Slide 1: Storebrand 2Q 2015
Storebrand 2Q 2015 15 July 2015 Better pensions Odd Arild Grefstad – CEO Lars Aa. Løddesøl – CFO
Slide 2: Highlights 2Q 2015
Highlights 2Q 2015 16% Insurance written Group result premium growth2 MNOK 459 661 23% Unit Linked premium growth2 -202 Q2 2015 Result before profit sharing and loan losses Net profit sharing and loan losses/Longevity provision 65% of longevity 11,5 % growth in fee and strengthening completed admi
Slide 3: 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 4: Estimated SII position Life Group and sensitivities
Estimated SII position Life Group and sensitivities Manage guaranteed balance sheet Economic Solvency position(%)1 Estimated Sensitivities after 1.1.20162 Target SII margin 152 154 1.1.2016 =130% 54 40 Estimated economic SII-margin Q2 2015 154 98 114 Interest rates -50bp 134 Q1 2015 Q2 2015 Interest
Slide 5: Longevity - 65% of reserve strengthening completed
Longevity - 65% of reserve strengthening completed Manage guaranteed balance sheet Reserve strengthening Norwegian guaranteed products Negative result impact in the quarter 2013-2Q 2015 (BNOK) 2015-2020 (BNOK) 2Q 2015 (MNOK) 253 16.2 90 NOK 102 Indirect negative 12.4 result contribution 9.7 12 3.5 8
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 2015-20201 …including reinvestment due and expected issuance 2015-2020: Longevity r
Slide 7: Growth in Savings and Insurance continues
Growth in Savings and Insurance continues Continued growth in Savings and Insurance Unit Linked Asset management 26% 10% 117 23% Premium 552 502 Gathering 93 growth 1H Paid-up assets from policies life company w/investment Strong sales choice adds growth Q2 2014 Q2 2015 Q2 2014 Q2 2015 UL re
Slide 8: New operating model facilitates improved customer orientation and increased profitability
New operating model facilitates improved customer orientation and increased profitability Continued growth in Savings and Insurance New operating model implemented July 1 Commercial Areas Norway & Sweden Established unified Customer Service and Product areas Asset Management Enables a holistic c
Slide 9: Storebrand makes further commitments to sustainable development
Storebrand makes further commitments to sustainable development Continued growth in Savings and Insurance Storebrand has committed to disclose our portfolio carbon footprint.. Storebrand signed the Montreal Carbon Pledge in 2Q Commitment to measure and publicly disclose the investment portfolio
Slide 10: Strong sales and continued growth in Insurance
Strong sales and continued growth in Insurance Continued growth in Savings and Insurance Development written premiums Key takeaways MNOK Milestone reached during 2Q: 4 174 >100 000 P&C customers 3 588 3 448 1 607 1 341 1 250 Double-digit written premium 1 471 growth further strengthened 1 197 1
Slide 11: Key figures
Group Key figures Result development Earnings per share1 Net profit sharing and loan losses Sale discontinued business/change in pension plan MNOK Result before profit sharing and loan losses Longevity provision 1.78 923 750 25 1.33 632 1.08 200 477 450 459 62 0.78 0.80 58 640 660 541 546 661 -90 -9
Slide 12: Storebrand Group
Group Storebrand Group Profit 2Q 01.01 - 30.06 Full year NOK million 2015 2014 2015 2014 2014 Fee and administration income 1 065 986 2 109 1 999 4 160 Risk result life & pensions 54 45 63 120 480 Insurance premiums f.o.a. 947 770 1 813 1 540 3 115 Claims f.o.a. -683 -558 -1 334 -1 050 -2 226 Operat
Slide 13: Storebrand Group
Group Storebrand Group Profit 2Q 01.01 - 30.06 Full year NOK million 2015 2014 2015 2014 2014 Fee and administration income 1 065 986 2 109 1 999 4 160 Risk result life & pensions 54 45 63 120 480 Insurance premiums f.o.a. 947 770 1 813 1 540 3 115 Claims f.o.a. -683 -558 -1 334 -1 050 -2 226 Operat
Slide 14: Cost control
