Preliminary Accounts 2012

Transcription

1 Q4 Preliminary Accounts Presentation of results from SpareBank 1 Gruppen Kirsten Idebøen, CEO 14 February 2013

2 The pre-tax profit for was more than doubled compared with 2011 Pre-tax profit Group (MNOK) quarterly Pre-tax profit: MNOK 787 (387) in and MNOK 234 (140) in Q4 Net profit in : MNOK 439 (526) Q1 Q2 Q3 Q High tax charge due to the MNOK 193 non-recurring effect related to the introduction of new rules concerning the tax exemption model for life insurance companies* Return on equity: 8.6 (11.1) % Adjusted for the extraordinary tax charge, the return on equity for was 12.3 % Total assets: NOK 46.6 (42.0) billion Good solvency: Capital adequacy ratio: 14.9 (16.2) % Core capital adequacy ratio: 13.4 (14.6) % Well capitalised to satisfy the new, stricter capital requirements upon introduction of the Solvency II regulations SpareBank 1 Gruppen AS (holding company) aims to pay out the net profit for the period, currently calculated at MNOK 687, as dividends 2 * The new regulations did not include transitional rules related to the tax opening value. The use of historical cost price thus led to a significant non-recurring effect when calculating the latent deferred tax.

3 Financial performance per business area Pre-tax profit per subsidiary (MNOK) 619 Record high profit in life insurance. Improved risk and administration results, built up buffer capital and reserves for higher life expectancy Strong improvement in result for P&C insurance. High net financial income and significant improvement in insurance result. 185 Negative result in ODIN due to lower average total assets and non-recurring costs Good income growth in SpareBank 1 Markets. The company substantially strengthened its position in the market for bond issues during the year. Deficit in due to continued build up of a leading capital markets unit. SB1 Liv SB B1 Ska ade ODIN SB1 Marke ets SB1 1G Fina ans The result in SpareBank 1 Gruppen Finans was affected by a decline in turnover in Conecto and pressure on margins in Factoring. Good income growth in the Portfolio business area. 3

4 SpareBank 1 Livsforsikring Improved administration and risk results contributed ted to a record high pre-tax profit 4

5 129 SpareBank 1 Livsforsikring Improved administration at and risk results contributed to a record high pre-tax profit Pre-tax profit (MNOK) quarterly Q1 Q2 Q3 Q Pre-tax profit: MNOK 479 (414) in and MNOK 99 (98) i Q4 The result for Q4 was affected by the increased build up of reserves for higher life expectancy* Sales of defined contribution pensions increased by 25.0 % in Sales of personal insurance increased by 15.3 % in Administration result: MNOK -56 (-66) in and MNOK -27 (-3) in Q4 Weaker result in the quarter mainly due to non-recurring costs linked to restructuring Risk result: MNOK 292 (241) in and MNOK 90 (38) in Q Investment result: MNOK 269 (369) in and MNOK 51 (3) in Q4 High tax charge of MNOK -290 (98) due to new rules concerning the tax exemption model. The non-recurring effect linked to the change amounted to MNOK * In December, The Financial Supervisory Authority of Norway (Finanstilsynet) urged life insurance companies to allocate the risk profit from group defined benefit pensions and paid-up policies to provisions for higher life expectancy.

6 SpareBank 1 Livsforsikring The company has built up solid buffers Buffer Buffer capital capital trend trend, (%) per quarter per quarter (%) 16.3 % 14.6 % 15.2 % 14.8 % 14.0 % 14.1 % 12.8 % 11.0 % 13.6 % Securities adjustment reserve (MNOK) - accumulated Q Q Q Q Core capital in excess of minimum Additional provisions Q Q1 Q2 Q3 Interim profit Securities adjustment reserve Total assets: NOK 29.1 (26.6) billion Q4 In, the provisions for higher life expectancy were strengthened by MNOK 83 in defined benefit pensions and now account for 5.4 % of the premium reserve. Additional provisions account for 4.4 % MNOK 62 was allocated in paid-up policies and the provisions now account for 3.3 % of the premium reserve. Additional provisions account for 2.0 % Capital adequacy ratio: 18.5 % - unchanged from 2011 The entire subordinated loan comprises core capital Estimated solvency margin of %, compared to % in 2011 The company's total defined benefit pension and paid-up policies portfolio amounts to around NOK 7 billion, equivalent to a market share of 2.3 % Defined benefit pensions: approx. NOK 3 billion in insurance liabilities. Corresponds to a market share of 2.2% Paid-up policies: approx. NOK 4 billion in insurance liabilities. Corresponds to a market share of 2.5% 6

