0 Life insurance balance s
Slide 28: Insurance
Insurance Continued high growth, but weak results due to high claims in P&C (motor related) and Health & Group life Insurance Profit Q2 YTD NOK million 2023 2022 2023 2022 Insurance premiums f.o.a. 1 727 1 449 3 399 2 846 Claims f.o.a. -1 345 -1 021 -2 660 -2 047 Operational cost -308 -260 -618 -510
Slide 29: Insurance
Insurance Continued high growth, but weak results due to high claims in P&C (motor related) and Health & Group life Insurance Combined ratio Key Takeaways Combined Ratio and Results Claims ratio Cost ratio Combined ratio ▪ 96% overall combined ratio in the quarter and 94% trailing for the last 12 96
Slide 30: Guaranteed pension
Guaranteed pension Result development driven by an improved financial results Guaranteed Profit Q2 YTD NOK million 2023 2022 2023 2022 Fee and administration income 387 395 765 786 Operational cost -216 -206 -408 -409 Cash equivalent earnings from operations 171 189 357 377 Risk result life & pensio
Slide 31: Guaranteed pension
Guaranteed pension Result development driven by an improved financial results Guaranteed Reserves guaranteed products Key Takeaways 275 276 274 283 279 26 25 Customer buffers ▪ Continued run-off of guaranteed reserves with net flow of premiums 25 24 24 28 and pension payments of NOK -2.5bn in the 2n
Slide 32: Other
Other1 Financial result improving from a higher interest rate level. Operational costs includes integration cost Other Profit Q2 YTD NOK million 2023 2022 2023 2022 Fee and administration income 6 4 11 9 Operational cost -109 -70 -203 -134 Cash equivalent earnings from operations -104 -66 -192 -125
Slide 33: Simplified P&L under IFRS – Key takeaways
Simplified1 P&L under IFRS – Key takeaways Q2 YTD Comments Profit & Loss IFRS (MNOK) 2023 20221 2023 20221 Income from unit linked 523 419 1 032 870 Income from asset management 712 689 1 381 1 348 Income from banking activities 686 305 1 302 561 [1] Group’s profit before amortisation and tax was Ot
Slide 34: Real estate portfolio – Norway
Real estate portfolio – Norway* Allocation and distribution - real estate portfolio Fair value adjustments and change in rental income by year Unit linked Guaranteed Fair value adjustments by year Change in rental income Logistics Hotel 31 bn NOK 3% Retail 5% 7 10 25% 7% 7% 5 4% 4% 5% 4% 2% 1% 0 -2%
Slide 35: Real estate portfolio – Sweden
Real estate portfolio – Sweden1 Allocation and distribution - real estate portfolio Fair value adjustments and change in rental income by year Fair value adjustments by year Change in rental income Guaranteed Hotel 15 14.8% 11 bn SEK Residential 16% 26% 10 6.9% 5 21% Public Use 2.9% 2.0% 3.3% 2.1% 0
Slide 36: Asset allocation – Guaranteed products
Asset allocation – Guaranteed products Storebrand Livsforsikring AS (Norway) SPP (Sweden) 70% 50% 45% 60% 40% 50% 35% 40% 30% 25% 30% 20% 20% 15% 10% 10% 5% 0% 0% Bonds & Bonds at Bonds & Real Equities Money Loans amortised Equities Real estate Money Loans estate market cost market 30.06.2022 6% 12%
Slide 37: Leading the way in sustainable value creation
Leading the way in sustainable value creation Investor Relations contacts 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 Strategy and Finance This document contains Alternative Performance Measures 37 as