Oslo, 17th August Financial results second quarter 2012 KLP Group

Transcription

1 Oslo, 17th August 2011 Financial results second quarter 2012 KLP Group 1

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

3 Main features 3

4 KLP in 2012: Satisfactory results through the first six months The common portfolio of the Life company yielded : A book return of 1.9 per cent A value adjusted return of 3.1 per cent The corporate portfolio gave a return of 2.6 per cent Group operating result NOK 4.8 billion total result to customers in excess of NOK 4.2 billion Total assets of the Group NOK 313 billion Total solvency capital NOK 41.7 billion 17.5 per cent of insurance funds with guaranteed interest 4

5 5 KLP return on investment portfolios All figures in per cent Q Q Year 2011 Common portfolio Booked return Value adjusted return Value adjusted return incl. HTM bonds/bonds booked at amortised costs Investment options portfolio Corporate portfolio

6 Status for the retail initiative Growth in line with plans In total retail clients; (June 2012) in the Bank (including life) Non-life Mutual funds (direct clients) 2500 New clients Funds Non-life Mortage Deposits Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Jan Feb Mar Apr May June 6

7 KLP Group 7

8 KLP Group results by segment Q2 Year NOK million Life insurance Non-life insurance Banking Asset management Other Group result

9 KLP Group main figures - results NOK million Pension premiums and incoming transfers Allocated investment income Claims f.o.a Insurance provisions Operating cost Other income and cost Technical result To/from value adjustment fund life insurance Q2 Year To/from supplementary reserves life insurance Surplus allocated Life insurance clients Group result pre-tax Tax Other profit/loss elements Group result pre-tax

10 KLP Group assets NOK million Change Investment properties Debt instruments held to maturity Debt instruments classified as loans and receivables Lending to municipalities, enterprises and individuals Debt instruments at fair value over P/L Equity instruments at fair value over P/L Financial derivatives Share in associated companies Assets in defined contribution life insurance Immaterial assets Other assets Total assets

11 KLP Group own funds and liabilities NOK million Change Own funds Hybrid capital and subordinated loans Debt to financial institutions Covered bonds issued Debt to and deposits from clients Insurance reserves Other liabilities Total own funds and debt Insurance provisions KLP Group Premium, indemnity- and security fund prov. in non-life insur. 2,8 2,6 Provision in life insurance with investment options 0,2 0,2 Insurance provisions in life insurance NOK billion 261,1 244,

12 Life and pension Kommunal Landspensjonskasse is the operative unit for the group s core business, supplying public sector occupational pensions and group life-insurance to the municipal and health sectors as well as to enterprises with public sector type pension plans. Kommunal Landspensjonskasse is referred to as KLP in this presentation and tables. KLP Bedriftspensjon offers defined contribution and private sector type pension plans to clients not obliged to provide public sector pensions for their employees. 12

13 Life division 15 municipalities and one county for tender so far in 2011, only four KLP being clients High market activity in KLP Bedriftspensjon close to 40 % volume growth so far in new contracts signed Adaption to future framework and improving internal processes a constant priority 13

14 KLP presentation of accounts NOK million Pension premiums and incoming transfers Net revenues from investments in Common portfolio Claims paid and outgoing transfers Changes in valuation reserves Allocations to insurance contracts Insurance related operating costs Other insurance related costs Q2 Year Technical result Net revenues from investments in Corporate portfolio Other revenues and expenditures Non-technical result Total result

15 KLP appropriation of results Q2 NOK million Customers Company Interest result Risk result Administration result Premium interest rate guarantee Non-technical result Return on paid-in equity to clients Total Good return on common portfolio 442 Good contribution from corporate portfolio Stipulated return of more than NOK 1.3 billion to clients Return on paid-in equity to clients Result to owners

16 KLP assets NOK million Change 2012 Total assets in corporate portfolio Total assets in common portfolio Assets in investment options portfolio Total assets

17 KLP own funds and liabilities NOK million Change 2012 Paid-in equity Retained earnings Hybrid capital and subordinated debt Insurance liabilities Other liabilities Total: own funds, provisions and debt Insurance liability per NOK bn Premium reserves Supplamentary reserves Value adjustment fund Other provisions Excl. separate investment portfolio BNOK

18 KLP growth in assets NOK mill Per cent 14,0 12,0 10,0 8,0 6,0 4,0 2,0 0,0 Total assets Growth in per cent 18

19 KLP Bedriftspensjon main figures NOK million Q2 Year Interest result Risk result Administration result Interest rate guarantee and profit element Non-technical result Total result Of which result to clients Result to owner

