Slide 1: Analyst presentation 1st quarter 2010
Analyst presentation 1st quarter 2010 1Q 2010
Slide 2: Storebrand Result Q1 2010
Storebrand Result Q1 2010 5 May M 2010 Idar Kreutzer - CEO Odd Arild Grefstad - CFO
Slide 3: Highlights Q1 2010
Highlights Q1 2010 RESULT Group profit of NOK 278 in Q1 Good return on customer customer’ss assets in Life & Pensions Priority given to increase customer buffers OPERATIONS Final report on synergies SPP. Realisation above target. Efficiency programs give positive result effects Establish
Slide 4: Storebrand Group
Storebrand Group Q1 Full Year NOK mill. 2010 2009 2009 Lif and Life d Pension P i Norway N 168 -129 759 Life and Pension Sweden (SPP) 113 -520 487 Storebrand Investments 54 32 240 Storebrand Bank 28 9 63 P&C (incl Health) -26 -23 -18 Storebrand ASA / other -59 -102 -255 Group Profit 278 -733 1.276 W
Slide 5: Life and Pensions Norway - strong improvement in the administration results
Life and Pensions Norway - strong improvement in the administration results Good value adjusted return in Full customer portfolios and Q1 Year strengthened customer buffers NOK mill. 2010 2009 2009 Administration Low return in the company result -20 -48 -169 portfolio weakens the result Risk res
Slide 6: Life and Pensions Norway - good solidity and strengthened customer buffers
Life and Pensions Norway - good solidity and strengthened customer buffers 170% 167% 161% 154% 148% 3,8% 0,8% 3,1% 2,2% 2,0% 1,7% 3,1% 3,0% 2,0% 2,2% 1,7% Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Market Value Adjustment j Reserve in % of customer funds * Additional Statutory Reserves in % of customer
Slide 7: Life and Pensions Norway - increased sales and good returns
Life and Pensions Norway - increased sales and good returns New sales (APE) 826 101 New sales (APE) doubled from Q1 2009 Mill NOK 416 487 80 257 Net transfer balance of 1.6 bn in 199 162 202 28 57 16 Q1 50 48 238 137 126 184 72 40 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Defined contribution co
Slide 8: Life and Pension Sweden (SPP) - positive administration results
Life and Pension Sweden (SPP) - positive administration results Good return on customer Q1 Full Year portfolios − DB: 3.3% 3 3% NOK mill. 2010 2009 2009 − DC: 3.5%1 Administration result 8 -21 -101 Efficiency and cost reduction Risk result 80 25 253 measures are giving desired Finance result 15
Slide 9: Life and Pensions Sweden (SPP) - increased sales of unit linked
Life and Pensions Sweden (SPP) - increased sales of unit linked New Sales UL (APE) (12 months rolling) 518 Market share of 9.5 %, up by 504 2.2 p percentage g ppoints in 2009 487 491 476 +9% Unit linked comprises 65 % of Mill NOK new sales and 42 % of total premiums1 M 1. kv 2009 2. kv 2009 3.kv
Slide 10: Life and Pensions Sweden (SPP) - synergies realised ahead of plan
Life and Pensions Sweden (SPP) - synergies realised ahead of plan Target Target Annual Synergy realisation Evaluation MNOK date realisation Revenue synergies 100 Q4 2010 >100 9 Cost synergies 150 Q4 2010 175 9 Tax synergies 120 Q4 2008 130 9 Investment synergies 100 Q2 2010 >130 9 9
Slide 11: Storebrand Investments - sound result development
Storebrand Investments - sound result development Full Q1 Year NOK 27 bn in increased AuM NOK mill. 2010 2009 2009 Good relative and absolute Total income * 109 100 496 returns Total costs -83 -84 -339 Satisfactory cost development Net financial/other 29 16 83 Profit asset 54 32 240 management
Slide 12: Storebrand Investments - increased AuM and good underlying result development
Storebrand Investments - increased AuM and good underlying result development AuM Result development 378 351 72 68 700 NOK mill. ill 37 600 36 29 227 229 217 29 500 205 30 23 25 20 36 400 30 28 29 15 20 26 28 300 241 219 200 141 142 144 142 100 - 2005 2006 2007 2008 2009 Q1 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q
Slide 13: Storebrand Bank - low losses and decreased non-performing loans
Storebrand Bank - low losses and decreased non-performing non performing loans Full Q1 Year High liquidity and low interest NOK mill. 2010 2009 2009 rates give weak net interest margin Net interest income 106 121 423 Net fee and 18 20 76 commission income Good cost control Other income 20 19 148
