Storebrand Asa · OSL:STB

Storebrand Asa — Q2 2016 Earnings Presentation

26 slides from Storebrand Asa's earnings presentation, Jul 14, 2016

  1. Slide 1: Storebrand 2Q 2016

    Storebrand 2Q 2016 14 July 2016 Better pensions Odd Arild Grefstad – CEO Lars Aa. Løddesøl – CFO

  2. Slide 2: Highlights 2Q 2016

    Highlights 2Q 2016 Group result1 17% Unit Linked premium growth3 798 MNOK 7% Insurance written 739 premium growth3 60 2Q 2016 Result before profit sharing and loan losses Net profit sharing and loan losses 24% Retail Bank lending growth3  4% growth in Savings fee and admin income2  14% reduction i

  3. Slide 3: Transformation of the business model continues

    Transformation of the business model continues Dual strategy reiterated and reinforced Manage the guaranteed balance sheet Continued growth in savings and insurance Retail customers Employees Capital Risk optimization reduction Corporate relation >150% Save for Solvency II < retirement margin Produc

  4. Slide 4: Limited Brexit effect on results and solvency

    Limited Brexit effect on results and solvency Manage guaranteed balance sheet Development 2Q 2016 NOK SWAP 10Y -8 bps OSEBX +4% SEK SWAP 10Y -40 bps OMX1 -3% Graph rebased to 100 130 120 110 100 90 80 70 60 50 31.03.2016 30.04.2016 31.05.2016 30.06.2016 EU NOK SWAP 10Y SEK SWAP 10Y OSEBX OMXS30 Refe

  5. Slide 5: Paid up policies book is the main challenge in a low interest scenario

    Paid up policies book is the main challenge in a low interest scenario and under SII… Manage guaranteed balance sheet …But still manageable both short and long term Expected return paid up polices without use of buffers 2016-20201  Q2 2016: Built NOK 3.1 bn in …including reinvestment due and expect

  6. Slide 6: Estimated SII position Storebrand Group

    Estimated SII position Storebrand Group Manage guaranteed balance sheet Economic Solvency position(%)1 Estimated Sensitivities2 175 172 Target SII margin 150% 58 50 Estimated economic SII-margin Q4 2015 122 50 172 117 122 Interest rates -50bp 113 59 172 Q1 2016 Q2 2016 Interest Transitional rules SI

  7. Slide 7: Solvency II movement from Q1 2016 to Q2 2016

    Solvency II movement from Q1 2016 to Q2 2016 Manage guaranteed balance sheet Solvency generation in the quarter1 1% 2% 122% 5% 117% 1% ~6% solvency generation from own measures, return and results Q1 2016 Asset allocation and Results and return Symmetric equity Financial Q2 2016 model improvements a

  8. Slide 8: Growth in Savings and Insurance continues

    Growth in Savings and Insurance continues Continued growth in Savings and Insurance Unit Linked Asset management 9% 3% 128  17% premium 552 569 117  Gathering assets growth 2Q 2016  Weak financial from life company markets dampens and strong sales growth  Weak financial markets dampens growth Q2

  9. Slide 9: Fee and administration income shifts from Guaranteed to Savings

    Fee and administration income shifts from Guaranteed to Savings Dual strategy Income decline of 5% adjusted for FX Storebrand Group income development Fee- and admin income 12 months rolling 2Q 2016 compared to 2Q 2015 (NOK mill.) Savings and Guaranteed pension (NOK mill.) -5,6% 2,800 Savings 1.065

  10. Slide 10: Key figures

    Group Key figures Result development1 Earnings per share2 Net profit sharing and loan losses Special items MNOK Result before profit sharing and loan losses 1.83 1.65 798 610 546 275 123 60 73 272 0.93 0.80 661 573 605 615 440 0.37 -51 -6 -133 -167 -291 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q2 201

  11. Slide 11: Storebrand Group

    Group Storebrand Group Profit 2Q 01.01 - 30.06 Full year NOK million 2016 2015 2016 2015 2015 Fee and administration income 1 005 1 065 2 058 2 111 4 317 Risk result life & pensions -6 54 18 63 80 Insurance premiums f.o.a. 962 947 1 909 1 813 3 642 Claims f.o.a. -726 -683 -1 453 -1 334 -2 822 Operat

  12. Slide 12: New and simplified reporting format from 3rd quarter 2016

    New and simplified reporting format from 3rd quarter 2016 1 Consolidating insurance premiums and claims into a single result line 2 a. Consolidating life risk and financial items into a single result line b. This allows for a pure 'operating profit' line 2Q New reporting format: NOK million 2016 2Q

  13. Slide 13: Storebrand Group - new simplified reporting format from 3Q 2016

    Storebrand Group Group - new simplified reporting format from 3Q 2016 Profit 2Q 01.01 - 30.06 Full year NOK million 2016 2015 2016 2015 2015 Fee and administration income 1 005 1 065 2 058 2 111 4 317 Insurance result 237 264 455 479 820 Operational cost1 -698 -799 -1 501 -1 602 -3 268 Operating pro

