Slide 1: Storebrand Q1 2023
Storebrand Q1 2023 10 May 2023 Odd Arild Grefstad – CEO Lars Aa. Løddesøl – CFO 1
Slide 2: Highlights Q1 2023
Highlights Q1 2023 Strong underlying growth and record high assets under management, but increased disability impacts profit negatively Group result1 Q1 2023 1 111 bn NOK in assets under management New accounting standards IFRS 17 & 9 implemented from Q1 2023 19% growth in insurance2 1 157 299 773 1
Slide 3: Despite macro and financial turbulence, Storebrand stands strong
Despite macro and financial turbulence, Storebrand stands strong External factors Implications to Storebrand Turbulent financial markets High quality investments stand strong Continued high interest rates Positive for company portfolio and guaranteed book Impacts Unit Link and risk product premiums
Slide 4: Disability increasing in Norwegian population
Disability increasing in Norwegian population People on disability schemes in % of total workforce1,2 Increasing disability trend in the Norwegian 10.5% 10.5% 10.5% population, high levels compared to pre-covid 10.4% 10.1% Insurance segments "Group-life" and "Pension Percentage 9.7% 9.5% 9.5% relate
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: Strong organic growth in the Unit Linked business, supported by the Danica acquisition
Strong organic growth in the Unit Linked business, A Leading Provider Occupational Pensions supported by the Danica acquisition Norway & Sweden Highlights Unit Linked premiums (NOK million) Unit Linked premiums grew 30% year on year +30 % Danica integration according to plan Danica effect 6 883
Slide 7: All time high Assets Under Management supported by strong Net Flow
All time high Assets Under Management supported B Nordic Powerhouse in Asset Management by strong Net Flow in the quarter Increasing share of external AUM Group synergies with Unit Linked business NOK billion External Internal both in Norway and Sweden 1 040 1 111 987 829 729 46% 47% 43% 33% 40% 57%
Slide 8: Retail bank driving growth and value creation
Retail bank driving growth and value creation as a central C Growing Challenger in Norwegian Retail part of the retail market offering Market Highlights Insurance penetration1 Increased engagement Mortgage balance Bank profit 8.800 new savings share of mortgage customers NOK billion NOK million Agre
Slide 9: Storebrand continues the digital journey
E Storebrand continues the digital journey Digital Frontrunner Accelerating our adoption of Artificial Intelligence (AI) Cloud Transformation • Building on broad experience and unique in-house competence • Mobilizing the organization to leverage the Core Renewal potential in the new wave of generati
Slide 10: Reporting continues, result lines renamed Cash equivalent earnings due to IFRS 17
Storebrand will continue its existing reporting, result lines renamed to Cash equivalent earnings due to implementation of IFRS 17 Key Takeaways Alternative Income Statement Impacted items • Storebrand will continue its current NOK million 2023 2022 Alternative Performance Measure Fee and administra
Slide 11: Key Figures
Key Figures Improved financial result and a solid solvency position Group Cash earnings development1 Cash earnings per share2 Financial items and risk result life Performance related result MNOK NOK Special items Cash equivalent earnings from operations 2.17 841 773 1.83 1.82 636 583 672 219 255 105
Slide 12: Solvency movement from Q4 2022 to Q1 2023
Solvency movement from Q4 2022 to Q1 2023 Storebrand Group 3% 3% 184% -3% 1% -2% -3% -2% -1% 179% -2% 2022 Q4 Model & Updated Market Risk and Cash Dividend Share Subordinated Kron Q1 2023 assumption regulatory returns & capital earnings Buy-back debt and Tier acqusition changes VA and SA business mi
