Storebrand Asa · OSL:STB
Storebrand Asa — Q1 2024 Earnings Presentation
30 slides from Storebrand Asa's earnings presentation, Apr 24, 2024
Slide 1: Storebrand Q1 2024
Storebrand Q1 2024 24 April 2024 Odd Arild Grefstad – CEO Lars Aa. Løddesøl – CFO
Slide 2: Highlights Q1 2024
Highlights Q1 2024 Strong improvement in operating and financial result Group result 1 MNOK Record high AuM of NOK 1 281bn +31% 1 082 19% growth in unit linked reserves2 826 394 255 14% growth in insurance premiums2 688 571 191% Solvency ratio Q1 2023 Q1 2024 Financial items and risk result life Ini
Slide 3: Completed NOK 0.4bn in share buybacks in Q1, initiating additional NOK 1.1bn
Completed NOK 0.4bn in share buybacks in Q1, initiating additional share buybacks of NOK 1.1bn for 2024 Overview of executed and planned share buybacks NOK billion Ambition announced on CMD 2023 Planned Executed Storebrand has received new approval from FSA 12.0 regarding additional share buybacks a
Slide 4: Sustainable Nordic Savings and Insurance Group
Sustainable Nordic Savings and Insurance Group A B C Future Storebrand Growth focus in Leading Provider Nordic Powerhouse in Growing Challenger in capital-light business Occupational Pensions Asset Management Norwegian Retail Market areas in front book Norway & Sweden Strategic enablers D People Fir
Slide 5: Double digit growth continues across the Group
Double digit growth continues across the Group Unit linked (defined contribution) pensions Asset management UL reserves (NOK billion) YOY AuM (NOK billion) YOY 19%2 15%2 +13%1 +18%1 410 1 281 315 380 1 097 1 020 1 212 308 962 268 721 831 220 707 168 179 577 140 2016 2017 2018 2019 2020 2021 2022 202
Slide 6: ESA's preliminary assessment: Public occupational pension must be tendered
ESA's preliminary assessment: Public occupational pension must be tendered Large market currently dominated by one player Market size (AuM) and market shares (%) 3% STB: Number of public customers Pension funds • ESA has sent its preliminary assessments in the 7 Municipalities procurement case to No
Slide 7: Storebrand continues to be recognised within sustainable finance across the Nordics
Storebrand continues to be recognised within sustainable finance across the Nordics Storebrand Asset Management Most sustainable player within Placed nr. 1 on the honored with award as best investments by Södeberg & asset manager in Denmark Partners 7
Slide 8: Key Figures
Group Key Figures Strong improvement in operating and financial result, solid solvency position Result development 1 Earnings per share 2, 6 Financial items and risk result life Cash equivalent earnings from operations 2.16 2.14 2.09 Special items 1.82 1.73 1,070 1,082 826 856 378 728 394 255 264 46
Slide 9: Solvency position and sensitivities Q1 2024
Group Solvency position and sensitivities Q1 2024 Storebrand Group Solvency position 1 Estimated sensitivities Target SII margin 150% 192 % 191 % SII-margin Q1 191 Interest rates -50bp 185 Interest Q4 2023 Q1 2024 rates +50 bp 193 Key takeaways Q1 2024 Equity -25%, SA-15% 196 ▪ A strong post tax res
Slide 10: Storebrand Group | Profit
Group Storebrand Group | Profit Strong improvement in operating and financial result Profit 1 Q1 Full year NOK million 2024 2023 2023 Fee and administration income 1 818 1 605 6 782 Insurance result 367 357 1 122 Operational cost -1 498 -1 391 -5 787 Cash equivalent earnings from operations 688 571
Slide 11: Storebrand Group | Profit by line of business
Group Storebrand Group | Profit Profit by line of business Profit 1 Q1 Full year NOK million 2024 2023 2023 Fee and administration income 1 818 1 605 6 782 Insurance result 367 357 1 122 Operational cost -1 498 -1 391 -5 787 Cash equivalent earnings from operations 688 571 2 117 Financial items and
Slide 12: Savings (non-guaranteed)
Savings Savings (non-guaranteed) Continued growth and positive result development Profit Q1 Full year NOK million 2024 2023 2023 Fee and administration income 1 494 1 287 5 443 Operational cost -947 -861 -3 582 Cash equivalent earnings from operations 547 426 1 861 Financial result 20 -12 1 Cash equ
Slide 13: Savings (non-guaranteed) Key figures
Savings Savings (non-guaranteed) Key figures Reserves and premiums Unit Linked Retail bank balance and net interest margin (%) Unit Linked Reserves Unit Linked Premiums Life insurance balance sheet Bank balance sheet Interest margin 7.0 7.1 7.2 7.5 6.9 1.39 1.43 1.46 1.44 1.52 410 73 75 77 79 70 380
Slide 14: Insurance
Insurance Insurance Moderate insurance results due to challenging weather in P&C Profit Q1 Full year NOK million 2024 2023 2023 Insurance premiums f.o.a. 1 875 1 672 6 908 Claims f.o.a. -1 508 -1 315 -5 787 Operational cost -327 -310 -1 251 Cash equivalent earnings from operations 40 47 -129 Financi
