Sparebank 1 Ostlandet · OSL:SPOL
Sparebank 1 Ostlandet — SpareBank 1 Gruppen — FY2010 Earnings Presentation
47 slides from Sparebank 1 Ostlandet's earnings presentation, May 13, 2011
Slide 1: Annual accounts 2010
Annual accounts 2010 Presentation of results from SpareBank 1 Gruppen Kirsten Idebøen, CEO February y 11th 2011 Updated version: May 13th 2011
Slide 2: Highlights
Highlights SPAREBANK 1 GRUPPEN 18.7 % 15.8 % 11.9 % • Solid earnings performance in 2010 8.9 % • Improvements in Return on Equity 18.7 (18.1) % Q1 Q2 Q3 Q4 2010 2010 2010 2010 • Well-capitalised to meet the expected requirements under the Solvency II regulations 2
Slide 3: Solid earnings performance in 2010
Solid earnings performance in 2010 Pre-tax profits per subsidiary (MNOK) 641 • Pre-tax p profit in 2010: MNOK 985 ((996)) 621 • Pre-tax profit in Q4 was MNOK 343 (177) 392 350 • SpareBank 1 Skadeforsikring made a major contribution towards the overall result − A negative goodwill of MNOK 118 was rec
Slide 4: Delta profitability project completed with annual effect of MNOK 400
The Delta profitability project has been completed with an estimated annual profitability effect of MNOK 400 from 2011 (against the baseline as at 31 December 2008) Results of implemented measures by company (MNOK) 400 360 +40 Planned Result of implemented measures 225 191 84 94 56 55 30 27 Liv Skad
Slide 5: Delta project contributed net result effect of MNOK 140 in 2010
The Delta profitability project contributed to a net result effect of MNOK 140 in 2010 Profit effect from the Delta profitability project in 2010 (MNOK) 221 81* Oth Other companies i 7 77 SB1 Skade 140 SB1 Liv 137 Permanent profit Non-recurring Net profit effect as at improvement implementation cost
Slide 6: SpareBank 1 Livsforsikring
SpareBank 1 Li f Livsforsikring ik i Built up solid buffers 6
Slide 7: Good risk result
SpareBank 1 Livsforsikring Good risk result Pre-tax profit, quarterly (MNOK) Development in Risk result (MNOK) 206 352 325 100 81 81 92 86 72 44 24 210 -52 -335 -696 2008 2009 2010 2008 2009 2010 Q1 Q2 Q3 Q4 • Administration result in 2010: MNOK -187 ((-193)) • Pre-tax profit in 2010: MNOK 350 (392)
Slide 8: Built up solid buffers
SpareBank 1 Livsforsikring Built up solid buffers Buffer capital trend, per quarter (%) 15.4 % 16.1 % Securities adjustment reserve per year 14.6 % 13 7 % 13.7 (MNOK) 13.0 % 617 11.7 % 11.7 % 401 6 0% 6.0 327 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2009 2009 2009 2009 2010 2010 2010 2010 2007 2008 2009 2010 Core
Slide 9: Value adjusted return for customer portfolios with guarantee
SpareBank 1 Livsforsikring Value adjusted return for customer portfolios with guarantee at year end (excluding property value change) Q3 Q4* Q3 Q4 Q3 Q4 Q3 Q4 2010 2010 2010 2010 2010 2010 2010 2010 71 7.1 6.8 6.4 5.7 4.6 4.1 4.0 3.7 N/A SpareBank 1 Storebrand Vital Nordea * Recognised return in Q4
Slide 10: SpareBank 1 Skadeforsikring Group
SpareBank 1 Skadeforsikring Group Strong profit improvement throughout the year and profitable growth 10
Slide 11: Strong profit improvement throughout the year and profitable growth
SpareBank 1 Skadeforsikring Group Strong profit improvement throughout the year and profitable growth Pre-tax Pre tax profit, quarterly (MNOK) 308 • Pre-tax profit for 2010 was MNOK 641 (621) 251 254 – MNOK 118 negative goodwill recognised in the 207 accounts t iin Q4 in i connection ti with ith the
Slide 12: Profitable portfolio growth
