Storebrand Asa · OSL:STB
Storebrand Asa — Q1 2008 Earnings Presentation
61 slides from Storebrand Asa's earnings presentation, Apr 30, 2008
Slide 1: Results 1st Quarter 2008 Analyst Presentation
Storebrand Results 1st Quarter 2008 April 2008 Analyst presentation Analyst Presentation 1st Quarter 2007 Page # Slide # • Storebrand Group Group CEO Idar Kreutzer 2-11 3-22 Back-up: • Storebrand Group 12-18 23-36 • Storebrand ASA 19-20 37-40 • Storebrand Life Group 21-25 41-50 • Storebrand Life Ins
Slide 2: Highlights Q1 2008
Storebrand Results Q1 2008 30 April 2008 Idar Kreutzer Group CEO Highlights Q1 2008 Group result of NOK 535 million Positively affected by new life insurance regulation and IFRS effects totaling close to NOK 200 million Growth in premiums Integration of SPP according to plan Bridge financing extende
Slide 3: Storebrand Group and Storebrand Livsforsikring AS - new reporting format
Storebrand Group Q1 Annual Mill. Kroner 2008 2007 2007 Storebrand Liv (excl SPP) 385 272 1.635 SPP 63 na na Storebrand Investments 48 31 138 Storebrand Bank 51 79 235 Other -12 7 12 Group profit 535 389 2.020 Amortization* -133 Pre-tax profit 402 389 2.020 *Amortization of intangible assets 5 Storeb
Slide 4: Storebrand Livsforsikring AS - Norwegian business
Storebrand Livsforsikring AS - Norwegian business Common portfolio Corporate portfolio 16 % 4% Shares 8% 37 % 2% Bonds Hold to maturity 8% 16 % Real Estate 4% 29 % Alpha 0% Money market 17 % 10 % Other 18 % 31 % Value adjusted -1,6% 0,0% return (YTD) Booked return 0,7% - (YTD)* Interest rate 3,5% -
Slide 5: Growth in premium income; SPP incl. Euroben new reporting format
Storebrand Livsforsikring AS - growth in premium income 12 month rolling premium income* 18 +25% 15 12 NOK bn 9 6 3 0 Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 9 * Premium income ex transfers SPP incl. Euroben - new reporting format Guaranteed Unit Euroben Corporate Total NOK mill. products Linked portfolio* Ad
Slide 6: SPP incl. Euroben - allocation guaranteed portfolios and new investment strategy
SPP incl. Euroben – allocation guaranteed portfolios Common portfolio Euroben Bonds and money 1% 3% 0%0% market instruments 32 % 20 % Shares Real Estate 64 % Other 80 % Value adjusted - 3,9% NA return (YTD) Interest rate 2,5% - 5,2% NA guarantee p.a. AuM NOK 69,1 bn NOK 8,0 bn Conditional bonus NOK
Slide 7: SPP - good growth in premiums and integration according to plan
SPP incl. Euroben - good growth in premiums 12 month roling premium income 8 +11% 50% increase in new sales 6 12.5% market share of NOK bn 4 new sales in 2007 Increased sales through 2 all channels 0 Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 * Premium income ex transfers 13 SPP - integration according to plan J
Slide 8: Storebrand Investments - sound result
Storebrand Investments - sound result Q1 Annual NOK mill. 2008 2007 2007 Total income 85 90 331 Total costs -59 -65 -258 Net financial and other 21 6 66 Profits before taxes 48 31 138 Good cost control Net finance/other includes NOK 13.6 million from real estate management Low performance related fe
Slide 9: Storebrand Bank - higher net interest margin
Storebrand Bank - higher net interest margin Q1 2008 Annual NOK mill 2008 2007 2007 Net interest income 126 93 413 Net fee and commission income 18 11 58 Other operating income 17 12 46 Total income 160 115 517 Operating expenses -111 -81 -360 Operating profit before losses 50 35 157 Loan loss provi
Slide 10: Storebrand Helse - solid growth; Financing
Storebrand Helse - solid growth Premium income: +22 % 55% of sales in Sweden 8 000 new customers in Q1 70 000 customers in total Dagbladet 08.02.08 19 Financing Bridge loan extended until March 2009 65bp + 20bp on extension Will be replaced by long term subordinated debt Storebrand ASA has strengthe
