Dnb Obx · OSL:OBXD
Dnb Obx — Vital — Q1 2006 Earnings Presentation
24 slides from Dnb Obx's earnings presentation, Mar 31, 2006
Slide 1: Healthy profits and strong growth
VITAL - presentation of accounts (NGAAP) as at 31 March 2006 Healthy profits and strong growth 1
Slide 2: Healthy profits
Healthy profits • Value-adjusted return of 2.8 per cent and return on book values of 2.1 per cent • Profits for allocation of NOK 2.1 billion, an improvement of NOK 530 million from the first quarter of 2005 • NOK 1.7 billion for allocation to policyholders – up NOK 430 million from last year • NOK
Slide 3: Strong growth
Strong growth • Premium income of NOK 9.8 billion, up 37 per cent • Brisk sales in individual market, with premium income up 86% to NOK 4.4 billion • Total assets of NOK 212.5 billion, up 5.4 per cent since year-end • Good sales of COP (compulsory occupational pension schemes) – 2 100 agreements, NO
Slide 4: Results - Vital
Results - Vital (Figures in NOK million.) 31.03.2006 31.03.2005 31.12.2005 Interest result 2 157 1 635 6 053 Administration result -21 -38 -83 Other accruals *) 0 0 -380 Risk result -34 -31 94 Allocated to security reserve 0 1 -4 Undistributed profit allocated to policyholders -1 677 -1 247 -4 508 P
Slide 5: Strong growth in total premium income
Strong growth in total premium income 12 000 • Premium income totalled NOK 9.8bn, an increase 10 000 of 37 per cent on 1Q 05. 8 000 6 000 • Good sales in individual market, with premium 4 000 income 86 per cent up at 2 000 NOK 4.4bn 0 1Q 05 1Q 06 5
Slide 6: Total premium income – Group Pension
Total premium income – Group Pension 7 000 6 000 • Premium reserves received 5 000 totalled NOK 1.2bn, in line 4 000 with last year 3 000 • Aggregated net inflows of 2 000 NOK 7.7bn since the merger 1 000 0 1Q 05 1Q 06 Premiums written Reserves received 6
Slide 7: Strong growth in defined contribution based pensions
Strong growth in defined contribution based pensions Capital (NOK 1 000) 1600 000 • Insurance fonds increased by 1400 000 37 per cent since year-end 1200 000 • Premium income increased by 1000 000 64 per cent on first quarter of 800 000 2005 600 000 • Market share of 33.1 per cent 400 000 at year-en
Slide 8: Sound growth in sales of COP
Sound growth in sales of COP • 2 100 COP agreements signed as at 30 April, with annual contributions totalling NOK 140 million • A number of large customers have chosen Number of COP schemes Vital, including the Reitan Group 2500 2000 • In addition, a number of major framework agreements have been s
Slide 9: Total premium income – Individual Market
Total premium income – Individual Market 4 000 • Premium income 3.7 bn, 3 500 88 per cent up on last year 3 000 • Market shares in gross 2 500 premiums written, increased from 40.5 per cent to 49.7 2 000 per cent in 2005 1 500 • Premium income from Unit 1 000 Linked NOK 1.2 bn, an 500 increase of 13
Slide 10: Net transfer inflows of NOK 12bn since 2001
Net transfer inflows of NOK 12bn since 2001 Life & Pension 5,000 4,000 3,000 2,000 1,000 *) 0 -1,000 -2,000 2001 2002 2003 2004 2005 1Q 06 10 *) Appr. NOK 400m transferred to pension funds
Slide 11: Total assets 5.4 per cent up since year-end
Total assets 5.4 per cent up since year- end 212 472 • Total assets: increased 215 000 210 000 by 4.7 per cent for 205 000 201 661 Vital Forsikring and 200 000 195 000 14.9 per cent for Vital 190 000 Link 181 552 185 000 180 000 • Total assets up 17 per 175 000 cent since March 2005 170 000 165 000
Slide 12: Value-adjusted return of 2.8 percent
Value-adjusted return of 2.8 percent 3.0 % • Financial result of NOK 5.3 bn, compared to 2.2bn last 2.5 % year 2.8 % • 19.7 per cent return on 2.0 % 1.5 % 2.1 % 2.2 % norwegian equities and 3.7 per cent on 1.0 % international equities 0.5 % • Well positioned to meet 0.0 % Return on book Value-adjust
Slide 13: Recorded return per 1st quarter 06
