Storebrand Asa · OSL:STB
Storebrand Asa — Q4 2019 Earnings Presentation
28 slides from Storebrand Asa's earnings presentation, Feb 12, 2020
Slide 1: Storebrand Q4 2019
Storebrand Q4 2019 12 February 2020 Odd Arild Grefstad – CEO Lars Aa. Løddesøl – CFO
Slide 2: Highlights Q4 2019
Highlights Q4 2019 #1 sustainable insurance company in the world4 Group result1 23% Unit Linked reserve growth2 3 037 739 MNOK NOK 124bn AuM growth Asset Management2 1 026 2 298 319 707 Q4 2019 Full year 2019 176% Solvency margin5 Financial items and risk result life Operating profit NOK 3.25kr prop
Slide 3: Our strategy: A compelling combination of self-funding growth and capital return
Our strategy: A compelling combination of self-funding growth and capital return from maturing guaranteed back-book 1 A B C D Asset manager with Build a world class Uniquely positioned in Leading position strong competitive Savings business growing retail savings Bolt-on M&A Occupational Pension pos
Slide 4: Dividend 2019
Dividend 2019 +8.3% 3.25 3.00 ▪ IFRS result growth - Ordinary 2.50 dividends minimum 50% of result 0.40 after tax with nominal growth 1.55 ▪ Capital release from back book 2.10 when solvency ratio is above 180%. 1.55 Share buy backs preferred 2016 2017 2018 2019 Special dividends Ordinary dividends
Slide 5: Strong growth in Savings
Strong growth in Savings Unit Linked Asset management1 +23% +18% 220 ▪ Double digit premium 831 ▪ Good market return 179 growth 707 ▪ Cubera included as of Q2 ▪ Strong sales and 2019 with NOK 7bn premium income growth in Sweden Q4 2018 Q4 2019 ▪ Structural growth Q4 2018 Q4 2019 continues AuM (BNOK)
Slide 6: World leader in sustainability
World leader in sustainability The Global 100 index1, as presented during the World Economic Forum in Davos by Corporate Knights, ranks Storebrand as: • World's most sustainable insurance company • Most sustainable Nordic financial company 6 1 published by the Canadian financial magazine Corporate K
Slide 7: SPP Fonder turns fossil free – named Swedish fund manager of the year
SPP Fonder turns fossil free – named Swedish fund manager of the year Privata Affärers motivering: "Man vet vad man får hos SPP Fonder. Klimatsmarta och hållbara fonder till ett bra pris!" 7
Slide 8: SPP's digital pension plan Sajna named "Digital project of the year"
SPP's digital pension plan Sajna named "Digital project of the year" Sajna is the first completely digital pension plan in Sweden Lead time decrease from 3 weeks to 0 days 272 signed deals in 2019, compared to 58 in 2018 8
Slide 9: Key figures
Key figures Group Result development1 Earnings per share2 Financial items and risk result life Operating profit MNOK Special items 4.18 Performance related result 1,026 563 730 579 700 319 114 85 11 202 105 251 1.68 1.26 1.21 1.22 569 546 568 635 456 -103 -18 -44 -50 -49 Q4 2018 Q1 2019 Q2 2019 Q3 2
Slide 10: Movement from Q3 2019 to Q4 2019
Movement from Q3 2019 to Q4 2019 Group Storebrand ASA -7 % +1 % -3 % +2 % +2 % +176 % +174 % +172 % 0% +9 % Q3 2019 Model Changes in VA, equity Business mix Operating Subordinated Q4 2019 Transitionals Q4 2019 without improvements interest rates stress level and asset earnings loan without transitio
Slide 11: Movement full year 2019
Movement full year 2019 Group Storebrand ASA 10% 179% 2% 176% 174% 172% 10% 6% 0% -1% 3% -1% -8% -5% Q4 2018 Model M&A VA, equity Reinsurance Subordinated Changes in Business mix Operating Q4 2019 Dividend Q4 2019 Transitionals Q4 2019 without improvements stress and liabilities interest rates and a
Slide 12: SII position Storebrand Group
SII position Storebrand Group Group Solvency position(%)1 Estimated sensitivities Target SII margin 150% 177 176 5 2 SII-margin Q4 174 2 176 172 174 Interest rates -50bp 161 9 170 Interest Q3 2019 Q4 2019 rates +50 bp 186 2 188 Transitional rules SII standard model Equity -25% 167 1 168 Key takeaway
Slide 13: Storebrand Group
Storebrand Group Group Profit1 Q4 Full year NOK million 2019 2018 2019 2018 Fee and administration income 1 561 1 301 5 308 5 011 Insurance result 223 282 1 005 1 291 Operational cost -1 077 -1 031 -4 015 -3 786 Operating profit 707 551 2 298 2 516 Financial items and risk result life 319 11 739 642
Slide 14: Storebrand Group
