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

Transcription

1 1st Q Quarter 2011 Presentation of results from SpareBank 1 Gruppen Kirsten Idebøen, CEO 29 April 2011

2 Highlights SPAREBANK 1 GRUPPEN Significantly improved profit for Good return on equity of 12.4 (8.8) % Extensive restructuring in SpareBank 1 Livsforsikring has given tangible results 2

3 Significantly improved profit Pre-tax profit Group* as of, (MNOK) 162 Pre-tax profit for : MNOK 162 (131) 131 Profit after tax for : MNOK 152 (93) 87 Annualised return on equity: 12.4 (8.8) % 68 Capital adequacy ratio of 16.1 (20.3) %. Core capital adequacy ratio of 12.6 (14.6) % The Group's total assets were NOK 41.3 billion, compared to NOK 40.7 billion at year-end * Comparison figures for 2008 and 2009 have been restated and do not include the Bank 1 Oslo Group

4 Improved profits in life and P&C insurance Pre-tax profit per subsidiary as of, (MNOK) Good investment result in SpareBank 1 Livsforsikring contributed to strongly improved profit The life insurance company continued to build up buffers throughout 50 Sufficient provisions for increased life expectancy SB1 Li iv 36 SB1 Skad de ODIN Other subsidiarie es 15-1 Group correctio on Fewer winter-related claims in 2011 reduced claims ratio in SpareBank 1 Skadeforsikring ODIN Forvaltning s securities fund had NOK 33.4 billion in total assets Up NOK 1.1 billion since year-end 2010 Result affected by high non-recurring costs 4

5 SpareBank 1 Livsforsikring Strong investment result contributes to good profit 5

6 SpareBank 1 Livsforsikring Strong investment result contributes to good profit Pre-tax profit as of, (MNOK) 129 Development in risk result as of (MNOK) Pre-tax result in : MNOK 129 (92) Investment result: MNOK 206 (69) in Provisions for increased life expectancy: MNOK 33 Net risk result: MNOK 69 (91) Gross due premium income: MNOK 1,018 (981) CM: MNOK 696 (662) RM: MNOK 322 (319) Administration result: MNOK -19 (-41) in 6

7 SpareBank 1 Livsforsikring Built up solid buffers Buffer capital trend, per quarter (%) 16.1 % 15.4 % 146% % 13.0 % Securities adjustment reserves per year (MNOK) Q Q Q Core capital in excess of minimum Additional provisions Interim profit Securities adjustment reserve Buffer capital including quarterly profits: 14.8 (13.0) % Securities adjustment reserves: MNOK 448 (454) in Capital adequacy ratio: 19.2 (18.4) % Core capital adequacy ratio: 17.6 (15.6) % Total assets: NOK 26.2 billion, NOK 0.3 billion lower than at year-end 2010 Estimated t solvency margin: 295 (275) % 7

8 SpareBank 1 was the largest personal insurance provider in Norway in 2010 New contracts Gross premium SpareBank % 22.3 % Gjensidige 16.2 % 22.0 % Storebrand 7.2 % 17.5 % Nordea 17.7 % 12.5 % Vital % % Danica 4.5 % 6.1 % Others* 19.0 % 9.8 % * Other market players New Gross contracts premium Personal insurance comprises products within Life insurance, disability insurance and disability capital. New subscriptions and gross premium Frende 5.7 % 3.4 % Terra 6.7 % 3.0 % If 6.2 % 2.7 % Handelsbanken 0.4 % 0.7 % 8 Source: FNO market statistikk for 2010

9 SpareBank 1 Skadeforsikring Group Improved results due to fewer winter-related claims 9

10 SpareBank 1 Skadeforsikring Group Improved results due to fewer winter-related related claims Pre-tax profit as of, (MNOK) Pre-tax profit for : MNOK 50 (36) Insurance result: MNOK -30 (-53) Financial return of 1.1 (1.2) % 36 Financial income: MNOK 95 (98) Total portfolio growth of MNOK 116, or 2.5 % since year-end 2010 MNOK 37 from Unison Forsikring MNOK 79 from SpareBank 1 Skadeforsikring Total portfolio as of NOK 4.8 billion The NAF agreement has been established and the first contracts sold 10

