Sparebank 1 Ostlandet · OSL:SPOL
Sparebank 1 Ostlandet — SpareBank 1 Gruppen — Q1 2011 Earnings Presentation
36 slides from Sparebank 1 Ostlandet's earnings presentation, Apr 29, 2011
Slide 1: 1st Quarter 2011 Presentation of results
1st Q Quarter 2011 Presentation of results from SpareBank 1 Gruppen Kirsten Idebøen, CEO 29 April 2011
Slide 2: Highlights
Highlights SPAREBANK 1 GRUPPEN • Significantly improved profit for Q1 • Good return on equity of 12.4 (8.8) % • Extensive restructuring in SpareBank 1 Livsforsikring has given tangible results 2
Slide 3: Significantly improved profit
Significantly improved profit Pre-tax profit Group* as of Q1, (MNOK) 162 • Pre-tax profit for Q1: MNOK 162 (131) 131 • Profit after tax for Q1: MNOK 152 (93) • Annualised return on equity: 12.4 (8.8) % 87 68 • Capital adequacy ratio of 16.1 (20.3) %. Core capital adequacy ratio of 12.6 (14.6) % • Th
Slide 4: Improved profits in life and P&C insurance
Improved profits in life and P&C insurance Pre-tax profit per subsidiary as of Q1, (MNOK) 129 • Good investment result in SpareBank 1 Livsforsikring contributed to strongly improved profit 92 – The life insurance company continued to build up buffers throughout Q1 50 – Sufficient provisions for incr
Slide 5: SpareBank 1 Livsforsikring
SpareBank p 1 Livsforsikring Strong investment result contributes to good profit 5
Slide 6: Strong investment result contributes to good profit
SpareBank 1 Livsforsikring Strong g investment result contributes to g good profit p Development in risk result as of Q1 Pre-tax profit as of Q1, (MNOK) (MNOK) 129 92 87 92 69 63 24 -52 2008 2009 2010 2011 2008 2009 2010 2011 • Pre-tax result in Q1: MNOK 129 (92) • Net risk result: MNOK 69 (91) • In
Slide 7: Built up solid buffers
SpareBank 1 Livsforsikring Built up solid buffers Buffer capital trend, per quarter (%) Securities adjustment reserves per year 16.1 % (MNOK) 15.4 % 14.8 % 14 6 % 14.6 13.0 % 617 448 327 Q1 Q2 Q3 Q4 Q1 2010 2010 2010 2010 2011 2009 2010 Q1 2011 Core capital in excess of minimum Interim profit Additi
Slide 8: SpareBank 1 was the largest personal insurance provider in Norway in 2010
SpareBank 1 was the largest personal insurance provider in Norway in 2010 Gross New contracts premium SpareBank 1 32.9 % 22.3 % Gjensidige 16.2 % 22.0 % Storebrand 7.2 % 17.5 % Nordea 17.7 % 12.5 % Vital 25% 2.5 98% 9.8 Danica 4.5 % 6.1 % Others* 19.0 % 9.8 % * Other market players New Gross contrac
Slide 9: SpareBank 1 Skadeforsikring Group
SpareBank 1 Skadeforsikring Group Improved results due to fewer winter-related claims 9
Slide 10: Improved results due to fewer winter-related claims
SpareBank 1 Skadeforsikring Group Improved results due to fewer winter winter-related related claims • Pre-tax Pre tax profit for Q1: MNOK 50 (36) Pre-tax profit as of Q1, (MNOK) – Insurance result: MNOK -30 (-53) 54 50 48 – Financial return of 1.1 (1.2) % 36 – Financial income: MNOK 95 (98) • Total
Slide 11: Fewer winter-related claims reduced combined ratio in Q1
SpareBank 1 Skadeforsikring Group Fewer winter winter-related related claims reduced combined ratio in Q1 N t combined Net bi d ratio ti – quarterly t l (%) N t combined Net bi d ratio ti – cumulative l ti (%) 96.2 % 97.7 % 108.6 % 94.6 % 94.0 % 100.6 % 105.5 % 89.9 % 21.0 % 99.6 % 22.5 % 87.2 % 20.