Slide 11: Summary
Summary Satisfactory development in results in challenging markets Good premium growth Integration of SPP proceeding according to plan New reporting format 21 Storebrand's objective is to be the leading and most respected institution in the Nordic market for long-term savings and insurance 22 11
Slide 12: Storebrand Group - IFRS accounting
Storebrand Group IFRS accounting Storebrand ASA’s group accounts are presented in accordance with the International Financial Reporting Standards (IFRS) approved by the European Union. 24 12
Slide 13: Group profit by sub-group; Operating Profit
Storebrand Group Group profit by sub-group Q1 01.01. - 31.12 NOK million 2008 2007 2007 Life activities 448 272 1 635 Investment activities 48 31 138 Storebrand Bank 51 79 235 Other activities -12 7 12 Group profit 535 389 2 020 Amortization intangible assets -133 Group profit after amortization bef
Slide 14: Operating Profit; Earnings per share
Storebrand Group Operating Profit Q1 01.01. - 31.12 NOK million 2007 2007 Net premiums - insurance 6 335 19 744 Interests income 93 413 Financial income 3 384 12 407 Other income 168 834 Operating income 9 979 33 397 Insurance benefits, reserve allocations -7 477 -27 620 Interests costs - 66 - 318 L
Slide 15: Storebrand Group Balance sheet
Storebrand Group Balance sheet Andel Share of NOK million 31.3.08 totalt assets Intangible assets- company 10 557 3% Shares in associated companies - company 154 0% Loans - company 38 190 10 % Bonds held to maturity - company 23 191 6% Other assets - comapny 23 519 6% Bonds held to maturity - custom
Slide 16: Capital adequacy; Group profit by sub-group
Storebrand Group Capital adequacy Minimum Net Primary Capital Net Primary Capital Ratio NOK million 31.03.2008 Capital 31.03.08 31.03.08 31.12.07 Storebrand ASA 1 373 15 196 88,5 % 89,4 % Storebrand Life insurance 10 299 12 889 10,0 % 10,0 % Storebrand Non-life insurance 12 155 102,0 % 135,4 % Store
Slide 17: Other activities; Shareholder structure
Storebrand Group Other activities Q1 01.01.-31.12 NOK million 2008 2007 2007 Storebrand ASA 1) 661 1.052 1.057 Storebrand Skadeforsikring -6 -14 -18 2) Other companies/elimintations -668 -1.031 -1.027 Total profit other activities -12 7 12 Amortization intangible assets -2 Profit other activities af
Slide 18: Rating for Storebrand; Key figures
Rating for Storebrand as at April 30 2008 Storebrand ASA Moody’s: Baa2 (S) S&P: BBB+ (N) Storebrand Storebrand Livsforsikring AS Bank ASA Moody’s: A2 (S) Moody’s: A2 (S) S&P: A (N) S&P: BBB+ (P) P=positive outlook, S=stable outlook, N=negative outlook 35 Storebrand Group Key figures Q1 01.01.- 31.12
Slide 19: Storebrand ASA Profit for the year
Storebrand ASA Storebrand ASA Profit for the year *) Q1 01.01 - 31.12 NOK million 2008 2007 2007 Group contributions and transfers 672 1 033 1 033 Interest income 106 19 117 Interest expense - 91 - 23 - 114 Realised/unrealised gains/losses on securities -7 44 85 Other financial income/costs 1 -1 2 N
Slide 20: Storebrand ASA quarterly development and balance sheet
Storebrand ASA Quartely development 2.008 2.007 2006 NOK million Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Group contributions and transfers 672 0 0 0 1 033 0 0 0 Interest income 106 41 28 30 19 18 18 21 Interest expense - 91 - 37 - 28 - 26 - 23 - 22 - 20 - 18 Realised/unrealised gains/losses on securities -7 2 -5 44
Slide 21: Storebrand Life Group - Result per line of business
