Storebrand Asa · OSL:STB

Storebrand Asa — Q1 2013 Earnings Presentation

29 slides from Storebrand Asa's earnings presentation, Apr 24, 2013

  1. Slide 1: Storebrand Q1 2013

    Storebrand Q1 2013 24 April 2013 Odd Arild Grefstad – CEO Lars Aa. Løddesøl – CFO 1

  2. Slide 2: Highlights Q1 2013

    Highlights Q1 2013 RESULT  Group result of NOK 552 mill  Fee and administration income increased with 7.4%  Cost program ahead of plan OPERATIONS  17% growth in non-guaranteed pension premiums  SPP sold part of it's guaranteed municipality business1  New mortality tables published by Finanstil

  3. Slide 3: Storebrand Group

    Storebrand Group Q1 Full year NOK mill. 2013 2012 2012 Storebrand Life Insurance 213 197 652 SPP 217 355 803 Asset management 46 31 144 Bank 38 56 238 Insurance 97 89 402 Storebrand ASA / other -58 -61 -279 Group Profit 552 667 1960 Amortisation and write-downs of intangible assets -105 -95 -401 Pre

  4. Slide 4: Storebrand Life Insurance

    Storebrand Life Insurance Full Q1 year  Revenue growth: − Price for interest rate guarantee NOK mill. 2013 2012 2012 − Increased administration revenues Administration result 55 20 6 − Reserve growth DC Risk result -10 50 131  Cost reduction Financial result* -23 -14 -58 Profit from risk and inter

  5. Slide 5: SPP

    SPP Full  Cost program strengthens Q1 year administration results NOK mill. 2013 2012 2012  Financial result supported by Administration result 42 41 98 strong equity markets and contraction in credit spreads Risk result 28 45 149 Financial result  Indexation fee of 29 mill in 118 215 395 Q1 Othe

  6. Slide 6: Asset Management

    Asset Management Full Q1 year  Cost program on plan NOK mill. 2013 2012 2012 Operating revenue 176 164 671  Strong sales of mutual funds in Sweden Operating cost -127 -128 -590 Operational result 49 36 81  Return in excess of benchmarks of 641 mill Net performance fees -7 -8 53 Net financial inco

  7. Slide 7: Bank

    Bank Full Q1 year  Improved net interest margin to NOK mill. 2013 2012 2012 1.28% Net interest income 129 113 490 Net fee and commission income 16 16 71  Reduced cost Other operating -16 15 55 income  Mark to market effect from fixed Total income 129 144 616 interest rate loans, negative Operatin

  8. Slide 8: Insurance

    Insurance Q1 Full year  9% premium growth in Q1 NOK mill. 2013 2012 2012 Premiums earned, net 513 470 1 973  Cost ratio stable at 19% Claims incurred, net -348 -312 -1 333  Strong seasonal claims ratio Operating cost excl -95 -86 -375 of 68% amortization Insurance result 71 72 265 Net financial r

  9. Slide 9: Storebrand Group – operational reporting

    Storebrand Group – operational reporting Guaranteed Non- Insurance Savings Total Total Other guaranteed & risk (Life and Q1 2013 Q1 2012 MNOK Savings¹ pensions) Fee and administration income 480 - 514 55 1 050 978 Risk result life & pension - - 63 - 63 88 Insurance premiums f.o.a. - 718 - - 718 599

  10. Slide 10: Key figures

    Key figures Result development Earnings per share1 Net profit sharing and loan losses MNOK 1.38 Result before profit sharing and loan losses Provisions for cost program 1.03 667 458 0.87 489 552 214 129 346 94 0.52 176 0.38 453 420 511 458 327 -75 -14 -181 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q1

  11. Slide 11: Term structure bond debt

    Term structure bond debt MNOK 2012  New subordinated loan of EUR 300 million signed 2013 (EUR 300 mill) 2,201 2014 1,700  30 year term, right to repurchase after 10 years 2015 1,000  To replace existing EUR 300 2016 million loan with call date in 2017 June 2013 2018 1,500  6,875 %-point fixed-ra

  12. Slide 12: Important regulatory changes

    Important regulatory changes 2012 2013 2014 2015 2016 2017 Reserve strengthening Longevity New Come tariffs in force Occupational pension product § 3 yr transition framework Act proposed Act passed Come in force Pension certificates w/ investment § choice1 Act proposed Act passed Come in force Insur

  13. Slide 13: 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 optimization reduction Corporate relation Managing business Save for without raising < retirement new

  14. Slide 14: 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 optimization reduction Corporate relation Managing business Save for without raising < retirement new

  15. Slide 15: Completed actions in 2013

    Completed actions in 2013 Capital optimization Risk reduction 1 BNOK converted from Optimized real-estate portfolio – guaranteed to non-guaranteed sold 7 shopping centers (13% of products real estate portfolio) New subordinated loan of 300 million euro to SBL Managing business without raising new eq

