Slide 1: Result Q3 2010
Storebrand Result Q3 2010 27 October 2010 Idar Kreutzer - CEO Odd Arild Grefstad - CFO
Slide 2: Highlights Q3 2010
Highlights Q3 2010 RESULT Group result of NOK 709 mill in Q3, 949 mill YTD Good administration and risk results in the life businesses Positive development in banking, P&C and asset management results OPERATIONS Delta One and operational improvements ahead of schedule Increased premiums an
Slide 3: Storebrand Group
Storebrand Group Q3 01.01. - 30.09 Full year NOK mill. 2010 2009 2010 2009 2009 Life and Pensions Norway 316 409 576 566 759 Life and Pensions Sweden (SPP) 304 484 250 180 487 Asset management 69 37 165 102 240 Storebrand Bank 60 23 123 39 63 P&C and health insurance 14 3 3 -17 -18 Storebrand ASA /
Slide 4: Delta One - operational improvements in all business areas
Delta One - operational improvements in all business areas Achieved improvement 20101 Target improvements in 20101 MNOK 550 30 MNOK 432 MNOK 371 190 MSEK 210 40 110 Realised Target 2010 Other Life and Pensions Norway Life and Pensions Sweden Asset Management Bank 1 Result improvement, measured again
Slide 5: Storebrand - value creation through corporate social responsibility
Storebrand - value creation through corporate social responsibility Qualified for Dow Jones 2008-2010 increased score by Sustainability Index 12 years 9 % against -4 % average running 100 10 % best in every sector – 80 Storebrand the only Nordic 60 insurer 40 20 SRI profile in all investments:
Slide 6: Life and Pensions Norway - solid operations and high returns
Life and Pensions Norway - solid operations and high returns 01.01. - Full Q3 30.09 year Value adjusted return 2.5% NOK mill. 2010 2009 2010 2009 2009 Booked return 1.5% Administration result 8 -38 1 -150 -169 Customer buffer capital Risk result strengthened by 60 50 206 167 229 NOK 1.9 bn, of w
Slide 7: Life and Pensions Norway - good cost development
Life and Pensions Norway - good cost development Cost / customer funds 1.20 % 1.06 % 1.01 % 1.00 % 0.88 % 0.86 % 0.80 % 0.80 % 0.76 % 0.73 % 0.60 % 0.40 % 2006 2007 2008 2009 Q1 2010 Q2 2010 Q3 2010 7
Slide 8: Life and Pensions Sweden (SPP) - solid returns and strengthened administration result
Life and Pensions Sweden (SPP) - solid returns and strengthened administration result 01.01. - Full Q3 30.09 year Administration results improved by NOK 137 mill NOK mill. 2010 2009 2010 2009 2009 YTD Administration result 39 -4 73 -64 -101 Risk result Low sick leave rates in 106 59 260 170 253
Slide 9: Life and Pensions Sweden (SPP) - strong sales growth in unit linked
Life and Pensions Sweden (SPP) - strong sales growth in unit linked Sales unit linked (12 months rolling in APE) 617 491 28 % increase in unit linked 379 sales YTD measured in APE, 43 % for the quarter Premium income from unit 2008 2009 2010 linked up 12 % YTD, 10 % for the quarter Unit linked s
Slide 10: Storebrand asset management - solid result developments
Storebrand asset management - solid result developments Increased volume based Q3 01.01. - 30.09 Full year income NOK mill. 2010 2009 2010 2009 2009 Cost control Total income * 113 98 331 295 586 Total costs -95 -89 -276 -258 -429 Positive income contributions from real Net financial/other 50
Slide 11: Storebrand asset management - market leader in fund selection
Storebrand asset management - market leader in fund selection Named the best mutual fund selector in Norway in Nordic survey1 Named best unit linked provider 2 years running in Sweden2 Experienced team of 12 employees within: − Private Equity − Hedge funds − Traditional mutual funds 74 exter
Slide 12: Storebrand Bank - low losses and improved results
Storebrand Bank - low losses and improved results 01.01. - Full Q3 30.09 year Improved market conditions NOK mill. 2010 2009 2010 2009 2009 and low losses Net interest income 113 105 344 319 423 Net fee and Lower funding costs and 20 19 55 56 76 commission income improved deposit margins Other i