7 SpareBank 1 Skadeforsikring Group Higher net financial i income and improved insurance result 7

8 SpareBank 1 Skadeforsikring Group Higher net financial income and improved insurance result Pre-tax profit: MNOK 619 (185) in and MNOK 198 (168) in Q4 Pre-tax profit (MNOK) - quarterly Q1 Q2 Q3 Q Insurance result: MNOK 62 (-37) in and MNOK 26 (-16) in Q4 Substantially improved insurance result with increased income and lower claims ratio, both in the retail and corporate markets in the parent company, which fell by 5.3 and 12.8 percentage points respectively from 2011 to. Claims settlement cost project: Target MNOK 140 in the period Q1 - Q Realised MNOK 112 as per Q Net financial income: MNOK 538 (260) in and MNOK 120 (161) in Q4 Financial return: 5.2 (2.9) % -89 Net earned premium NOK 5.1 (4.7) billion, 2011 corresponding to a growth of 8.0 % Portfolio growth of MNOK 248, corresponding to an increase of 4.8 %. Total portfolio as per of NOK 5.45 billion. 8

9 SpareBank 1 Skadeforsikring Group Income growth and lower claims ratio in the retail and corporate markets in Combined ratio, net (%) quarterly Combined ratio, net (%) accumulated *Combined ratio, net including personal insurance in SB1 Livsforsikring * * Q Q Q Q Q1 Q2 Q3 Q Net claims ratio Net cost ratio Net claims ratio Net cost ratio According to the new regulations, indirect claims settlement expenses shall be classified as claims payments with effect from. This results in an allocation from insurance operating costs to incurred claims. The claims ratio and cost ratio figures for previous years have been restated in accordance with the new regulations. 9

10 SpareBank 1 Markets Strengthened position within DCM and positive income growth 10

11 SpareBank 1 Markets Strengthened position within DCM and positive income growth Income growth within all business areas in Q4 In, SpareBank 1 Markets established a formalised cooperation with SpareBank 1 SMN concerning own account trading in bonds and derivatives The cooperation supports issuing activities and thus investment capacity Results Total turnover : MNOK 150 (86), up 73 % In Q4: MNOK 50 (15), up 228 % Positive operating profit in Q4 before restructuring t and start-up t costs. The gross value created in the SB1-alliance amounted to MNOK 198 for, of which MNOK 48 is recognised as income in the owner banks The company significantly ifi strengthened th its position in the market Pre-tax profit: for bond issues during the year : MNOK -169 (-155) In Q4: MNOK -15 (-77) Booked income (MNOK) - Quarterly development Significantly strengthened market share for bond issues 9 % 2 % 2011 " SpareBank 1 can, through SpareBank 1 Markets, provide the entire capital structure, from bank loans to bonds and equity " 11

12 ODIN Forvaltning On the offensive again 12

13 ODIN Forvaltning Result marked by extraordinary costs Pre-tax profit (MNOK) - quarterly 6 Pre-tax profit: MNOK -20 (22) in and MNOK -20 (-9) in Q4 Extraordinary costs of MNOK 30 marked the result Proactive staff and cost cuts completed - Q1 Q2 Q3 Q4 restructuring costs charged against profit The value of goodwill in ODIN's subsidiary in Finland was written down by MNOK Management fees: MNOK 257 (303) for the year and MNOK 62 (62) in the quarter Lower average total assets in compared with Total assets: NOK 24.8 (23.4) billion Up by NOK 0.4 billion in Q Market share in equity fund of 8.2 (8.9) % and 4.4 (3.8) % for combination funds 13

14 ODIN Forvaltning Improved investment e t process have given results 10outo of 12 equity funds performed better than their benchmark in Return on equity fund as of (%) 32.4 Fund Benchmark ODIN ODIN ODIN ODIN ODIN ODIN ODIN ODIN ODIN ODIN ODIN ODIN Norge Sverige Finland Norden Europa Europa SMB Global Global SMB Emerging Markets Maritim Offshore Eiendom I 10 out of ODIN's 12 equity funds, all 5 fixed income funds and all 3 combination funds ahead of their benchmark indices in 14

15 SpareBank 1 Gruppen Finans Group Pressure on margins in the factoring business area and weak performance in the debt collection market. Good growth in portfolio activities 15

