Storebrand Asa · OSL:STB
Storebrand Asa — Q2 2024 Earnings Presentation
33 slides from Storebrand Asa's earnings presentation, Jul 12, 2024
Slide 1: Storebrand Q2 2024
Storebrand Q2 2024 12 July 2024 Odd Arild Grefstad – CEO Lars Aa. Løddesøl – CFO
Slide 2: Highlights Q2 2024
Highlights Q2 2024 Strong operating result driven by continued growth and cost control, financial result boosted by sales gain Group result 1 MNOK 14% AuM growth2; NOK 1 298bn per Q2'24 3 331 19% growth in unit linked reserves2 1 047 2 249 1 047 777 16% growth in insurance premiums2 384 819 1 507 19
Slide 3: Completed NOK 0.4bn in share buybacks in Q2, NOK 0.7bn to be bought back
Completed NOK 0.4bn in share buybacks in Q2, NOK 0.7bn to be bought back during Q3 and Q41 Overview of executed and planned share buybacks NOK billion Ambition announced on CMD 2023 Planned Executed 12.0 As of 30 June, NOK ~800m is conducted and NOK ~700m remains on the full year NOK 1.5bn buyback a
Slide 4: Sustainable Nordic Savings and Insurance Group
Sustainable Nordic Savings and Insurance Group A B C Future Storebrand Growth focus in Leading Provider Nordic Powerhouse in Growing Challenger in capital-light business Occupational Pensions Asset Management Norwegian Retail Market areas in front book Norway & Sweden Strategic enablers D People Fir
Slide 5: Double digit growth continues across the Group
Double digit growth continues across the Group Unit linked (defined contribution) pensions Asset management UL reserves (NOK billion) YOY AuM (NOK billion) YOY 19%2 14%2 +13%1 +18%1 426 1 298 380 1 097 1 020 1 212 308 315 962 268 721 831 220 707 168 179 577 140 2016 2017 2018 2019 2020 2021 2022 202
Slide 6: Second quarter business update
Second quarter business update Sustainability Internal Model Public Pensions Recognised as one of the world's most Submitted application for ESA expected to initiate infringement sustainable companies by Partial Internal Solvency Model proceedings in the public procurement case & 6
Slide 7: Two acquisitions announced and divestment of health business concluded during the second quarter
Two acquisitions announced and divestment of health business concluded during the second quarter Acquisition of Investment in Divestment of Storebrand AIP Management corporate headquarter Health Insurance concluded • Increased ownership in Danish infrastructure fund • Gross property value of NOK ~1.
Slide 8: AIP Management is a well-established Danish infrastructure fund manager with AUM of NOK ~90bn
AIP Management is a well-established Danish infrastructure fund manager with AUM of NOK ~90bn Background AIP was originally founded in 2012, and became an independent fund manager in 2018, with offices today in Copenhagen (Headquarter), London, Madrid, and New York Total commitments from investors o
Slide 9: AIP operates in a market with attractive business characteristics and strong growth prospects
AIP operates in a market with attractive business characteristics and strong growth prospects Infrastructure market with attractive return characteristics Global Infrastructure AuM 1 ($bn) Europe Infrastructure consists of the physical assets required for North America economies and societies to fun
Slide 10: Expanding Storebrand Asset Management's Alternatives offering
Expanding Storebrand Asset Managment's Alternatives offering AuM NOK billion AIP will strengthen Storebrand's offering within Alternatives; Infrastructure, Private Equity, Real Estate, and Private Debt. -Building a Nordic 90 AIP Infrastructure 1 powerhouse in asset management. The acquisition will i
Slide 11: Corporate headquarter acquisition closed in June
Corporate headquarter DEAL STRUCTURE acquisition closed in June • The transaction was completed on June 21, 2024, through a newly NOK 1.695 billion established alternative investment fund (AIF) managed by Storebrand Gross property value Asset Management (SAM). • The gross property value was NOK Posi
Slide 12: Key Figures
Group Key Figures Strong improvement in operating and financial result, solid solvency position Result development 1 Earnings per share 2, 6 Special items 4.59 Financial items and risk result life Cash equivalent earnings from operations 2,249 STB 1,047 Helse 2.16 2.14 2.09 1,070 1,082 1.73 856 728
Slide 13: Solvency position and sensitivities Q2 2024
Group Solvency position and sensitivities Q2 2024 Storebrand Group Solvency position 1 Estimated sensitivities Target SII margin 150% 191 % 191 % SII-margin Q2 191 Interest rates -50bp 188 Interest Q1 2024 Q2 2024 rates +50 bp 193 Key takeaways Q2 2024 Equity -25%, SA -14p.p. 196 ▪ The positive effe
Slide 14: Storebrand Group | Profit
Group Storebrand Group | Profit Strong improvement in operating result driven by growth and cost control, financial result positively affected by income recognition from the divestment of Storebrand Heath Insurance Profit 1 Q2 Year to date Full year NOK million 2024 2023 2024 2023 2023 Fee and admin
Slide 15: Storebrand Group | Profit
Group Storebrand Group | Profit Profit by line of business Profit 1 Q2 Year to date Full year NOK million 2024 2023 2024 2023 2023 Fee and administration income 1 888 1 670 3 706 3 275 6 782 Insurance result 396 382 763 739 1 122 Operational cost -1 465 -1 460 -2 962 -2 851 -5 787 Cash equivalent ea