Storebrand Life Group Storebrand Life Group - Result per line of business Q1 Full year NOK mill. 2008 2007 2007 Storebrand Livsforsikring AS 382 269 1 622 SPP Group 63 Other subsidiaries (inclusive Storebrand Helse) 4 3 13 Profit life group before amortisiation cost 448 272 1 635 Amortisation -122 P
Slide 22: Storebrand Life Group Profit analysis
Storebrand Life Group Profit and loss Q1 Full year NOK Million. 2008 2007 2007 Premiums written 8 986 5 434 16 578 Net transfers of premium reserve 2 193 384 1 056 Net income of financial investments 3 272 11 932 Net income of common portfolio -5 210 Net income of investment choise portfolio -4 362
Slide 23: Result per line of business 1Q 2008; Satisfactory solidity
Storebrand Livsforsikring - per line of business 1Q 2008 Storebrand SPP Other Total NOK Millon LivsforsikringGroup AS Group Group Interest result -288 -70 -358 Administration result -101 17 -84 Risk result 221 71 292 Other results 93 45 83 222 Profit before additional statutory allocations -74 63 83
Slide 24: Solvency margin and capital adequacy; Balance sheet
Storebrand Life Group Solvency margin and capital adequancy Solvency margin Solvency margin NOK Million capital requirement Solvency margin Storebrand Life Group 13 517 10 324 130,9 % Storebrand Livsforsikring AS 21 906 6 785 322,9 % SPP Group 5 638 3 439 163,9 % Eligible Risk weighted subordinatede
Slide 25: Life Group Balance sheet (continued)
Storebrand Life Group Balance sheet (continued) Share of Share of total assets total assets NOK Million 31.03.08 31.03.08 31.12.07 31.12.07 Equity 15 578 5% 15 748 5% Minority interests' share in equity 157 0% 136 0% Subordinated loan capital 9 017 3% 8 814 3% Market value adjustment reserve 0 0% 3
Slide 26: Storebrand Livsforsikring AS (Norwegian Activities) Highlights
Storebrand Livsforsikring AS (Norwegian Activities) Storebrand Livsforsikring AS (Norwegian Activities) – Highlights as at 31.03.2008 The new insurance act and regulations came into force on 1 january 2008.The new act entails considerable changes for life insurance companies. The interest result los
Slide 27: Storebrand Livsforsikring AS - Profit analysis
Storebrand Livsforsikring AS - Profit analysis Q1 Full year NOK Million 2008 2007 2007 Interest result -288 870 7 887 Administration result -101 -135 -669 Risk result 221 80 244 Other results 173 -14 -3 042 Profit before additional statutory allocations 6 801 4 420 From additional statutory allocati
Slide 28: Storebrand Livsforsikring AS - Insurance fund reserves
Storebrand Livsforsikring AS - Insurance fund reserves Q1 Full year NOK Million 2008 2007 2007 Premium reserve, premium fund etc. for own account 164 369 149 766 159 222 Additional statutory allocations 5 355 5 550 5 757 Insurance fund reserves for own account 169 723 155 316 164 979 Security reserv
Slide 29: Storebrand Livsforsikring AS - Asset allocation
Storebrand Livsforsikring AS - Asset allocation Q1 Full year NOK million 2008 2007 2007 Equity Norwegian *) 10 503 9 496 10 977 Equity Foreign *) 30 901 39 181 40 916 Real Estate 22 670 18 247 22 262 Money market 18 336 9 626 11 880 Bonds held to maturity 40 154 41 284 40 380 Bonds 47 305 44 110 45
Slide 30: Norwegian business; Policyholders' solidity capital
Storebrand Livsforsikring AS - Norwegian business Common portfolio Paid up policies & Individual 16 % 4% Shares 8% 37 % 2% Bonds Hold to maturity 8% 16 % Real Estate 4% 28 % Alpha 0% Money market 16 % 10 % Other 20 % 31 % Value adjusted -1,4% -1,9% return (YTD) Booked return 0,6%* 0,8% (YTD)* Intere
Slide 31: Policyholders' solidity capital; Unrealised gains
Storebrand Livsforsikring AS - Policyholders’ solidity capital Individual Group policies and NOK million pension paid-up policies Total Additional statutory allocations 2.453 2.902 5.355 Market value adjustment reserve - - - Profit carried forward - - - Total 2.453 2.902 5.355 61 Storebrand Livsfors
