Storebrand Asa · OSL:STB

Storebrand Asa — Q4 2011 Earnings Presentation

24 slides from Storebrand Asa's earnings presentation, Feb 14, 2012

  1. Slide 1: Result Q4 2011

    Storebrand Result Q4 2011 14 February 2012 Idar Kreutzer – CEO Lars Aa. Løddesøl – CFO/COO

  2. Slide 2: Highlights 2011

    Highlights 2011 RESULT  Group result NOK 268 mill in Q4, NOK 1,279 mill 2011  7% growth in result before profit sharing and loan losses in 2011  Reduced financial result in Life and Pension OPERATIONS  Premium growth of 10% in Unit Linked  Competitive return in customer portfolios  Strong resu

  3. Slide 3: Storebrand Board of Directors on dividend

    Storebrand Board of Directors on dividend GROWTH IN OPERATING PROFIT AND CASH FLOW Committed to result improvements and increased cash flow, based on increased quality of earnings and growth in products with low capital requirement DIVIDEND CONSIDERATIONS IN 2011  Interest rates on historic low lev

  4. Slide 4: Group – operational reporting

    Storebrand Group – operational reporting Q4 Full year  Result before profit sharing NOK mill. 2011 2010 2011 2010 and loan losses increased: Fee and administration income 973 963 3.952 3.783 – Top line growth – Cost control Operational cost -732 -733 -2.800 -2.673 – Business transformation Fee and

  5. Slide 5: 2013 result target confirmed - behind plan

    2013 result target confirmed - behind plan The graph shows changes from original plan to reach target of 2.5 bn in result before profit sharing in 2013 AuM 28 bn behind plan: − Reduced administration income − Reduced asset management fees 2,500 -500 250 -250 Cost measures: 2,000 − Reduced personnel

  6. Slide 6: Group

    Storebrand Group Q4 Full year NOK mill. 2011 2010 2011 2010 Storebrand Life Insurance 139 273 481 784 SPP -14 202 291 410 Asset management 90 168 293 333 Bank* 51 40 213 162 Insurance 77 50 280 155 Storebrand ASA / other -75 -62 -278 -231 Group Profit 268 669 1 279 1 612 Amortisation and write- down

  7. Slide 7: Life Insurance - premium growth of 12% in 2011

    Storebrand Life Insurance - premium growth of 12% in 2011 Q4 Full year  Growth in administration results NOK mill. 2011 2010 2011 2010 slowed by equity market fall Administration result 21 17 101 58  Longevity reserving: – 323 mill reserved in paid up Risk result 36 -2 117 152 policies and individ

  8. Slide 8: Life Insurance - competitive customer return 2011

    Storebrand Life Insurance - competitive customer return 2011 Value adjusted return guaranteed business FY 2011 3,4% 2,1% 2,0% Storebrand DNB Life Nordea Average return in common customer portfolios 2011 8

  9. Slide 9: Life Insurance - longevity reservation

    Storebrand Life Insurance - longevity reservation Longevity reservations since 2007; NOK BN in Norwegian guaranteed portfolios Letter from FSA on longevity: 1,504 5,658  New mortality tables expected 1,290  Storebrand assessment 846 214 − Should be aligned with Government 371 Law commission work o

  10. Slide 10: SPP - reduced financial result

    SPP - reduced financial result  BenCo reported under Storebrand Life insurance Q4 Full year  Admin result:-27 mill one off NOK mill. 2011 2010 2011 2010 charges Administration result 5 8 99 76  Risk result: 85 mill in profit Risk result discontinued reinsurance contract 130 43 289 290 Financial r

  11. Slide 11: SPP - repositioning from guaranteed products to unit linked

    SPP - repositioning from guaranteed products to unit linked SPP Life Insurance (Sweden) Premium income occupational pensions 2010-2011  7% premium increase in Unit Linked -13%  Market share new sales unit +7% linked* increased from 13% to 3,633 15% 3,388 3,030 2,632  Increased sales through: − Ow

  12. Slide 12: Asset Management - improved operational result

    Asset Management - improved operational result Q4 Full year  Income and sales negatively NOK mill. 2011 2010 2011 2010 affected by market turmoil Operating revenue 163 165 684 645 Operating cost -122 -138 -481 -450  AUM 414 bn, increase of 9 bn in Q4 Operational result 41 27 203 195 Net performanc

