Presentation SpareBank 1 Gruppen Q2- 2012 English Version

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  • 1. Q21st half-year and 2nd quarter 2012Presentation of resultsfrom SpareBank 1 GruppenKirsten Idebøen, CEO9 August 2012
  • 2. Year-to-date profit in line with last year Pre-tax profit Group quarterly (MNOK) • Pre-tax profit for 1st half-year: MNOK 296 (308) Pre tax half year: Q1 Q2 • Net profit for 1st half-year: MNOK 263 (249) 173 162 • Annualised return on equity: 145 10.5 (10.5) % 123 •G Group’s total assets were NOK 45.2 billi ’ t t l t 45 2 billion, compared to NOK 42.0 billion at year-end 2011 • Good solvency: – Capital adequacy ratio: 15.9 % against 16.2 % as at 31.12.2011 2011 2012 – Core capital adequacy ratio: 14.5 % against 14.6 14 6 % as at 31.12.2011 t 31 12 2011 – Well capitalised to satisfy the new, stricter capital requirements upon introduction of the Solvency II regulations y g2
  • 3. Financial performance per business area • SpareBank 1 Livsforsikring has built up Pre-tax profit per subsidiary (MNOK) further reserves during 1st half-year. Administration result continued to improve.238 236 236 1H2011 1H2012 • Good financial result and improved insurance result contributed to a significantly improved profit for Sparebank g y p p p 1 Skadeforsikring. 107 • A decrease in total assets under management in ODIN Fo altning gave Forvaltning ga e 24 reduced management fees. 10 14 -2 • SB1G Finans: strong pressure on margins in -26 factoring and weaker performance in debt -90 collection market, but good growth in portfolio business. ans ade ets SB1 Liv L SB1 Marke SB1G Fina SB1 Ska ODIN • Higher turnover in SpareBank 1 Markets, despite reduced activity in the financial markets. Strengthened market share in bond b d market during the course of Q2. k d h f Q23
  • 4. SpareBank 1 Livsforsikring Improved administration result and increased b ffe inc eased buffer capital4
  • 5. SpareBank 1 Livsforsikring Improved administration result and increased buffer capital • Pre-tax profit: MNOK 236 (238) for 1st half-year and MNOK 142 (109) in Q2 P t Pre-tax profit (MNOK) quarterly fit (MNOK), t l Q1 • Administration result: MNOK -26 (-43) for 1st half-year Q2 and MNOK -19 (-24) in Q2 Q3 – Stable ope at g costs a d increased income from fees Stab e operating and c eased co e o ees Q4 142 129 • Risk result: MNOK 122 (140) for 1st half-year and MNOK 109 93 (70) in Q2 100 9892 94 – Strong risk result in Q2 after Q1 saw some large compensation 86 payments 78 72 – Increased reserves in connection with disability compensation reduced year-to-date risk result • Investment result: MNOK 120 (314) for 1st half-year and MNOK 47 (108) in Q2 – MNOK 42 allocated to strengthen provisions for longer life 2010 2011 2012 expectancy – Net foreign exchange loss of MNOK 11 has been realised in the year-to-date. In comparison last year saw a total gain on forward exchange of MNOK 156 – At the end of 1st half-year 2012, the securities adjustment reserve totalled MNOK 390, against MNOK 185 at year-end 2011 5
  • 6. SpareBank 1 Livsforsikring The company built up further buffers during 1st half-year half year Buffer capital trend, per quarter (%) Buffer capital trend, per quarter (%) Securities adjustment reserve (MNOK) 14.6 % 15.2 % 14.8 % 14.0 % 14.1 % 617 12.8 % 11.0 % 390 327 185 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2010 2011 2011 2011 2011 2012 2012 Core capital in excess of minimum Interim profit 2009 2010 2011 1H2012 Additional provisions Securities adjustment reserve• Total assets: NOK 28 (27) billion • From the securities adjustment reserve: – MNOK 182 belongs to the ordinary group portfolio• Capital adequacy ratio: 20.0 % against 18.5 % as Cap ta at o 0 0 aga st 8 5 – MNOK 76 belongs to paid up policy portfolio paid-up at 31.12.2011 – MNOK 131 belongs to the portfolio for – The entire subordinated loan comprises core capital previously established individual savings – Estimated solvency margin of 320.5 %, compared to products 303.5 % at year-end 2011 year end6
