1 st Quarter Presentation of results from SpareBank 1 Gruppen. Kirsten Idebøen, CEO

Transcription

1 1 st Quarter 2013 Presentation of results from SpareBank 1 Gruppen Kirsten Idebøen, CEO 25 April 2013

2 Best result in SpareBank 1 Gruppen's history Pre-tax profit in last 5 years (MNOK) 360 Pre-tax profit: MNOK 360 (173) Net profit for the period: MNOK 315 (200) Annualised return on equity: 23.1 (15.9) % Total assets: NOK 48.4 billion, as compared to NOK 46.3 billion at start of the year Return on equity in last 5 years (%) 23.1 % 15.9 % 12.9 % Good financial strength: Capital adequacy ratio: 14.0% against 14.6% as at Core capital adequacy ratio: 12.6% against 13.1% 1% as at Well capitalised to meet new capital requirements in Solvency II 89% %

3 Pre-tax profit from subsidiaries developing well Pre-tax profit per subsidiary (MNOK) Good result from Forsikring Strong g for life insurance. Good administration result, increased buffer capital, and further build up of reserves for longer life expectancy Significant improvement in P&C insurance result. Implemented improvement measures have had an effect. 94 Decreasing referral volume and weak profitability in Conecto affected the result of SpareBank 1 Gruppen Finans SpareBank 1 Markets' result has improved, but is still below expectations. SB1 Liv SB1 Sk kade SB B1G Fin nans SB B1 Mar kets ODIN Focus on management process and costs side in ODIN Forvaltning producing results. 3

4 Life and P&C insurance have been merged into a single, effective business area -"SpareBank 1 Forsikring" Even better customer experiences - comprehensive management of customers' total insurance needs Greater competitiveness - strong expert groups and efficient operations - under integrated management SpareBank 1 Livsforsikring AS is changing its name to SpareBank 1 Forsikring, which will be the business area's market outlet 4

5 SpareBank 1 Forsikring Best result ever 5

6 SpareBank 1 Forsikring Best result ever Pre-tax profit in last 5 years (MNOK) Pre-tax profit: MNOK 147 (94) Administration result: MNOK -0.2 (-7) Risk result: MNOK 81 (29) Investment result: MNOK 166 (73) Securities adjustment reserve: MNOK 701 against MNOK 590 as at Provisions for higher life expectancy: MNOK 77 (31) The new life expectancy assumptions issued by the Financial Supervisory Authority of Norway will not noticeably affect the company 6

7 SpareBank 1 Forsikring Norwegian personal insurance champion Market - New premiums: MNOK 419 (410) for 2012 Market - Gross written premium: NOK 3.8 (3.6) billion as of Ranking Company Market share New premiums Ranking Company Market share Gross written premium 1 - SpareBank % (31.4%) 1 SpareBank % (22.8%) 2 - Gjensidige 17.8% (16.1%) 1%) 2 Gjensidige 20.2% 2% (20.9%) 3 - Nordea 15.6% (18.4%) 3 - Storebrand 14.3% (15.1%) 4 - Frende 8.8% (5.7%) 4 - Nordea 12.4% (12.5%) 5 - Terra 7.0% (7.0%) 5 - DNB 8.3% (8.6%) The customers are covered by important insurance Banks gain extra security for lending and off-balance income This success is a result of the banks' targeted focus over several years 7 Personal insurance league as of Q New premiums and gross written premium (life insurance, disability pension and disability capital)

8 SpareBank 1 Forsikring Continued build up of buffers Buffer capital trend per quarter (%) 163% 16.3 % 14.6 % 15.2 % 14.8 % 14.8 % 14.0 %14.1 % 13.6 % 12.8 % 11.0 % Securities adjustment reserve (MNOK) - accumulated Q Q Q Q Q Q Q Core capital in excess of minimum Additional provisions Interim profit Securities adjustment reserve Total assets: NOK 31 (28) billion Capital adequacy ratio: 18.0 (17.5) % Estimated solvency margin: 301% versus 309% at start of the year 8

9 SpareBank 1 Skadeforsikring Group Strong improvement in the result 9

10 SpareBank 1 Skadeforsikring Group Strong improvement in the result Pre-tax profit in last 5 years (MNOK) 265 Pre-tax profit: MNOK 265 (166) Insurance result: MNOK 92 (-19) Improved insurance result due to targeted profitability improving measures Lower costs related to claims Positive profitability trend for main products within both retail and corporate markets Significant profit from prior years in of MNOK 102 Net financial income: MNOK 170 (194) 10