20 KLP Bedriftspensjon return and solvency Per cent Common portfolio Q2 Year Book Value adjusted Investment options portfolio Corporate portfolio Per cent Capital coverage Solvency ratio Buffer capital employment NOK million Value adjustment fund Supplementary reserves Solvency capital

21 KLP investments and capital issues 21

22 KLP capital adequacy Per cent Capital adequacy Core capital adequacy Statutory minimum capital adequacy Statutory minimum core capital adequacy % ,5 10,9 9,1 8, Kapitaldekning Capital Adequacy Kjernekapitaldekning Core capital adequacy Minimumskrav Statutory minimum kapitaldekning capital adequacy Minimumskrav Statutory minimum kjernekapitaldekning core capital adequacy 22

23 KLP buffer capital NOK million Valuation reserve Supplementary reserve Core capital margin Income to date Regulatory buffer capital Valuation reserve booked at amortised costs

24 KLP financial solidity NOK bn % % 20 % 19 % 18 % 17 % 16 % 15 % 14 % 13 % NOK bn 14,0 12,0 10,0 8,0 6,0 4,0 2,0 0, % 11 % % Soliditeteskapital Total solvency capital (v.a.) NOK bn I % As av percentage forpliktelser of liabilities med rentegaranti with interest (h.a.) guarantee 24

25 KLP common portfolio allocation and return Share 1 Return Return Per cent Equities Bonds Bonds held-to-maturity Lending Property Other financial assets Measured by exposure Balance Assets in the common portfolio Property Bonds HTM Lending Equities Bonds Other NOK billion

26 Trading portfolios equities KLP common portfolio Trading portfolio equities Value equities (NOK mill) Return equity portfolio 5.4 % 0.8 % -7.3 % Share index-tracking equities 78.1 % 74.4 % 77.7 % 1 This table is an overview of financial assets. The statutory reported figures differ due to difference in classification. NOK bn Trading portfolio - equities, last 5 years Return 40 % 30 % 20 % 10 % 0 % -10 % -20 % -30 % -40 % Q NOK bn Return in per cent 26

27 Trading portfolios bonds KLP common portfolio Trading portfolios fixed-income Value fixed income (NOK mill) Return trading portfolios fixed income 3.5 % 2.4 % 6.3 % Share index-tracking fixed-income 35.2 % 35.7 % 35.5 % 1 This table is an overview of financial assets. The statutory reported figures differ due to difference in classification. NOK bn Trading portfolio - bonds last 5 years Return 12 % 10 % 8 % 6 % 4 % 2 % Q % NOK bn Return in per cent 27

28 Bonds booked at amortised costs KLP common portfolio Q2 Year Book value (NOK mill) Valuation reserve (NOK mill) Return (per cent) NOK bn Trading portfolio - bonds last 5 years Return 12 % 10 % 8 % 6 % 4 % 2 % Q % NOK bn Return in per cent 28

29 Bonds booked at amortised costs KLP common portfolio AAA AA+ AA AA- A A A- BBB+ or lower Government bonds without rating Bonds under credit lines 0 % 20 % 40 % 60 % 80 % 29

30 Property investments Total portfolio Q2 Year Book value (value-adjusted NOK mill) Occupancy rate (per cent) Average lease duration (year) NOK bn Return 30 % 25 % 20 % 15 % 10 % 5 % Q Value Return 0 % 30

31 KLP s real-estate activities KLP Eiendom AS is part of the common portfolio, however, the company also manages the real-estate portfolios of other group companies. 8 % 12 % Norway The positive development for centrally located properties maintained, the property portfolio appreciated by NOK 149 million (0.5 per cent) in Q % Denmark Sweden New acquisitions so far in 2012 : - Ibsen-quarter in Oslo (acquired) and Fondbygget in Oslo (ceeded) in a property SWAP with Norwegian Property - Akersgata in Oslo - Såpsjudaren 15 in Stockholm - Stavanger Airport Hotel - Scandic Aarhus City effective in Q4 7 % 4 % 18 % Offices, education Shopping centres Hotels Real-estate investments constitute 12.1 per cent of the financial assets of the common portfolio 8 % 63 % Other (leasehold land, co-properties, parking) Sites under development 31