Slide 13: Solvency position and sensitivities Q1 2023
Solvency position and sensitivities Q1 2023 Storebrand Group Solvency position(%)1 Estimated sensitivities Target SII margin 150% 184 179 SII-margin Q1 179 Interest rates -50bp 175 Q4 2022 Q1 2023 Interest rates +50 bp 184 SII standard model Key takeaways Equity -25% 173 Result generation from ope
Slide 14: Storebrand Group
Storebrand Group Growth continues to be strong across the business, weaker insurance result due to disability Group Profit1 Q1 Full year NOK million 2023 2022 2022 Fee and administration income 1 552 1 457 6 062 Insurance result 357 372 1 664 Operational cost -1 391 -1 145 -5 008 Cash equivalent ear
Slide 15: Storebrand Group: Profit by line of business
Storebrand Group Profit by line of business Group Profit1 Q1 Full year NOK million 2023 2022 2022 Fee and administration income 1 552 1 457 6 062 Insurance result 357 372 1 664 Operational cost -1 391 -1 145 -5 008 Cash equivalent earnings from operations 518 685 2 718 Financial items and risk resul
Slide 16: Savings (non-guaranteed)
Savings (non-guaranteed) All time high assets under management, strong growth in unit linked and retail banking Savings Profit Q1 Full year NOK million 2023 2022 2022 Fee and administration income 1 234 1 136 4 733 Operational cost -861 -702 -3 031 Cash equivalent earnings from operations 373 434 1
Slide 17: Savings (non-guaranteed) key figures
Savings (non-guaranteed) Key figures Savings Reserves and premiums Unit Linked Retail bank balance and net interest margin (%) 6.6 6.9 Life insurance balance sheet Bank balance sheet 6.3 1.39 1.22 1.16 1.20 1.18 5.3 5.3 343 315 65 67 70 302 59 63 291 MNOK 276 53 BNOK 40 46 48 50 19 16 17 17 17 Q1 20
Slide 18: Insurance
Insurance Q1 impacted by seasonal claims in motor and high disability claims, continued solid growth Insurance Profit Q1 Full year NOK million 2023 2022 2022 Insurance premiums f.o.a. 1 672 1 397 6 088 Claims f.o.a. -1 315 -1 025 -4 424 Operational cost -310 -251 -1 112 Cash equivalent earnings from
Slide 19: Insurance key figures
Insurance Key figures Insurance Combined ratio Key Takeaways Combined Ratio and Results Claims ratio Cost ratio Combined ratio 96% 97% 91% 88% 88% 92% combined ratio trailing twelve months 1st quarter negatively impacted by seasonal claims in motor and high disability claims 73% 71% 71% 76% 79%
Slide 20: Guaranteed pension
Guaranteed pension Guaranteed Stable cash equivalent earnings from operations and continued strong risk result Profit Q1 Full year NOK million 2023 2022 2022 Fee and administration income 378 391 1 597 Operational cost -192 -202 -850 Cash equivalent earnings from operations 186 189 747 Risk result l
Slide 21: Guaranteed pension key figures
Guaranteed pension Key figures Guaranteed Reserves guaranteed products Key Takeaways 281 275 276 274 283 28 25 24 24 26 Customer buffers 28 29 30 Continued run-off of guaranteed reserves with net flow of premiums and 28 28 Actively sold pension payments of NOK -2.3bn in 1st quarter BNOK FX cause
Slide 22: Other
Other1 Financial result improving from a higher interest rate level Other Profit Q1 Full year NOK million 2023 2022 2022 Fee and administration income 6 6 17 Operational cost -94 -64 -299 Cash equivalent earnings from operations -88 -59 -282 Financial items and risk result life 159 -57 -138 Cash equ
Slide 23: Changes in IFRS from Q1 2023: Implementation of IFRS 17 and 9
Changes in IFRS from Q1 2023: Implementation of IFRS 17 and 9 IFRS 17 Insurance contracts is a new accounting standard, effective from 1 January 2023 Changes in IFRS 9 Financial instruments is also applicable to Storebrand from 1 January 2023 IFRS The Q1 results presented today are Storebrand’
Slide 24: Storebrand reporting post IFRS changes
