Storebrand ASA · OSL:STB
Storebrand ASA — Q1 2021 Earnings Presentation
24 slides from Storebrand ASA's earnings presentation, Apr 28, 2021
Slide 1: Storebrand Q1 2021
Storebrand Q1 2021 28 April 2021 Odd Arild Grefstad – CEO Lars Aa. Løddesøl – CFO 1
Slide 2: Highlights Q1 2021
Highlights Q1 2021 33% Unit Linked reserve growth2 Group result1 19% AuM growth Asset Management2 870 225 MNOK 14% Insurance Portfolio Premium growth2 645 Q1 2021 € €300m Green Bond issuance Financial items and risk result life Operating profit 176% Solvency ratio 2 1 Result before amortisation and
Slide 3: Sustainable Nordic Savings and Insurance Group
Group Strategy Sustainable Nordic Savings and Insurance Group A B C Future Storebrand Leading Provider Growth focus in Nordic Powerhouse in Growing Challenger in Occupational Pensions capital-light business Asset Management Norwegian Retail Market Norway & Sweden areas in front book Strategic D Lead
Slide 4: Strong growth across all of 'Future Storebrand'
Strong growth across all of 'Future Storebrand' Unit Linked Asset management +33% +19% 279 ▪ 9% overall premium growth y/y 987 ▪ NOK 24 bn net inflow in Q1 829 210 ▪ 60% retail premium growth y/y ▪ AuM development in Q1 dampened due to appreciation of NOK Q1 2020 Q1 2021 Q1 2020 Q1 2021 UL reserves
Slide 5: High digital activity among retail customers, strong volume growth
High digital activity among retail customers, strong volume growth # of Savings customer % of digital # of users on storebrand.no logins on storebrand.no sales transactions +10% +136% +22% 1.33m → 1.46m 446k → 1,053k 40% → 55% AuM Retail Savings (NOK bn)1 Growth in P&C and individual life Retail Len
Slide 6: Fastest growing Nordic Asset Manager
Fastest growing Nordic Asset Manager Fastest growing Nordic Asset Manager Strong net flows in Q1 2021, returns offset by FX effects % Growth AuM in 2020 € millions +30 -29 987 962 +24 Storebrand AM 15,7% 94 Swedbank Robur 12,7% 120 DNB AM 11,0% 73 Q4 2020 Net Flow Return FX Q1 2021 Nykredit WM 10,7%
Slide 7: Storebrand divests 100% of the shares in AS Værdalsbruket
Storebrand divests 100% of the shares in AS Værdalsbruket Limited synergies with Storebrand's Positive financial impact on Storebrand ordinary business operations group result in 2nd quarter 2021 ▪ Forest owning company located ~500 km north of Oslo ▪ Business areas: forestry, hunting and fishing, c
Slide 8: Key Figures Group
Key Figures Group Result development1 Earnings per share2 Financial items and risk result life Performance related result MNOK NOK Special items Operating profit 2.13 1.90 1,224 1,012 808 298 870 340 217 225 1.23 1.21 228 599 703 709 671 0.82 265 -19 -31 -26 -588 -11 -334 Q1 2020 Q2 2020 Q3 2020 Q4
Slide 9: Solvency movement from Q4 2020 to Q1 2021
Solvency movement from Q4 2020 to Q1 2021 Storebrand Group 6% 176% 2% 1% 12% -1% 166% -2% -7% Q4 2020 Model & Regulatory Interest rates Asset return Q1 results Dividend Sub debt Q1 2021 assumptions changes incl. and business issuance VA, UFR, mix Equity Stress 9
Slide 10: SII position Storebrand Group
SII position Storebrand Group Solvency position(%)1 Estimated sensitivities Target SII margin 150% 178 176 12 SII-margin Q1 176 166 Interest 11 177 rates -50bp Interest Q4 2020 Q1 2021 rates +50 bp 180 Transitional rules SII standard model Equity -25% 3 177 Key takeaways ▪ Higher interest rates incr
Slide 11: Storebrand Group
Storebrand Group Group Profit1 Q1 YTD NOK million 2021 2020 2021 2020 Fee and administration income 1 482 1 349 1 482 1 349 Insurance result 220 -71 220 -71 Operational cost -1 057 -1 024 -1 057 -1 024 Operating profit 645 254 645 254 Financial items and risk result life 225 -588 225 -588 Profit bef
Slide 12: Storebrand Group