  • 7. Asset allocation per portfolio as at 30/06/2012 (31/12/11) SB1 Livsforsikring SB1 Skadeforsikring Group Investment choice portfolio Group portfolio Company portfolio 0.0 (0.0) % 12.9 (13.8) % 1.0 (-4.5) % 10.3 (10.4) % ( ) 0.0 (0.0) % 38.9 (37.4) % 0.5 (-0.2) % 20.9 (18.8) % 8.2 (7.9) % 12.2 (12.7) %45.7 (45.9) % 54.3 (54.2) % 61.1 (60.9) % 19.8 (21.0) % 27.9 (28.0) % 16.9 (24.8) % 0.0 (-0.1) % 69.3 (69.0) % Stocks Stocks Other Other Stocks OtherStocks Other Bonds Real estate Real estate Real Estate Bonds at amortised cost Bonds - amortized cost Bonds - amortized cost Bonds at Market value Bonds - market value Bonds - market value NOK 7.5 (6.9) billion NOK 16.4 (15.7) billion NOK 2.8 (2.9) billion NOK 10.0 (9.6) billion 7
  • 8. SpareBank 1 Livsforsikring New occupational p p pension pproducts are expected as of 01/01/2014 p / / Basic model Standard model• Maximum premiums: 7% of salary up to 7.1G* and • Maximum premiums: 8% of salary up to 7.1G* and 25.1% of salary from 7.1G-12G 26.1% of salary from 7.1G-12G• The company must guarantee an annual adjustment of • No guaranteed return, meaning employees bear some the saved capital equal to wage inflation against it return risk. Returns are paid to employees. receiving the returns on pension capital • Slightly more advanced on the return side than the• Similar to the current defined contribution pension in basic model SpareBank 1 Livsforsikring with the exception of mortality inheritance SpareBank 1 Livsforsikring views the new occupational pension models positively• Lower Solvency II requirements than under current regulations• 0% annual guarantee and reduced risk due to longer life expectancy (life expectancy adjustment)• The transition from current defined benefit pensions to the hybrid product will require advisory services because there are many options when it comes to the choice of model, size of premiums and guarantees. The SpareBank 1-alliance will have a greater opportunity to strengthen its role within the pensions area *G= National insurance basic amount8
  • 9. SpareBank 1Skadeforsikring GroupGood fiG d financial result and improved insurance result i l lt di di lt9
  • 10. SpareBank 1 Skadeforsikring Group Good financial result and improved insurance result Pre tax profit Pre-tax profit, quarterly (MNOK) 308 Q1 • Pre-tax profit: MNOK 236 (107) for 1st half-year 254 Q2 and MNOK 70 (56) in Q2 Q3 Q4 • Insurance result*: MNOK 12 (-22) for 1st half-year 168 166 and MNOK 31 (8) in Q2 – Lower claims ratio for both PM and BM in the parent company 70 50 5636 43 • Net financial income: MNOK 245 (162) for 1st half- year and MNOK 51 (67) in Q2 – Financial return: 2.5 (1.8) % -89 2010 2011 2012 • Portfolio growth in 1st half year 2012 of 4 0 %, to half-year 4.0 % NOK 5.4 billion.* Insurance result in 1st half-year 2011 and 2012 includesUnison FU i Forsikring ik i10
  • 11. SpareBank 1 Skadeforsikring Group Good underlying profitability in main products and lower proportion of large claims Combined ratio for own account – quarterly (%) Combined ratio for own account (%) 105.5 105.8 103.5 96.9* 100.3 101.9 100.7 101.6 97.7 99.0 93.4* 96.5 94.0 96.2 92.9 21.1 89.8 21.9 22.9 23.8 22.4 21.3 21.0 21.8 26.0 22.3 22.5 17.1 21.9 22.7 22 7 83.6 79.4 79 4 84.7 80.4 75.9 75 9 76.6 76 6 74.7 74 7 74.1 74 1 67.1 76.7 80.6 72.1 73.8 77.2 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2010 2010 2010 2011 2011 2011 2011 2012 2012 2008 2009 2010 2011 1H2012 Net claims ratio Net cost ratio Net claims ratio Net cost ratio - Lower total claims ratio in both PM and BM in the parent company - Lower proportion of large claims in BM portfolio in year-to-date * Combined ratio for own account for respectively 2011 and 1st half-year 2012 including personal insurance Gross combined ratio for 1st half-year was 99.8% (claims ratio of 78.5% and cost ratio of 21.3%). Including personal insurance, the combined ratio in 1st half-year is reduced to 93.2%, of which the claims ratio accounts for 72.0% and the cost ratio 21.2%11