Slide 32: Profit sharing (finance result); Premiums excl. reserves transferred
Storebrand Livsforsikring AS - profitt sharing (finance result) NOK million 2.000 1.500 1.000 Result to owner 500 - Booked return -1 % 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10 % (500) (1.000) (1.500) (2.000) The graph gives an indication of the financial result to owner given different booked returns. In ad
Slide 33: Net transfers of premium reserves in NOK million
Storebrand Livsforsikring AS -Net transfers of premium reserves in NOK million Q1 Full year NOK Million 2008 2007 2007 Premium reserves recieved Group pensions 3 205 850 2 870 Individual life insurance 49 22 215 Unit Linked 41 73 195 Total 3 294 945 3 279 Premium reserves transferred Group pensions
Slide 34: New premiums APE and yearly premium
Storebrand Livsforsikring AS - new premiums APE Q1 Full year NOK mill 2008 2007 2007 Common portfolio, Individual, Paid up Policies 575 na 890 Defined Contribution and Unit Linked 151 na 248 Risk products 39 na 49 SUM 765 na 1.187 New premiums consist of new sales and increased sales on existing con
Slide 35: New single premiums
Storebrand Livsforsikring AS – new single premiums Q1 Full year NOK mill 2008 2007 2007 Common portfolio, Individual, Paid up Policies 4.078 na 4.958 Defined Contribution and Unit Linked 355 na 512 Risk products - na - SUM 4.433 na 5.470 Single premiums consist of new sales and increased sales on ex
Slide 36: SPP (Swedish activities) Highlights as at 31.03.2008
SPP (Swedish activities) SPP including Euroben – Highlights as at 31.03.2008 Good administration and risk results Difficult financial markets contributes to a negative financial result New Investment Strategy approved Sales up 50% from Q1 2007 Premium income up 12% since Q1 2007 72 36
Slide 37: SPP including Euroben - Result
SPP including Euroben - Result Q1 Full year NOK million 2008 2007 2007 Adm. Result 17 26 101 Risk result 71 15 186 Financial result -69 -10 -372 Other 46 87 278 Result SPP 64 118 192 73 SPP including Euroben - Result pr line of business Guaranteed Unit Euroben Company Sum NOK million products Linked
Slide 38: SPP including Euroben - Administration result and Risk result
SPP including Euroben - Administration result Q1 Full year NOK million 2008 2007 2007 Fee income 186 178 747 Other income 20 17 83 Net fee and commission 7 11 32 Total income 213 206 862 Provision cost 1 -11 -58 Operating expence -197 -169 -703 Total cost -196 -180 -761 Administration result 17 26 1
Slide 39: SPP including Euroben - Finance result
SPP including Euroben - Finance result Q1 Full year NOK mill. 2008 2007 2007 Profit sharing 3 NA 17 Change in conditional bonuses 0 NA 0 Change in deffered capital contribution -817 NA 350 Hedge result 733 NA -601 Other 12 NA -138 Financial resut -69 NA -372 77 SPP including Euroben - Financeresult
Slide 40: SPP including Euroben - Other income and Claims reserves
SPP including Euroben - Other income Q1 Full year NOK million 2008 2007 2007 Return on company portfolio 69 105 357 Interest cost subordinated debt -23 -18 -79 Other result 46 87 278 79 SPP including Euroben - Claims reserves Q1 Full year NOK million 2008 2007 2007 Claims reserves 89.961 84.359 91.7
Slide 41: Claims reserves per line of business; Company portfolio
SPP including Euroben - Claims reserves pr line of business Guaranteed Unit Euroben Sum NOK million products Linked Claims reserves 60.857 23.298 5.806 89.961 Conditional bonuses 6.192 0 1.999 8.191 Deffered capital contribution 1.956 0 5 1.961 Other 1.422 0 57 1.479 Total claims reserves 70.427 23.
