Storebrand Asa · OSL:STB

Storebrand Asa — Q1 2012 Earnings Presentation

23 slides from Storebrand Asa's earnings presentation, May 3, 2012

  1. Slide 1: Storebrand Result Q1 2012

    Storebrand Result Q1 2012 3 May 2012 Idar Kreutzer – CEO Lars Aa. Løddesøl – CFO/COO

  2. Slide 2: Highlights Q1 2012

    Highlights Q1 2012 RESULT  Group result NOK 667 mill in Q1  SPP result contribution of NOK 355 mill  11% premium growth and 85% combined ratio in Storebrand Insurance OPERATIONS  Strong returns to life and pensions customers  Assets under management increased by 12 bn  SPP : No 1 unit linked p

  3. Slide 3: Storebrand Group

    Storebrand Group Q1 Full year NOK mill. 2012 2011 2011 Storebrand Life Insurance 197 156 481 SPP 355 265 291 Asset management 31 77 293 Bank 56 51 213 Insurance 89 33 280 Storebrand ASA / other -61 -66 -278 Group Profit 667 516 1 279 Amortisation and write-downs of intangible assets -95 -100 -394 Pr

  4. Slide 4: Storebrand Life Insurance - Increased result contribution from DC

    Storebrand Life Insurance - Increased result contribution from DC  Strong customer returns Q1 Full year NOK mill. 2012 2011 2011  Longevity reservation covered by excess investment returns in Q1 Administration result 20 20 101  New mortality tables may increase future reservation for longevity Ri

  5. Slide 5: Storebrand Life Insurance - strong investment returns to life and pensions customers

    Storebrand Life Insurance - strong investment returns to life and pensions customers 7% 6,9 % 6,6 % 6,3 % 5,9 %  DC - increased result contribution 6% 5,8 % 5,3 %  New industry standard for 5% reporting returns in line with Storebrand’s historic reporting 4%  17% increased DC premiums 3%  Market

  6. Slide 6: SPP - improved financial result

    SPP - improved financial result Q1 Full year  Increased revenues and strict cost NOK mill. 2012 2011 2011 control Administration result  Indexation fee of NOK 27 million 41 31 99 Risk result 45 75 289  Increased buffer capital by NOK 1 bn Financial result 215 121 -226  Solvency ratio 226% Other

  7. Slide 7: SPP - transformation continues

    SPP - transformation continues Premium income 2008-20111) Administration result 2008-2011 MNOK MNOK 3900 150 3700 100 3500 3300 50 3100 0 2900 2008 2009 2010 2011 2700 -50 2500 2008 2009 2010 2011 -100 Guaranteed products Unit linked -150 1) Excluding transfers 7

  8. Slide 8: Asset Management - AuM increased by 12 bn in Q1

    Asset Management - AuM increased by 12 bn in Q1 Q1 Full year  Accrual effects negatively impact NOK mill. 2012 2011 2011 result with 10 mill in Q1 Operating revenue 164 166 684  Investment returns in excess of benchmarks Operating cost -128 -118 -481  Performance fees booked at year Operational r

  9. Slide 9: Asset Management

    Asset Management Portfolio manager of the year Consistent outperformance  All Norwegian equity mutual funds have produced strong relative returns since initiation  ‘Aksje Innland’ outperformed OSEBX every year last 12 years Morningstar Fund Award 2012  ‘Storebrand Vekst’ best ‘Storebrand Vekst’ –

  10. Slide 10: Bank - stable development

    Bank - stable development Full Q1 year  Low loan losses NOK mill. 2012 2011 2011 Net interest income 113 116 443  Launched new internet Net fee and commission income 16 20 73 bank and mobile bank app Other operating income 15 15 32 Total income 144 150 548 Operational cost -94 -95 -345 Profit befo

  11. Slide 11: Storebrand Insurance - consistent result improvement

    Storebrand Insurance - consistent result improvement Full Q1 year NOK mill. 2012 2011 2011  11% premium increase Premiums earned, net1 470 424 1 807  19% cost ratio Claims incurred, net -312 -335 -1 314 Operation costs excl  66% claims ratio -86 -80 -332 amortization Insurance result 72 10 161 