SpareBank 1 Skadeforsikring Group Profitable portfolio growth Portfolio g growth 2005–2010 ((MNOK)) 629 4,712 • Total portfolio growth of MNOK 629, 258 125 84 109 corresponding to 15.4 % 149 3,358 − MNOK 311 from Unison Forsikring and Skandia Lifeline • Premium income for own account NOK 4.2 (3 8) b
Slide 13: Winter-related claims triggered an increased claims ratio
SpareBank 1 Skadeforsikring Group Winter-related Winter related claims triggered an increased claims ratio in 2010 Net combined ratio – quarterly (%) Net combined ratio – cumulative (%) 96.2 % 97.7 % 94.6 % 94.0 % 108.6 % 89.9 % 21..0 % 5% 87.2 % 7% 100.6 % 21.9 % 99.6 % 20.2 % 100 3 % 100.3 22.5 20
Slide 14: Growth through acquisition of new companies
SpareBank 1 Skadeforsikring Group Growth through acquisition of new companies • Bought B ht 100 % off the th shares h in i Unison U i • Took T k over Skandia Sk di Lifeline's Lif li ' portfolio tf li off Forsikring AS on 19 July 2010 for MNOK private healthcare insurance and child 56.4 insurance in
Slide 15: NAF chose Unison Forsikring
NAF chose Unison Forsikring • The Norwegian Automobile Federation NAF chose Unison Forsikring over several other bidders as its future partner for insurance solutions for its members • The contract was signed on 3 January 2011 • Long-term agreement, initial period: 5 years The Norwegian Automobile F
Slide 16: NAF establishing NAF Forsikring AS
NAF establishing NAF Forsikring AS • NAF's members want insurance to be included in membership • NAF has a strong focus on the further development of membership and wants to coordinate insurance with other membership benefits to a greater degree • NAF wants to exploit the commercial and strategic va
Slide 17: ODIN Forvaltning
ODIN Forvaltning Increased assets under management 17
Slide 18: Increased assets under management
ODIN Forvaltning Increased assets under management Pre-tax profit, quarterly (MNOK) 30 30 29 • Pre-tax p profit for 2010 was MNOK 65 ((42)) 26 24 • Pre-tax profit in Q4 was MNOK 16 (24) 16 17 17 16 14 10 • NOK 32.3 (28.0) billion in assets under management • 10.7 (11.6) % market share for equity fun
Slide 19: Strategic focus areas in 2010
ODIN Forvaltning Strategic focus areas in 2010 Combination funds: ODIN Konservativ,, ODIN Flex,, ODIN Horisont • Signed an agreement for the acquisition of SpareBank 1 SR-Fondsforvaltning in September 2010 • Start-up 2 February 2011 • Both equity and bonds • Higher expected rate of return than bank
Slide 20: Argo Securities
Argo Securities Strong commitment through “SpareBank 1 Markets” 20
Slide 21: Strong commitment through SpareBank 1 Markets
Argo Securities Strong commitment through “SpareBank SpareBank 1 Markets” Markets • Result in 2010: Proactive recruitment in Argo Securities − Pre-tax: MNOK -58 − After tax: MNOK -41 • Martin Hagen appointed new CEO • Further recruitment ensures Argo Securities expertise w • Increased revenue − Comm
Slide 22: SpareBank 1 Gruppen Finans Group
SpareBank p 1 Gruppen pp Finans Group Strategic focus within receivables management 22
Slide 23: Reorganisation of SpareBank 1 Gruppen Finans
SpareBank 1 Gruppen Finans Group Reorganisation of SpareBank 1 Gruppen Finans From From 10 September 2010 1 January 2011 Prior to 9 September 2010 to 31 December 2010 SpareBank 1 SpareBank 1 Gruppen Gruppen SpareBank 1 Gruppen Finans AS Finans Holding Finans AS -BA Factoring * - BA Factoring - BA Po
Slide 24: SpareBank 1 Factoring is Norway's third largest factoring company
