Slide 1: Storebrand Q3 2019
Storebrand Q3 2019 23 October 2019 Odd Arild Grefstad – CEO Lars Aa. Løddesøl – CFO
Slide 2: Highlights Q3 2019
Highlights Q3 2019 #1 customer satisfaction pensions Norway4 Group result1 11% Unit Linked reserve growth2 2 011 420 MNOK 700 NOK 61bn AuM growth Asset Management2 1 702 114 635 -49 -111 Q3 2019 YTD NOK 265m income earned not booked3 Financial items and risk result life Adjusted operating profit Boo
Slide 3: Our strategy: A compelling combination of self-funding growth and capital return
Our strategy: A compelling combination of self-funding growth and capital return from maturing guaranteed back-book 1 A B C D Asset manager with Build a world class Uniquely positioned in Leading position strong competitive Savings business growing retail savings Bolt-on M&A Occupational Pension pos
Slide 4: Growth in Savings continues
Growth in Savings continues Unit Linked Asset management +11% +8% 207 Strong sales and 786 Good market return 187 725 premium income growth in Sweden Cubera included as of Q2 2019 with NOK 7bn Structural growth continues Q3 2018 Q3 2019 Good market return Q3 2018 Q3 2019 UL reserves (BNOK)
Slide 5: SPP with double digit growth
SPP with double digit growth Growth Market share +40% 908 30 610 New sales Competitor 1 463 20 SPP Competitor 2 10 Competitor 3 Competitor 4 0 2017 2018 2019 2017 2018 2019 SPP +22% 4.540 3.734 30 SPP 3.073 Premium income including transfers 20 received 10 0 2017 2018 2019 2017 2018 2019 +53% 1.502
Slide 6: New milestones in our sustainability leadership
New milestones in our sustainability leadership Acknowledged by PRI as Leader in Sustainable Investments New Group Policy and Active Ownership on Deforestation Committed to Net Zero Emissions Increased client demands for fossil free investments PRI, the world's leading sustainable investor organisat
Slide 7: Key figures
Key figures Group Result development1 Earnings per share2 Financial items and risk result life Performance related result MNOK Special items Operating profit 4.18 853 563 730 578 700 168 18 22 11 202 114 105 645 654 635 1.33 1.26 1.21 1.22 546 568 -18 -103 -44 -50 -49 Q3 2018 Q4 2018 Q1 2019 Q2 2019
Slide 8: Movement from Q2 2019 to Q3 2019
Movement from Q2 2019 to Q3 2019 Group Storebrand ASA +5 % +177 % +3 % +172 % +3 % +1 % +165 % +2 % +4 % 0% -6 % Q2 2019 Model and Changes in VA and equity Business mix Operating Reinsurance Subordinated Q3 2019 Transitionals Q3 2019 without assumption interest rates stress level and asset earnings
Slide 9: SII position Storebrand Group
SII position Storebrand Group Group Solvency position(%)1 Estimated sensitivities Target SII margin 150% 167 177 5 2 Q3 2019 reported 172 5 177 Interest 165 172 rates -50bp 159 23 182 Interest rates +50 bp 184 2 185 Q2 2019 Q3 2019 Transitional rules SII standard model Equity -25% 164 12 176 Key tak
Slide 10: Storebrand Group
Storebrand Group Group Profit1 Q3 01.01-30.09 Full year NOK million 2019 2018 2019 2018 2018 Fee and administration income 1 296 1 246 3 746 3 710 5 011 Insurance result 268 316 782 1 009 1 291 Operational cost -979 -877 -2 938 -2 755 -3 786 Operating profit 586 685 1 591 1 965 2 516 Financial items
Slide 11: Storebrand Group
Storebrand Group Group Profit1 Q3 01.01-30.09 Full year NOK million 2019 2018 2019 2018 2018 Fee and administration income 1 296 1 246 3 746 3 710 5 011 Insurance result 268 316 782 1 009 1 291 Operational cost -979 -877 -2 938 -2 755 -3 786 Operating profit 586 685 1 591 1 965 2 516 Financial items
Slide 12: Storebrand Group
Storebrand Group Group Profit Q3 01.01-30.09 Full year NOK million 2019 2018 2019 2018 2018 Fee and administration income 1 296 1 246 3 746 3 710 5 011 Insurance result 268 316 782 1 009 1 291 Operational cost -979 -877 -2 938 -2 755 -3 786 Operating profit 586 685 1 591 1 965 2 516 Financial items