Storebrand Group Group Profit1 Q4 Full year NOK million 2019 2018 2019 2018 Fee and administration income 1 561 1 301 5 308 5 011 Insurance result 223 282 1 005 1 291 Operational cost -1 077 -1 031 -4 015 -3 786 Operating profit 707 551 2 298 2 516 Financial items and risk result life 319 11 739 642
Slide 15: Storebrand Group
Storebrand Group Group Profit1 Q4 Full year NOK million 2019 2018 2019 2018 Fee and administration income 1 561 1 301 5 308 5 011 Insurance result 223 282 1 005 1 291 Operational cost -1 077 -1 031 -4 015 -3 786 Operating profit 707 551 2 298 2 516 Operating profit adjusted for performance related i
Slide 16: Savings (non-guaranteed)
Savings (non-guaranteed) Savings Profit Q4 Full year NOK million 2019 2018 2019 2018 Fee and administration income 1 233 1 006 3 996 3 709 Operational cost -692 -652 -2 621 -2 405 Operating profit 541 354 1 375 1 303 Financial items and risk result life 6 -29 -11 -46 Profit before amortisation 547 3
Slide 17: Savings (non-guaranteed)
Savings (non-guaranteed) Group Profit Q4 Full year NOK million 2019 2018 2019 2018 Fee and administration income 1 233 1 006 3 996 3 709 Operational cost -692 -652 -2 621 -2 405 Operating profit 541 354 1 375 1 303 Operating profit adjusted for performance related income and costs1 Q4 Full year NOK
Slide 18: Savings (non-guaranteed) – strong AuM growth
Savings (non-guaranteed) – strong AuM growth Savings Reserves and premiums Unit Linked Comments1 4.6 4.1 4.2 4.2 4.2 ▪ 11% premium growth in UL premiums 220 207 198 191 ▪ 23% growth in UL reserves 179 BNOK ▪ 18% growth in assets under management2 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 ▪ Higher net
Slide 19: Insurance
Insurance Insurance Profit Q4 Full year NOK million 2019 2018 2019 2018 Insurance premiums f.o.a. 1 014 1 003 3 909 3 854 Claims f.o.a. -792 -721 -2 904 -2 562 Operational cost -177 -175 -648 -614 Operating profit 45 107 357 677 Financial result 25 -9 83 71 Profit before amortisation 70 97 439 748 P
Slide 20: Insurance – overall in line with target
Insurance – overall in line with target Insurance Combined ratio Comments Combined ratio and results Claims ratio Cost ratio Combined ratio 90% 96% ▪ 91% combined ratio 2019, target ratio 90-92% 89% 89% 89% ▪ Good cost control 74% 78% ▪ Group life re-priced from 1 January 2020 72% 72% 73% 17% 16% 16
Slide 21: Guaranteed pension
Guaranteed pension Guaranteed Profit Q4 Full year NOK million 2019 2018 2019 2018 Fee and administration income 368 333 1 475 1 440 Operational cost -225 -223 -819 -816 Operating profit 143 111 657 624 Risk result life & pensions 71 58 215 191 Net profit sharing 118 48 157 333 Profit before amortisa
Slide 22: Guaranteed pension
Guaranteed pension Guaranteed - strong financial result and robust buffer situation Reserves guaranteed products Comments 261 261 262 264 263 33 32 33 33 33 ▪ As companies convert to DC schemes, the migration from DB to paid up policies continues to 137 reduce fee income in Guaranteed pensions BNOK
Slide 23: Other
Other1 Other Profit Q4 Full year NOK million 2019 2018 2019 2018 Fee and administration income 13 23 51 102 Operational cost -35 -42 -143 -190 Operating profit -22 -20 -91 -89 Financial items and risk result life 99 -56 296 128 Profit before amortisation 77 -76 205 40 Profit per product line Q4 Full
Slide 24: To register, please visit Storebrand.com/ir
To register, please visit Storebrand.com/ir 24
Slide 25: Appendix
Appendix 25
Slide 26: Storebrand Life Insurance asset allocation
Storebrand Life Insurance asset allocation 60% 50% 40% 30% 20% 10% 0% Bonds at Money Real Equities Bonds amortized Other market estate cost 31.12.2018 7% 27% 2% 52% 10% 0% 31.03.2019 8% 26% 3% 53% 10% 0% 30.06.2019 8% 26% 3% 52% 10% 0% 30.09.2019 9% 26% 2% 52% 10% 0% 31.12.2019 9% 25% 3% 52% 10% 0%
Slide 27: SPP asset allocation
SPP asset allocation 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Alternative Bonds Equities investments 31.12.2018 13% 81% 6% 31.03.2019 13% 82% 5% 30.06.2019 13% 83% 5% 30.09.2019 12% 84% 4% 31.12.2019 12% 81% 6% Note: The graph shows the asset allocation for all products with an interest rate guarantee
Slide 28: Investor Relations contacts
Investor Relations contacts Lars Aa. Løddesøl Group CFO lars.loddesol@storebrand.no +47 9348 0151 Kjetil R. Krøkje Group Head of Finance, Strategy and M&A kjetil.r.krokje@storebrand.no +47 9341 2155 Daniel Sundahl Head of Investor Relations and Rating daniel.sundahl@storebrand.no +47 9136 1899 This