Slide 1: Storebrand 4Q 2015
Storebrand 4Q 2015 17 February 2016 Better pensions Odd Arild Grefstad – CEO Lars Aa. Løddesøl – CFO
Slide 2: Highlights 2015
Highlights 2015 Group result1 17% Insurance written adjusted for longevity provision premium growth3 1,762 MNOK 2,193 25% Unit Linked premium growth3 -431 2015 Result before profit sharing and loan losses Net profit sharing and loan losses 100% of expected direct result contribution for longevity
Slide 3: The Board proposes that no dividend is paid for 2015, but plan to pay dividend for 2016
The Board proposes that no dividend is paid for 2015, but plan to pay dividend for 2016 Dividend policy: "Dividend is intended to give shareholders a competitive return. Dividends to shareholders will normally be over 35 percent of full-year result after tax, but before amortization costs. Dividends
Slide 4: 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 >130% Save for Solvency II < retirement margin Produc
Slide 5: Longevity - direct result contribution completed
Longevity - direct result contribution completed Manage guaranteed balance sheet Reserve strengthening Norwegian guaranteed products Negative result impact in 20153 2013-2015 (BNOK) 2016-2020 (BNOK) 2015 (MNOK) 20.2 1.764 10.6 12.4 3.5 2.7 10.3 4.5 (83%) 4.0 2.2 5.2 Total reserve 20131 2014 Prel. bo
Slide 6: Paid up policies is the main challenge in a low interest scenario and under SII
Paid up policies 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 2015: Built NOK 16bn in new A …including reinvestment due and expected i
Slide 7: Estimated SII position Storebrand Group
Estimated SII position Storebrand Group Manage guaranteed balance sheet Economic Solvency position(%)1 Estimated Sensitivities2 Target SII margin 168 1.1.2016 =130% 146 44 42 Estimated economic 124 44 168 SII-margin Q4 2015 104 124 Interest rates -50bp 113 55 168 Q3 2015 Q4 2015 Interest 135 33 168
Slide 8: Cost control
Cost control Dual strategy What happened in 2015 What to expect in 2016 What to expect in 2017-18 Cost income at target level1 Further transfer of BPO Fewer FTEs and ITO to strategic partner More variable costs 59.6 Restructuring costs Leveraged innovation capacity FTEs reduced Operational
Slide 9: Growth in Savings and Insurance continues
Growth in Savings and Insurance continues Continued growth in Savings and Insurance Unit Linked Asset management 22% 7% 128 25% premium 535 571 105 growth 2015 Gathering Paid-up policies assets from life w/investment company and choice adds strong sales growth Weak equity and credit Q4 2014
Slide 10: Strong sales and continued growth in Unit Linked premiums
Strong sales and continued growth in Unit Linked premiums Continued growth in Savings and Insurance Major new customers confirms strong market leadership… …and market growth and new sales will ensure continued underlying growth Pension premium development Storebrand (MNOK) 20 942 20 559 CAGR 19 739
Slide 11: Fee and administration income shifts from Guaranteed to Savings
Fee and administration income shifts from Guaranteed to Savings Dual strategy Income growth of 8.2% adjusted for business in run-off1 Storebrand Group income development Fee- and admin income 12 months rolling 2015 compared to 2015 (NOK mill.) Savings and Guaranteed pension (NOK mill.) 3.8% 2,700 Sa
Slide 12: 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 1.78 1,044 1.65 25 477 605 610 275 0.78 0.80 59 272 661 0.37 541 546 440 573 -6 -51 -167 -291 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q4 2014 Q
Slide 13: Storebrand Group - adjusted
Group Storebrand Group - adjusted Profit 4Q Full year NOK million 2015 2014 2015 2014 Fee and administration income 1 160 1 116 4 317 4 160 Risk result life & pensions -23 99 80 256 Insurance premiums f.o.a. 934 802 3 642 3 115 Claims f.o.a. -691 -613 -2 722 -2 226 Operational cost -815 -778 -3 171
Slide 14: Storebrand Group
