Storebrand Asa · OSL:STB
Storebrand Asa — Q3 2018 Earnings Presentation
26 slides from Storebrand Asa's earnings presentation, Oct 24, 2018
Slide 1: Storebrand Q3 2018
Storebrand Q3 2018 24 October 2018 Odd Arild Grefstad – CEO Lars Aa. Løddesøl – CFO
Slide 2: Storebrand Global Solutions
Storebrand Global Solutions - Investing in companies contributing to the UN Sustainable Development Goals ISIN NO0010657273 Storebrand Global Solutions • Management fee: 0,75 % • Fund size: 2,6 BN NOK • Fund benchmark: MSCI All Countries • Launch date: 1.October 2012
Slide 3: Highlights Q3 2018
Highlights Q3 2018 18% Unit Linked growth2 Group result1 16% AuM growth Asset Management2 853 168 MNOK 11% Retail Bank lending growth2 685 Q3 2018 169% Solvency II ratio3 Financial items and risk result life Operating profit 'A-' rating Storebrand Livsforsikring & Storebrand Bank4 3 1 Result before
Slide 4: Our strategy
Our strategy 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 position and clear - supported by market growth opportunities Insurance A. Cost discipline B. SII capital
Slide 5: Expected annual development purchasing power
Report on paid up polices: Positive direction, but proposals should have gone further Primary Target group Solves Does not solve Expected annual development purchasing power DCC not part of (fully or partly) the Active polices Arbitrage lapse risk for life Market limitations (lack of long contract u
Slide 6: Growth in Savings continues
Growth in Savings continues Unit Linked Asset management +18% +16% 187 Good relative returns vs. 725 Strong sales and returns 158 peers in Norwegian 626 drive growth Defined Contribution 31% annual growth in Norwegian Unit Linked Q3 2017 Q3 2018 Strong sales in Sweden Q3 2017 Q3 2018 UL rese
Slide 7: Skagen launches Norway's largest fund platform for ASK
Skagen launches Norway’s largest fund platform for ASK Approx. 600 funds – Norway’s largest fund platform for ASK 20-30 recommended funds – SKAGEN and Storebrand’s fund experts select the funds they think are the best in each category Switch to SKAGEN – Consolidate all your equity funds on one
Slide 8: Storebrand Global Multifactor – over NOK 20bn in AUM & 1.3% annual excess return
Storebrand Global Multifactor – over NOK 20bn in AUM & 1.3% annual excess return Assets under management 20.6 BNNOK 15.6 9.8 7.6 3.1 1.4 2013 2014 2015 2016 2017 2018 8
Slide 9: Awards
Awards Gajda – An interactive Chabot that talks pensions in a new exciting way with employees. Developed in cooperation with a group of large corporate customers. Interactive, quick, fun and intuitive. Through Available as a subscription service to all individually tailored information, 'Gajda' is t
Slide 10: Key figures
Key figures Group Result development1 Earnings per share2 Financial items and risk result life Special items Operating profit MNOK 1.77 1.69 931 1.56 853 1.46 618 812 1.33 773 147 15 168 177 149 167 40 792 596 635 645 645 -189 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q
Slide 11: Solvency movement from Q2 2018 to Q3 2018
Solvency movement from Q2 2018 to Q3 2018 Group Storebrand ASA 3% 169% +1.4% 166% 163% +3.2% -1.4% +0.1% Q2 2018 Model and Increased VA Market changes Operating Q3 2018 Transitionals Q3 2018 incl. assumptions and increased earnings* transitionals changes equity stress 11 * After proposed dividend
Slide 12: SII position Storebrand Group
SII position Storebrand Group Group Solvency position(%)1 Estimated sensitivities Target SII margin 150% 167 169 5 3 Estimated economic SII-margin Q3 2018 166 3 169 163 166 Interest rates -50bp 157 12 169 Interest rates +50 bp 170 3 173 Q2 2018 Q3 2018 Transitional rules SII standard model Equity -2
Slide 13: Storebrand Group
Storebrand Group Group Profit1 Q3 01.01-30.09 Full year NOK million 2018 2017 2018 2017 2017 Fee and administration income 1 246 1 116 3 710 3 240 4 771 Insurance result 316 320 1 009 885 1 146 Operational cost -877 -840 -2 755 -2 501 -3 490 Operating profit 685 596 1 965 1 624 2 427 Financial items