16 SpareBank 1 Gruppen Finans Group Pressure on margins in the factoring business area and weak performance in the debt collection market. Good growth in portfolio activities iti Pre-tax profit (MNOK) - accumulated Pre-tax profit*: MNOK 25.2 (27.9) in and MNOK 7.2 (5.9) in Q Factoring has enjoyed good growth in the last year, but lower margins affect earnings. Market share increased to 15.7 % in from 14.1 % in Higher portfolio volume in compared to 2011 has contributed to increased income in the portfolio administration**. Total portfolio volume was MNOK 1,504 (1,152) at year-end Zero growth in the debt collection market. Reduced d debt collection income in Conecto due to a lower number of referrals Factoring Portfolio Conecto (debt collection) SB1G Finans Group SpareBank 1 Gruppen Finans has in built a foundation for further growth and profitability. The cooperation with the SpareBank 1 banks will in the future provide new opportunities for cross-sales of debt collection services to the banks' corporate customers. 16 * Pre-tax profit for SpareBank 1 Gruppen Finans Group also include management and amortisation. ** Business area within the acquisition of portfolios of claims that are then recovered by the Group's debt collection company

17 Outlook SpareBank 1 Gruppen The SpareBank 1 Alliance is stronger than ever. Both the banks and the product areas are doing well in the current competition situation, and financial performance is good. SpareBank 1 Gruppen will, in close cooperation with the alliance banks, continue its work on strengthening the alliance's position. SpareBank 1 Gruppen is exposed to the securities market through its various subsidiaries, and the development of stock market prices and interest rates will have a major effect on the Group s earnings. Closer cooperation between the P&C and life insurance business areas is expected to generate increased revenue as a consequence of cross-selling opportunities and a more comprehensive offer for customers. The cooperation will also create a basis for more efficient processes throughout the value chain, increased competitiveness and low costs. 17

18 The nation's savings bank 18 18

19 Appendix 19

20 The SpareBank 1 Alliance has a solid business model, with proximity to the 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 Livsforsikring (100%) SpareBank 1 Markets (97.55 %) SpareBank 1 Medlemskort (100%) SpareBank 1 Gruppen Finans (100%) Alliance cooperation Brand, technology, competence, processes, best practice and purchasing. Resource centres: Payment/Trondheim, credit/stavanger, training/tromsø 20

21 SpareBank 1 Gruppen Key figures Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Year Group Net result for the period (MNOK) Return on equity (%) -3.8 % 17.2 % 5.0 % 15.9 % 23.2 % -0.3 % 8.1 % 12.9 % 8.6 % 11.1 % Capital adequacy ratio, cumulative (%) 14.9 % 16.7 % 15.9 % 14.8 % 16.2 % 16.3 % 16.2 % 16.1 % 14.9 % 16.2 % Core capital adequacy ratio, cumulative (%) 13.4 % 15.3 % 14.5 % 13.1 % 14.6 % 14.0 % 13.9 % 12.6 % 13.4 % 14.6 % SB1 Livsforsikring Risk result (MNOK) Administration result (MNOK) Investment result (MNOK) Net result for the period (MNOK) Buffer capital in % of insurance provisions*, cumulative (%) 13.6 % 16.3 % 14.8 % 12.8 % 11.0 % 14.1 % 14.0 % 15.2 % 13.6 % 11.0 % Capital adequacy ratio, cumulative (%) 18.5 % 19.0 % 20.0 % 17.5 % 18.5 % 18.5 % 17.1 % 19.2 % 18.5 % 18.5 % Securities adjustment reserve, cumulative (MNOK) SB1 Skadeforsikring Group Operating result before finance (MNOK) Net financial income (MNOK) Net result for the period (MNOK) Claims ratio, net (%) 69.1 % 81.4 % 78.0 % 84.9 % 78.5 % 88.5 % 83.4 % 88.2 % 78.3 % 84.6 % Cost ratio, net (%) 24.4 % 20.2 % 18.5 % 16.7 % 22.2 % 17.3 % 18.4 % 17.3 % 20.0 % 18.8 % Combined ratio, net (%) 93.4 % % 96.5 % % % % % % 98.2 % % Portfolio (MNOK) 5,446 5,455 5,407 5,328 5,198 5,092 4,986 4,825 5,446 5,198 ODIN Forvaltning Management fees (MNOK) Net result for the period (MNOK) Total assets under management, cumulative (MNOK) 24,803 24,370 23,541 26,173 23,433 22,539 30,101 33,348 24,803 23,433 Market share equity fund, cumulative (%) 8.2 % 8.3 % 8.4 % 8.9 % 8.9 % 8.8 % 9.9 % 10.6 % 8.2 % 8.9 % Market share combination fund, cumulative (%) 4.4 % 4.0 % 4.1 % 3.8 % 3.8 % 3.8 % 3.5 % 3.2 % 4.4 % 3.8 % 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 21