  14. Slide 14: Storebrand Group

    Group Storebrand Group Profit 2Q 01.01 - 30.06 Full year NOK million 2016 2015 2016 2015 2015 Fee and administration income 1 005 1 065 2 058 2 111 4 317 Risk result life & pensions -6 54 18 63 80 Insurance premiums f.o.a. 962 947 1 909 1 813 3 642 Claims f.o.a. -726 -683 -1 453 -1 334 -2 822 Operat

  15. Slide 15: Savings (non-guaranteed) - underlying results growth

    Savings (non-guaranteed) Savings - underlying results growth Profit 2Q 01.01 - 30.06 Full year NOK million 2016 2015 2016 2015 2015 Fee and administration income 636 627 1 333 1 255 2 662 Risk result life & pensions 8 4 6 0 -3 Operational cost1 -407 -394 -819 -802 -1 638 Financial result 0 0 0 0 0 R

  16. Slide 16: Savings (non-guaranteed) - strong growth in retail lending

    Savings (non-guaranteed) Savings - strong growth in retail lending Reserves and premiums Unit Linked Comments1 3,7 3,5 3,2 3,2 3,0  17% premium growth in UL 128 125 128 premiums2  4% top line growth in Savings3 BNOK 119 117  24% retail lending growth Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Retail

  17. Slide 17: Insurance - reduced growth

    Insurance Insurance - reduced growth Profit 2Q 01.01 - 30.06 Full year NOK million 2016 2015 2016 2015 2015 Insurance premiums f.o.a. 962 947 1 909 1 813 3 642 Claims f.o.a.1 -726 -683 -1 453 -1 334 -2 822 Operational cost2 -135 -136 -279 -264 -538 Financial result 52 64 99 136 206 Result before amo

  18. Slide 18: Insurance - combined ratio on target level

    Insurance Insurance - combined ratio on target level Comments Combined ratio and Combined ratio Claims ratio Combined ratio results Cost ratio 101% 92% 92% 90% 87% 90%  Combined Ratio 90%, 92% adjusted for special items 72% 78% 85% 77% 75%  On-going shift to more cost-effective distribution gives

  19. Slide 19: Guaranteed pension - strong financial result SPP

    Guaranteed pension Guaranteed - strong financial result SPP Profit 2Q 01.01 - 30.06 Full year NOK million 2016 2015 2016 2015 2015 Fee and administration income 383 457 787 889 1 777 Risk result life & pensions -10 47 -6 63 89 Operational cost1 -192 -281 -464 -558 -1 156 Financial result - - - - - R

  20. Slide 20: Guaranteed pension - conversion to DC schemes continues

    Guaranteed pension Guaranteed - conversion to DC schemes continues Reserves guaranteed products Comments 259 263 267 266 266 58 56 51 49 60  As companies convert to DC schemes, 98 99 104 109 112 the migration from DB to lower-margin paid up policies continues to reduce fee BNOK 16 16 15 15 15 incom

  21. Slide 21: Other

    Other Other1 Profit 2Q 01.01 - 30.06 Full year NOK million 2016 2015 2016 2015 2015 Fee and administration income 53 35 70 80 129 Risk result life & pensions -4 3 18 -0 -6 Operational cost2 -30 -43 -72 -91 -188 Financial result3 148 12 288 20 38 Result before profit sharing and loan losses 167 8 305

  22. Slide 22: Highlights 2Q 2016

    Highlights 2Q 2016 Group result1 17% Unit Linked premium growth3 798 MNOK 7% Insurance written 739 premium growth3 60 2Q 2016 Result before profit sharing and loan losses Net profit sharing and loan losses 24% Retail Bank lending growth3  4% growth in Savings fee and admin income2  14% reduction i

  23. Slide 23: Appendix

    Appendix @® storebrand

  24. Slide 24: Storebrand Life Insurance asset allocation

    Storebrand Life Insurance asset allocation 60% 50% 40% 30% 20% 10% 0% Bonds at Equities Bonds Money market Real estate Other amortized cost 30.06.2015 7% 23% 9% 47% 11% 2% 30.09.2015 5% 22% 10% 49% 11% 2% 31.12.2015 6% 22% 8% 51% 12% 2% 31.03.2016 5% 26% 7% 49% 12% 1% 30.06.2016 5% 29% 5% 49% 11% 1%

  25. Slide 25: SPP asset allocation

    SPP asset allocation 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Alternative investments Bonds Equities 30.06.2015 6% 86% 9% 30.09.2015 6% 86% 8% 31.12.2015 6% 87% 7% 31.03.2016 5% 89% 6% 30.06.2016 6% 88% 6% 1 The graph shows the asset allocation for all products with an interest rate guarantee in

  26. Slide 26: Investor Relations contacts

    Investor Relations contacts Lars Aa Løddesøl Group CFO lars.loddesol@storebrand.no +47 9348 0151 Sigbjørn Birkeland Finance Director sigbjorn.birkeland@storebrand.no +47 9348 0893 Kjetil R. Krøkje Head of IR kjetil.r.krokje@storebrand.no +47 9341 2155

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