11 SpareBank 1 Skadeforsikring Group Implemented profitability measures produce results Combined ratio, net quarterly (%) Combined ratio, net (%) accumulated *Combined ratio, net - including personal insurance in SB1 Forsikring *Combined ratio, net - including personal insurance in SB1 Forsikring * * * Q Q Q Q Q Q Net claims ratio Net cost ratio Net claims ratio Net cost ratio 11

12 SpareBank 1 Gruppen Finans Group Good growth in Factoring and Portfolio activities. Weakened profitability in Conecto 12

13 SpareBank 1 Gruppen Finans Group Good growth in Factoring and Portfolio activities. Weakened profitability in Conecto Pre-tax profit in (MNOK) Good underlying activity and price increases produce results for Factoring. Country's third largest factoring business with a market share of 16.3 (14.2) % Increased portfolio volume and good recovery in Portfolio management*. Total portfolio volume in of MNOK (1 185) Continued weak growth in debt collection market. Decreased number of referrals and weak profitability in Conecto Factoring Portfolio Conecto (debt collection) SB1G Finans Group Targeted measures focusing on growth and profitability. The cooperation with the SpareBank 1 banks provides new opportunities for cross-sales of debt collection services to the banks' corporate customers 13 * The business area that acquires portfolios of claims that are then recovered by the Group's debt collection company Pre-tax profit for SpareBank 1 Gruppen Finans Group, incl. management and excess value amortisation.

14 SpareBank 1 Markets Improved result - but still below expectations 14

15 SpareBank 1 Markets Improved result - but still below expectations " SpareBank 1 can, through SpareBank 1 Markets, provide the entire capital structure range, from bank loans to bonds and equity " Booked income (MNOK) - Quarterly development Q Q Q The gross value created in the SB1-alliance amounted to MNOK 56 in ; MNOK 10 of which is recognised as income in the owner banks Total turnover for : MNOK 46 (33), up 39% - below expectations Pre-tax loss in : MNOK -25 (-45), while the loss from ordinary operations was MNOK -6 (-20) 15

16 ODIN Forvaltning Strategic and operational measures on the management side and cost reducing measures produce results 16

17 ODIN Forvaltning Strategic and operational measures on the management side produce results Pre-tax profit in last 5 years (MNOK) Pre-tax result: MNOK 8 (-0.5) Continued focus on reducing costs 8 Total assets: NOK 27.7 (26.2) billion Up by NOK 2.9 billion in Equity fund market share of 8.4% against 8.2% as at Net new subscriptions MNOK Combination fund market share of 4.8% against 4.4% as at Net new subscriptions MNOK

18 ODIN Forvaltning 6 out of 11 equity funds performed better than their benchmark. Positive development in the two largest funds ODIN Norge and ODIN Norden Return on equity fund as at (%) 18.8 Fund Benchmark ODIN Norge ODIN Sverige ODIN Finland ODIN Norden ODIN Europa ODIN Europa SMB ODIN Global ODIN Emerging Markets ODIN Maritim ODIN Offshore ODIN Eiendom I ODIN shall invest in companies with long-term value creation potential and which satisfy the responsible business requirement. ODIN is a long-term owner and believes that a long-term perspective is a crucial factor when it comes to generating outperformance within management. In short, ODIN's investment philosophy can be summed up as follows: "ODIN shall invest in companies that are priced low in relation to value creation" 18

19 Outlook - SpareBank 1 Gruppen The new structure of the insurance business area improves competitiveness, strengthens expert groups, contributes to more efficient processes, and provides a basis for further improvements to the result Profitability improvement measures in P&C insurance are resulting in continued improved risk composition in the portfolios and lower claims payments A strong balance sheet means freedom of action and the ability to pay dividends 19