11 SpareBank 1 Skadeforsikring Group Fewer winter-related related claims reduced combined ratio in % Net combined ratio quarterly (%) Net combined ratio cumulative (%) % % 99.6 % 93.9 % % % 90.9 % 92.9 % 89.8 % 24.8 % 20.2 % 17.1 % %.9 % 87.2 % 89.9 % 94.6 % 94.0 % 96.2 % 97.7 % 79.5 % 71.7 % 69.2 % 20.5 % 20.6 % % 74.8 %.9 % 88.3 % 2.5 % 75.9 % 21.0 % 67.1 % % 22.2 % 21.8 % 22.7 % % % 69.3 % 73.9 % 72.1 % 73.8 % 76.7 % 2009 Q Q Q Net claims ratio Q Q Net cost ratio Q Net claims ratio Net cost ratio Claims ratio as of 2011 is lower than in 2010, but major losses and winter-related claims meant that claims ratio still stayed highh 11

12 SpareBank 1 Skadeforsikring has the most satisfied customers Norwegian customer barometer survey shows SpareBank 1 Skadeforsikring has the industry's most satisfied and loyal customers The company also ranked 12th in customer satisfaction regardless of the sector (out of 194 companies) 12

13 ODIN Forvaltning Combination fund and new marketing profile 13

14 ODIN Forvaltning Combination fund and new marketing profile Pre-tax profit as of, (MNOK) 30 Pre-tax profit for : MNOK 12 (14) - Accounts charged with MNOK 8 in one-off costs Profit after tax for : MNOK 9 (11) Total assets of NOK 33.4 billion - Up NOK 1.1 billion since year-end Market share of 10.6 % for equity fund as per, compared with 10.7 % at year-end 2010 Market share of 3.2 % for newly acquired combination fund 14

15 Argo Securities The work on building a powerful capital markets environment continues 15

16 Argo Securities The work on building a powerful capital markets environment continues Proactive recruitment in Argo Securities New recruitment will help achieve target market power The investments are expected to have significant result effects throughout 2012 Result as of : Pre-tax: MNOK -3.4 (-2.7) After tax: MNOK -2.4 (-1.9) Increase in turnover Commission income on stocks and derivatives: MNOK 12.1 (11.0) Debt capital markets: MNOK 5.8 (5.3) Corporate Finance: MNOK 10.9 (3.9) Shakeb Syed was appointed Argo Securities's new chief economist 16

17 SpareBank 1 Gruppen Finans Group Good performance in all business areas within receivables management 17

18 SpareBank 1 Gruppen Finans Group Good performance in all business areas within receivables management Pre-tax profit as of, (MNOK) Pre-tax profit for : MNOK 6.8 (3.7) Lower losses and high factoring volume helped to increased income in BA Factoring 3.7 BA Portfolio's total portfolio volume as of was MNOK 979, compared with MNOK 620 at year-end Conecto AS and Actor Fordringsforvaltning were merged into one company as of 1 January 2011 Profit after tax for : MNOK 4.5 (2.5) -1.6 A oring B Fact BA Po ortefølje Conecto* (deb bt recovery) SB B1G Finans Group** Annualised return on equity 6.3% (6.0%) for *The debt collection company Conecto was acquired with accounting effect from 10th September The profit up to the acquisition date has been recognised directly against equity in the group. The figure above shows proforma figures for 2010, i.e. the result as per 2010 refers to Actor Fordringsforvaltning and Verdigjenvinning, including Conecto, in order to provide a more correct picture of operations in the company **Pre-tax profit for SpareBank 1 Gruppen Finans Group also includes overheads and excess value amortisation 18

19 SpareBank 1 Gruppen Finans Group SpareBank 1 Factoring consolidates its position as Norway's third largest factoring company SpareBank 1 Factoring: Norway's third largest factoring company in 2011 (%) 40.5 % 39.5 % 35.5 % 36.2 % 41.1 % 32.2 % 377% % 36.2 % 36.1 % SpareBank 1 Factoring had a total growth of 41.3 % from 2010 to The total market growth was 6.9 % in the same period 12.1 % 12.0 % 13.9 % 10.4 % 11.0 % 11.5 % 13.7 % 13.8 % 13.0 % 12.6 % Market share increased from 10.4 % in 2010 to 13.8 % in Q Q Q DnB NOR Finans SG Finans Nordea Finans SB1 Factoring 19

20 Outlook SPAREBANK 1 GRUPPEN The effects of the completed restructuring measures are expected to produce an improved administration result in SpareBank 1 Livsforsikring. The company is on the offensive within personal insurance Profitable portfolio growth in SpareBank 1 Skadeforsikring The unique and robust business model in the SpareBank 1-alliance gives a strategic advantage 20