  • 12. SpareBank 1 Skadeforsikring Group Good portfolio growth in 1st half-year 2012 half year Portfolio growth per year (MNOK) 5 407 • Total portfolio growth of MNOK 209 (277) to NOK 5.4 (5.0) billion as at 30/06/2012, equivalent to a growth of 4.0 %3 358 – Unison Forsikring saw growth in 1st half-year of MNOK 69 (97) – Portfolio growth in the Group in Q2 alone amounted to MNOK 79 (161) • Net earned premium of NOK 2 5 (2.2) billion, 2.5 (2 2) billion 04 30.06.20 12 2011 05 06 07 08 09 10 31.12.200 200 200 200 200 200 201 corresponding to a growth of 11.3 %12
  • 13. SpareBank 1 Markets Visible effects from result-oriented work13
  • 14. SpareBank 1 Markets Visible effects from result-oriented work Results SB1 Markets - Market share bond issues • Total turnover 12 % • 1st half-year: MNOK 73 (58), up 25 % • Q2: MNOK 40 (24), up 70 % • Pre tax Pre-tax profit 5% • 1st half-year: MNOK -90 (-26) 3% 3% 2% • Q2: MNOK -45 (-22) 1% Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 MARKET SHARE Q2 2012 BOND ISSUE DNB 23% Swedbank / First Securities 20% Nordea 14% Operational matters SEB Merchant Banking 13% SpareBank 1 Markets 12% • Goal of profitable operations from Q4 stand firm Danske Bank 5% provided normalised markets. AGB Sundal Collier 5% Handelsbanken 4% • Cooperation with SpareBank 1 SMN on rated SpareBank 1 can, through SpareBank 1 balance sheet is operative and has had Markets, provide the entire capital immediate effects on the companys market structure, from bank loans to bonds and share and in the bond market. equity Source: Norsk Tillitsmann14
  • 15. O ODIN Forvaltning o a g Nine out of twelve equity funds performed better than their benchmark in 1st half-year15
  • 16. ODIN Forvaltning Nine out of twelve equity funds performed better than their benchmark in 1st half-year • Pre-tax profit for 1st half-year: MNOK -2 (24) Pre tax half year: 2 Pre-tax profit (MNOK), quarterly – Management fees totalled MNOK 131 (172) 17 17 16 14 Q1 • Pre-tax profit for Q2: MNOK -1.5 (12) Pre tax 1.5 12 12 Q2 Q3 • Total assets under management of NOK 23.5 6 Q4 / / billion as at 30/06/2012 – Reduced by NOK 6.6 billion from 30/06/2011 – Increased by NOK 0.1 billion from 31/12/2011 -0.5 -1.5 • 8.4 % market share for equity funds in 1st half-year 2012, down 0.5 percentage points -9 from year-end 2011 2010 2011 2012 • 4.1 % market share for combination funds for 1st half-year 2012, up 0.3 percentage points from 31/12/201116
  • 17. ODIN Forvaltning Nine out of twelve equity funds performed better than their benchmark in 1st half-year. New CEO Return on equity fund as at 30/06/2012 (%) q y / / ( ) 11.6 Fund Benchmark 8.8 8.2 8.8 7.1 6.9 6.2 5.7 5.8 5.3 5.4 5.3 4.7 4.6 3.9 2.8 2.9 3.0 1.9 1.8 18 -0.6 -2.2 -1.6 -7.5 ODIN ODIN ODIN ODIN ODIN ODIN ODIN ODIN ODIN ODIN ODIN ODIN Rune S l R Selmar h been appointed the has b i t d th new CEO of ODIN Forvaltning Norden Finland Norge Sverige Maritim Offshore Eiendom I Europa Europa Global Global Emerging SMB SMB Markets • ODIN has signed up to the UNs Principles for Responsible Investment (PRI) − The UNs Principles for Responsible Investment set out six rules for a sustainable, socially responsible and owner-managed i i ll ibl d d investment philosophy t t hil h − The goal of signing up to the principles is to promote sustainable value creation through active corporate governance and by increasing value for the company and societys investments17
  • 18. SpareBank 1 Gruppen Finans Group Continued focus on growth and cost-efficiency18
  • 19. SpareBank 1 Gruppen Finans Group Continued focus on growth and cost-efficiency cost efficiency Pre-tax profit (MNOK) • SpareBank 1 Gruppen Finans Group reported a p p pp p p pre-tax 14.2 profit for 1st half-year of MNOK 14.2 (9.8) 1H2011 12.2 11.6 • Higher costs in the factoring business area reduced the y year-to-date result somewhat, MNOK 4.4 (4.9) , ( ) 1H2012 9.8 − Good growth in turnover in Q2 helped to improve pre-tax profit in the quarter of MNOK 2.7 (2.1) − Factorings market share continued to grow; market share as at Q2 2012 of 14.6 % against 14.1 % as at 31/12/2011 4.9 4.4 • Good growth in portfolio (long-term monitoring) due to 3.8 new portfolio acquisitions in 1st half-year − Pre-tax profit: MNOK 3.8 (1.6) in 1st half-year and MNOK 1.2 1.6 (0.4) (0 4) in Q2 • Weak growth in the debt collection market factoring portfolio Conecto SB1G Finans − Pre-tax profit: MNOK 11.6 (12.2) in 1st half-year and MNOK 7.0 (debt Group (5.1) in Q2 collection) − Low debt collection income in year-to-date, but improved result in Q2 alone due to the sale of a larger portfolioPre taxPre-tax profit for SpareBank 1 Gruppen Finans Group also includesmanagement and amortisation.19
