Sampo Oyj · OMXHEX:SAMPO

Sampo Oyj — Nordea Life & Pensions — Investor Day (2015)

16 slides from Sampo Oyj's investor day presentation, 2015

  1. Slide 1: Nordea Life & Pensions and Solvency II

    Nordea Life & Pensions and Solvency II Snorre Storset Head of Nordea Life & Pensions

  2. Slide 2: Largest Life & Pension provider in the Nordic countries

    Largest Life & Pension provider in the Nordic countries - a business within Wealth Management MAIN FOCUS AREAS FINANCIALS, H115 VS H114 Finland & Sweden: Individual life savings and  Total income EUR 291m, up 13% risk-related products. Nordea Bank distribution  Operating expenses EUR 99m, down 4%

  3. Slide 3: Responding to market development

    Responding to market development Trends Strategic response Profitability (RoE) over Cost efficiency volume (GWP) Regulatory transformation Capital efficiency Low yield environment Product portfolio optimised Demographics and customer behaviour Bancassurance 3

  4. Slide 4: Delivered a turnaround – Strong starting point

    Delivered a turnaround – Strong starting point GWP DEVELOPMENT, EURbn COST DEVELOPMENT, EURm 10 000 90% 100% 87% 82% 90% 230 53% 60% 72% 80% 8 000 70% 220 43% 43% 50% 56% 60% 37% 40% 6 000 50% 210 8.5 40% 30% 7.6 200 220 6.7 30% 4 000 5.9 214 20% 5.7 20% 209 206 190 <200 10% 10% 2 000 0% 180 0% 2011

  5. Slide 5: Low cost growth through bancassurance

    Low cost growth through bancassurance BANK SOLD MARKET RETURN PROUCTS, COMMENTS GWP, EURbn +97%  Simplified product options  Automated processes 6.1 3.1 3.2 4.2 5.1  Deep integration with the Bank 2011 2012 2013 2014 H1-15 R12  Looking around the corner 5•

  6. Slide 6: Attractiveness of endowment products plays to our strengths

    Attractiveness of endowment products plays to our strengths PREMIUM DEVELOPMENT ENDOWMENTS, COMMENTS GWP, EURbn  Tax advantages reduced on private pension savings +314%  Tax effective savings need from increased longevity 3.9 4.6 1.5 1.5 3.0  Low yield environment 2011 2012 2013 2014 H1-15 R12m 

  7. Slide 7: Market Return Company also in terms of AuM

    Market Return Company also in terms of AuM AuM SPLIT BY PRODUCT CATEGORY, EURbn NET INFLOW SPLIT BY PRODUCT CATEGORY, EURbn 61 57 51 53 46 3.8 4.4 2.8 3.5 30 35 +136% 2.2 15 22 27 -1.0 -1.5 -1.8 -2.6 -2.8 31 30 26 27 26 -15% -15% 2011 2012 2013 2014 H1-15 2011 2012 2013 2014 H1-15 R12m MRP Trad 7•

  8. Slide 8: Strong growth in market return and risk profits

    Strong growth in market return and risk profits PRODUCT PROFITS, MARKET RETURN AND RISK, EURm +62% 275 237 199 Risk 170 MRP 2012 2013 2014 H1-15 R12m 8•

  9. Slide 9: Market position: Clear market leader in market return products

    Market position: Clear market leader in market return products LIFE & PENSIONS MRP MARKET SHARE 12 MONTHS ROLLING EST, Q1/15 1 Finland 25% Sweden 1 Norway 1 Denmark 3 11% 9% 6% 5% 4% 16% 4% -5% -3% 16% 24% Nordea Peer1 Peer2 Peer3 Peer4 Peer5 Growth in GWP vs Q1/14 Nordea estimates based on local in

  10. Slide 10: Significantly improved cost efficiency

    Significantly improved cost efficiency COST DEVELOPMENT, EURm COST/AuM, BPS 230 53% 60% 43% 43% 50% 220 37% 40% 210 48 40 38 35 30% 30 200 220 214 20% 2011 2012 2013 2014 2015 209 206 190 H1 <200 10% 180 0% 2011 2012 2013 2014 2015F Total costs C/I COST/GWP, % 4.0 4.1 3.2 2.7 2.5 2011 2012 2013 2014

  11. Slide 11: Solvency II considerations

    Solvency II considerations Business driven Regulatory driven Attractive new market return and risk business  Volatility adjustment in DK, NO  No use of matching adjustment Disciplined risk management of legacy traditional business – Liability Driven Investments  Transitional on technical provisio

  12. Slide 12: Meet Solvency II requirements without equity capital injection

    Meet Solvency II requirements without equity capital injection EXPECTED CAPITAL POSITION ENTERING KEY SENSITIVITIES* SOLVENCY II +7% 15 15 4 12 15 8 12 Planned business 12 actions 12 Transitional IR EQ measures ±50 - 25% Volatility bps 149 133 adjustment 114 Base incl target level of sub-debt -10% -

  13. Slide 13: Room to optimise investment strategy further

    Room to optimise investment strategy further CURRENT SCR COMPOSITION COMMENTS 1% 1% 2%  ~3/4 of SCR comes from market risks 22%  Gives room to optimize further through re-allocation and hedging 74%  ~15% improvement by year-end possible with current plans  Reduces balance sheet volatility Market

  14. Slide 14: Business model supporting future dividend capacity

    Business model supporting future dividend capacity CAPITAL REQUIREMENT VS CONTRIBUTION, COMMENTS EURm  Dividends paid: EUR 300m in 2013, EUR 220m 2014  Self-financing growth in market return and risk products Trad MRP  Capital release from run-off Solvency capital requirement traditional book Rec

  15. Slide 15: Continue to improve quality of Life

    Continue to improve quality of Life Strong platform RoE 18% in 2018 by Next generation product offering Market return company fuel growth Low cost growth through Life business platform efficiency bancassurance improve further Solvency II optimised business Competitive product offering model/strategy

  16. Slide 16: Nordea Life & Pensions and Solvency II

    Nordea Life & Pensions and Solvency II Snorre Storset Head of Nordea Life & Pensions

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