20 The nation's savings bank 20 20

21 Appendix 21

22 The SpareBank 1 Alliance has a solid business model, with proximity to its customers and a conservative risk profile d d b SamSpar Shareholders and distributors 19.5% 19.5% 19.5% 12% 19.5% 10% Products, commissions and dividend Sl Sales SpareBank 1 Gruppen AS BN Bank Bank k1 Ol Oslo Akershus SpareBank 1 Skadeforsikring ODIN Forvaltning (100%) (100%) Companies in the SpareBank 1 Alliance SpareBank 1 Boligkreditt EiendomsMegler 1 SpareBank 1 Næringskreditt SpareBank 1 Forsikring (100%) SpareBank 1 Markets (97.55 %) SpareBank 1 Medlemskort (100%) SpareBank 1 Gruppen Finans (100%) The alliance Brand, technology, competence, processes, best practice and purchasing. Resource centres: Payment/Trondheim, credit/stavanger, training/tromsø 22

23 SpareBank 1 Gruppen Key figures Q4 Q3 Q2 Year Group Net result for the period (MNOK) Return on equity (%) 23.1 % -3.5 % 17.2 % 5.0 % 15.9 % 8.7 % Capital adequacy ratio, accumulated (%) 14.0 % 14.6 % 16.7 % 15.9 % 14.8 % 14.6 % Core capital adequacy ratio, accumulated (%) 12.6 % 13.1 % 15.3 % 14.5 % 13.1 % 13.1 % SB1 Forsikring Risk result (MNOK) Administration result (MNOK) Investment result (MNOK) Net result for the period (MNOK) Buffer capital in % of insurance provisions*, accumulated (%) 14.8 % 13.6 % 16.3 % 14.8 % 12.8 % 13.6 % Capital adequacy ratio, accumulated (%) 18.0 % 18.5 % 19.0 % 20.0 % 17.5 % 18.5 % Securities adjustment reserve, accumulated (MNOK) SB1 Skadeforsikring Group Operating result before finance (MNOK) Net financial income (MNOK) Net result for the period (MNOK) Claims ratio, net (%) 73.3 % 69.1 % 81.4 % 78.0 % 84.9 % 78.3 % Cost ratio, net (%) 18.3 % 24.4 % 20.2 % 18.5 % 16.7 % 20.0 % Combined ratio, net (%) 91.7 % 93.4 % % 96.5 % % 98.2 % Portfolio (MNOK) 5,325 5,446 5,455 5,407 5,328 5,446 ODIN Forvaltning Management fees (MNOK) Net result for the period (MNOK) Total assets under management, accumulated (MNOK) 27,741 24,803 24,370 23,541 26,173 24,803 Market share equity fund, accumulated (%) 8.4 % 8.2 % 8.3 % 8.4 % 8.9 % 8.2 % Market share combination fund, accumulated (%) 4.8 % 4.4 % 4.0 % 4.1 % 3.8 % 4.4 % SB1 Markets Total operating income (MNOK) Net result for the period (MNOK) SB1G Finans Group Net result for the period SB1G Finans Group (MNOK) Net result for the period SB1G Finans - parent company (MNOK) Net result for the period Conecto (MNOK) *) Buffer capital as at Q4 is shown after profits have been allocated 23

24 SpareBank 1 Gruppen Results for Year Figures in MNOK Part of result from subsidiaries before tax - SpareBank 1 Livsforsikring SpareBank 1 Skadeforsikring Group ODIN Forvaltning SpareBank 1 Markets SpareBank 1 Medlemskort SpareBank 1 Gruppen Finans Group Correction Group Net result before tax from subsidiaries Total operating costs (parent company) * Net investment charges (parent company) Pre-tax result Taxes Net result for the period Majority interest Minority interest Year Key figures Annualised return on equity 23.1 % 15.9 % 8.7 % * Last year's operating costs included MNOK 10 linked to a project aimed at establishing the Group s own card company, which was transferred from SpareBank 1 Gruppen AS to SpareBank 1 Kredittkort AS in Q

25 SpareBank 1 Gruppen Quarterly results Q4 Q3 Q2 Q4 Q3 Q2 Q4 Q3 Q2 Figures in MNOK Part of result from subsidiaries before tax - SpareBank 1 Forsikring SpareBank 1 Skadeforsikring Group ODIN Forvaltning SpareBank 1 Markets SpareBank 1 Medlemskort SpareBank 1 Gruppen Finans Group Correction Group Net result before tax from subsidiaries Total operating costs (parent company) Net investment charges (parent company) Share of associated company Pre-tax result Taxes Net result for the period Majority interest Minority interest

