Storebrand 1Q Apr Odd Arild Grefstad CEO Lars Aa. Løddesøl CFO

Transcription

1 Storebrand 1Q Apr 2018 Odd Arild Grefstad CEO Lars Aa. Løddesøl CFO

2 2 Storebrand Capital Markets Day May 31 - London To register please visit Storebrand.com/ir

3 Highlights Q Group result 1 17% Unit Linked growth 2 MNOK % growth in retail lending Q % Insurance premium growth 2 Financial items and risk result life Operating profit 165% Solvency II ratio Result before amortisation and write-downs. 2 Growth figures are from YTD 2017 to YTD Including transitional rules.

4 Our strategy 1 Manage the guaranteed 2 balance sheet Continued growth in Savings and Insurance >150% SII margin Capital-light and profitable growth Cost reductions through automation and outsourcing Market leading asset gatherer with strong Insurance offering Manage for future capital release and increased dividend capacity Continued retail growth with low capital requirements Lower capital requirements and higher quality of earnings 4 We work hard to reach our vision: Recommended by our customers

5 Storebrand Group Solvency movement from Q to Q ,0% +3,0% -3.5% -1,5% 160% 5 155% 1.5% 3.5% Q4 Model improvements and assumption changes UFR, VA and Equity stress Market movements Operating earnings Silver aquisition/change sub debt Projected dividends Q excl. transitionals Transitionals Q incl. transitionals

6 SII position Storebrand Group Solvency position(%) Estimated sensitivities SII-margin Q Target SII margin 150% Interest rates -50bp Interest rates +50 bp Q Transitional rules Q SII standard model Equity -25% Key takeaways Increased interest rates and volatility adjustment positive for the SII position, but reduces the value of the transitional rules Results give strong capital generation Spread +50 bp, VA +15bp UFR = 3.90% UFR = 3.65% The estimated Economic solvency position of Storebrand Group is calculated using the current Storebrand implementation of the Solvency II Standard model with the company's interpretation of the transition rules from the NFSA. Output is sensitive to changes in financial markets, development of reserves, changes in assumptions and improvements of the calculation framework in the economic capital model as well as changes in the Solvency II legislation and national interpretation of transition rules.

7 SKAGEN and Silver update 1 2 Acquired remaining 9% of the shares during Q1, financed with liquidity from Skagen AS. Decided to converge into one operational platform using technology solutions from both Skagen and Storebrand 3 Successful onboarding and welcoming of new customers with NOK 10bn of assets 7

8 Strong growth in Swedish business SPP Total premium income SPP Q (SEKm) +1% +22%

9 Growth in Savings continues Unit Linked Asset management % 171 Including NOK 8,5bn from Silver % 707 Growth driven by non-guaranteed and external mandates Negative financial return and FX dampens growth Weaker SEK reduces growth UL reserves (BNOK) Q AuM (BNOK) Q Insurance Retail loans % Weak growth Improved profitability 37 14% 43 NOK 15,4bn placed on life balance sheet as of Q Implementing growth initiatives Q Q Portfolio Premiums (MNOK) Balance (BNOK) 9

10 Key figures Group Result development 1 Earnings per share 2 Financial items and risk result life Special items Operating result MNOK Q Q Q Q Q Q Q Q SII Own funds and SCR 4 SII Own Funds SII Capital requirement 172% 163% 159% 160% 155% 152% 150% 147% BNNOK 165% 160% 26.7 Customer buffers development Customer buffers Norway 4 % of customer funds 3 Customer buffers Sweden 9.3% 9.0% 7.9% 8.4% 7.2% 5.4% 5.3% 5.2% 6.2% 9.0% Q Q Q Q Q Q Q Q Result before amortisation, write-downs. 2 Earnings per share after tax adjusted for amortisation of intangible assets. 3 Customer buffers in Benco not included. Surplus values of bonds held at amortized cost excluded. 4 Bars without the use of transitional capital. Ratio is shown with (black) and without transitional rules.

11 Storebrand Group Group Profit 1 1Q Full year NOK million Fee and administration income Insurance result Operational cost Operating profit Financial items and risk result life Profit before amortisation Amortisation and write-downs of intangible assets Profit before tax Tax Profit after tax The result includes special items. Please see storebrand.com/ir for a complete overview. Numbers from does not include Skagen. Cost from Skagen was NOK 110m in 1Q 2018.