Storebrand Group Group Profit1 Q1 YTD NOK million 2021 2020 2021 2020 Fee and administration income 1 482 1 349 1 482 1 349 Insurance result 220 -71 220 -71 Operational cost -1 057 -1 024 -1 057 -1 024 Operating profit 645 254 645 254 Financial items and risk result life 225 -588 225 -588 Profit bef
Slide 13: Savings (non-guaranteed)
Savings (non-guaranteed) Savings Profit Q1 YTD NOK million 2021 2020 2021 2020 Fee and administration income 1 156 1 043 1 156 1 043 Operational cost -671 -669 -671 -669 Operating profit 485 375 485 375 Financial items and risk result life 43 -98 43 -98 Profit before amortisation 528 276 528 276 Pro
Slide 14: Savings (non-guaranteed)
Savings (non-guaranteed) Savings Reserves and premiums Unit Linked Comments1 5.5 5.0 5.1 5.2 4.9 279 ▪ 9% growth in Unit Linked premiums 268 252 235 ▪ 33% growth in Unit Linked reserves 210 BNOK ▪ 19% growth in overall AuM in Asset Management ▪ 8% lending growth in the Bank Q1 2020 Q2 2020 Q3 2020 Q
Slide 15: Insurance
Insurance Insurance Profit Q1 YTD NOK million 2021 2020 2021 2020 Insurance premiums f.o.a. 1 194 1 019 1 194 1 019 Claims f.o.a. -974 -1 090 -974 -1 090 Operational cost -202 -175 -202 -175 Operating profit 18 -246 18 -246 Financial result 37 -22 37 -22 Profit before amortisation 55 -268 55 -268 Pr
Slide 16: Insurance
Insurance Insurance Combined ratio Comments Combined ratio and results Claims ratio Cost ratio Combined ratio 124% ▪ 98% combined ratio, higher than target (90-92%) 98% 92% 88% 87% ▪ Strong cost control maintained with stable cost ratio at 17% ▪ Accrual effects in Swedish pension related disability
Slide 17: Guaranteed pension
Guaranteed pension Guaranteed Profit Q1 YTD NOK million 2021 2020 2021 2020 Fee and administration income 383 363 383 363 Operational cost -197 -207 -197 -207 Operating profit 186 155 186 155 Risk result life & pensions 32 -27 32 -27 Net profit sharing 104 -55 104 -55 Profit before amortisation 322
Slide 18: Guaranteed pension
Guaranteed pension Guaranteed Reserves guaranteed products Comments 282 285 288 288 286 30 30 30 30 37 ▪ Defined Benefit NO reserves include new Public Occupational Pension mandates 142 143 145 145 144 ▪ Guaranteed products SE now include Euroben reserves (previously BNOK reported under "Other") 12
Slide 19: Other
Other1 Other Profit Q1 YTD NOK million 2021 2020 2021 2020 Fee and administration income 4 0 4 0 Operational cost -47 -30 -47 -30 Operating profit -44 -30 -44 -30 Financial items and risk result life 9 -387 9 -387 Profit before amortisation -35 -417 -35 -417 19 1 Excluding eliminations. For more inf
Slide 20: Q&A
Q&A Please follow the operator's instructions to ask questions in the conference call Group CFO Group CEO Group Head of Head of Strategy & Finance Investor Relations & Rating Lars Aa. Løddesøl Odd Arild Grefstad Kjetil R. Krøkje Daniel Sundahl 20 20
Slide 21: Appendix
Appendix 21
Slide 22: Storebrand Life Insurance asset allocation
Storebrand Life Insurance asset allocation 60% 50% 40% 30% 20% 10% 0% Bonds & Bonds at Equities Real estate Loans Money market amortised cost 31.03.2020 4% 11% 20% 14% 51% 30.06.2020 6% 11% 16% 15% 52% 30.09.2020 8% 10% 15% 14% 52% 31.12.2020 9% 11% 13% 15% 52% 31.03.2021 10% 11% 12% 13% 55% 22 Note
Slide 23: SPP asset allocation
SPP asset allocation 70% 60% 50% 40% 30% 20% 10% 0% Bonds & Money Equities Real estate Loans market 31.03.2020 10% 12% 62% 16% 30.06.2020 11% 12% 59% 17% 30.09.2020 12% 12% 57% 18% 31.12.2020 13% 12% 57% 17% 31.03.2021 15% 12% 54% 19% 23 Note: The graph shows the asset allocation for all products wi
Slide 24: Leading the way in sustainable value creation
Leading the way in sustainable value creation Investor Relations contacts Lars Aa Løddesøl [email protected] Group CFO +47 9348 0151 Kjetil R. Krøkje [email protected] Group Head of +47 9341 2155 Finance & Strategy Daniel Sundahl [email protected] Group Head of +47 9