SpareBank 1 Gruppen Finans Group SpareBank 1 Factoring is Norway's third largest factoring company SpareBank 1 Factoring: Third largest factoring company in Norway in Q4 2010 (%) 43.9 % 43.4 % 42.1 % 41.5 % 40.5 % 41.1 % 39.5 % 37 7 % 37.7 37.2 % 36.5 % 35.3 % 35.5 % 36.2 % 35.1 % 34.3 % 32.2 % 13.9
Slide 25: Conecto is Norway's third largest debt collection company
SpareBank 1 Gruppen Finans Group Conecto is Norway's y third largest g debt collection company p y 172 156 Ranking Revenue 31.12.2009 Company MNOK 121 1 Lindorff 870 2 Kredinor 370 77 87 3 Conecto/Actor Fordringsforvaltning 157* 61 79 4 Aktiv Kapital 102 60 85 5 Gothia AS 100 6 Intrum Justitia 78 7
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Slide 27: Still on top in return on equity among Nordic financial institutions
SpareBank 1 Gruppen still on top in terms of return on equity among selected Nordic financial institutions Year 2010 Q3 2010 Year 2009 SpareBank 1 Gruppen 18.7 % 15.8 % 17.5 %* DnB NOR 13.6 % 12.2 % 10.6 % Gjensidige1 13.1 % 10.8 % 11.3 % Handelsbanken 12 9 % 12.9 12 9 % 12.9 12.6 12 6 % Nordea 11.5
Slide 28: Outlook
Outlook SPAREBANK 1 GRUPPEN Well positioned, operationally and strategically, for profitable growth Well-capitalised to meet the expected requirements under the Solvency II regulations The unique and robust business model in the SpareBank 1 Alliance gives a strategic advantage d 28
Slide 29: The nation's savings bank
The nation nation's s savings bank 29 29
Slide 30: Appendix
Appendix SpareBank 1)
Slide 31: SpareBank 1 Alliance
SpareBank 1 Alliance SpareBank 1 SpareBank 1 SpareBank 1 Sparebanken Samarbeidende LO (Trade Union) SR-Bank SMN Nord-Norge Hedmark Sparebanker (10 %) (19.5 %) (19.5 %) (19.5 %) (12 %) (19.5 %) SpareBank 1 Gruppen AS Argo SpareBank 1 ODIN Securities Livsforsikring Forvaltning (76.75 %) (100 %) (100 %
Slide 32: Profit for 2010
SpareBank 1 Gruppen Profit for 2010 Year Figures in MNOK 2010 2009* Part of result from subsidiaries before tax - SpareBank 1 Livsforsikring 350.4 392.2 - SpareBank 1 Skadeforsikring Group 641.1 621.1 - ODIN Forvaltning 64.6 42.1 - Argo Securities -57.6 -48.9 - SpareBank 1 Medlemskort 11 1 11.1 12 1
Slide 33: Quarterly results
SpareBank 1 Gruppen Quarterly results Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Figures in MNOK 2010 2010 2010 2010 2009 2009 2009 2009 Part of result from subsidiaries before tax - SpareBank 1 Livsforsikring 72.5 85.8 100.3 91.9 81.0 81.2 205.6 24.4 - SpareBank p 1 Skadeforsikring g Group p 307.5 253.9 43.4 36.3 115
Slide 34: Profit for 2010 - Livsforsikring
SpareBank 1 Livsforsikring Profit for 2010 Q4 Q3 Q2 Q1 Q4 Year Figures in MNOK 2010 2010 2010 2010 2009 2010 2009 Insurance risk income 328.3 327.3 321.7 315.3 301.6 1,292.6 1,220.6 Insurance risk claims -266.2 -250.1 -213.4 -209.3 -218.9 -939.0 -829.4 Risk result 62.1 77.1 108.3 106.0 82.7 353.6 39
Slide 35: Profits by portfolio for 2010
SpareBank 1 Livsforsikring Profits by portfolio for 2010 Previously Group established Investment choice Company Figures in MNOK portfolio individual products portfolio portfolio Total Risk result 323.3 2.9 -0.7 0.0 325.5 Administration result 17.6 -61.8 -142.7 0.0 -186.9 Net investment result 208.3
Slide 36: Premium income trends
SpareBank 1 Livsforsikring Premium income trends Q4 Q3 Q2 Q1 Q4 Year Figures in MNOK 2010 2010 2010 2010 2009 2010 2009 Individual annuity and pension insurance 79.8 68.6 83.1 75.2 77.5 306.7 269.6 Individual endowment insurance 133.7 129.5 128.9 126.9 125.5 519.1 486.7 Group pension insuranc e 120.
