Storebrand Asa · OSL:STB

Storebrand Asa — Q3 2013 Earnings Presentation

22 slides from Storebrand Asa's earnings presentation, Oct 30, 2013

  1. Slide 1: Storebrand Q3 2013

    Storebrand Q3 2013 30 October 2013 Odd Arild Grefstad – CEO Lars Aa Løddesøl – CFO 1

  2. Slide 2: Highlights Q3 2013

    Highlights Q3 2013 Result  Group result of NOK 810 mill in Q3, NOK 1 880 mill YTD  Fee and administration income increased with 10% YTD  Nominal cost reductions of 2% YTD 1 Operations  30% growth in Unit Linked pension reserves from Q3 2012  15% growth in Insurance premiums YTD  Law proposal o

  3. Slide 3: Storebrand Group - top line growth and cost control

    Storebrand Group Group - top line growth and cost control Result Q3 01.01 - 30.09 Full year NOK million 2013 2012 2013 2012 2012 Fee and administration income 1 093 970 3 214 2 932 3 907 Underwriting result 357 289 840 850 1 072 Operational cost -809 -1016 -2 480 -2 708 -3 647 Financial result 83 84

  4. Slide 4: Our strategic response to changing market conditions

    Our strategic response to changing market conditions We work hard to reach our vision: Recommended by our customers Managing the balance sheet Developing the business Concepts Capital Risk Employees optimisation reduction Corporate relation Managing business Save for without raising < retirement new

  5. Slide 5: Managing the balance sheet

    Managing the balance sheet Capital optimization Risk reduction Transfer out of Guaranteed products  Reduced real-estate portfolio – sold 7 shopping centers in Q2 and 4 office buildings in Q3 (17% of real estate MNOK 7.279 portfolio) 1.360 998 654 710 420 Managing business 2Q 2012 3Q 2012 4Q 2012 1Q

  6. Slide 6: Public sector - from DB to pension funds

    Public sector - from DB to pension funds Withdrawal from public DB Storebrand to offer pension fund offering on plan services to public sector  Customers transfer out as planned  Storebrand offers full scale set up for pension fund solutions:  Many existing customers will revise their − Administr

  7. Slide 7: A leading position on sustainable investments in Nordic finance

    A leading position on sustainable investments in Nordic finance Sustainability rating system Examples › Sustainability rating system: Best › Retail fund – Storebrand Trippel Smart - Financially robust performers - Efficient and sustainable operations - 100 companies, equally weighted, sector - Posit

  8. Slide 8: Market impacted by extensive product reform

    Market impacted by extensive product reform – new hybrid occupational pension product proposed 4. October 2013 New legal framework for Norwegian occupational pension Important next steps › Increase maximum saving rates in DB Paid-up DC schemes to the same level and at Defined benefit policies the sa

  9. Slide 9: Key figures Group

    Key figures Group Result development Earnings per share1 Net profit sharing and loan losses MNOK 1.78 Booked gain on sale discontinued business Result before profit sharing and loan losses 1.43 Provisions for cost program 810 1.03 458 86 0.87 552 518 56 131 489 94 55 181 0.38 668 509 458 463 322 -14

  10. Slide 10: Savings (non-guaranteed) - top line growth

    Savings (non-guaranteed) Savings - top line growth Result Q3 01.01 - 30.09 Full year NOK million 2013 2012 2013 2012 2012 Fee and administration income 490 407 1 399 1 214 1 638 Risk result life & pensions 0 1 4 1 3 Operational cost -328 -400 -985 -1 065 -1 417 Financial result - - - - - Result befo

  11. Slide 11: Savings (non-guaranteed) - strong growth in Unit Linked

    Savings (non-guaranteed) Savings - strong growth in Unit Linked Reserves and premiums Unit Linked Comments 2.768 2.480 2.318  Strong Unit Linked sales (APE) +28% 2.296 2.121 +8% YTD 79.341  Strong growth in assets helped by MNOK 73.542 70.458 +30% strong equity markets 63.387 61.007  Positive res

