UBS Annual Nordic Financial Services Conference Lars Aa. Løddesøl Group CFO - Storebrand

Transcription

1 UBS Annual Nordic Financial Services Conference 2013 Lars Aa. Løddesøl Group CFO - Storebrand 1

2 The Storebrand Group 100% of investments assessed by sustainability criteria employees corporate customers individuals NOK 450 billion in assets under management Customer dialogues annually 2

3 Solid, profitable and growing business Group result Assets under Management MNOK 500 BNOK H H 2013 Solvency margin % 170 % 170 % 164 % 160 % 161 % 162 % 160 % 174 % Customer funds in defined contribution and unit linked BNOK 150 % % % % H H Storebrand Life Group 2 Total funds under Management 3 Includes customer funds in DC and UL for Storebrand Life Insurance and SPP

4 Sound Nordic macro environment enables growth in pension savings GDP growth 1 Unemployment rates 1 4% 14% 12% 3% 10% 2% 8% 1% 6% 4% 0% E 2014E 2% -1% Norway Sweden Euro area 0% E 2014E Norway Sweden Euro area General government net liabilities OECD Economic Outlook No. 93, June OECD Economic Outlook No. 92, December 2012

5 Interest rates are picking up 5

6 External drivers - defining the strategy Low interest rate Individualisation Demographics Technology www Regulations Transparency 6

7 Our strategic response to changing market conditions We work hard to reach our vision: Recommended by our customers Managing the balance sheet Developing the business Capital optimization Risk reduction Concepts Employees Corporate relation Managing business without raising new equity capital Product optimization Cost reduction Save for < retirement 7

8 Main focus: shifting the balance sheet - for customer and shareholders values ILLUSTRATION Guaranteed starting point Reserves BNOK Non-guaranteed starting point

9 Main focus: shifting the balance sheet - for customer and shareholders values ILLUSTRATION Guaranteed starting point Guaranteed after conversion Reserves BNOK Non-guaranteed starting point

10 Main focus: shifting the balance sheet - for customer and shareholders values ILLUSTRATION Guaranteed starting point Guaranteed after conversion Non-guaranteed starting point Reserves BNOK Non-guaranteed with growth initiatives

11 New Group organisational structure to support strategy implementation New organisation Objective with new organisation > Separation of growth business and business with guarantees > Support ongoing changes to create - ONE Storebrand > Reducing complexity significantly reducing cost levels > Strengthening customer relations > Nordic synergies 11

12 Managing the balance sheet Capital optimization 2.3 BNOK converted from guaranteed to non-guaranteed products New subordinated loan of 300 million euro to SBL DB public sector close down by 2015 (6 bn tranferred) Product optimization Managing business without raising new equity capital 500 Risk reduction Optimized real-estate portfolio sold 7 shopping centers (13% of real estate portfolio) Reduced equity allocation in guaranteed portfolios Cost reduction 400 SPP electable in largest collective pension platform ITP from July Price increases in guaranteed products SPP Pension Services sold to KPA Q Q Q Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Goal Reached Q3-14 Q

13 Leveraging the corporate market place B2B2C new employees annually Corporates new former employees annually Employees Retirees and holders of pension certificates Storebrand concepts Individuals Individuals Products Pension Asset mgmt. Insurance Bank 13

14 Actively managed the business towards defined contribution Insurance reserves % 12% 12% 12% 16% 17% 19% 21% 80 % 60 % 40 % Key takeaways Continuous shift in business from guaranteed to non-guaranteed over the last six years 20 % 0 % Premiums 1 VIF % 80 % 60 % 40 % 20 % 26% 24% 31% 39% 44% 41% 43% 100 % 80 % 60 % 40 % 20 % 0 % 22% 33% 12% 77% 51% 70% 110% 0 % % Traditional profit sharing Fee based guaranteed business Fee based Unit Linked and risk products 14 1 Premiums and reserves includes SPP figures from before acquisition in 2007 for comparison 2 Value of in-force

15 The shift to non-guaranteed products will continue, helped by Storebrand ILLUSTRATION Guaranteed starting point Guaranteed after conversion Non-guaranteed starting point Reserves BNOK Non-guaranteed with growth initiatives 350 < Save for retirement Managing business without raising new equity capital

16 Revenue management in transistion period ILLUSTRATION Revenue management 1. Maintain revenue from traditional business Price increases Conversion period Reserves BNOK Guaranteed starting point Non-guaranteed starting point 2. Optimize revenue in conversion phase Cost reduction Margin management Increase revenue from new business Sales Cross sale Conversion

17 Transparent reporting to support new Group organisation and strategy Result Q Full year NOK million Fee and administration income Underwriting result Operational cost Financial result Result before profit sharing and loan losses Net profit sharing and loan losses Result before amortisation and write-downs Result per line of business Q Full year NOK million Savings (non-guaranteed) Insurance Guaranteed pension Other Result before amortisation and write-downs

18 MNOK MNOK With clear value drivers Managing the balance sheet Developing the business Guaranteed business - Buffer capital Reserves and premiums Unit Linked NOK million Change in Market value adjustment reserve Excess value of bonds at amortised cost Additional statutory reserve Provisions for new mortality tables % Unallocated results Conditional bonuses SPP Total Q Q Q Q Q 2013 Guaranteed reserves in % of total reserves Written premiums Insurance P&C & Individual life Health & Group life Disability Insurance Combined ratio 81,4% 81,0% 80,4% 78,8% 77,9% 86% % % % % % Q Q Q Q Q Q Q Q Q Q

19 Summary Market leader in growth market Dual strategy: managing traditional guarantees build business leadership for the future Regulatory uncertainty, but clear action taken: cost reductions capital efficiency customer centric commercialization 19

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