Storebrand reporting post IFRS changes The Group will continue its current Alternative Performance Measure (APM) reporting with the segments Savings, Insurance, Guaranteed Pension and Other Quarterly reporting format Adjustments and changes from Q1 2023 This section • Minor changes to Insurance segm
Slide 25: Simplified P&L under IFRS – How to read the statement
Simplified1 P&L under IFRS – How to read the statement Profit & Loss IFRS (MNOK) Q1 2023 Q1 2022 Full year 2022 Comments - New IFRS statement [1] Income from unit linked 508 451 1 888 Income from asset management 669 659 2 783 Income from banking activities 616 249 1 460 [1] Unit linked Norway and S
Slide 26: Simplified P&L under IFRS – Key takeaways
Simplified1 P&L under IFRS – Key takeaways Profit & Loss IFRS (MNOK) Q1 2023 Q1 2022 Full year 2022 Comments Income from unit linked 508 451 1 888 Income from asset management 669 659 2 783 Income from banking activities 616 249 1 460 [1] Group’s profit before amortisation and tax was NOK Other inco
Slide 27: Dividend policy adjusted to reflect changes in IFRS
Dividend policy adjusted to reflect changes in IFRS Background and changes Dividend policy as of May 10, 2023 • The following phrase has been a part of Storebrand’s dividend policy: Storebrand aims to pay a dividend of more than 50 % of Group result after tax. • The implementation of the new account
Slide 28: Q&A
Q&A Please join the MS Teams Webinar to participate in the Q&A session. Group CFO Group CEO Group CIO & Investor relations (Interim) Lars Aa. Løddesøl Odd Arild Grefstad Trond Finn Eriksen 28
Slide 29: Appendix
Appendix G2 storebrand
Slide 30: Asset allocation – Guaranteed products
Asset allocation – Guaranteed products Storebrand Livsforsikring AS (Norway) SPP (Sweden) 70% 50% 45% 60% 40% 50% 35% 40% 30% 25% 30% 20% 20% 15% 10% 10% 5% 0% 0% Bonds & Bonds at Bonds & Real Equities Money Loans amortised Equities Real estate Money Loans estate market cost market 31.03.2022 9% 12%
Slide 31: Statement of financial position at transition to IFRS 17 1.1.22
Statement of financial position at transition to IFRS 17 1.1.22 Statement of financial position IFRS 17 (MNOK) 31.12.21 Reclassification 1.1.22 Key Takeaways Assets [1] Deferred tax assets 1 512 1 827 3 340 Other assets 8 715 -1 607 7 108 [2] Financial assets 690 114 3 372 693 486 [1] Increase of de
Slide 32: Statement of financial position according to IFRS Q1 2023
Statement of financial position according to IFRS Q1 2023 Statement of financial position IFRS 17 (MNOK) 31.3.23 31.3.22 31.12.22 Key Takeaways Assets Deferred tax assets 2 840 3 167 2 979 Other assets1 7 689 6 115 7 163 Investments in associated companies and joint ventures 8 955 8 425 8 910 [1] Fi
Slide 33: IFRS 17 CSM sensitivities Q1 2023
IFRS 17 CSM sensitivities Q1 2023 Storebrand Group CSM as at end of period in mNOK Estimated sensitivities in mNOK 8.455 Interest rates -50bp -1,398 Interest rates +50 bp 1,198 Equity -25% -2,532 Q1 2023 Spread +50 bp, VA +15bp -1,309 Key takeaways Real Estate -10% -1,422 For SPP the CSM is less s
Slide 34: IFRS 17 and 9 abbreviations
IFRS 17 and 9 abbreviations PAA Premium Allocation Approach (measurement model) GMM General Measurement Model (measurement model), VFA Variable Fee Approach (measurement model) CSM Contractual Service Margin – balance sheet liability, containing deferred discounted future profits of in-force busines
Slide 35: Investor Relations contacts
Leading the way in sustainable value creation Investor Relations contacts Lars Aa Løddesøl lars.loddesol@storebrand.no Group CFO +47 9348 0151 Trond Finn Eriksen trond.finn.eriksen@storebrand.no Group CIO & +47 99164 135 Head of Investor relations Interim This document contains Alternative Performan