Storebrand Asa · OSL:STB
Storebrand Asa — Q3 2023 Earnings Presentation
30 slides from Storebrand Asa's earnings presentation, Oct 25, 2023
Slide 1: Storebrand Q3 2023
Storebrand Q3 2023 25 October 2023 Odd Arild Grefstad – CEO Lars Aa. Løddesøl – CFO
Slide 2: Guiding our customers through challenging times
Guiding our customers through challenging times In a challenging time for many We seek to deliver value ~30 000 phone calls With increasing disability in people, we contribute by giving beyond return, cultivating regarding P&C related topics Norway, we actively participate and customers financial va
Slide 3: Highlights Q3 2023
Highlights Q3 2023 Record-high solvency and strong Group results 14% growth in Saving's fee and admin income 2 Group result 1 MNOK Positive flow of NOK 42bn YTD, NOK 1 131bn in AUM 2 533 897 204% solvency ratio, up from 196% last quarter 983 378 1 636 605 Q3 YTD New NOK 500m share buy back tranche i
Slide 4: Sustainable Nordic Savings and Insurance Group
Pursuing our Group Strategy: Leading The Way In Sustainable Value Creation to be a leading Sustainable Nordic Savings and Insurance Group A B C Future Storebrand Leading Provider Growth focus in Nordic Powerhouse in Growing Challenger in Occupational Pensions capital-light business Asset Management
Slide 5: Double-digit growth, financial markets reduce AUM growth
Double-digit growth, financial markets reduce AUM growth Unit Linked (Defined Contribution) Pensions Asset management UL reserves (NOK bn) YOY AuM (NOK bn) YOY 17%2 13%2 +10%1 +15%1 353 1,131 315 1,097 1,020 308 962 268 831 220 721 707 168 179 577 140 2016 2017 2018 2019 2020 2021 2022 Q3 23 2016 20
Slide 6: Continued focus on employee development to enable commercial growth and customer satisfaction
Continued focus on employee development to enable commercial growth and customer satisfaction Continued focus on employee satisfaction and growth Changes in the executive management Employee satisfaction of 8,4/10, 0,5 percentage points above industry average. 1 Average sick leave percentage so far
Slide 7: Danica acquisition exemplifies the scalability and execution ability in our pension business
Danica acquisition exemplifies the scalability and execution ability in our pension business Realised strong capital synergies Expected strong returns going forward Key highlights NOKbn Profit before tax and amortization 1 2.0 ~ 1.0 ▪ Positive synergy effect from capital release due to diversificati
Slide 8: Divestment of 50% ownership in Storebrand Helseforsikring AS
Divestment of 50% ownership in Storebrand Helseforsikring AS Positive financial impact on Storebrand Deal rationale group result in 1st quarter 2024 "We have had a successful history of developing SBH together with ERGO for many years. After a strategic review we believe that it is in the company's
Slide 9: Key Figures
Key Figures Improved financial result and a solid solvency position Group Result development1 Earnings per share2 Financial items and risk result life Performance related result MNOK Special items Cash equivalent earnings from operations 2.16 1.83 1.82 1.73 983 841 773 777 672 378 1.14 219 255 264 1
Slide 10: Solvency movement from Q2 2023 to Q3 2023
Solvency movement from Q2 2023 to Q3 2023 Storebrand Group Group -2% 3% -1% -4% 4% 204% 5% 196% 2% 1% Q2 2023 Model & Interest rate Market returns Updated Restriction Tier 2 Cash earnings Dividend Share Q3 2023 assumption & business mix regulatory buy-backs changes SA & VA 10
Slide 11: SII position Storebrand Group
SII position Storebrand Group Group Solvency position (%)1 Estimated sensitivities Target SII margin 150% 196 204 SII-margin Q3 204 Interest rates -50bp 202 Q2 2023 Q3 2023 Interest rates +50 bp 206 SII standard model Key takeaways Equity -25% 204 ▪ Reduced equity exposure is the main explanation be
Slide 12: Storebrand Group
Storebrand Group Strong financial result and satisfactory results from operations given extraordinary quarter in Insurance Group Profit1 Q3 YTD NOK million 2023 2022 2023 2022 Fee and administration income 1 681 1 507 4 824 4 421 Insurance result 318 475 1 057 1 274 Operational cost -1 394 -1 272 -4
Slide 13: Storebrand Group
Storebrand Group Profit by line of business Group Profit1 Q3 YTD NOK million 2023 2022 2023 2022 Fee and administration income 1 681 1 507 4 824 4 421 Insurance result 318 475 1 057 1 274 Operational cost -1 394 -1 272 -4 245 -3 598 Cash equivalent earnings from operations 605 710 1 636 2 097 Financ
Slide 14: Savings (non-guaranteed)
