Storebrand Asa · OSL:STB
Storebrand Asa — Q4 2020 Earnings Presentation
25 slides from Storebrand Asa's earnings presentation, Feb 10, 2021
Slide 1: Storebrand Q4 2020
Storebrand Q4 2020 10 February 2021 Odd Arild Grefstad – CEO Lars Aa. Løddesøl – CFO
Slide 2: Highlights Q4 2020
Highlights Q4 2020 Group result1 #1 sustainable insurance company in the world4 2 711 278 Double digit growth in core business2 MNOK 1 225 298 2 433 926 178% Solvency margin3 Q4 2020 FY 2020 Financial items and risk result life NOK 3.25 proposed ordinary dividend5 Operating profit 2 1 Result before
Slide 3: Sustainable Nordic Savings and Insurance Group
Group Strategy Sustainable Nordic Savings and Insurance Group A B C Future Storebrand Leading Provider Growth focus in Nordic Powerhouse in Growing Challenger in Occupational Pensions capital-light business Asset Management Norwegian Retail Market Norway & Sweden areas in front book Strategic D Lead
Slide 4: Strong growth
Strong growth Unit Linked Asset management +22% +16% 268 ▪ 13% premium growth 962 ▪ NOK 52bn net inflow in 2020 220 831 of which 45bn from external ▪ NOK 20bn premium income clients ▪ NOK 5.4bn net transfers ▪ NOK 9bn inflow in Cubera in 2020 Q4 2019 Q4 2020 Q4 2019 Q4 2020 UL reserves (BNOK) AuM (B
Slide 5: Successful sales to external asset management clients drive asset growth
Successful sales to external asset management clients drive asset growth Group internal pension savings Norway and Sweden External institutional clients and direct retail (NOK bn) (NOK bn) 519 409 48 28 464 7 45 336 Q4 2019 Net Flow Return1 Q4 2020 Q4 2019 Net Flow Return1 Q4 2020 5 1) Including FX
Slide 6: Storebrand delivers strong returns in its investment offering
Storebrand delivers strong returns in its investment offering Norwegian Defined Contribution Pensions: 2020 return for selected active funds in the Storebrand Group Average return last 5 years compared to peers Annualised return (%) for the balanced Full year 2020 return (%) pension savings profile
Slide 7: Storebrand has defined intermediate targets towards net zero emissions in 2050, starting with 2025 targets
Storebrand has defined intermediate targets towards net zero emissions in 2050, starting with 2025 targets Asset class -32% reduction in scope 1-2 GHG emissions of Storebrand's targets total equity, corporate bond and real estate investments by 20251 Solution targets 15% of our total investments to
Slide 8: Key figures
Key figures Group Result development1 Earnings per share2 Financial items and risk result life Performance related result MNOK Special items Operating profit 2.13 1.90 1,225 1.68 1,026 1,012 808 298 319 340 217 1.23 228 251 599 703 709 0.82 456 265 -19 -31 -588 -11 -334 Q4 2019 Q1 2020 Q2 2020 Q3 20
Slide 9: Movement from Q3 2020 to Q4 2020
Movement from Q3 2020 to Q4 2020 Group Storebrand ASA, with transitional rules 3% 10% -2% 10% 179% 1% 178% -17% -6% Q3 2020 Model and Updated Interest rates Asset return and Q4 results Dividend ∆ Transitional Q4 2020 assumptions symmetric business mix equity stress 9
Slide 10: Movement from Q4 2019 to Q4 2020
Movement from Q4 2019 to Q4 2020 Group Storebrand ASA, with transitional rules +10 178% 176% +9% +8% -15% -10% Q4 2019 Interest rates Regulatory Model Result generation ∆ Transitional Q4 2020 and asset returns updated VA, UFR improvements net of dividend and symmetric and assumption equity stress ch
Slide 11: Solvency II position and sensitivities
Solvency II position and sensitivities Group Storebrand ASA Solvency position(%)1 Estimated sensitivities Target SII margin 150% 179 178 29 12 SII-ratio Q4 2020 166 12 178 166 Interest 150 rates -50bp 154 28 182 Interest Q3 2020 Q4 2020 rates +50 bp 176 0 176 Transitional rules SII standard model Eq
Slide 12: Storebrand Group
Storebrand Group Group Profit1 Q4 Full year NOK million 2020 2019 2020 2019 Fee and administration income 1 674 1 561 5 676 5 308 Insurance result 338 223 825 1 005 Operational cost -1 086 -1 077 -4 068 -4 015 Operating profit 926 707 2 433 2 298 Financial items and risk result life 298 319 278 739
