Financial results Q KLP Group. Oslo, 1th November 2018

Transcription

1 Financial results Q KLP Group Oslo, 1th November 2018

2 Table of contents 1. Main features 2. KLP Group 3. Life and pension 4. KLP Non-Life Insurance 5. Bedriftspensjon 6. Banking and credits 7. KLP Asset Management 8. Summary

3 Main features Q Q Q Q Common portfolio Total group assets: NOK 692 billion Common portfolio of life company: Book return of 3.1 per cent Value adjusted return of 2.9 per cent Corporatate portfolio returned 3.1 per cent Solvency ratio KLP: 274 per cent Booked return 0.8 % 1.0 % 1.2 % 0.9 % Value adjusted return 1.6 % 1.7 % -0.4 % 2.1 % Value adjusted return incl. HTM bonds/bonds booked at amortised costs 1.2 % 1.8 % -1.1 % 2.0 % Investment options portfolio 1.8 % 2.2 % -0.9 % 2.3 % Corporate portfolio 0.7 % 0.7 % 1.6 % 0.9 % Return 8% 7% 6% 5% 4% 3% 2% 1% 0% Booked Value adjusted Corporate

4 KLP Group results by segment NOK million Q Q Q Q Life insurance Non-life insurance Banking Asset management Other Group result before tax

5 KLP Group main figures - results NOK million Pension premiums and incoming transfers of which premium reserves transferred from another company Allocated investment income Minority share of return of financial instruments Claims f.o.a Insurance provisions Interest expenses and value adjustments subordinated loans and subordinated bonds Operating cost Other income and cost Technical result To/from value adjustment fund life insurance To/from supplementary reserves life insurance Surplus allocated Life insurance clients Group result pre-tax Tax Other profit/loss elements Group result

6 KLP Group - Balance NOK million Investment properties Debt instruments held to maturity Debt instruments classified as loans and receivables Assets Lending to municipalities, enterprises and individuals Debt instruments at fair value over P/L Equity instruments at fair value over P/L Other Total NOK million Own funds and liabilities Own funds Hybrid capital and subordinated loans Debt to financial institutions Covered bonds issued Debt to and deposits from clients Insurance reserves Minority interests classified as liabilities Other liabilities Total

7 KLP Life NOK million Premium NOK million Total Assets Q3 2018

8 KLP Appropriation of results Nok million Result Customers Result Company Interest result Risk result Premium interest rate guarantee Administration result Net income corporate portfolio Tax Other result elements Total Result to owners 19 % Retur on piad-in equity to clients 81 %

9 KLP Life - Balance NOK million Total assets in corporate portfolio Assets Total assets in common portfolio Assets in investment options portfolio Total assets NOK million Paid-in equity Risk equalization fund Own funds and liabilities Retained earnings Hybrid capital and subordinated debt Insurance liabilities Other liabilities Total: own funds, provisions and debt

10 KLP Life - Solvency Solvency ratio (SCR) 274 % 253 % 255 % 242 % Solvency ratio Q2: 274* per cent Minimum solvnecy ratio Q3: 571* per cent *without transitional measures Kapitaldekning (SCR) with transitional measures Minimum solvnecy ratio (MCR) Minimum solvnecy ratio (MCR) with transitional measures 321 % 321 % 319 % 352 % 517 % 472 % 476 % 452 % 623 % 623 % 618 % 692 % Solvency Ratio 800% 700% 600% 500% 400% 300% 200% 100% 0% SCR SCR with transitional measures MCR MCR with transitional measures

11 KLP Life - Common Portfolio Share* Return Share* Return Equities 23.5 % 5.7 % 22.5 % 16.5 % Bonds 18.5 % -1.1 % 19.2 % 3.2 % Bonds held-to-maturity 27.7 % 2.8 % 27.1 % 4.0 % Lending 11.9 % 1.7 % 11.6 % 2.2 % Property 12.3 % 5.6 % 12.3 % 8.9 % Other financial assets 6.0 % 0.9 % 7.3 % 1.5 % *) Measured by exposure NOK bn 150 Allocation Property Lending Equities Bonds held-tomaturity Bonds Other financial assets Q Q Q Q3 2018

12 KLP Life - Allocation NOK bn Equities NOK bn Property NOK bn Bonds Q % 16% 14% 12% 10% 8% 6% 4% 2% 0% Q % 12% 10% 8% 6% 4% 2% 0% Q % 8% 7% 6% 5% 4% 3% 2% 1% 0% Value Return Value Return Value Return NOK bn Bonds held-to maturity Q % 5% 4% 3% 2% 1% NOK bn Lending Q % 5% 4% 3% 2% 1% 0% NOK bn Other financial assets Q % 5% 4% 3% 2% 1% 0% Value Return Value Return Value Return

13 KLP Life - Property Property value - by country 3 % The portfolio written up by NOK 100 million (0.2 %) in Q3 New investments / sales in 2018 Sold a few smaller plots 8 % 17 % 73 % Norway Denmark Sweden Europe Sold Bergerveien 12 I Asker Bought Barcode Basement in Oslo Property value - by sector 3 % 5 % Offices, education 19 % Shopping centres Hotels 11 % 62 % Other (leasehold land, co-properties, parking) Sites under development

