Storebrand Asa · OSL:STB
Storebrand Asa — Debt Investor Presentation (June 2024)
45 slides from Storebrand Asa's debt investor presentation, Jun 11, 2024
Slide 1: Storebrand ASA Senior unsecured Bond Issue
Storebrand ASA Senior unsecured Bond Issue Investor Presentation 11 June 2024
Slide 2: Disclaimer (1/2)
Disclaimer (1/2) IMPORTANT: You must read the following before continuing. The attached presentation is in summary form and relates to an offering of securities as currently contemplated and has been prepared solely for information purposes and on the basis of your acceptance of this disclaimer and
Slide 3: Disclaimer (2/2)
Disclaimer (2/2) This presentation is the sole responsibility of the Issuer and has not been approved by any regulatory authority. The information contained in this presentation speaks as of the date hereof and is subject to change, completion and amendment without notice. The information contained
Slide 4: Presentation content
Presentation content Section Page Storebrand Overview and Strategy 6 Capital and Solvency 23 Group results Q1 2024 32 4
Slide 5: Executive summary
Executive summary • Sustainable Nordic Savings and Insurance Group • Pension market leader in Norway and strong contender in Sweden, Nordic powerhouse in Asset Management and growing Storebrand challenger in Norwegian retail market Overview and Strategy • Active in structurally growing markets with
Slide 6: Storebrand Overview and Strategy
Storebrand 1. Storebrand Overview and Strategy Overview and 2. Capital and Solvency Strategy 3. Group results Q1 2024 6
Slide 7: 257 years of pioneering the Nordic financial industry
257 years of pioneering the Nordic financial industry Future Storebrand is a capital light business with material group synergies Future Storebrand ILLUSTRATIVE Retail Asset Management Unit Linked Pensions and Savings Guaranteed Pensions 1767 1847 1861 1917 1995 2024 Foundation: P&C Pioneered Pionee
Slide 8: A Nordic Savings and Insurance group
A Nordic Savings and Insurance group 55,000 Pensions & savings Asset management Corporate Market leader World leader in sustainability customers NOK 655bn AuM NOK 1,281bn AuM 2,200,000 Individuals Retail banking Insurance Fast growing challenger Fast growing challenger NOK 79bn lending NOK 7.8bn pre
Slide 9: Storebrand Group Structure
Storebrand Group Structure Diversified cash flow to holding company Storebrand ASA Reporting structure Storebrand ASA Savings (non- Guaranteed Insurance Other guaranteed) pension 9
Slide 10: 29 years of pioneering sustainable finance
29 years of pioneering sustainable finance Top 10% Of global listed companies' work within sustainability Grade A Part of CDP's A-list for 2022 & 2023. Leading the way in environmental transparency and performance on climate change Rated #1 Within sustainable investments in Norway, Sweden and Denmar
Slide 11: Pursuing our Group Strategy
Pursuing our Group Strategy Leading The Way In Sustainable Value Creation to be a leading Sustainable Nordic Savings and Insurance Group A B C Future Storebrand Growth focus in Leading Provider Nordic Powerhouse in Growing Challenger in capital-light business Occupational Pensions Asset Management N
Slide 12: Group strategy underpinned by concrete revenue, cost and capital synergies
Group strategy underpinned by concrete revenue, cost and capital synergies Selected group synergies Revenue Synergies Capital Synergies1 Reduced SCR and increased return on GROUP SYNERGIES 21 % Share of pension customers with retail product capital due to diversification effects under SII Significan
Slide 13: Double digit growth continues across the Group
Double digit growth continues across the Group Unit linked (defined contribution) pensions Asset management UL reserves (NOK billion) YOY AuM (NOK billion) YOY 20%2 19%2 +10%1 +15%1 380 1 212 308 315 1 097 1 020 268 962 721 831 220 707 168 179 577 140 2016 2017 2018 2019 2020 2021 2022 2023 2016 201
Slide 14: Leading Provider in Occupational Pensions: Norway
A Leading Provider in Occupational Pensions Occupational pensions in Norway Norway & Sweden Sticky and growing assets in an immature defined contribution market The Norwegian Product Product Highlights Market AuM pensions system when employed when retired NOK bn 2 Defined Pension capital ▪ Growing a
Slide 15: SPP: A digital leader in the Swedish life & pension market
A Leading Provider in Occupational Pensions SPP: A digital leader in the Swedish life & Norway & Sweden pension market Core market within occupational Serving clients in Sweden Value proposition and go-to market pensions The Swedish pension system ployees B2B2E Private Em pension savings 350 Women/M
Slide 16: Strong growth in non-captive assets has transformed the revenue composition
B Nordic Powerhouse in Asset Management Strong growth in non-captive assets has transformed the revenue composition and boosted revenues from captive Strong growth in AuM and >70% from non-captive... ... has driven high revenue growth AuM (NOK million) Revenues (NOK million) +290 2,212 Non-captive C