  12. Slide 12: Group – operational reporting

    Storebrand Group – operational reporting 2012 2011 Full year NOK mill. Q1 Q4 Q3 Q2 Q1 2011 Fee and administration income 1 016 973 989 996 994 3 952 Operational cost -720 -732 -675 -690 -703 -2 800 Fee and administration result 296 241 314 305 291 1 152 Risk and insurance 185 243 192 143 108 686 Hol

  13. Slide 13: Key figures

    Key figures Result development Earnings per share1 NOK mill. Net profit sharing and loan losses 1.38 1.24 Result before profit sharing and loan losses 667 1.10 516 545 268 211 173 120 343 425 398 404 455 -136 0.21 -447 -49 -0.15 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q1 2011 Q2 2011 Q3 2011 Q4 2011

  14. Slide 14: Storebrand Life Insurance

    Storebrand Life Insurance Defined Individual Group contri- and paid- defined bution and up Company Result Result Full year NOK mill. benefit * unit linked* policies** BenCo portfolio Q1 2012 Q1 2011 2011 Administration result -14 18 5 11 0 20 20 101 Risk result 29 5 16 0 0 54 0 117 Financial result1

  15. Slide 15: Life Insurance - new mortality tables expected

    Storebrand Life Insurance - new mortality tables expected  Storebrand assessment Booked return needed to cover reservation  Should be aligned with Government Law commission work on new pension product Years to complete reservation 7 3.8% 4.1% 4.3%  Should be implemented with Solvency II  Reservi

  16. Slide 16: Life Insurance - increased allocation to bonds at amortised cost

    Storebrand Life Insurance - increased allocation to bonds at amortised cost 50 % 45 % 40 % 35 % Allocation (%) 30 % 25 % 20 % 15 % 10 % 5% 0% Bonds at Equities Bonds Money market Real estate Alpha Other amortised cost 30.06.2011 17 % 22 % 6% 34 % 16 % 2% 4% 30.09.2011 12 % 22 % 8% 37 % 17 % 2% 4% 31

  17. Slide 17: Life Insurance - return by asset class and main portfolios

    Storebrand Life Insurance - return by asset class and main portfolios Return by asset class Q1 2012(%) Return Defined Benefit portfolios Value Booked Equity adjusted Returns proportion Real estate 0.7 returns (Q1) (Q1) (Q1) DB - High 3.1% 0.9% 24% Bonds at 0.8 DB - Balanced 2.8% 0.9% 20% amortised c

  18. Slide 18: SPP - financial result NOK 215 mill

    SPP - financial result NOK 215 mill Result development compared to disclosed sensitivities 4Q 4Q 2011 Anticipated development 1Q 2012 Actual development +8,3% +5 bps ~45 NOK mill ~5 NOK mill ~70 NOK mill ~ 0 NOK mill +35 bps -40 bps ~20 NOK mill ~145 NOK mill ~35 NOK mill ~125 NOK mill ~-20 NOK mill

  19. Slide 19: SPP - asset allocation guaranteed products

    SPP - asset allocation guaranteed products 90 % 80 % 70 % 60 % Allocation (%) 50 % 40 % 30 % 20 % 10 % 0% Equities Bonds Other 30.06.2011 27 % 66 % 7% 30.09.2011 12 % 81 % 8% 31.12.2011 12 % 81 % 8% 31.03.2012 17 % 75 % 8% Asset allocation guaranteed products SPP AuM NOK 80 bn1 1 The graph shows the

  20. Slide 20: The road map to implement Solvency II in 2014

    The road map to implement Solvency II in 2014 March 2012: Autumn 2012: Omnibus II Directive Proposal transfer to new OP-product 1. January 2013: EU Commission’s suggestion to more Expected proposal on Paid-up polices with flexible transitional transfer of existing investment choice provisions for fi

  21. Slide 21: Implementing sustainable insurance principles

    Implementing sustainable insurance principles 21

  22. Slide 22: Summary

    Summary  Result before profit sharing increased by 33% (YoY)  Strong returns to life and pensions customers  Customer buffers improved by 3.8 bn 22

  23. Slide 23: @d storebrand

    @d storebrand @d storebrand

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