Slide 1: Results 1st Quarter 2007 Analyst Presentation
Storebrand Results 1st Quarter 2007 2 May 2007 Analyst Presentation Analyst Presentation 1st quarter 2007 Page # Slide # • Storebrand Group Group CEO Idar Kreutzer 2-9 3-18 Back-up: • Storebrand Group 10-15 19-30 • Storebrand ASA 16-17 31-34 • Storebrand Life Insurance 18-28 35-56 • Storebrand Inves
Slide 2: Highlights Q1 2007
Storebrand Result 1st Quarter 2007 2 May 2007 Idar Kreutzer Group CEO Highlights Q1 2007 Group profit of NOK 389 million in Q1 Value adjusted return 2.1% Market value adjustment reserve strengthened by NOK 900 million NOK 2.8 billion in net sales of mutual funds Efficiency programmes compl
Slide 3: Storebrand Group - Good start to the year
Storebrand Group - Good start to the year Q1 Full year NOK million 2007 2006 2006 Life activities 272 304 1 198 Investment activities 31 20 156 Storebrand Bank 79 48 190 Other activities 7 94 41 Group profit 389 466 1 585 Q1 2007 5 Strong position within long-term savings and insurance Annual premiu
Slide 4: P&C insurance successfully established
P&C insurance successfully established Norwegian daily Dagbladet's The strong customer 'Insurance league table' from 12 April: growth in P&C continues - Storebrand on top for 3rd time in a row in Q1 - 6 500 clients as of April 2007 - 4 500 new clients in 2007 - 55% of sales in Q1 through web site
Slide 5: Strong risk capital in life insurance
Strong risk capital in life insurance Risk capital 14 % as % of 16.8 NOK 14.6 customers' 12 % funds 13.6 billion Profit carried forward 10 % 11.1 13.3 8.9 8% Core capital margin 6% 4.8 Additional statutory 4% reserves* 2% Market value adj. res. 0% 2002 2003 2004 2005 2006 Q1 Q1 -2 % 2006 2007 *) Q1
Slide 6: Return for defined contribution pensions; Storebrand Bank
Return for defined contribution pensions Return in Q1 2007 for main alternatives for defined contribution/ mandatory occupational pension schemes 5% 4% 3% 2.3% 1.9% 2% 1.3% 1% 0% Cautious Balanced Aggressive Q1 2007 11 Storebrand Bank Q1 Full Year NOK million 2007 2006 2006 Net interest income 93 10
Slide 7: Good growth and strong competition; Storebrand Investments
Good growth and strong competition Q1 saw a 7% loan growth in retail market, with 5 900 new accounts Gross lending by sector opened 7% Interest margin influenced by 6% increases in the Norwegian Central Residential Bank's deposit rate mortgages Other retail The bank is implementing Real estate
Slide 8: Margin improvement continues in 2007
Margin improvement continues in 2007 basis points 18 16 14 12 10 8 6 Q1 2003 Q1 2004 Q1 2005 Q1 2006 Q1 2007 Income Cost Income = Income ex performance fee and SAI (12 month rolling) / AuM Cost = Total costs ex performance related pay (12 month rolling) / AuM Q1 2007 15 Storebrand's effort on CSR wi
Slide 9: Summary
Summary Solid result for customers and owners Increased risk capital Competitive position confirmed through strong customer growth Satisfactory start to 2007 Q1 2007 17 Storebrand's objective is to be the leading and most respected institution in the Norwegian market for long-term savings an
Slide 10: Storebrand Group - IFRS accounting