Recorded return per 1st quarter 06 9,0 % 8,0 % 7,8 % 7,0 % 6,9 % 6,8 % 6,5 % 6,0 % 6,2 % 5,8 % 5,4 % 5,0 % 5,1 % 4,4 % 4,0 % 4,2 % 3,0 % 2,0 % 2,1 % 1,6 % 1,6 % 1,4 % 1,0 % 0,0 % 1 q 06 Last 3 years Last 5 years Vital Storebrand KLP Nordea Sparebank 1 1Q 06 for KLP is not available. 3 and 5 years av
Slide 14: Value-adjusted return per 1st quarter 06
Value-adjusted return per 1st quarter 06 10,0 % 9,0 % 9,2 % 8,6 % 8,0 % 8,3 % 8,4 % 7,7 % 7,0 % 6,0 % 6,4 % 6,2 % 6,0 % 5,5 % 5,0 % 5,2 % 4,0 % 3,0 % 2,8 %2,8 % 2,4 % 2,0 % 2,3 % 1,0 % 0,0 % 1 q 06 Last 3 years Last 5 years Vital Storebrand KLP Nordea Sparebank 1 14 1Q 06 for KLP is not available. 3
Slide 15: Total assets incl. derivatives - Vital Forsikring
Total assets incl. derivatives - Vital Forsikring 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% Hold to Money Equities Bonds maturity Real estate Other market bonds 31.12.2005 23.3% 17.9% 16.8% 27.3% 12.2% 2.5% 31.03.2006 27.7% 19.0% 10.3% 28.1% 11.9% 3.1% 15
Slide 16: Return by asset class at 31.03.06
Return by asset class at 31.03.06 Return Long-term bonds compared 1,3 % with Real estate benchmark 2,8 % (percentage points) Money market 3 0,6 % Foreign bonds 0 -1,6 % Norwegian bonds 13 -0,1 % Foreign equities 53 3,7 % Norwegian equities 98 19,7 % -5 % 0 % 5 % 10 % 15 % 20 % 25 % The overall retur
Slide 17: Capital base: NOK 24.8 billion
Capital base: NOK 24.8 billion 30.000 24 824 22 415 25.000 2102 Interim profit Securities adjustment reserve 20.000 5503 6972 Additional allocations Equity 15.000 3788 Subordinated loans 3747 Security reserve Unrealised capital gains on hold to maturity bonds 10.000 7155 7155 5.000 2499 201 2486 201
Slide 18: Improved administration result
Improved administration result 1Q 05 1Q 06 • The administration result, a loss 0 of NOK 21m, improved by NOK -5 -10 17m on last year -15 -20 -25 • Total costs were 5 percent up due -30 to commissions on substantially -35 -40 increased sales 18
Slide 19: A lower cost ratio for Vital Forsikring
A lower cost ratio for Vital Forsikring 12 % 1.2 % 10 % 1.0 % 8% 0.8 % 6% 0.6 % 4% 0.4 % 2% 0.2 % 0% 0.0 % 2003 2004 2005 31.03.2005 31.03.2006 Operating costs as % of premiums written Operating costs as % of insurance reserve 19
Slide 20: Risk result
Risk result 1Q 05 1Q 06 • The risk result was a loss of NOK 0 34m, in line with last year’s first -5 -10 quarter -15 -20 -25 -30 • Improved by 103 millions since -35 -40 2003 -45 -50 20
Slide 21: Profit & Loss Account - Vital Forsikring ASA
Profit & Loss Account - Vital Forsikring ASA (NOK mill.) 31.03.06 31.03.05 Premium income 8 506 6 615 Net financial income 5 235 2 194 Insurance payments (4 199) (2 454) Change in insurance reserves (5 631) (5 327) Insurance-related operating costs (312) (301) To/from securities adjustment reserve (
Slide 22: Balance Sheet - Vital Forsikring ASA
Balance Sheet - Vital Forsikring ASA (NOK mill.) 31.03.06 31.03.05 Financial assets 190 536 164 006 Other assets 6.196 6.636 Total assets 196 732 170 642 Equity 7 580 7 485 Subordinated loans / Capital loan 2 486 2 468 Securities adjustment reserve 6 972 2 670 Insurance reserves 175 859 155 667 Liab
Slide 23: Consolidated Profit and Loss Account for Vital Forsikring and Vital Link
Consolidated Profit and Loss Account for Vital Forsikring and Vital Link (NOK mill.) 31.03.06 31.03.05 Premium income 9 814 7 181 Net financial income 5 233 2 192 Net income from life insurance assets with choice of investment profile 1 132 535 Insurance payments -4 673 -2 845 Change in insurance re
Slide 24: Consolidated Balance Sheet for Vital Forsikring and Vital Link
Consolidated Balance Sheet for Vital Forsikring and Vital Link (NOK mill.) 31.03.06 31.03.05 Financial assets 190 627 164 055 Life insurance assets with choice of investment profile 15 143 10 353 Other assets 6 701 7 144 Total assets 212 472 181 552 Equity 7 799 7 638 Subordinated loans / Capital lo