Slide 42: Asset allocation per line of business
SPP including Euroben - asses allocation pr line of business Guaranteed Unit Euroben Sum NOK million products Linked Swedish Equity 7.367 0 747 8.114 International Equity 13.585 0 964 14.549 Nominall Bonds 37.452 0 6.647 44.099 Real interest Bonds 6.041 0 0 6.041 Real estate 359 0 0 359 Other 1.772
Slide 43: SPP Group - Balance sheet
SPP Group - Balance sheet Share of total assets NOK millions 31.03.08 31.03.08 Intangible assets 9.668 7,0% Longterm shares an interest from group companies 136 0,1% Shares 7.299 5,3% Bonds 62.455 45,0% Assets - Unit link 23.298 16,8% Other financial assets 30.712 22,1% Other assets 523 0,4% Discont
Slide 44: Profit sharing in guaranteed business; Premium income
SPP including Euroben - profit sharing in guaranteed business 1.000 800 600 MSEK 400 200 0 2,4 3,4 4,4 5,4 6,4 7,4 8,4 9,4 Return % The graph shows an expected financial result to owner, given different yields. The graph does not take into account other results elements as administration result, ris
Slide 45: New subscription APE and yearly premium
SPP including Euroben - New subscription APE Q1 Full year NOK million 2008 2007 2007 Guaranteed products 94 90 278 Unit Link 134 86 295 Euroben 36 2 214 Total 265 178 786 New premiums consist of new sales and increased sales on existing contracts with subtractions for contracts where premiums isn't
Slide 46: New subscription - single premiums
SPP including Euroben - New subscription – single premiums Q1 Full year NOK million 2008 2007 2007 Guaranteed products 273 345 1.181 Unit Link 33 31 136 Euroben 159 16 824 Total 465 392 2.141 Single premiums consist of new sales and increased sales on existing contracts, with subtractions for contra
Slide 47: Storebrand Investments Highlights Q1
Storebrand Investments Storebrand Investments Highlights Q1 Profit before tax NOK 48 million compared to NOK 31 million 1 th quarter last year. Strong operating profit margin, due to good cost control. Reduction in assets under management in mutual fund due to distress in the financial markets resul
Slide 48: Profit before tax; Profit development
Profit before tax Q1 2008 Q1 01.01-31.12 NOK million 2008 2007 2007 Total income 85 90 331 Total costs -59 -65 -258 Net financial income/ other 21 6 66 Profit before tax 48 31 138 The decline in total income can be ascribed to a reduction in volume related income. Performance related income is stabl
Slide 49: Profit development; Strong development in operating profit
Profit development NOK million 500 480 460 440 420 Cost/income ratio 62 percent1 400 as of Q1 (65 percent1 as of Q4, 407 380 63% as of Q1 2007). 360 340 The increase in income is 320 related to good results in 300 Storebrand Eiendom and stable 280 64 260 revenue from Storebrand 67 253 240 Investment
Slide 50: Contribution to Storebrand Life portfolio year to date
Contribution to Storebrand Life portfolio year to date Relative performance Equity Norway -15,2 % 0,6 % -15,8 % Equity Global Qvant -17,6 % -2,7 % -14,9 % Equity Europe L/S** 0,9 % -0,2 % 1,0 % Equity Technology L/S** -10,1 % -11,1 % 0,9 % Equity Energy L/S** -4,5 % -5,4 % 0,9 % Equity Finance L/S**
Slide 51: Market share Norwegian registered mutual funds
Market share Norwegian registered mutual funds Equity funds market in Norway All mutual funds (market share in %) Norwegian equity funds exceed 7,2 6,8 6,9 6,5 7,4 Nordea NOK 203 billion in assets under 12,8 12,9 11,6 9,2 8,4 Odin management. 16,5 18,0 19,1 19,5 19,3 Skagen The overall market consis