21 The nation's savings bank 21 21

22 Appendix 22

23 SpareBank 1 Alliance SpareBank 1 SR-Bank (19.5%) SpareBank 1 SMN (19.5%) SpareBank 1 Nord-Norge (19.5%) Sparebanken Hedmark (12%) Samarbeidende Sparebanker (19.5 %) LO (Trade Union) (10 %) SpareBank 1 Gruppen AS Argo Securities (93.4%) SpareBank 1 Livsforsikring (100%) ODIN Forvaltning (100%) Alliance Cooperation SpareBank 1 Medlemskort (100%) (Bank-owned companies) SpareBank 1 Gruppen Finans (100%) Conecto (100%) SpareBank 1 Boligkreditt EiendomsMegler 1 BNbank SpareBank 1 Oslo og Akershus SpareBank 1 Skadeforsikring (100%) Unison Forsikring (100%) Broad cooperation - Technology - Brand/communication -Expertise - Common processes and use of best practice - Purchasing Regional competence centres - Payment services: Trondheim - Credit: Stavanger - Training: i Tromsø 23

24 SpareBank 1 Gruppen Profit as of 2011 Year Figures in MNOK Part of result from subsidiaries before tax - SpareBank 1 Livsforsikring SpareBank 1 Skadeforsikring Group ODIN Forvaltning Argo Securities 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) Gains from sale of companies Share of associated company Pre-tax result Taxes Net result for the period Majority interest Minority interest Year Key figures Annualised return on equity 12.4 % 8.9 % 18.7 % 24

25 SpareBank 1 Gruppen Quarterly results Q4 Q3 Q2 Q4 Q3 Q2 Figures in MNOK Part of result from subsidiaries before tax - SpareBank 1 Livsforsikring SpareBank 1 Skadeforsikring Group ODIN Forvaltning Argo Securities 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) Gains from sale of companies Share of associated company Pre- tax result Taxes Net result for the period Majority interest Minority interest

26 SpareBank 1 Livsforsikring Profit as of 2011 Year Figures in MNOK Insurance risk income Insurance risk claims Risk result Tecnical allocations Risk result after tecnical allocations Fees Expenses, exclusive comissions Comissions i 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 19.2 % 18.4 % 19.3 % Buffer capital in % of insurance provisions 14.8 % 13.0 % 14.6 % The company's accounts did not show taxes in 2010 since the deferred tax assets were not included in accordance with the IAS 12 accounting standard. 26

27 SpareBank 1 Livsforsikring Profit by portfolio as of 2011 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 Livsforsikring Premium income trends as of 2011 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 Livsforsikring Asset allocation by portfolio As of ( ) 12 10) Group portfolio Company portfolio Investment choice portfolio 34.7 (34.8) % 14.6 (14.8) % -0.4 (0.9) % 0.1 (0.1) % 0.7 (-1.6) % 21.3 (21.0) % 40.2 (39.0) % 28.9 (28.0) % 22.2 (21.5) % Stocks Other Real estate Bonds - amortized cost Bonds - market value 49.5 (48.4) 4) % 28.4 (28.8) 8) % 59.8 (61.0) % 0.0 (0.0) % Stocks Real estate Other Bonds - amortized cost Bonds - market value Stocks Other Bonds NOK 15.6 (16.0) billion NOK 3.0 (2.8) billion NOK 6.8 (6.7) billion 29

30 SpareBank 1 Livsforsikring Value adjusted d return for customer portfolios with guarantee as of (excluding property value change) Q Q Q Q Percent SpareBank 1 Storebrand Vital Nordea 30 Source: company presentations

31 SpareBank 1 Livsforsikring Booked return on customer portfolios with guarantee Q Q Q Q Percent SpareBank 1 Storebrand Vital Nordea 31 Source: company presentations

32 SpareBank 1 Livsforsikring Return on ordinary customer portfolio with guarantee as of Percent Norwegian shares 0.3 Foreign shares 2.1 Money market 0.6 Norwegian bonds 0.0 Foreign bonds Held to maturity 1.3 Real estate

33 SpareBank 1 Livsforsikring Balance sheet as of 2011 Year Figures in MNOK Intangible assets Investments 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

34 SpareBank 1 Skadeforsikring Profit as of 2011 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 83.6 % 88.3 % 767% 76.7 Cost ratio, net 21.9 % 20.2 % 21.0 % Combined ratio, net % % 97.7 % Capital adequacy ratio 30.3 % 32.6 % 32.5 % 34

35 SpareBank 1 Skadeforsikring Allocation of financial assets As per ( ) 66.3 (65.6) % Bonds held as current assets Bonds held to maturity 11.0 (11.1) % Real state Stocks Hedgefond 13.7 (14.1) % 0.1 (0.1) % 9.0 (9.1) % NOK 8.7 (8.5) billion 35

36 ODIN Forvaltning Profit as of 2011 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