Slide 37: Asset allocation by portfolio
SpareBank 1 Livsforsikring Asset allocation by portfolio As at 31.12.2010 31 12 2010 (31.12.09) (31 12 09) Group portfolio Company portfolio Investment choice portfolio 0.1 (0.1) % 34.8 (34.2) % 14.8 (14.5) %* 39.0 (31.5) % 50.1 (48.7) % 17.0 (19.4) % 7.1 (5.2) % 21.5 (21.7) % 21.7 (17.0) % 21.8 (24
Slide 38: Return on ordinary customer portfolio with guarantee
SpareBank 1 Livsforsikring R t Return on ordinary di customer t portfolio tf li with ith guarantee t Norwegian shares 20.5 Foreign shares 12.5 Money market 2.5 Norwegian bonds 4.9 Foreign bonds 6.9 Held to maturity 5.4 Real estate 10.0 38
Slide 39: Booked return on customer portfolios with guarantee
SpareBank 1 Livsforsikring Booked return on customer portfolios with guarantee Q3 Q4 Q3 Q4 Q3 Q4 Q3 Q4 2010 2010 2010 2010 2010 2010 2010 2010 6.2 5.2 4.9 4.8 40 4.0 3.8 3.2 3.1 SpareBank 1 Storebrand Vital Nordea 39 Source: company presentations
Slide 40: Balance sheet for 2010
SpareBank 1 Livsforsikring Balance sheet for 2010 Year Figures in MNOK 2010 2009 Intangible assets 42 38 Investments 2,862 2,498 Reinsurance's Reinsurance s part of insurance obligations 221 221 Accounts receivable 153 90 Other assets 335 241 Prepayed liabilities and accrued income 0 0 Investments g
Slide 41: Profit for 2010 - Skadeforsikring
SpareBank 1 Skadeforsikring Profit for 2010 Q4 Q3 Q2 Q1 Q4 Year Figures in MNOK 2010 2010 2010 2010 2009 2010 2009 Gross written premium 1,175.6 1,059.1 1,171.9 1,325.2 1,004.4 4,731.8 4,271.2 Net earned premium 1,135.1 1,077.0 1,007.0 965.4 983.1 4,184.4 3,814.3 Net incurred claims -869.2 -722.7 -7
Slide 42: Allocation of financial assets
SpareBank 1 Skadeforsikring Allocation of financial assets As at 31.12.2010 (31.12.09) 65.6 (64.3) % Bonds held as current assets Bonds held to maturity 11.1 (11.0) % Real state Stocks Bank Hedgefond 14.1 (14.4) % 0.1 (0.3) % 0.0 (2.9) % 9.1 (7.1) % NOK 8.5 (8.2) billion 42
Slide 43: Profit for 2010 - ODIN Forvaltning
ODIN Forvaltning Profit for 2010 Q4 Q3 Q2 Q1 Q4 Year Figures in MNOK 2010 2010 2010 2010 2009 2010 2009 Management g fees 82.0 78.0 79.6 78.3 74.5 317.9 244.8 Subscription and redemption fees 0.0 0.0 0.0 0.0 6.8 0.0 25.9 Total operating income 82.0 78.0 79.6 78.3 81.4 317.9 270.7 Salaries 27.3 27.1
Slide 44: Effect realisation from profitability project Delta
Effect realisation from profitability project Delta (does not include Bank 1 Oslo) Realisation of profit effects over time Realisation of staffing consequences over time (MNOK, cumulative annual effect) (fulltime equivalents, cumulative) 400 156 361 147 Planned Realised effects Planned 286 116 Reali
Slide 45: The Delta project
The Delta project: Slightly smaller staff reductions than estimated. This is due to changes in the order in which measures were implemented, implemented meaning that measures entailing further staff cutbacks will be made after completion of the project Results of implemented measures per company (FT
Slide 46: Effect realisation from profitability project: Livsforsikring
EFFECT REALISATION FROM PROFITABILITY PROJECT SUB-PROJECT SpareBank 1 Livsforsikring FINAL REPORT 2010 Profit effects realised by quarter Realised staff reduction by quarter (MNOK) (annual fulltime equivalents) 101 225 Planned Planned 94 94 Effect of implemented measures Effect of implemented measur
Slide 47: Effect realisation from profitability project: Skadeforsikring
EFFECT REALISATION FROM PROFITABILITY PROJECT SUB-PROJECT SpareBank 1 Skadeforsikring FINAL REPORT 2010 Profit effects realised by quarter Realised staff reduction by quarter (MNOK) (annual fulltime equivalents) 94 49 48 48 48 Planned Planned 84 Effect of implemented measures Effect of implemented m