14 KLP Life Property NOK million Fair value total portfolio* Fair value common portfolio* *Incl exchange-rate hedged and excl. property fund Q Q Q Q Value adjustment in per cent 0.2 % 2.3 % -0.1 % 2.5 % Value adjustment in per cent common portfolio 0.2 % 2.3 % -0.1 % 2.5 % Total return common portfolio** 1.3 % 3.3 % 1.0 % 3.6 % **Incl exchange-rate hedgede and property fund

15 KLP Skadeforsikring (non-life insurance) Surplus of NOK 106 million 140,0 % Three large injuries estimated to NOK 24 million and NOK 21 million and NOK 14 million Some industries have unsatisfactory high claims rates Motor, Public 120,0 % 100,0 % 80,0 % 97,3 % 95,6 % 26,7 % 29,1 % 121,9 % 118,1 % 30,4 % 26,5 % 107,7 % 26,4 % 103,7 % 26,2 % 91,8 % 23,1 % 98,8 % 98,7 % 106,0 % 21,1 % 22,8 % 21,8 % 100,10% 22,90% Property Public Group life 60,0 % Revenue recognition of previous years reserves of NOK 126 million, 6.7 per cent of reserves at the beginning of the year 40,0 % 70,6 % 66,5 % 91,5 % 91,6 % 81,3 % 77,5 % 68,8 % 77,7 % 75,9 % 84,2 % 77,20% 20,0 % Financial income of NOK 105 million Solvency ratio: 251 per cent 0,0 % Q Claims ratio on own account Cost ratio on own account Combined ratio on own account

16 KLP Skadeforsikring (non-life insurance) NOK million Q Q Q Q Premium written f.o.a Claims f.o.a Insurance related expenses Other insurance related income Result from technical activities Result from investment activities Other income Result from ordinary operation Estimated tax expense Other elements Provisions for equity fund Result after provisions for equity fund

17 KLP Skadeforsikring (non-life insurance) Revenues, NOK million Q Q Q Q Gross premium written Premium income for own account Claims paid for own account Insurance related costs for own account Results Key figure balance sheet, NOK million Financial assets Total assets Equity Provisions in insurance funds for own account

18 KLP Bedriftspensjon main figures NOK million Q Q Q Q Interest result 5, Risk result -5, Administration result -6, Interest rate guarantee and profit element 2, Non-technical result 2, Other profit elements Total result -2, Of which result to clients 6, Result to owner -8,

19 KLP Bedriftspensjon return and solvency Common portfolio Book 3,57 % 2.55 % 1.35 % 8.3 % Value adjusted 2,38 % 1.41 % 0.36 % 5.6 % Investment options portfolio 4,47 % 1.13 % % 11.9 % Corporate portfolio 0,96 % 0.50 % 0.03 % 2.3 % Solvency ratio (scr) 133 % 128 % 126 % 107 % Kapitaldekning (scr) with transitional measures 295 % 290 % 298 % 299 % Minimum solvnecy ratio (mcr) 295 % 285 % 292 % 264 % Minimum solvnecy ratio (mcr) with transitional measures 659 % 669 % 714 % 774 % NOK million Value adjustment fund Supplementary reserves Solvency capital , , ,

20 KLP Bank-group main figures NOK million Q Q Q Q Net interest revenues 60, Net fee and commissions income 4, Retail market: clients, net increase of so far. The Group's capital adequacy ratio is 19.9%, which is well above the ICAAP of 17.6%. In addition, there is an internal requirement of 0.5% buffer over ICAAP. Management fees 14, Operating cost -46, Value changes financial instruments Pre-tax earnings 28, Total assets Per cent 25 Capital Adequacy Q Q Q3 2018

21 KLP Bank-group main figures KLP Kommunekreditt, NOK million Q Q Q Q Net interest revenues Operating cost Value changes financial instruments Pre-tax earnings Total assets KLP Banken. NOK million Q Q Q Q Net interest revenues Net fee and commissions income Management fees Operating cost Value changes financial instruments Pre-tax earnings Total assets KLP Boligkreditt. NOK million Q Q Q Q Net interest revenues Operating cost Value changes financial instruments Pre-tax earnings Total assets

22 KLP Bank-group lending and deposits Mortage loans, NOK billion KLP Banken AS KLP Boligkreditt AS KLP (Management agreement) Total Public sector loans, NOK billion KLP Kommunekreditt AS KLP (Management agreement) KLP (currency loans) Total Deposits, NOK billion KLP Banken AS Total

23 KLP Kapitalforvaltning (Asset management) NOK bn Total assets under management NOK bn External assets under management Total assets under management External assets under management Number of clients NOK million 50 Result before taxes Number of clients Result before taxes

24 Contacts in KLP Position Name Phone Executive Vice President & CFO Aage E. Schaanning / Director Finance Oliver Siem