12 Storebrand Group Group Profit 1Q Full year NOK million Fee and administration income Insurance result Operational cost Operating profit Financial items and risk result life Profit before amortisation Profit per line of business 1Q Full year NOK million Savings - non-guaranteed Insurance Guaranteed pension Other profit Profit before amortisation

13 Savings (non-guaranteed) - continued growth Savings Profit 1Q Full year NOK million Fee and administration income Operational cost Operating profit Financial items and risk result life Profit before amortisation Fees earned not booked Profit per product line 1Q Full year NOK million Unit linked Norway Unit linked Sweden Asset Management segment Retail banking Profit before amortisation ' Earned not booked' refers to performance fees to be booked at the end of the year given investment performance in Skagen and Delphi YTD. Result at year end can deviate from estimate due to market movements.

14 BNOK MNOK BNOK Savings (non-guaranteed) - strong growth in assets and retail lending Savings Reserves and premiums Unit Linked 3,7 3,6 3,7 4,0 4,0 Comments 6% premium growth in UL premiums % retail lending growth % growth in assets under management 2 Q Q Q Q Assets under management Retail bank balance and net interest margin (%) 1,09 1,22 1,23 1,22 1, Life insurance balance sheet Banking balance sheet Q Q Q Q Q Q Q Q Excluding transfers. Growth from YTD 2017 to YTD Growth figures from YTD 2017 to YTD Includes consolidation of Skagen. Growth figures from YTD 2017 to YTD 2018.

15 Insurance Insurance Profit 1Q Full year NOK million Insurance premiums f.o.a Claims f.o.a Operational cost Operating profit Financial result Profit before amortisation Profit per product line 1Q Full year NOK million P&C & Individual life Health & Group life Pension related disability insurance Nordic Profit before amortisation

16 MNOK Insurance - Implemented measures to reduce costs Insurance Combined ratio Comments Combined ratio and results Claims ratio Combined ratio 89% Cost ratio 88% 85% 93% 82% Combined Ratio 82% Cost ratio 15%, improvement due to fewer FTEs in the segment 71% 70% 68% 73% 67% 18% 18% 18% 20% 15% Q Q Q Q Portfolio premiums Comments premiums and growth 1 P&C & Individual life Health & Group life Disability Insurance Q Q Q Flat premium development within P&C & Individual life 3% premium growth within Health & Group life -2% in premiums in Pension related disability Nordic due to loss of unprofitable customers 16 1 Growth figures show development from 2017 to 2018 YTD.

17 Guaranteed pension Guaranteed Profit 1Q Full year NOK million Fee and administration income Operational cost Operating profit Risk result life & pensions Net profit sharing and loan losses Profit before amortisation Profit per product line 1Q Full year NOK million Defined benefit (fee based) Paid-up policies, Norway Individual life and pension, Norway Guaranteed products, Sweden Profit before amortisation

18 BNOK Guaranteed pension - reserves in long term decline and robust buffer situation Guaranteed Reserves guaranteed products Comments As companies convert to DC schemes, the migration from DB to lower-margin paid up policies continues to reduce fee income in Guaranteed pensions NOK 149m dissolution of longevity reserves Q Defined Benefit NO Paid up policies NO Q Q Individual NO Guaranteed products SE Q Buffer capital Guaranteed reserves in % of total reserves NOK million Q 1Q Change Market value adjustment reserve Excess value of bonds at amortised cost ,9% 63,2% 62,4% Additional statutory reserve Conditional bonuses Sweden Total ,2% 60,2% 1) The term Buffer capital in this table is not consistent with the definition of buffer capital made in the IFRS accounting Q Q Q Q

19 Other 1 Other Profit 1Q Full year NOK million Fee and administration income Operational cost Operating profit Financial items and risk result life Profit before amortisation Profit per product line NOK million Corporate Banking BenCo Holding company costs and net financial results in company portfolios Profit before amortisation Q Full year 19 1 Excluding eliminations. For more information on eliminations, see Supplementary Information.

20 20 Appendix

21 Storebrand Life Insurance asset allocation 60% 50% 40% 30% 20% 10% 0% Equities Bonds Money market Bonds at amortized cost Real estate Other % 25% 4% 53% 11% 1% % 25% 5% 52% 11% 1% % 25% 4% 53% 11% 1% % 24% 5% 52% 10% 1% % 25% 5% 52% 10% 1% 21 Note: The graph shows the asset allocation for all products with an interest rate guarantee in Storebrand Life Insurance Norwegian operations. Category bonds includes loans on life insurance balance sheet.

22 SPP asset allocation 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Alternative investments Bonds Equities % 86% 6% % 85% 6% % 83% 6% % 82% 6% % 81% 7% 22 Note: The graph shows the asset allocation for all products with an interest rate guarantee in SPP.

23 Investor Relations contacts Lars Aa Løddesøl Kjetil R. Krøkje Group CFO Head of IR This document contains Alternative Performance Measures as defined by the European Securities and Market Authority (ESMA). An overview of APMs used in financial reporting is available on storebrand.com/ir.