Group Cost control Cost/Income1 below 60% target 12-month rolling MNOK Operational cost 3.143 = 58.8% Fee and admin income Underwriting result2 4.269 1.078 1 Operational cost and risk result life & pensions are adjusted for special items in 4Q 2014. 14 2 Underwriting result consists of insurance pre
Slide 15: Savings (non-guaranteed) - strong results growth
Savings (non-guaranteed) Savings - strong results growth Profit 2Q 01.01 - 30.06 Full year NOK million 2015 2014 2015 2014 2014 Fee and administration income 627 559 1 255 1 108 2 375 Risk result life & pensions 4 -7 0 -8 -11 Operational cost -394 -363 -802 -720 -1 289 Financial result 0 0 0 0 0 Res
Slide 16: Savings (non-guaranteed) - strong growth in UL premiums
Savings (non-guaranteed) Savings - strong growth in UL premiums Reserves and premiums Unit Linked Comments1 3,0 2,9 2,6 2,5 2,3 +29% 29% premium growth in UL 116 117 premiums2 105 +26% 94 12% top line growth in Savings 93 BNOK Strong result development in Asset Management continues Q2 2014 Q3
Slide 17: Insurance - continued P&C growth
Insurance Insurance - continued P&C growth Profit 2Q 01.01 - 30.06 Full year NOK million 2015 2014 2015 2014 2014 Insurance premiums f.o.a. 947 770 1 813 1 540 3 115 Claims f.o.a. -683 -558 -1 334 -1 050 -2 226 Operational cost -136 -131 -264 -256 -387 Financial result 64 74 136 147 173 Profit befor
Slide 18: Insurance - strong financial results
Insurance Insurance - strong financial results Comments Combined ratio and Combined ratio Claims ratio Cost ratio Combined ratio financial result 1 90% 93% 90% 89% 87% Combined Ratio 87% Investment portfolio co-invested 73% 73% 76% 75% 72% with common portfolio. Strong 16% 1 booked results 17% 1
Slide 19: Guaranteed pension - lower results is the new normal
Guaranteed pension Guaranteed - lower results is the new normal Profit Q2 01.01-30.06 Full year NOK million 2015 2014 2015 2014 2014 Fee and administration income 457 439 889 913 1 842 Risk result life & pensions 47 48 63 126 483 Operational cost -281 -281 -558 -562 -921 Financial result - - - - - P
Slide 20: Guaranteed pension - reserves below 70% of total reserves
Guaranteed pension Guaranteed - reserves below 70% of total reserves Reserves guaranteed products Comments Reversal of profit sharing due to low returns leads to weaker financial result in Sweden BNOK 263 264 261 259 257 Increased allocation to bonds at amortised cost Q2 2014 3Q 2014 4Q 2014 1Q
Slide 21: Other
Other Other1 Profit 2Q 01.01 - 30.06 Full year NOK million 2015 2014 2015 2014 2014 Fee and administration income 35 53 78 117 233 Risk result life & pensions 3 3 -0 2 8 Operational cost -43 -53 -91 -107 -138 Financial result 12 82 22 127 175 Result before profit sharing and loan losses 8 85 8 139 2
Slide 22: Highlights 2Q 2015
Highlights 2Q 2015 16% Insurance written Group result premium growth2 MNOK 459 661 23% Unit Linked premium growth2 -202 Q2 2015 Result before profit sharing and loan losses Net profit sharing and loan losses/Longevity provision 65% of longevity 11,5 % growth in fee and strengthening completed admi
Slide 23: Appendix
Appendix @® storebrand
Slide 24: Storebrand Life Insurance asset allocation
Storebrand Life Insurance asset allocation 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Bonds at Equities Bonds Money market Real estate Other amortized cost 30.06.2014 10% 21% 10% 43% 11% 5% 30.09.2014 9% 20% 10% 44% 11% 6% 31.12.2014 7% 20% 12% 45% 11% 5% 31.03.2015 8% 22% 11% 43% 11% 4% 30.06.2015 7
Slide 25: SPP asset allocation
SPP asset allocation 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Alternative investments Bonds Equities 30.06.2014 6% 82% 12% 30.09.2014 6% 82% 12% 31.12.2014 6% 84% 10% 31.03.2015 5% 86% 9% 30.06.2015 6% 86% 9% 1 The graph shows the asset allocation for all products with an interest rate guarantee
Slide 26: 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