Slide 17: Storebrand is a growing challenger in the Norwegian retail market
C Growing challenger Norwegian retail market Storebrand is a growing challenger in the Norwegian retail market ~ 500 ~ 570,000 Efficient go-to A challenger in employees customers market strategy the retail market … utilising a profitable business model while Broad product offering… capitalising on g
Slide 18: Higher interest rates will improve result contribution from financial results
Higher interest rates will improve result contribution from financial results NOK Interest rate level SEK NOK and SEK 10y SWAP 1 5% 4% 3% 2% 1% 0% 2020 01.07.2020 2021 01.07.2021 2022 01.07.2022 2023 01.07.2023 2024 1. Bloomberg 18 2. Monetary policy report 1/2024, Norges Bank; Monetary policy repor
Slide 19: Transitioned from capital consumptive Guaranteed to capital light business
Transitioned from capital consumptive Guaranteed business to capital light Savings and Insurance business Premiums Storebrand Shift in total Storebrand AuM NOK million NOK billion 42,772 1,212 14% 49% 24,584 15% 66% 36% 442 28% 27% 14% 49% 23% 20% 59% 2012 FY 2023 2012 FY 2023 Guaranteed Savings Ins
Slide 20: Storebrand's strategic direction towards 2025
Storebrand's strategic direction towards 2025 Capturing both structural and market driven growth to transform into a high Return on Equity business in line with long-term Group strategy HIGHLY ILLUSTRATIVE Bubble size illustrates Group Profit contribution Capital Intensity Asset management 2023E 202
Slide 21: Maintaining sustainability leadership through product, service and operations focus
Maintaining sustainability leadership through product, service and operations focus Storebrand in Sustainability in Sustainability in Society Products and Services Operations Sustainable finance thought leader in the Nordics; Net zero ambition across portfolios by 2050; 15% of Science-based targets
Slide 22: Increasing ambitions for both the financial and sustainability side of the business
Increasing ambitions for both the financial and sustainability side of the business Group financial ambitions Group sustainability ambitions 5 NOK billion >14% Net-zero investments Workforce participation Group profit 2025 Return on Equity Group-level by 2050 Reduce disability NOK Increasing every y
Slide 23: Capital and Solvency
1. Storebrand Overview and Strategy Capital and Solvency 2. Capital and Solvency 3. Group results Q1 2024 23
Slide 24: Solid capital position with low leverage and strong liquidity
Solid capital position with low leverage and strong liquidity gives financial flexibility Group capital (NOK billion) and leverage ratio 1 Liquidity position Storebrand ASA Q4 (NOK billion) 4.7 26% 24% 22% 20% 20% 20% 22% 2.3 40.8 40.3 35.9 2.4 32.9 11.8 10.8 27.6 8.1 0.5 24.7 8.1 4.9 20.2 5.7 6.1 2
Slide 25: Term structure debt (to ordinary call date)
Term structure debt (to ordinary call date) Term structure sub-debt Storebrand Livsforsikring (bn NOK)1 Term structure senior debt Storebrand ASA (bn NOK)2 2.9 Perpetual Non- perpetual 2.03 1.4 1.0 1.03 0.9 0.5 0.7 2024 2025 2026 2027 2028 2029 2030 2031 2024 2025 2026 2027 2028 1. Total EUR 300 mil
Slide 26: High quality assets, with fixed income as the backbone
High quality assets, with fixed income as the backbone, provide secure returns for guaranteed pensions and company capital Invested assets 1 on Storebrand's balance sheet Bonds Bonds and at amortised cost Money Market NOK billion Equities Real Estate Average rating Book yield Average rating 198 6% 1
Slide 27: Asset allocation – Guaranteed products
Asset allocation – Guaranteed products Storebrand Livsforsikring AS (Norway) SPP (Sweden) 70% 70% 60% 60% 50% 50% 40% 40% 30% 30% 20% 20% 10% 10% 0% 0% Bonds & Bonds at Bonds & Real Equities Money Loans amortised Equities Real estate Money Loans estate market cost market 31.12.2022 5% 12% 15% 14% 54
Slide 28: Healthy buffer capital position, shields shareholders from investment shortfall
Healthy buffer capital position, shields shareholders from potential investment shortfall Customer buffers development * Expected return above guaranteed interest rate, Norway 1 Customer buffers Norway Customer buffers Sweden Guaranteed pension 23.0 % Interest rate guarantee p.a. 2 21.4 % Expected r
Slide 29: Consistent group capital management and dividend policy
Consistent group capital management and dividend policy Capital management and dividend policy 191% ▪ Intention to return excess capital through share buybacks when Q1 2024 the solvency ratio is above 175% 175% ▪ Ambition is to pay nominally growing dividends per share Solvency II ratio ▪ Maintain i
Slide 30: Moderate leverage and strong debt servicing capacity
Moderate leverage and strong debt servicing capacity in a combination with increasing Solvency Moderate leverage1 Strong debt servicing capacity1 Strong Solvency II development over the last decade (%) 22% 22% 10x 184 192 172 174 175 9x 166 155 6x Subordinated Subordinated EBITDA/Interest EBITDA/Int
