Storebrand Asa · OSL:STB
Storebrand Asa — Q2 2022 Earnings Presentation
23 slides from Storebrand Asa's earnings presentation, Jul 14, 2022
Slide 1: Storebrand Q2 2022
Storebrand Q2 2022 14 July 2022 Odd Arild Grefstad – CEO Lars Aa. Løddesøl – CFO 1
Slide 2: Resilient business model in a historic interest rate and inflationary environment
Resilient business model in a historic interest rate and inflationary environment +1.37% 6.3% Increase in NOK 10y swap rate H1 2022 Inflation Norway1 +1.81% 7.3% Increase in SEK 10y swap rate H1 2022 Inflation Sweden2 2 1 Consumer price index (CPI), June 2022. Source: SSB Norway. 2 Consumer price in
Slide 3: Highlights Q2 2022
Highlights Q2 2022 Strengthened solvency position and stable operating result in a year with turbulent financial markets 14% growth in insurance2 Group result1 1 204 Danica acquisition completed MNOK 577 1 383 'A' rating upgrade by S&P 705 -129 -178 Q2 2022 YTD 2022 195% Solvency ratio Financial ite
Slide 4: The acquisitions of Danica strengthens our position in Norwegian occupational pensions and retail insurance
The acquisitions of Danica strengthens our position in Norwegian occupational pensions and retail insurance Impact on Storebrand Group ∼20% premium and AUM growth ∼8% premium growth in retail insurance Norwegian UL pensions New distribution partnership Significant capital and cost synergies Key figu
Slide 5: Sustainable Nordic Savings and Insurance Group
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 Leading Provider Growth focus in Nordic Powerhouse in Growing Challenger in Occupational Pensions capital-light business Asset Management
Slide 6: Volume growth in Q2 2022 paused by weak financial markets
Volume growth in Q2 2022 paused by weak financial markets A B C Leading Provider Occupational Pensions Nordic Powerhouse in Growing Challenger in Norwegian Retail Norway & Sweden Asset Management Market DC pensions (Unit Linked) Insurance Portfolio AuM (BNOK) Lending balance (BNOK) reserves (BNOK) P
Slide 7: Key Figures
Key Figures Strengthened solvency position, stable operating result and strong buffer capital levels Group Result development1 Earnings per share2 Financial items and risk result life Performance related result MNOK Special items Operating profit 2.79 1,353 1,367 2.25 2.18 121 913 329 546 1.56 151 4
Slide 8: Solvency movement from Q1 to Q2 2022
Solvency movement from Q1 to Q2 2022 Storebrand Group 7% 2% 195% 15% -3% -2% -2% 2% 184% -9% Q1 2022 Interest rates Market returns VA & Symmetric Risk CRD IV & Result Dividend Share buybacks Q2 2022 Equity Stress management sub debt and asset allocation 8
Slide 9: Estimated solvency sensitivities
Estimated solvency sensitivities Storebrand Group Solvency position(%)1 Estimated sensitivities Target SII margin 150% 184 195 SII-margin Q2 195 Interest rates -50bp 193 Q1 2022 Q2 2022 Interest rates +50 bp 195 Key takeaways Equity -25% 186 ▪ Increased volatility adjustment and reduced symmetrical
Slide 10: Storebrand Group
Storebrand Group Strong and resilient operating profit, financial result affected by markets Group Profit1 Q2 YTD NOK million 2022 2021 2022 2021 Fee and administration income 1 456 1 473 2 914 2 954 Insurance result 430 332 795 552 Operational cost -1 181 -1 119 -2 326 -2 176 Operating profit 705 6
Slide 11: Storebrand Group: Profit by line of business
Storebrand Group Profit by line of business Group Profit1 Q2 YTD NOK million 2022 2021 2022 2021 Fee and administration income 1 456 1 473 2 914 2 954 Insurance result 430 332 795 552 Operational cost -1 181 -1 119 -2 326 -2 176 Operating profit 705 686 1 383 1 331 Financial items and risk result li