32 KLP s real-estate investments Property value Q2 Year Value adjustment in per cent Value adjustment in per cent common portfolio 1.1 % 1.9 % 1.4 % Fair value common portfolio (NOK mill) Property value 1.2 % 1.6 % 1.1 % Return Q2 Year Total return 3.9 % 4.5 % 7.0 % Total return common portfolio 4.0 % 4.2 % 6.8 % *All figures are exchange-rate hedged 32

33 Skadeforsikring (non-life insurance) 33

34 KLP Skadeforsikring Result: NOK 71 million Good insurance results, but uneven financial returns Strong growth in retail market maintained 34

35 KLP Skadeforsikring first six months 2012 Good result for the 6 months, NOK 71.2 million Significant improvement in insurance result in Q2 Particularly in property Satisfactory results for the 6 months Weak, but still positive financial return in Q2 Equities down 5.4 % in the quarter, but still best asset class to date in 2012 Improved sales in Public Sector/Enterprises through Q2 The positive trend in sales maintained in retail market Improved automated WEB-based system successfully implemented 35

36 Market development Strong position in public sector and corporate markets maintained municipalities and counties corporate clients - Elevated tender activities Good sales inn retail market customers of which members - NOK 147 million premium volume - Good Renewal rate - Low surrender rate 36

37 KLP Skadeforsikring profit & loss Q NOK Result Q Result Q Result 2011 Premium written f.o.a Allocated investment income Claims f.o.a Insurance related expenses Other insurance related income Changes in security reserves etc Result from technical activities Result from investment activities Allocated investment income Result from ordinary operation Estimated tax expense Provisions for equity fund Result after provisions for equity fund

38 KLP Skadeforsikring main figures Key figures, per cent Q Q Claims ratio on own account 78.9 % 83.3 % Cost ratio on own account 24.5 % 27.2 % Combined Ratio for own account % % Return on capital 3.0 % 2.8 % Capital adequacy ratio 29.0% 30.0 % Revenues, NOK mill 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 mill Q Q Financial assets Total assets Equity Provisions in insurance funds for own account

39 Banking and credit 39

40 Lending portfolio KLP common portfolio Q2 Year Book value (NOK mill) Of this: fixed rate loans (NOK mill) Return year to date (in per cent) Specific and general credit loss provisions (NOK mill) NOK bn Lending portfolio, last 5 years Return 7 % 6 % 5 % 4 % 3 % 2 % 1 % Q Total lending Return 0 % 40

41 KLP Bank-group main figures NOK million KLP Kreditt KLP Kommunekreditt KLP Banken Q Q Q Net interest revenues Net fee and commission income Management fee Operational costs Value adjustment financial instruments Result before taxes Total assets

42 KLP Bank-group main figures KLP Banken Group NOK million Q Net interest revenues Net fee and commission income Management fee Operational costs Value adjustment financial instruments Result before taxes Total assets

43 KLP Bank-group lending and deposits NOK billion Mortage loans Public sector loans Deposits Q Q Q KLP Banken AS (parent) KLP Kreditt AS KLP Kommunekreditt AS KLP (under management agreement ) Total

44 KLP Banken Q2 Priority on earnings rather than volume Firm and steady growth in home mortgages maintained Client satisfaction in line with ambitions New products within wholesale deposits Credit cards will be offered in 2012 The Bank has started issuing bank-id an electronic client identification and security measure. 44

45 Asset managment Net result per 30.06: NOK 6 million Managing NOK 18 billion for external clients Net new subscribtions from external clients NOK 3.3 billion in 1st half 45

46 KLP Kapitalforvaltning & KLP Fondsforvaltning KLP Kapitalforvaltning AS and KLP Fondsforvaltning AS constitute the securities management activities within the KLP Group. Assets under management totals NOK 222 billion at the end of the quarter. The major share represent funds managed for Kommunal Landspensjonskasse and its subsidiaries NOK 18 billion managed on behalf of external investors and retail clients and there are about holders of KLP funds Pre tax result per NOK 6 million 46

47 Summary 47

48 2012 consolidating the status Group total assets NOK 313 billion Uneasy financial markets dampened the return for Q2 Solid financial buffers enable value creation and stable future return for the customers The tender activities advancing, KLP in a favourable position Dedicated marketing initiative towards the Public Sector and Retail Market client groups lays the foundation for success. 48

49 Contacts in KLP Position Name Phone Executive Vice President & CFO Aage E. Schaanning / SVP Finance Per Victor Nordan / Executive Vice President Communications Ole Jacob Frich /