Storebrand Asa · OSL:STB
Storebrand Asa — Investor Day (March 2011)
18 slides from Storebrand Asa's investor day presentation, Mar 9, 2011
Slide 1: Capital Markets Day 2011
Capital Markets Day 2011 9 March @=d storebrand LF) ae \ eh” GEESE
Slide 2: 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 f
Slide 3: CFO summary: Increased earnings quality, cash generation and capital efficiency
CFO summary: Increased earnings quality, cash generation and capital efficiency Capital Markets Day 9 March 2011 Lars Aa. Løddesøl Group CFO and COO
Slide 4: Strengthening the cash generation capacity
Strengthening the cash generation capacity Earnings Capital Dividend to capacity upstreamed shareholders business units to holdco. Key drivers: • Top-line growth • IFRS profits close to cash • Dividend policy • Operational and capital fungibility • Liquidity and net debt improvement • Strategic bala
Slide 5: Quality of earnings
Aligning financial reporting to the business model Full year NOK mill. 2010 2009 Higher Fee and administration income 3,861 3,438 Operational cost -2,751 -2,891 Quality of earnings Fee and administration result 1,110 547 Risk and insurance 596 466 Holding company and company portfolios -249 -129 Res
Slide 6: Transformation of business model, growth and operational improvements
Transformation of business model, growth and operational improvements… Life and Pensions - from traditional profit sharing to fee-based and unit linked 2006 2010 Fee based Fee based Unit Fee based Fee based Unit Traditional profit Traditional profit guaranteed Linked and risk guaranteed Linked and r
Slide 7: …has delivered strong performance
…has delivered strong performance Life and Pensions – reduced cost level Life and Pensions – significant result improvement NOK mill. 1,2 % 100 84 1,0 % 50 19 0 0,8 % -50 2008 2009 2010 0,6 % -100 -104 -101 0,4 % -150 2006 2007 2008 2009 2010 -200 -177 -169 Costs/customer funds Norway Costs/customer
Slide 8: Profitable growth in Storebrand Insurance
Profitable growth in Storebrand Insurance Storebrand Insurance1 – focus on Storebrand Insurance1 – growth in profitable growth portfolio premium Combined ratio NOK mill. +10-15%2 98% 92% Risk ratio 79% 1,960 76% 1,744 1,535 Cost ratio 19% 16% 2010 2011 2008 2009 2010 E2011 E2012 E2013 1) Includes re
Slide 9: Creating value through active balance sheet management
Creating value through active balance sheet management Business development - actively adapting Earnings capacity from profit sharing to a new regulatory regime portfolios 2013 NOK mill. Tools: Risk based Management product pricing actions ~400 Optimized Optimized Run off / Struct. organization fin.
Slide 10: Fee and administration result
Fee and administration result Fee and administration result – breakdown 2010 (NOK mill.) Fee1 and administration result Life and Pensions 714 Operating result Asset Management 210 Operating result Banking 186 Total 2010: 1,110 ~1,900 1,110 546 2013 2009 1) Fee for interest rate guarantee. 2010 10
Slide 11: Risk and insurance result
Risk and insurance result Risk and insurance – breakdown 2010 (NOK mill.) Operating result Storebrand Insurance1 131 Risk result SBL 154 Risk result SPP 311 Total 2010: 596 ~650 596 466 2013 2009 2010 1) Includes result from P&C and health insurance, Individual life & disability insurance and group
Slide 12: Net profit sharing and loan losses
Net profit sharing and loan losses Net profit sharing and loan losses– breakdown 2010 (Nok mill.) Profit sharing Life and Pensions 97 Net performance result Asset Management 123 Loan losses Banking -29 ~600-700 Other -40 Total 2010: 150 150 362 2013 2009 2010 12
Slide 13: Strong earnings growth with higher quality
Strong earnings growth with higher quality Net profit sharing and loan losses ~3.2 Result before profit sharing and loan losses NOK bn. ~0.6-0.7 x2 1.6 0.1 >2.5 • Top-line growth • Operational excellence 1.5 • Cost focus • Capital efficiency 2010 2013 Target 13
Slide 14: Upstreaming of cash to group holding company 2010
Upstreaming of cash to group holding company 2010 Earnings Capital up- Dividend to capacity streamed to business units holdco. shareholders IFRS earnings 2010: Capital to holdco. 2010: Dividend 2010: (NOK mill.) (NOK mill.) (NOK mill.) Life and Pensions: 1,341 Life and Pensions: 850 Dividend: 491 As
Slide 15: Sound capital position
Sound capital position Norway – Solvency and client buffer capital Sweden – Solvency and client buffer capital 164% 199% 160% 135% 14.5% 4.6% 1.2% 9.7% 3.4% 1.5% 2008 2010 2008 2010 Marked Value Adjustment Reserve in % of customer funds Additional Statutory Reserves in % of customer funds Conditiona
Slide 16: Reduced net debt
Reduced net debt 2008 Capital Markets Day - capital priority Liquidity and net debt NOK mill. 4,000 • Building group buffer capital Liquidity reserve strength 3,000 incl. undrawn credit facility • Reduce net debt ratio holding 2,000 company Liquidity reserve 1,000 • Building dividend capacity
Slide 17: Financial targets
Financial targets Financial targets Return on equity 20121: 15 % Rating Life Insurance: A-level Annual dividend Solvency (I) Life Group: >150 % payout ratio1: >35 % Increased quality of earnings Net profit sharing and loan losses Result before profit sharing and loan losses NOK bn. +1 bn. >2.5 1.5 2
Slide 18: Storebrand's objective is to be the leading and most respected institution in the Nordic market
Storebrand's objective is to be the leading and most respected institution in the Nordic market for long-term savings and insurance 18