Slide 12: SpareBank 1 Skadeforsikring has the most satisfied customers
SpareBank 1 Skadeforsikring has the most satisfied customers • Norwegian g customer barometer survey shows SpareBank 1 Skadeforsikring has the industry's most satisfied and loyal customers • The company also ranked 12th in customer satisfaction regardless of the sector (out of 194 companies) 12
Slide 13: ODIN Forvaltning
ODIN Forvaltning g Combination fund and new marketing profile 13
Slide 14: Combination fund and new marketing profile
ODIN Forvaltning Combination fund and new marketing profile Pre-tax profit as of Q1, (MNOK) • Pre-tax profit for Q1: MNOK 12 (14) - Accounts charged with MNOK 8 in one-off 30 costs • Profit after tax for Q1: MNOK 9 (11) 14 12 • T t l assets Total t off NOK 33 33.4 4 billion billi - Up NOK 1.1 billio
Slide 15: Argo Securities
Argo g Securities The work on building a powerful capital markets environment continues 15
Slide 16: Building a powerful capital markets environment continues
Argo Securities The work on building gap powerful capital p markets environment continues Proactive recruitment in Argo Securities • New recruitment will help achieve target market power • The investments are expected to have significant result effects throughout 2012 Shakeb Syed was appointed Argo
Slide 17: SpareBank 1 Gruppen Finans Group
SpareBank p 1 Gruppen pp Finans Group Good performance in all business areas within receivables management 17
Slide 18: Good performance in all business areas within receivables management
SpareBank 1 Gruppen Finans Group Good performance in all business areas within receivables management Pre-tax profit as of Q1, (MNOK) 2010 2011 7.2 • Pre-tax profit for Q1: MNOK 6.8 (3.7) 7.1 6.8 ― Lower losses and high factoring volume helped to g increased income in BA Factoring ― BA Portfolio's t
Slide 19: SpareBank 1 Factoring consolidates its position as Norway's third largest
SpareBank 1 Gruppen Finans Group SpareBank 1 Factoring consolidates its position as Norway's third largest factoring company SpareBank 1 Factoring: Norway's third largest factoring company in Q1 2011 (%) 40.5 % 41.1 % • SpareBank 1 Factoring had a total 39.5 % 37 7 % 37.7 growth of 41.3 41 3 % from
Slide 20: Outlook
Outlook SPAREBANK 1 GRUPPEN • The effects of the completed restructuring measures are expected to produce an improved administration result in SpareBank 1 Livsforsikring. The company is on the offensive within personal insurance • Profitable portfolio growth in SpareBank 1 Skadeforsikring • The uniq
Slide 21: The nation's savings bank
The nation nation's s savings bank 21 21
Slide 22: Appendix
Appendix SpareBank 1)
Slide 23: SpareBank 1 Alliance
SpareBank 1 Alliance SpareBank 1 SpareBank 1 SpareBank 1 Sparebanken Samarbeidende LO (Trade Union) SR-Bank SMN Nord-Norge Hedmark Sparebanker (10 %) (19.5%) (19.5%) (19.5%) (12%) (19.5 %) SpareBank 1 Gruppen AS Argo SpareBank 1 ODIN Securities Livsforsikring Forvaltning (93.4%) (100%) (100%) Allian
Slide 24: Profit as of Q1 2011
SpareBank 1 Gruppen Profit as of Q1 2011 Q1 Year g Figures in MNOK 2011 2010 2010 Part of result from subsidiaries before tax - SpareBank 1 Livsforsikring 129.4 91.9 350.4 - SpareBank 1 Skadeforsikring Group 50.3 36.3 641.1 - ODIN Forvaltningg 11.9 14.4 64.6 - Argo Securities -3.4 -2.7 -57.6 - Spare
Slide 25: Quarterly results
SpareBank 1 Gruppen Quarterly results Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Figures in MNOK 2011 2010 2010 2010 2010 2009 2009 2009 2009 Part of result from subsidiaries before tax - SpareBank 1 Livsforsikring 129.4 72.5 85.8 100.3 91.9 81.0 81.2 205.6 24.4 - SpareBank 1 Skadeforsikring Group 50.3 307.5 253.9
Slide 26: Profit as of Q1 2011 - Livsforsikring