Slide 13: Storebrand P&C - continued good growth
Storebrand P&C - continued good growth 01.01. - Full Q3 2010 30.09 year Premium income NOK mill. 2010 2009 2010 2009 2009 increased by 50 % YTD Premiums earned, 110 74 293 196 278 net1 Combined ratio 99% in Q3 Claims incurred, net -86 -59 -258 -163 -230 Operation costs excl -22 -22 -65 -65 -94 a
Slide 14: Life and Pensions Norway - strengthened results from operational elements
Life and Pensions Norway - strengthened results from operational elements Defined Individual Group contribution and paid- defined and Risk up Company 01.01. - NOK mill. benefit * unit linked* products policies** portfolio Q3 30.09 Administration result 0 7 -8 9 8 1 Risk result 22 -11 40 9 60 206 Fin
Slide 15: Life and Pensions Norway - strengthened customer buffer capital
Life and Pensions Norway - strengthened customer buffer capital 170% 167% 161% * 159% 158% 154% 148% 3,8% 3,8% 0,8% 0,9% 3,1% 3,0% 2,9% 2,7% 2,0% 2,2% 1,7% Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Marked Value Adjustment Reserve in % of customer funds ** Additional Statutory Reserves
Slide 16: Life and Pensions Sweden (SPP) - active risk management
Life and Pensions Sweden (SPP) - active risk management Development equity markets 115 110 9.2% Financial markets: 105 8.1% − Strong equity markets − Reduced interest rate levels 100 − Unchanged SWAP spreads 95 90 30.6.10 31.7.10 31.8.10 30.9.10 Balance sheet effects: − Assets increased more tha
Slide 17: Life and Pensions Norway - sensitivity to low interest rates
Life and Pensions Norway - sensitivity to low interest rates Development in expected returns1 Good distance between the guaranteed interest rate and 6.0 % expected return Illustration 5.5 % Current Norwegian interest rate curve indicates increased 5.0 % interest rates going forward 4.5 % Store
Slide 18: Life and Pensions - risk adjusted asset allocation
Life and Pensions - risk adjusted asset allocation Asset allocation guaranteed products Asset allocation guaranteed products Life and Pensions Norway1 Life and Pensions Sweden1 2 %4 % 6% 13 % 24 % 16 % 25 % 26 % 70 % 14 % Equity Bonds Equity Bonds Other Money market Bonds at amortised cost Real esta
Slide 19: Life and Pensions Sweden - development in expected return in P520
Liv and Pensions Sweden - development in expected return in P520 Term structure Swedish bonds Current Swedish interest rate curve 6.0 % indicates increased interest rates going Illustration 5.0 % forward 4.0 % 3.0 % Expected return in the P520 below 2.0 % interest rate guarantee gives no room 1.
Slide 20: Life and Pensions Sweden - development in expected returns in P250
Liv and Pensions Sweden - development in expected returns in P250 Term structure Swedish bonds 6.0 % Current Swedish interest rate curve 5.0 % Illustration indicates increased interest rates going 4.0 % forward 3.0 % Expected return in the P250 above 2.0 % interest rate guarantee gives room for
Slide 21: Life and Pensions Sweden - development in expected return in P300
Liv and Pensions Sweden - development in expected return in P300 Term structure Swedish bonds Current Swedish interest rate curve 5.0 % indicates increased interest rates going Illustration 4.0 % forward 3.0 % Expected return in the P300 above 2.0 % interest rate guarantee gives room for 1.0 % p
Slide 22: Life and Pensions - new regulation and Solvency II
Life and Pensions - new regulation and Solvency II Evaluating new regulation: − Increased flexibility and usability for buffer capital − Introduction of reversible customer allocations Capital requirements will depend on: − New regulation − Adjustments in asset allocation Value in Force to be
Slide 23: Summary
Summary Strong returns and improved results Operational improvements ahead of schedule Continued growth in defined contribution Strengthened customer buffer capital 23
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. 24