SPP - Additional information. November 2005

Transcription

1 SPP - Additional information November 2005

2 SPP Overview 30 September 2005 Assets under management: SEK 83bn Premium income, Jan-Sep 2005: SEK 3.3bn Duration, commitments to policyholders: 17 years Policies: Customers: (companies), (individuals)

3 The Swedish Life Insurance Market Premium income per segment, Jan - Sep 2005 Total market: SEK 89.0bn Core markets for Handelsbanken Liv Core market for SPP

4 The Swedish life insurance market Occupational market Market shares - premium income Jan Sep 2005 Occupational market: SEK 53,3 bn Robur 4,8% Alecta 7,7% Nordea 1,0% Others 1,8% Skandia 18,2% Länsförsäkringar 9,4% Folksam KPA 15,2% AMF Pension 16,9% SEB Trygg 11,9% Handelsbanken 13,1% SPP 9.6 % Handelsbanken Liv 3.5 %

5 SPP Defined Benefit Consists of insured pension schemes for white-collar workers Total assets, 30 September 2005: SEK 39bn Guaranteed rate, old business: 4% Since May 2005, new business is written at 2.75% Collective consolidation ratio, 30 September 2005: 112%

6 SPP Defined Contribution Elective parts of occupational pension schemes Total assets, 30 September 2005: SEK 41bn Guaranteed rate, average: 4% Guaranteed rate, old policies: 3% and 5% Guaranteed rate, new business and new premiums: 2.5% Collective consolidation ratio, 30 September 2005: 98%

7 SPP Balance sheet 30 Sept SEK bn Defined Benefit Defined Contribution Unit-Linked* Assets** Total return on policyholders funds Jan-Dec 2003 Jan-Dec 2004 Jan-Sep % 6.0% 5.7% * On 1 July 2004, SPP Liv Fondförsäkring AB (Unit Linked) was sold to Handelsbanken Liv. ** Subordinated debt excluded

8 SPP Premium income 30 Sept SEK bn Defined Benefit Defined Contribution Unit-Linked * Total * On 1 July 2004, SPP Liv Fondförsäkring AB (Unit Linked) was sold to Handelsbanken Liv.

9 SPP Administrative result (including Unit-Linked) SEK m Expenses Income Extraordinary expenses * Jan-Sep 2005 annualized. *

10 Commission income Expenses Risk result Share of return Actuarial gains Return on equity Total result SPP Interest expenses, net Amort. intangible assets Cross sales SPP Fonder Asset Management fee, net Other Total earnings impact

11 Commission income Assumptions: Capital fee: 0.75% (DC), 0.35% (DB), 0.75% (Unit Linked) Premium fee: - Average 2.7% % (DB), - 3.5% (Unit Linked, annual premiums) -1.5% (Unit Linked, single premiums) - 3.5% (DC, annual premiums) -1.5% (DC, single premiums) Market shares: - Occupational pensions: 9% (2005), grows to 12% in 2009

12 Commission expenses Assumptions: : Large cost reductions (IT-expenses, staff-expenses and rental-expenses) : Focus on cost control

13 Risk result Assumptions: Risk result based on strong track record in Handelsbanken Liv. In 2003 and 2004, there was an equivalent to risk result of approximately SEK 200m.

14 Share of return Assumptions: Total return: 5.0% Portfolio allocation: 30% equities, 70% fixed income (duration 4-5 years) Approximately 60 % of policies with full profit sharing

15 Actuarial gains Assumptions: Total yield: 5% Guarantee rate for old policies 2.5% - 5% (average 4%) Evaluation of liabilities based on discount rate of 3.25%

16 Return on equity Assumptions: 5% total yield, tax 28%

17 Interest expenses, net Assumption: Financing rate 1.75% + subordinated debentures interest mark-up 0.3%

18 Amort. Intangible assets Assumptions: Amortisation of brand name over 20 years Amortisation of an intangible asset that arose with the acquisition of SPP Fondförsäkring. Amortised according to current period of use.

19 Cross sales Assumption: Based on experience to date.

20 SPP Fonder Assumptions: Unchanged fees Increased volume