Storebrand Group IFRS accounting Storebrand ASA’s group accounts are presented in accordance with the International Financial Reporting Standards (IFRS) approved by the European Union. Q1 2007 20 10
Slide 11: Group profit by sub-group
Storebrand Group Group profit by sub-group Q1 Full year NOK million 2007 2006 2006 Life activities 272 304 1 198 Investment activities 31 20 156 Storebrand Bank 79 48 190 Other activities 7 94 41 Group profit 389 466 1 585 Q1 2007 21 Storebrand Group Operating Profit Q1 Full year NOK million 2007 20
Slide 12: Earnings per share
Storebrand Group Earnings per share Q1 Full year NOK million 2007 2006 2006 Group profit 389 466 1 585 Changes in security reserve etc. - non life -1 -2 0 Profit before tax 388 464 1 585 Tax - 24 - 32 - 79 Minority interests -1 -1 - 10 Profit for the year 363 431 1 496 - Change in security reserve e
Slide 13: Group profit by sub-group; Capital adequacy
Storebrand Group Group profit by sub-group 2007 2006 2005 NOK million Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Life activities 272 362 250 282 304 376 291 307 Investment activities 31 67 38 32 20 4 -2 14 Storebrand Bank 79 36 47 59 48 59 42 69 Other activities 7 -21 -13 -18 94 -9 -13 1 Group profit 389 444 321 355 4
Slide 14: Other activities; Shareholder structure
Storebrand Group Other activities Q1 Full year NOK million 2007 2006 2006 Storebrand ASA *) 1.052 1.040 1.012 Storebrand Skadeforsikring **) -14 48 21 Other companies/elimintations ***) -1.031 -994 -991 Total profit other activities 7 94 41 *) Including group contributions and dividends from subsidi
Slide 15: Rating for Storebrand; Key figures
Rating for Storebrand as at 2 May 2007 Storebrand ASA Moody’s: Baa2 (S) S&P: BBB+ (S) Storebrand Storebrand Livsforsikring AS Bank ASA Moody’s: A2 (S) Moody’s: A2 (S) S&P: A (S) S&P: BBB+ (P) P=positive outlook, S=stable outlook, N=negative outlook Q1 2007 29 Storebrand Group Key figures Q1 Full yea
Slide 16: Storebrand ASA
Storebrand ASA Storebrand ASA Profit for the year *) Q1 Full year NOK million 2007 2006 2006 Group contributions and transfers 1 033 1 028 1 028 Interest income 19 16 73 Interest expense - 23 - 17 - 77 Realised/unrealised gains/losses on securities 44 39 70 Other financial income/costs -1 -3 0 Net f
Slide 17: Storebrand ASA Quarterly development
Storebrand ASA Quartely development 2007 2006 2005 NOK million Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Group contributions and transfers 1 033 0 0 0 1 028 0 0 0 Interest income 19 18 18 21 16 17 12 11 Interest expense - 23 - 22 - 20 - 18 - 17 - 17 - 10 -4 Realised/unrealised gains/losses on securities 44 21 13 -2 3
Slide 18: Storebrand Life Group Highlights
Storebrand Life Insurance Storebrand Life Group Highlights as at 31.03.2007 Operating profit in Q1 was NOK 808 million, compared to NOK 1,031 million in Q1 2006 (before effects from IFRS). Effects from IFRS was minus 8 millions in Q1. Risk result and administration result decreased compared to t
Slide 19: Life Insurance Highlights; Results
Storebrand Life Insurance Highlights as at 31.03.2007 Total premium income (excluding net transfers) increased by 10 % compared to the last periode last year. Positiv net transfer balance for life insurance in Q1 of NOK 0.4 billion. Q1 2007 37 Storebrand Life Group Results Q1 Full year NOK mill.