  13. Slide 13: Bank - stable development

    Bank - stable development Q4 Full year  Increased net retail lending NOK mill. 2011 2010 2011 2010 2 half 2011 Net interest income 104 113 443 457 Net fee and  Strong cost control 18 19 73 74 commission income Other operating income 7 15 32 12  Low loan losses Total income 129 146 548 543 Operati

  14. Slide 14: Insurance - strong result development in 2011

    Storebrand Insurance - strong result development in 2011 Q4 Full year NOK mill. 2011 2010 2011 2010  9% premium increase in 2011 Premiums earned, 457 427 1807 1651 net1 Claims incurred, net -327 -323 -1314 -1278  19% cost ratio Operation costs excl -84 -85 -332 -331 amortization  72% claims ratio

  15. Slide 15: Key figures

    Key figures Result development Earnings per share1 NOK mill. 669 2.37 516 545 434 120 268 173 343 425 398 404 1.24 235 1.10 -136 -447 0.21 Net profit sharing and loan losses Result before profit sharing and loan losses -49 -0.15 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q4 2010 Q1 2011 Q2 2011 Q3 2011

  16. Slide 16: Life Insurance

    Storebrand Life Insurance Defined Individual Group contri- and paid- defined bution and up Company Result Full year Full year NOK mill. benefit * unit linked* policies** BenCo portfolio Q4 2011 2011 2010 Administration result -13 10 24 0 0 21 101 58 Risk result 27 6 -6 9 0 36 117 152 Financial resul

  17. Slide 17: Life Insurance - increased allocation to bonds at amortised cost

    Storebrand Life Insurance - increased allocation to bonds at amortised cost Asset allocation guaranteed products Storebrand Life Insurance AuM NOK 164 bn1 45 % 40 % 35 % 30 % Allocation (%) 25 % 20 % 15 % 10 % 5% 0% Bonds at Equities Bonds Money market Real estate Alpha Other amortised cost 31.03.20

  18. Slide 18: Life Insurance - return by asset class and main portfolios

    Storebrand Life Insurance - return by asset class and main portfolios Return by asset class Q4 and 2011 (%) Return Defined Benefit portfolios Q4 YTD Value adjusted Booked Equity returns Returns proportion 0.8 (Q4/2011) (Q4/2011) 31.12.2011 Real estate 6.2 DB - High 2.1%/2.2% 2.1%/4.7% 21% Bonds at 1

  19. Slide 19: SPP result 2011 - development in results compared to consensus

    SPP result 2011 - development in results compared to consensus 397 342 281 278 161 200 184 -14 Expected by market -148 Actual result SPP -203 Main take aways Q1 Q2 Q3 Q4 2011* Financial res. 120 mill Financial res. 156 mill Financial res. -320 mill Financial res. -182 mill Financial res. -222 mill 

  20. Slide 20: SPP - stable allocation

    SPP - stable allocation Asset allocation guaranteed products SPP AuM NOK 74 bn1 90 % 80 % 70 % 60 % Allocation (%) 50 % 40 % 30 % 20 % 10 % 0% Equity Bonds Other 31.03.2011 27 % 66 % 7% 30.06.2011 27 % 66 % 7% 30.09.2011 12 % 81 % 8% 31.12.2011 12 % 81 % 8% 1 The graph shows the asset allocation for

  21. Slide 21: Proposed changes in Norwegian tax legislation

    Proposed changes in Norwegian tax legislation Tax note Storebrand 4th quarter 2011 report  Proposed changes implies gains and 2011 20101 losses from equity investment within Total tax increasing EEA being treated as other asset 11,107 11,858 temporary differences A classes Total tax reducing tempor

  22. Slide 22: Government Law Commission NOU 2012:3

    Government Law Commission NOU 2012:31 Challenges for paid up policies (from NOU) Process  Norwegian product rules 1. NOU 2012:3  need for short duration assets  Expected hearing period from the department  Solvency II framework of finance until summer 2012  need for long duration asset liabilit

  23. Slide 23: Summary

    Summary  Growth in Result before profit sharing and loan losses  Competitive customer return - strengthened customer buffers  Regulatory changes  Board proposes no dividend 23

  24. Slide 24: @d storebrand

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