Slide 13: Storebrand Group
Storebrand Group Group Profit1 Q4 Full year NOK million 2020 2019 2020 2019 Fee and administration income 1 674 1 561 5 676 5 308 Insurance result 338 223 825 1 005 Operational cost -1 086 -1 077 -4 068 -4 015 Operating profit 926 707 2 433 2 298 Financial items and risk result life 298 319 278 739
Slide 14: Savings (non-guaranteed)
Savings (non-guaranteed) Savings Profit Q4 Full year NOK million 2020 2019 2020 2019 Fee and administration income 1 336 1 233 4 392 3 996 Operational cost -704 -692 -2 611 -2 621 Operating profit 633 541 1 781 1 375 Financial items and risk result life 31 6 -51 -11 Profit before amortisation 664 54
Slide 15: Savings (non-guaranteed)
Savings (non-guaranteed) Savings Reserves and premiums Unit Linked Comments1 5.0 5.1 5.2 4.9 4.6 268 ▪ 13% growth in Unit Linked premiums. 252 235 ▪ 22% growth in Unit Linked reserves. 220 210 BNOK ▪ 16% growth in overall assets under management ▪ Lending growth increasing and net interest margin im
Slide 16: Insurance
Insurance Insurance Profit Q4 Full year NOK million 2020 2019 2020 2019 Insurance premiums f.o.a. 1 136 1 014 4 331 3 909 Claims f.o.a. -799 -792 -3 506 -2 904 Operational cost -194 -177 -712 -648 Operating profit 143 45 113 357 Financial result 32 25 91 83 Profit before amortisation 175 70 204 439
Slide 17: Insurance
Insurance Insurance Combined ratio Comments Combined ratio and results Claims ratio Cost ratio Combined ratio 124% ▪ 12% growth in premiums f.o.a. 96% 92% ▪ 87% combined ratio, better than target (90-92%). 88% 87% ▪ Strong cost control maintained with stable cost ratio at 17%. Cost increase from new
Slide 18: Guaranteed pension
Guaranteed pension Guaranteed Profit Q4 Full year NOK million 2020 2019 2020 2019 Fee and administration income 375 368 1 455 1 475 Operational cost -214 -225 -842 -819 Operating profit 161 143 614 657 Risk result life & pensions 15 71 17 215 Net profit sharing 211 118 144 157 Profit before amortisa
Slide 19: Guaranteed pension
Guaranteed pension Guaranteed Reserves guaranteed products Comments 272 274 277 277 263 30 30 30 30 ▪ Profit sharing in both Norwegian and Swedish products 33 ▪ Flat development in overall level of reserves in the quarter 142 143 145 145 BNOK 137 ▪ Increased buffer capital level to >11% in both Norw
Slide 20: Other
Other1 Other Profit Q4 Full year NOK million 2020 2019 2020 2019 Fee and administration income 23 13 65 51 Operational cost -34 -35 -139 -143 Operating profit -11 -22 -75 -91 Financial items and risk result life 9 99 76 296 Profit before amortisation -2 77 1 205 Profit per product line Q4 Full year
Slide 21: Q&A
Q&A Please follow the operator's instructions to ask questions in the conference call Group CFO Group CEO Group Head of Head of Strategy & Finance Investor Relations & Rating Lars Aa. Løddesøl Odd Arild Grefstad Kjetil R. Krøkje Daniel Sundahl 21
Slide 22: Appendix
Appendix 22
Slide 23: Storebrand Life Insurance asset allocation
Storebrand Life Insurance asset allocation 60% 50% 40% 30% 20% 10% 0% Bonds & Bonds at Equities Real estate Loans Money market amortised cost 31.12.2019 9% 10% 13% 15% 53% 31.03.2020 4% 11% 20% 14% 51% 30.06.2020 6% 11% 16% 15% 52% 30.09.2020 8% 10% 15% 14% 52% 31.12.2020 9% 11% 13% 15% 52% Note: Th
Slide 24: SPP asset allocation
SPP asset allocation 70% 60% 50% 40% 30% 20% 10% 0% Bonds & Money Equities Real estate Loans market 31.12.2019 12% 12% 61% 15% 31.03.2020 10% 12% 62% 16% 30.06.2020 11% 12% 59% 17% 30.09.2020 12% 12% 57% 18% 31.12.2020 13% 12% 57% 17% Note: The graph shows the asset allocation for all products with
Slide 25: Leading the way in sustainable value creation
Leading the way in sustainable value creation Investor Relations contacts Lars Aa Løddesøl lars.loddesol@storebrand.no Group CFO +47 9348 0151 Kjetil R. Krøkje kjetil.r.krokje@storebrand.no Group Head of +47 9341 2155 Finance & Strategy Daniel Sundahl daniel.sundahl@storebrand.no Group Head of +47 9