Slide 15: Insurance Key figures
Insurance Insurance Key figures Reserves and premiums Unit Linked Key takeaways combined ratio and results Claims ratio Cost ratio Combined ratio ▪ 98% overall combined ratio in the quarter. Weak results in P&C 115% and Group life segments, and strong in Pension related disability 97% 96% 99% 98% ▪
Slide 16: Guaranteed pension
Guaranteed Guaranteed pension Continued stable result development Profit Q1 Full year NOK million 2024 2023 2023 Fee and administration income 391 378 1 600 Operational cost -215 -192 -822 Cash equivalent earnings from operations 175 186 778 Risk result life & pensions 44 81 296 Net profit sharing 7
Slide 17: Guaranteed pension Key figures
Guaranteed Guaranteed pension Key figures Reserves guaranteed products Key Takeaways Customer buffers Actively sold Run-off ▪ Stable result development from operations 283 279 278 284 287 26 29 ▪ Declining risk result, still at solid levels 26 25 23 30 30 29 30 33 ▪ Solid profit-sharing result in Sw
Slide 18: Other
Other Other 1 Strong financial result driven by tighter credit spreads in the quarter and continued high interest rate levels Profit Q1 Full year NOK million 2024 2023 2023 Fee and administration income 6 6 18 Operational cost -81 -94 -411 Cash equivalent earnings from operations -74 -88 -393 Financ
Slide 19: Leading the way in sustainable value creation
Leading the way in sustainable value creation Group financial ambitions Group sustainability ambitions 5 NOK billion >14% Net-zero investments Workforce participation Group profit 2025 Return on Equity Group-level by 2050 Reduce disability NOK Increasing every year 1.5 billion per year 50/50 Science
Slide 20: Q&A
Q&A Please join the MS Teams Webinar to participate in the Q&A session Lars Aa. Løddesøl Odd Arild Grefstad Kjetil R. Krøkje Johannes Narum Group CFO & Group CEO Group Head of Head of Executive Vice Strategy & Finance Investor Relations President 20
Slide 21: Appendix
@&S Storebrand Appendix -
Slide 22: Stable IFRS result development in the quarter
Stable IFRS result development in the quarter IFRS result before amortisation and tax Comments • Group’s profit before amortisation and tax was NOK 1 179m in 1 179 1st quarter 2024, compared to NOK 1 158m in the 1 158 corresponding period last year 87 299 • Higher volatility is expected on a general
Slide 23: Solvency movement from Q4 2023 to Q1 2024
Solvency movement from Q4 2024 to Q1 2024 Storebrand Group Net solvency effect from new buffer rules 3% -3% New rules Investment adjustments 2% 4% 7% 192 % 0% 2% 1% 3% 1% 191 %1 2023 Q4 Model & New buffer Interest Market Updated Cash Dividend Share 2024 Q1 assumption rules rates returns & regulatory
Slide 24: Real estate portfolio – Norway
Real estate portfolio – Norway Allocation and distribution - real estate portfolio Fair value adjustments and change in rental income Unit Linked Guaranteed Logistics Hotel Fair value adjustments by year Change in rental income 3% 29 bn NOK Retail 5% 10% 7 25% 4% 4% 5% 4% 4% 2% 0% 3% 1% 22 -4% 68% -
Slide 25: Real estate portfolio - Sweden
Real estate portfolio - Sweden Allocation and distribution - real estate portfolio Fair value adjustments and change in rental income Guaranteed Office Fair value adjustments by year Change in rental income Public Use 11 bn SEK 16% 10% 21% 7% 3% 3% 4% 2% 1% 21% Supermarket 1% 16% Hotel 2% -1% 0% 26%
Slide 26: Asset allocation – Guaranteed products
Asset allocation – Guaranteed products Storebrand Livsforsikring AS (Norway) SPP (Sweden) 70% 70% 60% 60% 50% 50% 40% 40% 30% 30% 20% 20% 10% 10% 0% 0% Bonds & Bonds at Bonds & Real Equities Money Loans amortised Equities Real estate Money Loans estate market cost market 31.03.2023 8% 12% 4% 14% 61%
Slide 27: Overview of Special items
Overview of Special items Quarter Special Comments items NOKm Q1 2023 71 • NOK ~71m related to the integration cost and severance pay in Danica and Kron Q2 2023 64 • NOK ~56m related to the integration cost and severance pay in Danica and Kron • NOK ~8m in write-downs of shares in smaller subsidiary
Slide 28: For further information
For further information Contact us Information 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 Investor relations website Financial reports and information Johannes Narum johannes.narum
Slide 29: Important information
Important information This document may contain forward-looking statements. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances that may be beyond the Storebrand Group’s control. As a result, the Storebrand Group’s actual fu
Slide 30: Thank you
Thank you Financial calendar 12 July 2024 Results Q2 2024 23 October 2024 Results Q3 2024 30