SpareBank 1 Livsforsikring Profit as of Q1 2011 Q1 Year Figures in MNOK 2011 2010 2010 Insurance risk income 335.8 315.3 1.292.6 Insurance risk claims -255.5 -209.3 -939.0 Risk result 80.2 106.0 353.6 Tecnical allocations -10.8 -14.2 -28.2 Risk result after tecnical allocations 69.4 91.8 325.4 Fees
Slide 27: Profit by portfolio as of Q1 2011
SpareBank 1 Livsforsikring Profit by portfolio as of Q1 2011 Previously Group established Investment choice Company Figures in MNOK portfolio individual products portfolio portfolio Total Risk result 75.0 3.6 -9.2 0.0 69.4 Administration result 18.1 -10.4 -26.5 0.0 -18.8 Net investment result 137.9
Slide 28: Premium income trends as of Q1 2011
SpareBank 1 Livsforsikring Premium income trends as of Q1 2011 Q1 Year Figures in MNOK 2011 2010 2010 Individual annuity and pension insurance 73.1 75.2 306.7 Individual endowment insurance 138.5 126.9 519.1 Group pension insurance 242.7 252.1 549.5 Individual life insurance 48.0 44.5 183.1 Group li
Slide 29: Asset allocation by portfolio
SpareBank 1 Livsforsikring Asset allocation by portfolio As of 31.03.11 31 03 11 (31.12.10) (31 12 10) Group portfolio Company portfolio Investment choice portfolio 14.6 (14.8) % 0.1 (0.1) % 0.7 (-1.6) % 34.7 (34.8) % 40.2 (39.0) % -0.4 (0.9) % 21.3 (21.0) % 28.9 (28.0) % 22.2 (21.5) % 49 5 (48 49.5
Slide 30: Value adjusted return for customer portfolios with guarantee
SpareBank 1 Livsforsikring V l Value adjusted dj t d return t for f customer t portfolios tf li with ith guarantee t as off Q1 (excluding property value change) Q4 Q1 Q4 Q1 Q4 Q1 Q4 Q1 2010 2011 2010 2011 2010 2011 2010 2011 71 7.1 6.8 6.4 5.7 Percent 1.7 1.5 1.3 1.1 SpareBank 1 Storebrand Vital Nor
Slide 31: Booked return on customer portfolios with guarantee
SpareBank 1 Livsforsikring Booked return on customer portfolios with guarantee Q4 Q1 Q4 Q1 Q4 Q1 Q4 Q1 2010 2011 2010 2011 2010 2011 2010 2011 62 6.2 5.2 4.9 4.8 Percent 22 2.2 1.4 1.5 1.5 SpareBank 1 Storebrand Vital Nordea 31 Source: company presentations
Slide 32: Return on ordinary customer portfolio with guarantee
SpareBank 1 Livsforsikring Return on ordinary y customer portfolio p with guarantee g as of 31.03.11 Percent Norwegian shares 0.3 Foreign shares 2.1 Money market 0.6 Norwegian bonds 0.0 Foreign bonds 08 0.8 Held to maturity 1.3 Real estate 1.7 32
Slide 33: Balance sheet as of Q1 2011
SpareBank 1 Livsforsikring Balance sheet as of Q1 2011 Q1 Q Year Figures in MNOK 2011 2010 2010 Intangible assets 53 36 42 Investments 3.013 2.750 2.862 Reinsurance's part of insurance obligations 223 223 221 Accounts receivable 134 254 153 Other assets 215 189 335 Prepayed liabilities and accrued i
Slide 34: Profit as of Q1 2011 - Skadeforsikring
SpareBank 1 Skadeforsikring Profit as of Q1 2011 Q1 Year Figures in MNOK 2011 2010 2010 Gross written premium 1.553.3 1.325.2 4.731.8 Net earned premium 1.100.8 965.4 4.184.4 Net incurred claims -920.7 -852.5 -3.208.5 Net insurance operating costs -241.1 -195.1 -880.6 Other insurance income/costs 4.
Slide 35: Allocation of financial assets
SpareBank 1 Skadeforsikring Allocation of financial assets As per 31.03.11 (31.12.10) 66.3 (65.6) % Bonds held as current assets 11.0 (11.1) % Bonds held to maturity Real state Stocks Hedgefond 13.7 (14.1) % 9.0 (9.1) % 0.1 (0.1) % NOK 8.7 (8.5) billion 35
Slide 36: Profit as of Q1 2011 - ODIN Forvaltning
ODIN Forvaltning Profit as of Q1 2011 Q1 Year Figures in MNOK 2011 2010 2010 g Management fees 86.8 78.3 317.9 Total operating income 86.8 78.3 317.9 Salaries 29.2 25.6 104.2 Depreciations 3.9 3.9 14.8 Other operating costs 42 5 42.5 34 6 34.6 137 8 137.8 Total operating costs 75.6 64.1 256.8 Operat