Slide 14: Storebrand Group
Storebrand Group Group Profit Q3 01.01-30.09 Full year NOK million 2018 2017 2018 2017 2017 Fee and administration income 1 246 1 116 3 710 3 240 4 771 Insurance result 316 320 1 009 885 1 146 Operational cost -877 -840 -2 755 -2 501 -3 490 Operating profit 685 596 1 965 1 624 2 427 Financial items
Slide 15: Savings (non-guaranteed)
Savings (non-guaranteed) Savings Profit Q3 01.01-30.09 Full year NOK million 2018 2017 2018 2017 2017 Fee and administration income 905 761 2 702 2 205 3 394 Operational cost -563 -443 -1 745 -1 337 -1 891 Operating profit 342 318 957 868 1 503 Financial items and risk result life -5 -4 -17 4 8 Prof
Slide 16: Savings (non-guaranteed) – strong volume growth
Savings (non-guaranteed) – strong volume growth Savings Reserves and premiums Unit Linked Comments 4.1 3.7 4.0 3.9 3.9 4% premium growth in UL premiums1 187 178 18% growth in UL reserves 172 168 158 11% retail lending growth2 BNOK 16% growth in assets under management3 Q3 2017 Q4 2017 Q1 201
Slide 17: Norwegian market for Defined Contribution
Norwegian market for Defined Contribution Market growth, AUM1 Comments NOK 212bn market AUM 212 +25% 179 NOK 26bn annual premiums 147 120 95 1.3 million policyholders 69 2012 2013 2014 2015 2016 2017 Storebrand market share of AUM Annual return last 3 years2 8,5 % 8,0 % 8,1 % 8,1 % 7,7 % 6,8 %
Slide 18: Insurance
Insurance Insurance Profit Q3 01.01-30.09 Full year NOK million 2018 2017 2018 2017 2017 Insurance premiums f.o.a. 949 993 2 850 2 904 3 872 Claims f.o.a. -633 -674 -1 841 -2 019 -2 726 Operational cost -136 -175 -438 -519 -711 Operating profit 181 145 571 366 435 Financial result 33 76 80 209 173 P
Slide 19: Insurance – good risk results
Insurance – good risk results Insurance Combined ratio Comments Combined ratio and results Claims ratio Cost ratio Combined ratio 93% Targeted combined ratio 90-92% 85% 81% 78% 81% Lower disability improves result 73% Fewer employees and one-off effects decrease cost ratio 68% 65% 62% 67% 18%
Slide 20: Guaranteed pension
Guaranteed pension Guaranteed Profit Q3 01.01-30.09 Full year NOK million 2018 2017 2018 2017 2017 Fee and administration income 369 380 1 107 1 108 1 483 Operational cost -181 -212 -602 -649 -889 Operating profit 188 169 506 459 595 Risk result life & pensions 91 9 134 49 67 Net profit sharing and
Slide 21: Guaranteed pension – reserves in long term decline and robust buffer situation
Guaranteed pension - reserves in long term decline and robust buffer situation Guaranteed Reserves guaranteed products Comments 262 264 259 258 258 36 36 34 34 34 As companies convert to DC schemes, the migration from DB to lower-margin paid up policies continues to reduce 128 128 132 133 133 fee
Slide 22: Other
Other1 Other Profit Q3 01.01-30.09 Full year NOK million 2018 2017 2018 2017 2017 Fee and administration income 32 19 79 63 83 Operational cost -58 -53 -148 -132 -188 Operating profit -25 -35 -69 -69 -105 Financial items and risk result life 35 30 185 209 161 Profit before amortisation 10 -5 116 140
Slide 23: Appendix
Appendix 23
Slide 24: Storebrand Life Insurance asset allocation
Storebrand Life Insurance asset allocation 60% 50% 40% 30% 20% 10% 0% Bonds at Money Equities Bonds amortized Real estate Other market cost 30.09.2017 7% 25% 4% 53% 11% 1% 31.12.2017 8% 24% 5% 52% 10% 1% 31.03.2018 7% 25% 5% 52% 10% 1% 30.06.2018 8% 25% 4% 52% 11% 1% 30.09.2018 8% 25% 3% 53% 11% 0%
Slide 25: SPP asset allocation
SPP asset allocation 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Alternative investments Bonds Equities 30.09.2017 10% 83% 6% 31.12.2017 12% 82% 6% 31.03.2018 13% 81% 7% 30.06.2018 12% 81% 7% 30.09.2018 12% 80% 8% Note: 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 Kjetil R. Krøkje Head of IR kjetil.r.krokje@storebrand.no +47 9341 2155 Daniel Sundahl IR Officer daniel.sundahl@storebrand.no +47 9136 1899 This document contains Alternative Performance Measures as de