Slide 12: Savings (non-guaranteed)
Savings (non-guaranteed) AuM affected by financial markets, underlying growth and margins according to plan Savings Profit Q2 YTD NOK million 2022 2021 2022 2021 Fee and administration income 1 130 1 129 2 266 2 285 Operational cost -718 -703 -1 420 -1 373 Operating profit 412 427 846 911 Financial
Slide 13: Savings (non-guaranteed) Key figures
Savings (non-guaranteed) Key figures Savings Reserves and premiums Unit Linked Retail bank balance and net interest margin (%) 5.3 5.2 5.4 5.3 5.3 Life insurance balance sheet Bank balance sheet 1.14 1.22 1.19 1.22 1.16 308 295 296 59 63 291 54 56 57 MNOK 276 BNOK 36 39 39 40 46 18 17 18 19 16 Q2 20
Slide 14: Insurance
Insurance Strong growth, profitability according to plan Insurance Profit Q2 YTD NOK million 2022 2021 2022 2021 Insurance premiums f.o.a. 1 449 1 279 2 846 2 473 Claims f.o.a. -1 019 -946 -2 051 -1 920 Operational cost -260 -214 -510 -416 Operating profit 170 119 284 137 Financial result -1 27 -7 6
Slide 15: Insurance Key figures
Insurance Key figures Insurance Combined ratio Key Takeaways Combined Ratio and Results Claims ratio Cost ratio Combined ratio 96% 92% 91% 90% 88% ▪ 88% overall combined ratio (target 90-92%) ▪ Improved claims ratio 74% 74% 78% 74% 70% 17% 15% 19% 18% 18% Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Port
Slide 16: Guaranteed pension
Guaranteed pension Strong buffers and proven risk management shield shareholders in turbulent markets Guaranteed Profit Q2 YTD NOK million 2022 2021 2022 2021 Fee and administration income 395 407 786 790 Operational cost -206 -227 -409 -424 Operating profit 189 180 377 366 Risk result life & pensio
Slide 17: Guaranteed pension Key figures
Guaranteed pension Key figures Guaranteed Reserves guaranteed products Key Takeaways 295 292 291 281 275 33 32 ▪ Continued run-off of guaranteed reserves. 34 28 Customer buffers 25 25 25 26 28 28 Actively sold ▪ Temporary increase in guaranteed reserves as % of total due to fall in Unit Linked reser
Slide 18: Other
Other1 Financial result affected by markets Other Profit Q2 YTD NOK million 2022 2021 2022 2021 Fee and administration income 4 4 9 7 Operational cost -70 -43 -134 -90 Operating profit -66 -39 -125 -83 Financial items and risk result life -172 503 -230 511 Profit before amortisation -238 464 -354 42
Slide 19: Q&A
Q&A Please join the MS Teams Webinar to participate in the Q&A session. Group CFO Group CEO Group Head of Head of Strategy & Finance Investor Relations & Rating Lars Aa. Løddesøl Odd Arild Grefstad Kjetil R. Krøkje Daniel Sundahl 19 19
Slide 20: Appendix
20 Appendix G2 storebrand
Slide 21: Asset allocation – Guaranteed products
Asset allocation – Guaranteed products Storebrand Livsforsikring AS (Norway) SPP (Sweden) 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 30.06.2021 11% 10% 11% 14% 54% 30.06
Slide 22: Danica Financials
Danica Financials NOK million Q1 2022 FY 2021 Fee and administration income 84 339 Insurance result 20 88 Operational cost -76 -294 Operating profit 28 133 Financial items and risk result life -4 9 Non-recurring items 5 9 Profit before amortisation 30 151 Amortisation and write-downs of intangible a
Slide 23: Leading the way in sustainable value creation
Leading the way in sustainable value creation Investor Relations contacts 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 Daniel Sundahl daniel.sundahl@storebrand.no Group Head of +47 9