Savings (non-guaranteed) Continued growth and strong result development across the board Savings Profit Q3 YTD NOK million 2023 2022 2023 2022 Fee and administration income 1 333 1 174 3 836 3 440 Operational cost -852 -763 -2 611 -2 183 Cash equivalent earnings from operations 481 410 1 226 1 256 F
Slide 15: Savings (non-guaranteed)
Savings (non-guaranteed) Key figures Savings 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 6.9 7.0 7.1 1.43 1.46 6.6 1.39 6.3 1.20 1.18 357 353 343 75 70 73 6
Slide 16: Insurance
Insurance Weak Q3 results due to the storm "Hans" and torrential rain impacting 'P&C and Individual' Insurance Profit Q3 YTD NOK million 2023 2022 2023 2022 Insurance premiums f.o.a. 1 734 1 613 5 132 4 459 Claims f.o.a. -1 415 -1 138 -4 075 -3 185 Operational cost -305 -284 -923 -794 Cash equivalen
Slide 17: Insurance
Insurance Key figures Insurance Combined ratio Key Takeaways Combined Ratio and Results Claims ratio Cost ratio Combined ratio 96% 97% 96% 99% 88% ▪ 99% overall combined ratio in the quarter ▪ The quarter is negatively impacted by the storm "Hans" and torrential rain in Oslo and the surrounding regi
Slide 18: Guaranteed pension
Guaranteed pension Strong growth in profits driven by increased financial results and solid operational performance Guaranteed Profit Q3 YTD NOK million 2023 2022 2023 2022 Fee and administration income 413 398 1 179 1 184 Operational cost -209 -208 -617 -617 Cash equivalent earnings from operations
Slide 19: Guaranteed pension
Guaranteed pension Key figures Guaranteed Reserves guaranteed products Key Takeaways 276 274 283 279 278 24 24 26 25 23 Customer buffers 29 28 30 30 29 Actively sold ▪ Stable result development from operations BNOK ▪ Continued strong risk result 223 222 227 224 225 Run-off ▪ Improved, but moderate,
Slide 20: Other
Other 1 Financial result improving from a higher interest rate level Other Profit Q3 YTD NOK million 2023 2022 2023 2022 Fee and administration income 5 6 17 15 Operational cost -99 -87 -302 -222 Cash equivalent earnings from operations -93 -82 -285 -207 Financial result 176 -7 463 -236 Cash equival
Slide 21: Virtual Capital Markets Day
Virtual Capital Markets Day 13 December 2023 10:00-13:00 CET The presentation will be held by Storebrand's executive management with a focus on the company's growth strategy and ambitions. An update on the implications from higher interest rates, the balance sheet and solvency position, and capital
Slide 22: Q&A
Q&A Please join the MS Teams Webinar to participate in the Q&A session. Group CFO Group CEO Group Head of Head of Strategy & Finance Investor Relations Lars Aa. Løddesøl Odd Arild Grefstad Kjetil R. Krøkje Johannes Narum 22
Slide 23: Appendix
Appendix 23 @® storebrand
Slide 24: Simplified P&L under IFRS – Key takeaways
Simplified1 P&L under IFRS – Key takeaways Q3 YTD Comments Profit & Loss IFRS (MNOK) 2023 20222 2023 20222 Income from unit linked 496 480 1 528 1 350 Income from asset management 732 650 2 113 1 998 Income from banking activities 825 379 2 127 940 [1] Group’s profit before amortisation and tax was
Slide 25: CSM movement from Q2 2023 to Q3 2023
CSM movement from Q2 2023 to Q3 2023 mill. NOK -79 848 -459 12.632 785 554 10.634 349 Q2 2023 Model changes Assumption changes Interest rates Market development Risk adjustment Recognized as income Q3 2023 and business mix 25
Slide 26: Real estate portfolio – Norway
Real estate portfolio – Norway 1 Allocation and distribution - real estate portfolio Fair value adjustments and change in rental income by year Unit linked Guaranteed Fair value adjustments by year Change in rental income Logistics Hotel 29 bn NOK 3% Retail 5% 6 10 25% 7% 5 4% 4% 4% 5% 4% 2% 3% 1% 0
Slide 27: Real estate portfolio – Sweden
Real estate portfolio – Sweden 1 Allocation and distribution - real estate portfolio Fair value adjustments and change in rental income by year Fair value adjustments by year Change in rental income Guaranteed Office 15 Public Use 11 bn SEK 21% 16% 11% 10 7% 5 3% 21% Supermarket 3% 2% 1% 16% Hotel 0
Slide 28: Asset allocation – Guaranteed products
Asset allocation – Guaranteed products Storebrand Livsforsikring AS (Norway) SPP (Sweden) 70% 50% 45% 60% 40% 50% 35% 40% 30% 25% 30% 20% 20% 15% 10% 10% 5% 0% 0% Bonds & Bonds at Bonds & Real Equities Money Loans amortised Equities Real estate Money Loans estate market cost market 30.09.2022 6% 12%
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: Leading the way in sustainable value creation
Leading the way in sustainable value creation Investor Relations contacts 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 Johannes Narum johannes.narum@storebrand.no Group Head of IR +4