Slide 14: Delta One - programme to further strengthen operational results
Delta One - programme to further strengthen operational results O Operational i l financial fi i l targets Adm. result LPN1 MNOK 0 in 2010 Adm. result LPS MSEK 300 in Comprehensive programme 2011 introduced to further strengthen Cost/income SBK < 50% in 2011 results2 Cost/income Bank 60% in 2010
Slide 15: Delta One - operational improvements in all business areas
Delta One - operational improvements in all business areas Target improvements in 20101 Key drivers: Life and Pensions Norway MNOK 550 Improved profitability DC 30 Administration tasks transferred to St Storebrand b d Baltic B lti 190 Staff reductions Life and Pensions Sweden Costt and C d e
Slide 16: Life and Pensions Norway - building customer buffers prioritised
Life and Pensions Norway - building customer buffers prioritised Defined Individual Group contribution and paid- defined and Risk up Company Full Year NOK mill mill. benefit * unit linked* products policies** portfolio Q1 2009 Administration result -12 -1 -13 7 -20 -169 Risk result 5 31 11 4 51 229
Slide 17: Life and Pensions Norway - risk adjusted asset allocation
Life and Pensions Norway - risk adjusted asset allocation Asset allocation DB Asset allocation all customer portfolios* 100 % 3,4 3,7 1,6 % % 1,9%% 3,7 2,1% % 90 % 15,6 % 15,5 % Equity 4% 15,7 % 2% (4%) 13 % (2%) (11%) 80 % Bonds 16 % 70 % 20 6 % 20,6 (16%) 26,0 % 25,4 % Money Market 60 % 50 % 13,0
Slide 18: Life and Pensions Sweden (SPP) - increased risk capacity
Life and Pensions Sweden(SPP) - increased risk capacity Asset allocation by sub portfolio Ma ket factors Market facto s 6% 9% 6% 4% − Increased credit spreads − Reduced SWAP spread − Strong equity markets 55 % 67 % 69 % Alternative Investments 90 % Balance effects − Increased liabilities Interes
Slide 19: Life and Pensions Sweden (SPP) - synergies realised ahead of plan
Life and Pensions Sweden (SPP) - synergies realised ahead of plan Target Target Annual Synergy realisation Evaluation MNOK date realisation Revenue synergies 100 Q4 2010 >100 9 Cost synergies 150 Q4 2010 175 9 Tax synergies 120 Q4 2008 130 9 Investment synergies 100 Q2 2010 >130 9 18
Slide 20: Revenue synergies - strengthened distribution and increased sales
Revenue synergies - strengthened distribution and increased sales New distribution strategy Increased brand recognition 100 % AMF 25 80 % 40 % Alecta 8.7 72 % SPP 62 6.2 60 % Folksam 5.8 22 % 40 % Skandia 4.2 Up from 9. th KPA 3.6 place in 2008 20 % 16 % 38 % LF 3.5 12 % 0% Swedbank 3.3 2007 2009 No
Slide 21: Cost synergies - efficient implementation of specific measures
Cost synergies - efficient implementation of specific measures 200 175 Lean: NOK 42 mill 150 - Increased process quality, and 125 100 increased customer and employee 75 satisfaction 50 - Increased productivity and reduction in 25 0 employees Asset Management: g NOK 92 mill - Reduced asset manage
Slide 22: Investment synergies - strengthened risk management and improved business models
Investment synergies - strengthened risk management and improved b i business models d l Target: Increased earnings through higher investment return and reduced hedge costs Reduced Increased Initiatives hedge costs returns New Investment Strategy 9 Implemented CPPI strategy 130 mill I Introduced d d
Slide 23: Summary
Summary Good investment returns and strengthened customer buffers Efficiency programs shows in the results Synergies realised ahead of plan Delta One – program for result improvement develops according to plan 22
Slide 24: 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.
Slide 25: Financial calendar 2010 and Investor Relations contacts
Financial calender 2010 17 February Results Q4 03 March Embedded Value 2009 21 April Annual General Meeting 05 May ऀ Results Q1 15 July ऀ Results Q2 27 October Results Q3 25 November Capital Markets Day February 2011 Results Q4 2010 Investor Relations contacts Trond Finn Eriksen Head of IR trond.fin