Slide 13: Savings (non-guaranteed)
Savings (non-guaranteed) Group Profit Q3 01.01-30.09 Full year NOK million 2019 2018 2019 2018 2018 Fee and administration income 957 905 2 764 2 703 3 709 Operational cost -643 -565 -1 929 -1 753 -2 405 Operating profit 314 340 834 950 1 303 Financial items and risk result life -11 -5 -18 -17 -46 P
Slide 14: Savings (non-guaranteed)
Savings (non-guaranteed) Group Profit Q3 01.01-30.09 Full year NOK million 2019 2018 2019 2018 2018 Fee and administration income 957 905 2 764 2 703 3 709 Operational cost -643 -565 -1 929 -1 753 -2 405 Operating profit 314 340 834 950 1 303 Financial items and risk result life -11 -5 -18 -17 -46 O
Slide 15: Savings (non-guaranteed)
Savings (non-guaranteed) Savings Reserves and premiums Unit Linked Comments1 4.1 4.1 4.2 4.2 4.2 207 11% growth Unit Linked reserves 198 187 191 8% growth in assets under management, 179 NOK 34bn in Q3 and NOK 61bn yoy BNOK Higher net interest margin in the bank Q3 2018 Q4 2018 Q1 2019 Q2 2019
Slide 16: Insurance
Insurance Insurance Profit Q3 01.01-30.09 Full year NOK million 2019 2018 2019 2018 2018 Insurance premiums f.o.a. 981 949 2 895 2 850 3 854 Claims f.o.a. -713 -633 -2 112 -1 841 -2 562 Operational cost -162 -136 -471 -438 -614 Operating profit 106 181 311 571 677 Financial result 21 33 58 80 71 Pro
Slide 17: Insurance
Insurance Insurance Combined ratio Comments Combined ratio and results Claims ratio Cost ratio Combined ratio 89% 90% 89% 89% 89% combined ratio, target ratio 90-92% 81% Good cost control 72% 74% 72% 73% Group life results improving, price increases under 67% implementation 14% 17% 16% 16% 17%
Slide 18: Guaranteed pension
Guaranteed pension Guaranteed Profit Q3 01.01-30.09 Full year NOK million 2019 2018 2019 2018 2018 Fee and administration income 384 369 1 108 1 107 1 440 Operational cost -199 -179 -594 -594 -816 Operating profit 185 190 514 513 624 Risk result life & pensions 30 91 144 134 191 Net profit sharing 2
Slide 19: Guaranteed pension - strong buffers and long term decline of products
Guaranteed pension Guaranteed - strong buffers and long term decline of products Reserves guaranteed products Comments 258 261 261 262 264 34 33 32 33 33 As companies convert to DC schemes, the migration from DB to paid up policies continues to 137 reduce fee income in Guaranteed pensions BNOK 133
Slide 20: Other
Other1 Other Profit Q3 01.01-30.09 Full year NOK million 2019 2018 2019 2018 2018 Fee and administration income 10 32 38 79 102 Operational cost -29 -58 -107 -148 -190 Operating profit -19 -25 -69 -69 -89 Financial items and risk result life 51 35 197 185 128 Profit before amortisation 32 10 128 116
Slide 21: Appendix
Appendix 21
Slide 22: Storebrand Life Insurance asset allocation
Storebrand Life Insurance asset allocation 60% 50% 40% 30% 20% 10% 0% Bonds at Money Real Equities Bonds amortized Other market estate cost 30.09.2018 8% 25% 3% 53% 11% 0% 31.12.2018 7% 27% 2% 52% 10% 0% 31.03.2019 8% 26% 3% 53% 10% 0% 30.06.2019 8% 26% 3% 52% 10% 0% 30.09.2019 9% 26% 2% 52% 10% 0%
Slide 23: SPP asset allocation
SPP asset allocation 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Alternative Bonds Equities investments 30.09.2018 12% 80% 8% 31.12.2018 13% 81% 6% 31.03.2019 13% 82% 5% 30.06.2019 13% 83% 5% 30.09.2019 12% 84% 4% Note: The graph shows the asset allocation for all products with an interest rate guarantee
Slide 24: Investor Relations contacts
Investor Relations contacts Lars Aa. Løddesøl Group CFO lars.loddesol@storebrand.no +47 9348 0151 Kjetil R. Krøkje Group Head of Finance, Strategy and M&A kjetil.r.krokje@storebrand.no +47 9341 2155 Daniel Sundahl Head of Investor Relations and Rating daniel.sundahl@storebrand.no +47 9136 1899 This