Slide 52: Assets under management
Storebrand Investments Assets under management Total assets under management 3 billion increase in assets NOK billion under management in Q1 227 230 2008 217 205 29,7 27,1 Assets under management in 24,6 20,3 32,2 the in the discretionary 28,0 165 29,4 30,3 portfolio has increased 4 15,8 20,0 25,6 2
Slide 53: Storebrand Bank Group Highlights Q1 2008
Storebrand Bank Storebrand Bank Group Highlights Q1 2008 Storebrand Bank achieved a group profit before tax of NOK 44 million for Q1. Positive development in net interest income with growth of 36 per cent since Q1 2007. The continuing growth in customer numbers, re-pricing of the lending portfolio a
Slide 54: Profit and loss; Quarterly development
Profit and loss Q1 Full Year NOK million 2008 2007 2007 Net interest income 126 93 413 Net fee and commission income 18 11 58 Other operating income 17 12 46 Total income 160 115 517 Operating expenses -111 -81 -360 Operating profit before losses 50 35 157 Loan loss provisions 1 45 78 Profit before
Slide 55: Balance sheet; Development in loan portfolio
Balance sheet Share Share Nok million 31.03.08 31.03.08 31.12.07 31.12.07 Cash and deposits with central banks 529 1,2 % 1 062 2,5 % Loans to and deposits with credit institutions 657 1,5 % 374 0,9 % Financial assets designated at fair value through p&l 3 058 7,2 % 3 022 7,2 % Net lending to custome
Slide 56: Development in customer deposits and non-performing loans
Development in customer deposits NOK mill. 20 52 % 18 Customer deposits have 50 % 16 been increased by NOK 14 48 % 1,5 bn in Q1 12 10 46 % 8 Deposits / gross lending 44 % 6 was 50% at the end of 4 Q1 2 42 % 0 40 % Q1 06Q2 06Q3 06Q4 06Q1 07Q2 07Q3 07Q4 07Q1 08 Customer deposits Deposits/gross lending
Slide 57: Capital adequacy; Retail Customers
Capital adequacy Requirement for capital Net primary base capital Capital ratio (NOK million) (NOK million) 31.03.2008 31.12.2007 1 868 2 651 11.4% 10.5% Note: Storebrand Bank Group 113 Retail Customers 75.000 70.000 65.000 60.000 stk 55.000 50.000 45.000 40.000 4 5 6 7 4 5 6 7 4 5 6 'O 7 'A 4 'A 5
Slide 58: Balance sheet Storebrand Kredittforetak AS
Balance sheet Storebrand Kredittforetak AS NOK million 31.03.2008 31.12.2007 Loans to and deposits with credit institutions 80.6 Financial assets designated at fair value through profit and loss 165.1 Net lending to customers 6 443.2 Other assets 47.4 Total assets 6 655.7 80.6 Liabilities to credit
Slide 59: Storebrand Non-Life Highlights Q1 2008
Storebrand Non-life Non-Life Highlights Q1 2008 Storebrand Non-Life reports an operating loss of NOK 6 million in Q1 (loss of NOK 14 million) Operating profit in SB Skadeforsikring AS was NOK 4 million (loss of NOK 13 million). Q1 earnings were positively affected by a dividend from Oslo Re of NOK 2
Slide 60: Non-Life Group Profit and loss; Balance sheet
Non-Life Group Profit and loss Q1 Full year NOK million 2008 2007 2007 Storebrand Skadeforsikring AS 4 -13 -34 Oslo Reinsurance Company ASA (run-off) 10 -1 17 Eliminations -20 0 0 Operating result non life insurance -6 -14 -18 Change in insurance funds -2 0 10 Pre tax result non life business -8 -14
Slide 61: Oslo Reinsurance Company Profit and loss; Balance sheet
Oslo Reinsurance Company Profit and loss Q1 Full year NOK million 2008 2007 2007 Premiums for own account 1 1 2 Claims for own account 13 -5 -4 Insurance related operating costs -8 -5 -21 Financial income 3 5 32 Other income/costs 1 2 7 Operating result 10 -1 17 Changes in security reserve etc. - -