Slide 20: Profit and loss; Satisfactory solidity
Storebrand Life Group Profit and loss Q1 Full year NOK Million 2007 2006 2006 Premiums written 5,434 4,947 13,069 Net transfers of premium reserve 384 2,839 5,260 Net income of financial investments 3,298 4,207 12,687 Net income Unit Linked asset 97 306 685 Claims paid -5,028 -2,687 -12,948 Change i
Slide 21: Asset allocation
Storebrand Livsforsikring AS Asset allocation Allocation and policyholders' fund Q1-07 Q4-06 Q3-06 Q2-06 Q1-06 Q4-05 Q3-05 Q2-05 Equity Norwegian *) 7% 7% 5% 6% 7% 9% 6% 6% Equity Foreign*) 22 % 22 % 22 % 19 % 20 % 18 % 17 % 16 % Real Estate 11 % 11 % 11 % 11 % 10 % 9% 9% 9% Money market 6% 4% 3% 5%
Slide 22: Unrealised gains; Premiums written
Storebrand Livsforsikring AS Unrealised gains 01.01.-31.03 Full year Change NOK Million 2007 2006 2006 2007 Shares 6,868 6,075 6,151 717 Fixed interest investments -82 -368 -261 179 Short term investments 6,786 5,707 5,890 896 Bonds held to maturity 739 2,799 1,097 -358 Total 7,525 8,506 6,986 538 Q
Slide 23: Premiums excl. reserves transferred
Storebrand Livsforsikring AS Premiums excl. reserves transferred to the company Q1 Full year NOK mill. 2007 2006 2006 Group pension 3,228 2,935 7,257 Group pension defined contribution 389 143 988 Group life 380 358 496 Individual endowment 937 899 2,898 Individual endowment Unit Linked 196 301 623
Slide 24: Net transfers of premium reserves
Storebrand Life Group Net transfers of premium reserves Q1 Full year NOK Million 2007 2006 2006 Premium reserves recieved Group pensions 850 3,418 6,435 Individual life insurance 22 64 184 Unit Linked 73 29 122 Total 945 3,511 6,741 Premium reserves transferred Group pensions -480 -631 -1,286 Indivi
Slide 25: Profit analysis
Storebrand Livsforsikring AS Profit analysis Q1 Full year NOK Million 2007 2006 2006 Interest result 870 1,047 5,523 Risk result 80 87 220 Administration result - 135 -95 -551 Change in security and premium reserve -9 -10 -18 Operating profit 806 1,030 5,175 Transferred to policyholders -532 -732 -3
Slide 26: Storebrand Life Group Balance sheet IFRS
Storebrand Life Group Balance sheet IFRS Share of Share of total assets total assets NOK Million 31.03.07 31.03.07 31.12.06 31.12.06 Immaterial assets 13 0% 17 0% Real estate 17,693 9% 17,447 10 % Long term shares and interests from group companies 209 0% 208 0% Bonds held to maturity 41,284 22 % 43
Slide 27: Profit to owner; Key figures
Storebrand Livsforsikring AS Profit to owner NOK Million Q1 Q1 PROFIT SHARING MODEL 2007 REGULATORY MAXIMUM 2006 Net return on company capital 110 Management fee charged from policyholders` fund 149 35% of profit from products Risk margin 12 with profit sharing adjusted for Products inside profit sh
Slide 28: Real estate fund
Storebrand Livsforsikring AS Real estate fund Q1 Full year Key figures 2007 2006 2006 Portfolio allocation (Market value) The real estate fund: Growth in value 5.8% 2.3% 13.0% Booked yield *) 5.1% 2.2% 12.6% Shopping Office Direct yield 3.0% 1.8% 7.3% centres 56 % Revaluations 2.1% 0.4% 5.3% 41 % To
Slide 29: Storebrand Investments Highlights Q1
Storebrand Investments Storebrand Investments Highlights Q1 Profit before tax NOK 31 million compared to 20 million NOK in 1st quarter last year. 4,5 billion in increased asset under management in mutual funds in 1st quarter contributes to a significant growth in income. Strong performance in
Slide 30: Profit before tax; Profit development
Profit before tax Q1 2007 Q1 01.01-31.12 NOK million 2007 2006 2006 Total income 90 74 399 Total costs -65 -58 -280 Net financial income/ other 6 3 37 Profit before tax 31 20 156 The income growth is mainly due to an increase in income from mutual funds due to increased assets under management.
