Storebrand Asa · OSL:STB

Storebrand Asa — Q2 2011 Earnings Presentation

23 slides from Storebrand Asa's earnings presentation, Jul 14, 2011

  1. Slide 1: Storebrand Result Q2 2011

    Storebrand Result Q2 2011 14 July 2011 Idar Kreutzer – CEO Lars Aa. Løddesøl - CFO

  2. Slide 2: Highlights Q2 2011

    Highlights Q2 2011 RESULT  Group result of NOK 542 mill in Q2, 1 056 mill YTD  Improved returns and profit sharing in SPP  Insurance with strong result of 75 mill in Q2 and 108 mill YTD OPERATIONS  Improved fee and administration results  Growth in non guaranteed business BALANCE SHEET  Life g

  3. Slide 3: Storebrand Group

    Storebrand Group Q2 01.01. - 30.06 Full year NOK mill. 2011 2010 2011 2010 2010 Storebrand Life Insurance 149 59 289 212 730 SPP 278 -168 560 -55 464 Asset management 53 42 130 96 333 Bank 59 35 108 63 158 Insurance 75 47 108 32 155 Storebrand ASA / other -73 -54 -138 -114 -231 Group Profit 542 -39

  4. Slide 4: Storebrand Life Insurance - good returns in turbulent financial markets

    Storebrand Life Insurance - good returns in turbulent financial markets 01.01. - Full Q2 30.06 year  Stable operations NOK mill. 2011 2010 2011 2010 2010  Risk result development Administration result 23 25 30 16 58 according to plan Risk result 26 81 24 121 131  Longevity reserves Finance result

  5. Slide 5: Storebrand Life Insurance - market leader in occupational pensions

    Storebrand Life Insurance - market leader in occupational pensions Market share DC Reserves 40 % 35 % 34,8 % 34,9 % 33,8 % 32,1 % 30,8 % DC reserve growth 32% 30 % 30,3 % 30,3 % 30,4 % 25 % 20 % 20,6 % 15 % 14,6 % 10 % 5% 0% 2002 2003 2004 2005 2006 2007 2008 2009 2010 Q1 2011 Gjensidige KLP Nordea

  6. Slide 6: Storebrand Life Insurance - strong relative cost position

    Storebrand Life Insurance - strong relative cost position Cost / customer funds 1,20 % 1,06 % 1,00 % 0,88 % 0,87 % 0,80 % 0,75 % 0,69 % 0,60 % 0,40 % 2007 2008 2009 2010 Ytd 2011 6

  7. Slide 7: SPP - increased financial result

    SPP - increased financial result 01.01. - Full Q2 30.06 year  Profit sharing in all NOK mill. 2011 2010 2011 2010 2010 guaranteed portfolios Administration result 40 27 84 35 84  Administration result - Risk result 43 74 119 154 311 according to plan Finance result 155 -268 276 -253 31  Normalise

  8. Slide 8: SPP - transformation to non guaranteed business

    SPP - transformation to non guaranteed business Share of premium income SPP  Non guaranteed business – 62% 32% premium growth of 39% last three years for  Embedded value positive 38% 68%  Increased quality of earnings 2Q07 4Q07 2Q08 4Q08 2Q09 4Q09 2Q10 4Q10 2Q11 Guaranteed Non Guaranteed 8

  9. Slide 9: Asset Management - steady result improvement

    Asset Management - steady result improvement 01.01. - Full Q2 30.06 year  Growth in operating revenues NOK mill. 2011 2010 2011 2010 2010 of 14% in Q2, 11% YTD Operating revenue 171 150 336 303 645  Investments in customer Operating cost -123 -106 -241 -207 -450 reporting, strengthened Operational

  10. Slide 10: Sustainable asset owner of the year

    Financial Times and International Finance Corporation: - sustainable asset owner of the year The jury's verdict: “The winner in this category is an ESG pioneer, with sustainability in its DNA. All of its assets under management are responsibly invested. They have redefined what fiduciary responsibil

  11. Slide 11: Bank - improved results

    Bank - improved results 01.01. - Full Q2 30.06 year  Strong Norwegian macro NOK mill. 2011 2010 2011 2010 2010 environment Net interest income 111 125 226 231 457 Net fee and commission income 17 18 37 35 74  Improved quality of loan Other operating book 33 13 68 33 101 income Total income 161 156