Slide 16: Savings (non-guaranteed)
Savings Savings (non-guaranteed) Strong earnings development driven by growth and cost control Profit Q2 Year to date Full year NOK million 2024 2023 2024 2023 2023 Fee and administration income 1 567 1 349 3 061 2 636 5 443 Operational cost -923 -898 -1 870 -1 759 -3 582 Cash equivalent earnings fr
Slide 17: Savings (non-guaranteed) Key figures
Savings Savings (non-guaranteed) Key figures Reserves and premiums Unit Linked Retail bank balance and net interest margin (%) Unit Linked Reserves Unit Linked Premiums Life insurance balance sheet Bank balance sheet Interest margin 7.5 7.7 7.0 7.1 7.2 1.46% 1.44% 1.52% 1.60% 1.43% 426 75 77 79 82 4
Slide 18: Insurance
Insurance Insurance Moderate insurance results due to weak P&C results, disability results are improving Profit Q2 Year to date Full year NOK million 2024 2023 2024 2023 2023 Insurance premiums f.o.a. 1 955 1 727 3 830 3 399 6 908 Claims f.o.a. -1 559 -1 345 -3 067 -2 660 -5 787 Operational cost -33
Slide 19: Insurance Key figures
Insurance Insurance Key figures Reserves and premiums Unit Linked Key takeaways combined ratio and results Claims ratio Cost ratio Combined ratio 115% ▪ 97% overall combined ratio in the quarter, weak results in P&C 96% 99% 98% 97% driven by high claims inflation and a high level of large losses ▪ P
Slide 20: Guaranteed pension
Guaranteed Guaranteed pension Continued stable result development Profit Q2 Year to date Full year NOK million 2024 2023 2024 2023 2023 Fee and administration income 388 387 779 765 1 600 Operational cost -211 -216 -426 -408 -822 Cash equivalent earnings from operations 177 171 352 357 778 Risk resu
Slide 21: Guaranteed pension Key figures
Guaranteed Guaranteed pension Key figures Reserves guaranteed products Key Takeaways Customer buffers Actively sold Run-off ▪ Stable result development from operations 279 278 284 285 288 25 23 26 29 29 ▪ Improved profit-sharing result, mainly generated by the 30 29 30 33 34 Swedish business 224 225
Slide 22: Other
Other Other 1 Improved operational result and strong financial result driven by the divestment of Storebrand Health Insurance Profit Q2 Year to date Full year NOK million 2024 2023 2024 2023 2023 Fee and administration income 4 6 11 11 18 Operational cost -66 -109 -147 -203 -411 Cash equivalent earn
Slide 23: Leading the way in sustainable value creation
Leading the way in sustainable value creation Group financial ambitions Group sustainability ambitions 5 NOK billion >14% Net-zero investments Workforce participation Group profit 2025 Return on Equity Group-level by 2050 Reduce disability NOK Increasing every year 1.5 billion per year 50/50 Science
Slide 24: Q&A
Q&A Please join the MS Teams Webinar to participate in the Q&A session Lars Aa. Løddesøl Odd Arild Grefstad Kjetil R. Krøkje Johannes Narum Group CFO & Group CEO Group Head of Head of Executive Vice Strategy & Finance Investor Relations President 24
Slide 25: Appendix
@&S Storebrand Appendix -
Slide 26: Solvency movement from Q1 2024 to Q2 2024
Solvency movement from Q1 2024 to Q2 2024 Storebrand Group 1% 2% 4% 4% 191 % 3% 191 %1 1% 0% 1% 0% 2024 Q1 Model & Interest Market Updated Cash Storebrand Redemption Dividend Share 2024 Q2 assumption rates returns & regulatory earnings Helth of buybacks changes business VA & SA Insurance subordinate
Slide 27: Real estate portfolio – Norway
Real estate portfolio – Norway Allocation and distribution - real estate portfolio Fair value adjustments and change in rental income Unit Linked Guaranteed Logistics Hotel Fair value adjustments by year Change in rental income 2% 28 bn NOK Retail 4% 10% 8% 7 25% 4% 4% 5% 4% 2% 1% 3% 1% 21 -4% 69% -
Slide 28: Real estate portfolio - Sweden
Real estate portfolio - Sweden Allocation and distribution - real estate portfolio Fair value adjustments and change in rental income Guaranteed Office Fair value adjustments by year Change in rental income Public Use 11 bn SEK 16% 10% 21% 7% 5% 3% 2% 3% 21% Supermarket 1% 1% 16% Hotel 2% -1% -1% 26
Slide 29: Asset allocation – Guaranteed products
Asset allocation – Guaranteed products Storebrand Livsforsikring AS (Norway) SPP (Sweden) 70% 70% 60% 60% 50% 50% 40% 40% 30% 30% 20% 20% 10% 10% 0% 0% Bonds & Bonds at Bonds & Real Equities Money Loans amortised Equities Real estate Money Loans estate market cost market 30.06.2023 9% 12% 5% 14% 61%
Slide 30: Overview of Special items
Overview of Special items Quarter Special Comments items NOKm Q2 2023 - 64 • NOK ~56m related to the integration cost and severance pay in Danica and Kron • NOK ~8m in write-downs of shares in smaller subsidiary Q3 2023 - 44 • NOK ~44m related to the integration cost and severance pay in Danica and
Slide 31: For further information
For further information Contact us Information 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 Finance & Strategy Investor relations website Financial reports and information Johannes Narum johannes.narum
Slide 32: Important information
Important information This document may contain forward-looking statements. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances that may be beyond the Storebrand Group’s control. As a result, the Storebrand Group’s actual fu
Slide 33: Thank you
Thank you Financial calendar 23 October 2024 Results Q3 2024 33