Slide 31: Profit development; Margin improvement continues
Profit development NOK million 460 455 440 420 Cost/income ratio 63 percent1 400 as of Q1 (64% in 2006). 380 Increase in both fixed and 360 67 volume 340 320 Increased operating costs is 300 mainly due to a growth in 287 280 38 performance related pay 260 32 31 240 220 20 17 15 14 7 8 8 4 -2 Q
Slide 32: Contribution to Storebrand Life portfolio; mutual funds
Contribution to Storebrand Life portfolio year to date Relative performance 5,6 % Norwegian Equities 4,4 % 1,2% -0,8 % Equities Global Active 0,5 % -1,3% 2,1 % Equities Global Beta 0,5 % 1,6% 1,0 % Norwegian Money Market 0,8 % 0,2% 1,0 % OECD Money Market 0,9 % 0,1% 1,0 % Money Market International
Slide 33: Market share Norwegian registered mutual funds
Market share Norwegian registered mutual funds Equity funds market in Norway All mutual funds (market share in %) Norwegian equity funds exceed 7,9 8,4 8,3 7,8 NOK 232 billion in assets under 7,2 Nordea 12,5 11,6 12,0 management. 12,7 12,8 Odin 16,7 The overall market consist of NOK 15,8 16,7 17
Slide 34: Assets under management
Storebrand Investments Assets under management Total assets under management Allocation assets under management 220 Real estat e 217 10 % 205 Ot her 24,6 28,9 Hold t o 5% NOK billion 20,3 maturity 159 165 30,3 27,4 23 % Equity Norway 29,4 15,8 6% 13,2 20,0 21,4 9,7 14,6 25,3 12,9 10,1 M oney market
Slide 35: Storebrand Bank Group Highlights Q1 2007
Storebrand Bank Group Storebrand Bank Group Highlights Q1 2007 Storebrand Bank Group reports a pre-tax profit of NOK 79 million in Q1 (NOK 48 million in Q1 2006) Net income from loan loss provisions of NOK 45 million in Q1. NOK 35 million is related to a settlement Growth in gross lending of N
Slide 36: Bank stands out in customer satisfaction survey
Finans- barometeret 2007 Storebrand Bank stands out positively in a customer satisfaction market survey 58 DnB NOR 54 Skandiabanken has the most loyal 52 and satisfied customer base with a 64 TRI*M score of 101 points. Still Postbanken 61 Skandiabanken is the one bank 60 whose position has fallen
Slide 37: Quarterly development in profit and loss; Balance sheet
Quarterly development in profit and loss 2007 2006 NOK million Q1 Q4 Q3 Q2 Q1 Net interest income 93 101 109 102 106 Net fee and commission income 11 11 12 5 12 Other operating income 12 13 8 8 9 Total income 115 126 129 116 127 Operating expenses -81 -96 -93 -72 -94 Operating profit before losses 3
Slide 38: Development in loan portfolio and loss provisions
Development in loan portfolio Development in gross lending Gross lending by sector NOK billion STB Life insurance 7% Corporate 2,7 Retail 2,3 6% 1,7 1,8 Residential 0,6 1,5 mortgages 0,5 11,7 0,3 11,5 0,3 Other retail 10,2 10,3 10,5 10,2 9,5 10,1 8,9 Real estate 51 % 28 % Other corporate 19,6 21,0 1
Slide 39: Development in customer deposits; Capital adequacy
Development in customer deposits NOK million Customer deposits have increased by NOK 1,021 16.000 14.000 60 % million in Q1 12.000 50 % 10.000 40 % 8.000 30 % Deposits / gross lending 6.000 20 % 4.000 was 44.6 % at year end 2.000 10 % 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2005 2005 2005 2005 2006 2006 2
Slide 40: Storebrand Non-Life Highlights Q1 2007
Storebrand Non-life Non-Life Highlights Q1 2007 Operating loss in Q1 was NOK 14 million (operating profit NOK 47 million) Operating loss in SB Skade AS was NOK 13 million (profit of NOK 47 million*). The operating loss was expected as a result of start-up costs connected with the new non-life in
Slide 41: Non-Life Group Profit and loss; Balance sheet
Non-Life Group Profit and loss Q1 Full year NOK million 2007 2006 2006 50% share of result from Fair 0 -1 -1 Storebrand Skadeforsikring AS -13 47 7 Oslo Reinsurance Company ASA (run-off) -1 1 -2 Eliminations 0 0 16 Operating result non life insurance -14 47 20 Change in insurance funds 0 0 0 Pre tax
Slide 42: Oslo Reinsurance Company Profit and loss
Oslo Reinsurance Company Profit and loss Q1 Full year NOK million 2006 2005 2006 Premiums for own account 1 1 3 Claims for own account -5 1 -11 Insurance related operating costs -5 -7 -22 Financial income 5 1 18 Other income/costs 3 5 11 Operating result -1 1 -2 Changes in security reserve etc. - -