  16. Slide 16: Cost reduction: Q1 2013

    Cost reduction: q1 2013 - program executed on plan Important realized cost Accumulated run-rate, annual effects reductions in Q1 2013 500  Reduced number of 450 employees 400  Renegotiated sourcing 350 contracts 300 250  Reduced used of 200 consultants 150 100 Goal 50 Reached 0 16

  17. Slide 17: Conversion to products without guarantees

    Conversion to products without guarantees Storebrand Life Insurance SPP MNOK Net transfer out of individual portfolio, accumulated MNOK Net transfer from guaranteed products, accumulated 2 000 1 000 1 500 800 1 000 600 1 553 1 672 1 774 1 330 400 820 500 1 086 683 752 200 491 402 258 - 47 130 - 14 S

  18. Slide 18: 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 optimization reduction Corporate relation Managing business Save for without raising < retirement new

  19. Slide 19: Strong DC growth in Q1

    Strong DC growth in Q1 DC premiums Q1 Storebrand Life Insurance  19% increase in DC premiums SPP in SBL on Q1  14% increase UL premiums in +14% SPP +19% 1.354  Net new retail customers 1.142 increased 3x compared to Q1 2012 960 839  Strong sales in all product lines Q1 2012 Q1 2013 19

  20. Slide 20: Sustainable investment

    Sustainable investment - Ensure stable return in the long run Monitoring and Positive screening Business opportunities 1 2 3 negative screening Our investment univers Energy Front office integration Materials Integrated in 3 500 all investment listed names Industrials decitions 150 000 Consumer news

  21. Slide 21: Summary

    Summary  Increased buffer capital  Revenue growth  Cost program on plan  Balance sheet transition 21

  22. Slide 22: @d storebrand

    @d storebrand @9 storebrand

  23. Slide 23: Appendix

    Appendix: 23 @9 storebrand

  24. Slide 24: Storebrand Life Insurance

    Storebrand Life Insurance Defined Group contri- Individual defined bution and and paid-up Company Result Result NOK mill. benefit * unit linked* policies** BenCo portfolio Q1 2013 Q1 2012 Administration result 16 38 -7 8 0 55 20 Risk result 35 - 47 0 2 0 - 10 54 Financial result1 0 0 1 -1 - 24 - 23

  25. Slide 25: Cost reduction

    Cost reduction: - Reduction of 11 mill in Q1-13 2011 2012 Q1 2013 Target cost base cost base1 12 mth rolling1 2014 SBL 1 072 1 134 1 124 SPP 902 918 930 Asset Management 481 538 537 Bank 345 369 363 Insurance 374 399 409 ASA 165 180 178 Adm cost allocated to product with profit sharing 185 218 208 C

  26. Slide 26: Storebrand Life Insurance asset allocation

    Storebrand Life Insurance asset allocation 50% 45% 40% Allocation (%) 35% 30% 25% 20% 15% 10% 5% 0% Bonds at Money Equities Bonds amortized Real estate Alpha Other market cost 30.06.2012 11% 18% 7% 43% 15% 2% 5% 30.09.2012 10% 18% 14% 38% 14% 1% 5% 31.12.2012 6% 21% 18% 35% 14% 1% 5% 31.3.2013 7% 21

  27. Slide 27: SPP asset allocation

    SPP asset allocation 90% 80% 70% 60% Allocation (%) 50% 40% 30% 20% 10% 0% Equities Bonds Other 30.06.2012 11% 80% 9% 30.09.2012 12% 80% 8% 31.12.2012 11% 82% 8% 31.03.2013 12% 81% 8% Asset allocation guaranteed products SPP AuM NOK 63 bn1 1 The graph shows the asset allocation for all products with

  28. Slide 28: Storebrand Life Insurance return by asset class and main portfolios

    Storebrand Life Insurance - return by asset class and main portfolios Return by asset class Q1 2013 (%) Return Defined Benefit portfolios Value Booked adjusted Returns returns (Q1) Real estate 0.5 (Q1) DB 1,6% 0,8% Bonds at 1.2 Individual 1,1% 1,0% amortized cost Paid up Policies 1,1% 1,0% Money mar

  29. Slide 29: Buffer capital strengthened

    Buffer capital strengthened 31.12.12 31.03.13 Change Q1 2013 Market value adjustment reserves 1 027 1 746 720 Excess value of bonds at amortised cost 5 225 5 279 54 Additional statutory reserves 5 742 5 430 -316* Provisions for new mortality tables1 4 292 4 479 187 Total Storebrand Life Insurance 16

Storebrand — Q1 2013 Earnings Presentation on 6ix