Storebrand Asa · OSL:STB

Storebrand Asa — Q1 2011 Earnings Presentation

20 slides from Storebrand Asa's earnings presentation, May 11, 2011

  1. Slide 1: Storebrand Result Q1 2011

    Storebrand Result Q1 2011 11 May 2011 Idar Kreutzer – CEO Lars Aa. Løddesøl - CFO

  2. Slide 2: Highlights Q1 2011

    Highlights Q1 2011 RESULT  Group result of NOK 514 mill in Q1  Strong result contribution from Swedish operations  Increased quality of earnings OPERATIONS  Business transformation to more fee based business  New group organisation implemented – insurance activities reported as separate segment

  3. Slide 3: Storebrand Group

    Storebrand Group Q1 Full year NOK mill. 2011 2010 2010 Storebrand Life Insurance 139 153 730 SPP 281 113 464 Asset management 77 54 333 Bank 49 28 158 Insurance 33 -15 155 Storebrand ASA / other -66 -59 -231 Group Profit 514 274 1 608 Amortisation and write-downs of intangible assets -100 -93 -390 P

  4. Slide 4: Storebrand Life Insurance - improved administration result

    Storebrand Life Insurance - improved administration result Full Q1 year  Improvements in administration result from NOK mill. 2011 2010 2010 increased revenues and Administration result 8 -7 58 strict cost control Risk result -1 40 131  Claims handling in DC Finance result* 4 -8 26 portfolio affec

  5. Slide 5: Increasing strategic importance of digital channels

    Increasing strategic importance of digital channels - storebrand.no key numbers Q1 2011 1 785 000 visitors 0,48 conversion rate 78% of customers used electronic signature while buying mutual funds online (BankID)

  6. Slide 6: SPP - strong development

    SPP - strong development Full  Administration result Q1 year strengthened by increased NOK mill. 2011 2010 2010 fees and cost control Administration result 44 7 84  Strong risk results Risk result 76 80 311 Finance result 121 15 31  Indexation fee in the DB Other portfolio 40 11 38 Profit for SPP

  7. Slide 7: SPP - best unit linked provider in Sweden 3rd year in a row

    SPP - best unit linked provider in Sweden 3rd year in a row1  Premium income from unit linked products increased 12% from Q1 2010  Sales2 in unit linked unchanged from Q1 2010, up 30% measured on 12 months rolling  Market share of new sales unit linked up 7%-points to 12% from 2007 to 2010 1 Acco

  8. Slide 8: Asset Management - steady result improvement

    Asset Management - steady result improvement Full  Positive one off effects of 18 Q1 year mill in Q1: NOK mill. 2011 2010 2010 • New fee structure + 28 mill • Accrual effects operating Operating revenue 166 154 645 revenue -10 mill Operating cost -118 -101 -450 Operational result 48 53 195  Cost l

  9. Slide 9: Asset Management - international recognition for Delphi funds

    Asset Management - international recognition for Delphi funds Fund Standard & Poor`s Citywire Fondmarknaden Lipper Fund Awards Qualitative rating (performance 3 years) Delphi Verden Delphi Europa Best European Fund 2009 Delphi Norden Best Nordic fund 2010 Sr. Portfolio Manager Sr. Portfolio Manager

  10. Slide 10: Bank - improved operating margins

    Bank - improved operating margins Q1 Full  Net interest margin 1,21% year NOK mill. 2011 2010 2010  Stable gross lending Net interest income 116 106 457 Net fee and commission 20 18 74 income  Low loan losses Other operating income 35 20 101 Total income 171 144 632 Operational cost -117 -114 -44

  11. Slide 11: Insurance - stable profitable growth

    Insurance - stable profitable growth Q1 Full  New business unit from Q1 year 2011 NOK mill. 2011 2010 2010 Premiums earned, net1 424 386 1 651  Winter related claims Claims incurred, net -335 -341 -1 278 reduced Operation costs excl -80 -86 -331 amortization Insurance result 10 -41 42  Claims rat

  12. Slide 12: Group - operational reporting

    Storebrand Group – operational reporting Full  Group profit doubled Q1 year NOK mill. 2011 2010 2010  Fee and administration Fee and administration income increased with income 1 014 904 3 856 12%, costs increased with Operational cost 7% -727 -681 -2 753 Fee and administration result 287 224 1 10

  13. Slide 13: Key figures

    Key figures Result development Earnings per share* NOK mill. 709 2.37 664 160 514 275 432 173 1.54 9 549 266 405 341 1.10 232 0.62 -444 -39 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 -0.36 Net profit sharing and loan losses Result before profit sharing and loan losses Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1

  14. Slide 14: Life Insurance - competitive returns

    Storebrand Life Insurance - competitive returns Return asset class Q1 (%) Return Defined Benefit portfolios Value Booked Equity Real estate 2,2 adjusted returns proportion returns Bonds at DB - High 1.7 % 1.8 % 25% 1,2 amortised cost DB - Standard 1.6% 1.4 % 19% DB - Low 1. 4% 1.4 % 10% Money market

  15. Slide 15: Storebrand Life Insurance

    Storebrand Life Insurance Defined Individual Group contribution and paid- defined and up Company Result Q1 Result Full year NOK mill. benefit * unit linked* policies** portfolio 2011 Q12010 2010 Administration result -24 22 9 8 -7 58 Risk result 43 -63 19 -1 40 131 Finance result1 32 -29 4 -8 26 Pro

  16. Slide 16: SPP - swap spread widening gives positive result contribution

    SPP - swap spread widening gives positive result contribution Swedish interest rates 4,0  Financial markets: 3,8 − Flat equity markets 3,6 − Increased interest rate levels − Increased swap spreads 3,4 3,2  Result effects: 3,0 − Increasing swap spreads  reversal of 31.12.10 31.1.11 28.2.11 31.3.11

  17. Slide 17: Life and Pensions - increased allocation to bonds at amortised cost

    Life and Pensions - increased allocation to bonds at amortised cost Asset allocation guaranteed products Asset allocation guaranteed products Life and Pensions Norway1 Life and Pensions Sweden1 2% 4% 7 % (6%) (2%) (4%) 15 % (14%) 16 % 27 % (26%) (16%) 24 % (25%) 31 % (26%) 66 % 8 % (14%) (68%) Equit

  18. Slide 18: Solvency II and Pension reform part II in Norway

    Solvency II and Pension reform part II in Norway 2011 2012 2013 Expected formal adoption Insurance Norwegian legislation 10. March: FSA Propose changes Norwegian Propose new legislation Ministry of - New products Public hearing finance - Rules for Decision in Parliament transformation (no formal dat

  19. Slide 19: Summary

    Summary  Strong result improvement from Q1 2010  Business transformation on track  Sound capital position - increased buffer capital 19

  20. Slide 20: Storebrand shall be the leading and most respected institution in the Nordic market

    Storebrand shall be the leading and most respected institution in the Nordic market for long-term savings and insurance.

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