22 SpareBank 1 Gruppen Result for Year Figures in MNOK 2011 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) Share of associated company Pre-tax result Taxes * Net result for the period Majority interest Minority interest Year Key figures 2011 Annualised return on equity 8.6 % 11.1 % * High tax in the Group due to the MNOK 193 non-recurring effect related to the introduction of new rules concerning limiting the tax exemption model for shares owned by life insurance companies. 22

23 SpareBank 1 Gruppen Quarterly results Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 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) Share of associated company Pre-tax result Taxes Net result for the period Majority interest Minority interest

24 SpareBank 1 Livsforsikring Results for Q4 and full year Q4 Q3 Q2 Q1 Q4 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 Allocation to additional provisions Transferred to policyholders Return on company's assets Net profit to owner before tax Taxes Net profit/loss for the period Key figures Year 2011 Capital adequacy ratio 18.5 % 18.5 % Buffer capital in % of insurance provisions 13.6 % 11.0 % 24 * In December, The Financial Supervisory Authority of Norway (Finanstilsynet) urged life insurance companies to allocate the risk profit from group defined benefit pensions and paid-up policies to provisions for higher life expectancy.

25 SpareBank 1 Livsforsikring Profit per portfolio for Previously Figures in MNOK Group portfolio 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

26 SpareBank 1 Livsforsikring Premium income trend Q4 Q3 Q2 Q1 Q4 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

27 SpareBank 1 Livsforsikring Return on customer portfolio with guarantee as at 31/12/ Value-adjusted return excluding change in value construction: ti Booked return: Q3 Q Q3 Q4 Q3 Q4 Q3 Q4 Q3 Q4 Q3 Q4 5.6 Q3 Q4 5.4 Q3 Q4 Percent t Percent SpareBank 1 Storebrand DNB Livsforsikring Nordea SpareBank 1 Storebrand DNB Livsforsikring Nordea 27 Source: company presentations

28 SpareBank 1 Livsforsikring Return on ordinary customer portfolio with guarantee as at 31/12/ Percent Norwegian shares 16.5 Foreign shares 17.2 Money market 3.8 Norwegian bonds 8.5 Foreign bonds Held to maturity 5.1 Real estate

29 SpareBank 1 Livsforsikring Balance sheet as of 31/12/ Year Figures in MNOK 2011 Intangible assets Investments Reinsurance's part of insurance obligations Accounts receivable Other assets Prepayed liabilities and accrued income 6 0 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

30 Asset allocation per portfolio as at 31/12/ (31/12/2011): SB1 Livsforsikring sik ing Investment choice portfolio 46.3 (45.9) % Group portfolio Company portfolio 12.6 (13.8) % 02(45)% 0.2 (-4.5) 39.2 (37.4) % 0.7 (-0.2) % 18.4 (18.8) % SB1 Skadeforsikring Group 8.2 (7.9) % 10.1 (10.4) % 11.0 (12.7) % 0.4 (-0.1) % 53.2 (54.2) % Stocks Other Bonds 27.8 (28.0) % Stocks Other Real estate Bonds - amortized cost Bonds - market value 19.6 (21.0) % 65.7 (60.9) % 15.8 (24.8) % Other Real estate Bonds - amortized cost Bonds - market value 70.7 (69.0) % Stocks Real estate Bonds - amortized cost Bonds - market value NOK 8.2 (6.9) billion NOK 16.9 (15.7) billion NOK 3.1 (2.9) billion NOK 11.0 (9.6) billion 30

31 SpareBank 1 Skadeforsikring Group Results for Q4 and full year Q4 Q3 Q2 Q1 Q4 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 Q4 Q3 Q2 Q1 Q4 Year Figures in percentage Claims ratio, net 69.1 % 81.4 % 78.0 % 84.9 % 78.5 % 78.3 % 84.6 % Cost ratio, net 24.4 % 20.2 % 18.5 % 16.7 % 22.2 % 20.0 % 18.8 % Combined ratio, net 93.4 % % 96.5 % % % 98.2 % % Capital adequacy ratio 33.7 % 32.8 % 31

32 ODIN Forvaltning Results for Q4 and full year Q4 Q3 Q2 Q1 Q4 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