Group Storebrand Group Profit 4Q Full year NOK million 2015 2014 2015 2014 Fee and administration income 1 160 1 116 4 317 4 160 Risk result life & pensions -23 323 80 480 Insurance premiums f.o.a. 934 802 3 642 3 115 Claims f.o.a. -791 -613 -2 822 -2 226 Operational cost -912 -207 -3 268 -2 446 Fin
Slide 15: Storebrand Group
Group Storebrand Group Profit 2015 2014 Full year NOK million 4Q 4Q 2015 2014 Fee and administration income 1 160 1 116 4 317 4 160 Risk result life & pensions -23 323 80 480 Insurance premiums f.o.a. 934 802 3 642 3 115 Claims f.o.a. -791 -613 -2 822 -2 226 Operational cost -912 -207 -3 268 -2 446
Slide 16: Savings (non-guaranteed) - strong underlying results growth
Savings (non-guaranteed) Savings - strong underlying results growth Profit 4Q Full year NOK million 2015 2014 2015 2014 Fee and administration income 761 679 2 662 2 375 Risk result life & pensions 1 -10 -3 -11 Operational cost1 -455 -214 -1 638 -1 289 Financial result 0 0 0 0 Result before profit s
Slide 17: Savings (non-guaranteed) - strong growth in UL premiums
Savings (non-guaranteed) Savings - strong growth in UL premiums Reserves and premiums Unit Linked Comments1 3,2 3,2 3,0 2,9 2,6 25% premium growth in UL 128 premiums2 117 119 116 12% top line growth in Savings BNOK 105 10% retail lending growth Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Assets Un
Slide 18: Insurance - continued P&C growth
Insurance Insurance - continued P&C growth Profit 4Q Full year NOK million 2015 2014 2015 2014 Insurance premiums f.o.a. 934 802 3 642 3 115 Claims f.o.a.1) -791 -613 -2 822 -2 226 Operational cost 2) -151 -9 -538 -387 Financial result 25 -22 206 173 Result before amortisation 17 159 488 675 Profit
Slide 19: Insurance - strong top line development
Insurance Insurance - strong top line development Comments Combined ratio and Combined ratio Claims ratio Combined ratio results Cost ratio 101% 1 93% 92% 89% 90% 87% Combined Ratio 92% full year 2015 Results and combined ratio 78% 85% adversely affected by NOK 100m 76% 75% 72% disability reserv
Slide 20: Guaranteed pension - solidity prioritised over IFRS profitability
Guaranteed pension Guaranteed - solidity prioritised over IFRS profitability Profit 4Q Full year NOK million 2015 2014 2015 2014 Fee and administration income 460 457 1 777 1 842 Risk result life & pensions1 7 331 89 483 Operational cost2 -333 -84 -1 156 -921 Financial result - - - - Result before p
Slide 21: Guaranteed pension - proportion of guaranteed reserves reduced
Guaranteed pension Guaranteed - proportion of guaranteed reserves reduced Reserves guaranteed products Comments 264 261 263 267 259 Expected direct result contribution for longevity strengthening completed BNOK Valuation of insurance liabilities adapted to Solvency II 4Q 2014 1Q 2015 2Q 2015 3Q
Slide 22: Other
Other Other1 Profit 4Q Full year NOK million 2015 2014 2015 2014 Fee and administration income 17 59 129 233 Risk result life & pensions -31 2 -6 8 Operational cost2 -50 20 -188 -138 Financial result3 153 0 38 175 Result before profit sharing and loan losses 89 81 -27 278 Net profit sharing and loan
Slide 23: Highlights 2015
Highlights 2015 Group result1 17% Insurance written adjusted for longevity provision premium growth3 1,762 MNOK 2,193 25% Unit Linked premium growth3 -431 2015 Result before profit sharing and loan losses Net profit sharing and loan losses 100% of expected direct result contribution for longevity
Slide 24: Appendix
Appendix 24 @® storebrand
Slide 25: 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 31.12.2014 7% 20% 12% 45% 11% 5% 31.03.2015 8% 22% 11% 43% 11% 4% 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%
Slide 26: SPP asset allocation
SPP asset allocation 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Alternative investments Bonds Equities 31.12.2014 6% 84% 10% 31.03.2015 5% 86% 9% 30.06.2015 6% 86% 9% 30.09.2015 6% 86% 8% 31.12.2015 6% 87% 7% 1 The graph shows the asset allocation for all products with an interest rate guarantee in
Slide 27: 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