  12. Slide 12: www.storebrand.no - introduction of new retail customer budget application

    www.storebrand.no - introduction of new retail customer budget application Comments from Youtube: • Brilliant service • Ah…!! – finally someone have understood it – well done! • Fantastic – I’m considering on switching bank only for this service • Very nice – this makes me also consider on switching

  13. Slide 13: Insurance - strong development

    Insurance - strong development 01.01. - Full Q2 30.06 year  Premium growth 11% in Q2 NOK mill. 2011 2010 2011 2010 2010 and YTD Premiums earned, 466 418 891 804 1 651 net1  Strong cost control - cost Claims incurred, net -335 -310 -671 -651 -1 278 ratio 19% Operation costs excl -84 -89 -164 -175 -

  14. Slide 14: Group - operational reporting

    Storebrand Group – operational reporting Full Q2 01.01. - 30.06 year  Increased quality of NOK mill. 2011 2010 2011 2010 2010 earnings Fee and administration income 1 018 958 2 033 1 862 3 868  Fee and administration Operational cost -714 -674 -1 441 -1 355 -2 766 result increased by 7% in Fee and

  15. Slide 15: Key figures

    Key figures Result development Earnings per share* NOK mill. 709 2.37 664 160 514 542 432 173 120 1.54 405 549 422 1.24 232 341 1.10 -444 -39 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 -0.36 Net profit sharing and loan losses Result before profit sharing and loan losses Q2 2010 Q3 2010 Q4 2010 Q1 2011

  16. Slide 16: Life Insurance - competitive returns

    Storebrand Life Insurance - competitive returns Return by asset class Q2 (%) Return Defined Benefit portfolios Value adjusted Booked Equity Real estate 1,8 returns Returns proportion (Q2/YTD) (Q2/YTD) 30.06.2011 DB - High 0.9% / 2,6% 1.3 % / 3.0% 26% Bonds at 1,3 DB - Standard 1.1% /2.7% 1.4 % /2.8%

  17. Slide 17: Storebrand Life Insurance

    Storebrand Life Insurance Defined Individual Group contribution and paid- defined and up Company Result Q2 YTD Full year NOK mill. benefit * unit linked* policies** portfolio 2011 2011 2010 Administration result -17 27 13 23 30 58 Risk result 32 -7 26 24 131 Finance result1 3 -38 7 -28 -25 26 Profit

  18. Slide 18: SPP - strong returns give profit sharing

    SPP - strong returns give profit sharing Return Guaranteed Portfolios  Financial markets: Market returns Gross profit sharing YTD − Negative equity markets Q2 / YTD (Mill NOK) − Decreased interest rate levels P250 2,2% / 2,7% 31 − Increased swap spreads and reduced credit spreads P300 2.6% / 3.3% 5

  19. Slide 19: Life and Pensions - increased allocation to bonds at amortised cost

    Life and Pensions - increased allocation to bonds at amortised cost Asset allocation guaranteed products Asset allocation guaranteed products Life and Pensions Norway1 Life and Pensions Sweden1 2% 4% 7 % (7%) (2%) (4%) 17 % (15%) 16 % 27 % (27%) (16%) 22 % (24%) 34 % (31%) 6 % (8%) 66 % (66%) Equity

  20. Slide 20: Solvency II and Pension reform part II in Norway

    Solvency II and Pension reform part II in Norway 2011 2012 2013 Expected formal adoption Insurance Norwegian legislation 10. March: FSA Propose changes Norwegian Propose new legislation Ministry of - Paid up policies Public hearing finance - Rules for Decision in Parliament transformation (no formal

  21. Slide 21: Summary

    Summary  Strong result improvement  Increased quality of earnings  Buffer capital intact after financial turmoil in Q2 21

  22. Slide 22: 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 f

  23. Slide 23: Storebrand shall be the leading and most respected institution in the Nordic market for

    Storebrand shall be the leading and most respected institution in the Nordic market for long-term savings and insurance.

Storebrand — Q2 2011 Earnings Presentation on 6ix