26 SpareBank 1 Forsikring Results for Year Figures in MNOK Insurance risk income Insurance risk claims Risk result Tecnical allocations Risk result after tecnical allocations Reserves Risk result after tecnical allocations and reserves Fees Expenses, exclusive comissions Comissions Administration result Net investment income Guaranteed interest to policyholders Investment result Reserves Investment result after reserves Compensation guaranteed interest Result before additional provisions Undistributed profits to customers Return on company's assets Net profit to owner before tax Taxes Net profit/loss for the period Key figures Year Capital adequacy ratio 18.0 % 17.5 % 18.5 % Buffer capital in % of insurance provisions 14.8 % 12.8 % 13.6 % 26

27 SpareBank 1 Forsikring Results per portfolio for Figures in MNOK Group portfolio Previously established individual products Investment choice portfolio Company portfolio Total Risk result Administration result Net investment result Reserves - long life Compensation interest guarantee Transferred to policyholders Return on company's assets Sum

28 SpareBank 1 Forsikring Premium income trend Year Figures in MNOK Individual annuity and pension insurance Individual endowment insurance Group pension insurance Individual life insurance Group life insurance Unit Linked - Annuity Unit Linked - Endowment Defined contribution pension Total gross due premium income Premium reserves transferred from other companies Reinsurance ceded Premium income for own account

29 SpareBank 1 Forsikring Return on customer portfolio o o with guarantee a as at 31/03/ Value-adjusted return excluding change in value construction: ti Booked return: Q Q Q Q Q4 Q4 Q4 Q Percent Percent N/A N/A N/A N/A N/A N/A SpareBank 1 Storebrand DNB Livsforsikring Nordea SpareBank 1 Storebrand DNB Livsforsikring Nordea 29 Source: company presentations

30 SpareBank 1 Forsikring Return on ordinary customer portfolio o o with guarantee a as at 31/03/2013 Percent Norwegian shares 6.9 Foreign shares 10.4 Money market 0.7 Norwegian bonds 1.6 Foreign bonds Held to maturity 1.3 Real estate

31 SpareBank 1 Forsikring Balance sheet as of 31/03/2013 Year Figures in MNOK Intangible assets Investments t Reinsurance's part of insurance obligations Accounts receivable Other assets Prepayed liabilities and accrued income Investments group portfolio Investments options portfolio Total assets Paid in capital Other equity Subordinated loan capital Insurance obligations - contractual Insurance obligations - investment options Provisions for obligations Premium deposits from reinsurance companies Other obligations Accrued liabilities, prepaied income Total liabilities and equity

32 Asset allocation per portfolio as at 31/03/2013 (31/12/2012): SB1 Forsikring ing The investment choice portfolio 45.5 (46.3) % Group portfolio Company portfolio 13.2 (12.6) % 02(02)% 0.2 (0.2) 41.3 (39.2) % 0.3 (0.7) % 18.5 (18.4) % SB1 Skadeforsikring Group 8.9 (8.2) % 10.1 (10.1) % 10.7 (11.0) % 0.5 (0.4) % 54.0 (53.2) % Stocks Other Bonds 19.2 (19.6) % 67.3 (65.7) % 26.1 (27.8) % Stocks Other Real estate Bonds - amortized cost Bonds - market value Other Real estate Bonds - amortized cost Bonds - market value 14.0 (15.8) % 70.4 (70.7) % Stocks Real estate Bonds - amortized cost Bonds - market value NOK 9.0 (8.2) billion NOK 17.4 (16.9) billion NOK 3.3 (3.1) billion NOK 11.3 (11.0) billion 32

33 SpareBank 1 Skadeforsikring Group Results for Year Figures in MNOK Gross written premium Net earned premium Net incurred claims Net insurance operating costs Other insurance income/costs Changes in other technical reserves Operating result before finance Net financial income Other costs Result before changes in security reserve Changes in security reserve Pre-tax profit Taxes Net profit/loss for the period Key figures Year Figures in percentage Claims ratio, net 73.3 % 84.5 % 78.2 % Cost ratio, net 18.3 % 17.1 % 20.1 % Combined ratio, net 91.7 % % 98.2 % Capital adequacy ratio 35.0 % 30.9 % 37.1 % 33

34 ODIN Forvaltning Results for Year Figures in MNOK Management fees Total operating income Salaries Depreciations Other operating costs Total operating costs Operating profit Net financial income Pre-tax profit Taxes Net profit/loss for the period

35 The nation's savings bank 35 35