Slide 31: BBB rating for Storebrand ASA and A rating for Storebrand Livsforsikring AS
BBB rating for Storebrand ASA and A rating for Storebrand Livsforsikring AS from S&P Global …reflecting business and capital improvement during the past years Rating and underlying rationale Comments • S&P Global has assigned an "A" rating with a stable outlook to Storebrand Livsforsikring AS Storeb
Slide 32: Group results Q1 2024
Group 1. Storebrand Overview and Strategy results Q1 2. Capital and Solvency 2024 3. Group results Q1 2024 32
Slide 33: Highlights Q1 2024
Highlights Q1 2024 Strong improvement in operating and financial result Group result 1 MNOK Record high AuM of NOK 1 281bn +31% 1 082 19% growth in unit linked reserves2 826 394 255 14% growth in insurance premiums2 688 571 191% Solvency ratio Q1 2023 Q1 2024 Financial items and risk result life Ini
Slide 34: Key Figures
Group Key Figures Strong improvement in operating and financial result, solid solvency position Result development 1 Earnings per share 2, 6 Financial items and risk result life Cash equivalent earnings from operations 2.16 2.14 2.09 Special items 1.82 1.73 1,070 1,082 826 856 378 728 394 255 264 46
Slide 35: Solvency position and sensitivities Q1 2024
Group Solvency position and sensitivities Q1 2024 Storebrand Group Solvency position 1 Estimated sensitivities Target SII margin 150% 192 % 191 % SII-margin Q1 191 Interest rates -50bp 185 Interest Q4 2023 Q1 2024 rates +50 bp 193 Key takeaways Q1 2024 Equity -25%, SA-15% 196 ▪ A strong post tax res
Slide 36: Storebrand Group | Profit
Group Storebrand Group | Profit Strong improvement in operating and financial result Profit 1 Q1 Full year NOK million 2024 2023 2023 Fee and administration income 1 818 1 605 6 782 Insurance result 367 357 1 122 Operational cost -1 498 -1 391 -5 787 Cash equivalent earnings from operations 688 571
Slide 37: Storebrand Group | Profit by line of business
Group Storebrand Group | Profit Profit by line of business Profit 1 Q1 Full year NOK million 2024 2023 2023 Fee and administration income 1 818 1 605 6 782 Insurance result 367 357 1 122 Operational cost -1 498 -1 391 -5 787 Cash equivalent earnings from operations 688 571 2 117 Financial items and
Slide 38: Savings (non-guaranteed)
Savings Savings (non-guaranteed) Continued growth and positive result development Profit Q1 Full year NOK million 2024 2023 2023 Fee and administration income 1 494 1 287 5 443 Operational cost -947 -861 -3 582 Cash equivalent earnings from operations 547 426 1 861 Financial result 20 -12 1 Cash equ
Slide 39: Savings (non-guaranteed) Key figures
Savings Savings (non-guaranteed) Key figures Reserves and premiums Unit Linked Retail bank balance and net interest margin (%) Unit Linked Reserves Unit Linked Premiums Life insurance balance sheet Bank balance sheet Interest margin 7.0 7.1 7.2 7.5 6.9 1.39 1.43 1.46 1.44 1.52 410 73 75 77 79 70 380
Slide 40: Insurance
Insurance Insurance Moderate insurance results due to challenging weather in P&C Profit Q1 Full year NOK million 2024 2023 2023 Insurance premiums f.o.a. 1 875 1 672 6 908 Claims f.o.a. -1 508 -1 315 -5 787 Operational cost -327 -310 -1 251 Cash equivalent earnings from operations 40 47 -129 Financi
Slide 41: Insurance Key figures
Insurance Insurance Key figures Reserves and premiums Unit Linked Key takeaways combined ratio and results Claims ratio Cost ratio Combined ratio ▪ 98% overall combined ratio in the quarter. Weak results in P&C 115% and Group life segments, and strong in Pension related disability 97% 96% 99% 98% ▪
Slide 42: Guaranteed pension
Guaranteed Guaranteed pension Continued stable result development Profit Q1 Full year NOK million 2024 2023 2023 Fee and administration income 391 378 1 600 Operational cost -215 -192 -822 Cash equivalent earnings from operations 175 186 778 Risk result life & pensions 44 81 296 Net profit sharing 7
Slide 43: Guaranteed pension Key figures
Guaranteed Guaranteed pension Key figures Reserves guaranteed products Key Takeaways Customer buffers Actively sold Run-off ▪ Stable result development from operations 283 279 278 284 287 26 29 ▪ Declining risk result, still at solid levels 26 25 23 30 30 29 30 33 ▪ Solid profit-sharing result in Sw
Slide 44: Other
Other Other 1 Strong financial result driven by tighter credit spreads in the quarter and continued high interest rate levels Profit Q1 Full year NOK million 2024 2023 2023 Fee and administration income 6 6 18 Operational cost -81 -94 -411 Cash equivalent earnings from operations -74 -88 -393 Financ
Slide 45: For further information
For further information Contact us Information Lars Aa Løddesøl lars.loddesol@storebrand.no Group CFO +47 9348 0151 Kjetil R. Krøkje kjetil.r.krokje@storebrand.no Group Head of +47 9341 2155 Finance & Strategy Investor relations website Financial reports and information Nikola Heitmann nikola.heitma