  12. Slide 12: Insurance - premium growth

    Insurance Insurance - premium growth Result Q3 01.01 - 30.09 Full year NOK million 2013 2012 2013 2012 2012 Insurance premiums f.o.a. 731 640 2 113 1 839 2 510 Claims f.o.a. -517 -425 -1 521 -1 229 -1 774 Operational cost -114 -139 -353 -353 -470 Financial result 37 29 102 72 150 Result before profi

  13. Slide 13: Insurance - stable growth in premiums

    Insurance Insurance - stable growth in premiums Combined ratio Comments Claims ratio Cost ratio Combined ratio 99% 94%  15% premium increase YTD 88% 86% 87%  Decreasing cost ratio 66% 81% 78% 67% 71%  Growth within all business areas 22% 18% 17% 18% 16% 3Q 2012 4Q 2012 1Q 2013 2Q 2013 3Q 2013 Wri

  14. Slide 14: Guaranteed pension - strong risk results

    Guaranteed pension Guaranteed - strong risk results Result Q3 01.01 - 30.09 Full year NOK million 2013 2012 2013 2012 2012 Fee and administration income 517 463 1 554 1 405 1 861 Risk result life & pensions 147 68 239 229 318 Operational cost -295 -389 -886 -1 021 -1 375 Financial result - - - - - R

  15. Slide 15: Guaranteed pension - reduced reserves

    Guaranteed pension Guaranteed - reduced reserves Reserves guaranteed products Comments  Transfer out of guaranteed +1% products of 9 bn YTD  3.1% value adjusted return in MNOK 259.671 259.858 261.502 258.654 262.126 SBL YTD, booked return 2.7%  Consolidation ratio of 112% in DB portfolio SPP (all

  16. Slide 16: Other

    Other Other Result Q3 01.01 - 30.09 Full year NOK million 2013 2012 2013 2012 2012 Fee and administration income 86 100 262 314 408 Risk result life & pensions -4 4 5 9 14 Operational cost -72 -89 -256 -278 -385 Financial result 46 55 -33 52 27 Result before profit sharing and loan losses 57 71 -22

  17. Slide 17: Summary

    Summary  Top line growth continues: +10% YTD  Cost program on plan: nominal cost reduced by 2%  Transfer from guarantees: 9 bn YTD  Solvency ratio: 178% 17

  18. Slide 18: @d storebrand

    @d storebrand @9 storebrand

  19. Slide 19: Appendix

    Appendix: 19 @9 storebrand

  20. Slide 20: Storebrand Life Insurance asset allocation

    Storebrand Life Insurance asset allocation 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Bonds at Money Equities Bonds amortized Real estate Alpha Other market cost 31.12.2012 6% 22% 18% 34% 14% 1% 5% 31.03.2013 7% 21% 16% 37% 14% 1% 5% 30.06.2013 7% 20% 15% 40% 12% 1% 4% 30.09.2013 8% 20% 15% 41% 11% 1% 5%

  21. Slide 21: Storebrand Life Insurance - return by asset class

    Storebrand Life Insurance - return by asset class Return by asset class YTD Q3 2013 (%) Real estate 3,3 % Bonds at amortized cost 3,7 % Money market 1,8 % Equities 14,1 % Alternative investments 2,2 % -1,4 % Bonds Credit 2,4 % -2,0 % 0,0 % 2,0 % 4,0 % 6,0 % 8,0 % 10,0 % 12,0 % 14,0 % 21

  22. Slide 22: SPP asset allocation

    SPP asset allocation 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Alternative investments Bonds Equities 31.12.2012 8% 82% 11% 31.03.2013 8% 81% 12% 30.06.2013 7% 81% 12% 30.09.2013 7% 83% 10% 1 The graph shows the asset allocation for all products with an interest rate guarantee in SPP. 22

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