  • 20. Outlook SPAREBANK 1 GRUPPEN • SpareBank 1 Skadeforsikring has started a number of measures aimed at improving profitability. profitability The effect of the measures has been satisfactory so far and is expected to increase throughout 2nd half-year. • SpareBank 1 Livsforsikring is well positioned with respect to the opportunities that will open up in the pension market in the future due to the new occupational pension policy that will take effect from 01/01/2014. • The Group will continue its work on cooperation right across the companies to extract efficiency gains within costs, income and know-how. • At the start of 2nd half-year, considerable uncertainty exists concerning the macroeconomic trends in Europe and how this will affect the financial markets. SpareBank 1 Gruppen is exposed to the securities market through its various subsidiaries, and the development of equity prices and interest rates will have a major effect on the Group s earnings Groups earnings. • SpareBank 1 Gruppen is well equipped to face new capital requirements in relation to the introduction of the Solvency II.20
  • 21. The nation s savings bank nations 2121
  • 22. Appendix A di22
  • 23. SpareBank 1 Alliance SpareBank 1 SpareBank 1 SpareBank 1 Sparebanken Samarbeidende LO (Trade Union) SR-Bank SMN Nord-Norge Hedmark Sparebanker (10%) (19.5%) (19.5%) (19.5%) (12%) (19.5%) SpareBank 1 Gruppen AS SpareBank 1 ODIN SpareBank 1 Markets Livsforsikring Forvaltning (97.47%) (100%) (100%) Alliance Cooperation SpareBank 1 SpareBank 1 SpareBank 1 Medlemskort Gruppen Finans Skadeforsikring (100%) (100%) (100%) Broad cooperation - Technology / - Brand/communication Conecto Unison Forsikring - Expertise (100%) - Common processes and use of best practice (100%) - Purchasing Regional competence centres (Bank-owned companies) - Payment services: Trondheim SpareBank 1 Boligkreditt EiendomsMegler 1 - Credit: Stavanger BNbank - Training: Tromsø SpareBank 1 Oslo og Akershus23
  • 24. Return on equity after tax among selected Nordic financial institutions Average 1H2012 2011 2010 2009 2009-2011 Gjensidige* 17.7% 11.9% 13.1% 11.1% 12.0% Handelsbanken 14.0% 13.5% 12.9% 12.6% 13.0% Nordea 12.1% 10.6% 11.5% 11.3% 11.1% DNB 10.7% 11.4% 13.6% 10.6% 11.9% SpareBank 1 Gruppen 10.5% 11.1% 18.7% 18.1% 16.0% Storebrand 9.1% 6.0% 10.8% 8.2% 8.3% Danske Bank 3.6% 1.4% 3.6% 1.7% 2.2% * Calculated as net profit distributed over average equity. Source: The companies interim reports for 1st half-year 201224
  • 25. SpareBank 1 Gruppen Key figures Q2 Q1 Q4 Q3 Q2 Q1 Year 2012 2012 2011 2011 2011 2011 2011 Groupp Net result for the period (MNOK) 63.4 199.9 281.5 -4.8 97.2 151.9 525.8 Return on equity (%) 10.5 % 15.9 % 23.2 % -0.3 % 8.1 % 12.9 % 11.1 % Capital adequacy ratio, cumulative (%) 15.9 % 14.8 % 16.2 % 16.3 % 16.2 % 16.1 % 16.2 % Core capital adequacy ratio, cumulative (%) 14.5 % 13.1 % 14.6 % 14.0 % 13.9 % 12.6 % 14.6 % SB1 Livsforsikring Risk result (MNOK) 92.6 29.4 38.5 63.5 70.1 69.4 241.4 Administration result (MNOK) -19.0 -7.5 -3.2 -19.8 -24.2 -18.7 -65.9 Investment result (MNOK) I t t lt 47.0 47 0 73.2 73 2 3.1 31 51.6 51 6 108.0 108 0 205.8 205 8 368.5 368 5 Net result for the period (MNOK) 89.1 125.8 193.7 114.6 73.8 129.9 511.9 Buffer capital in % of insurance provisions*, cumulative (%) 14.8 % 12.8 % 11.0 % 14.1 % 14.0 % 15.2 % 11.0 % Capital adequacy ratio, cumulative (%) 20.0 % 17.5 % 18.5 % 18.5 % 17.1 % 19.2 % 18.5 % Securities adjustment reserve, cumulative (MNOK) 389.6 465.9 184.9 13.0 326.3 448.2 184.9 SB1 Skadeforsikring Group Operating result before finance (MNOK) 31.1 -19.5 -15.5 0.0 8.2 -29.9 -37.3 Net financial income (MNOK) 51.0 51 0 194.0 194 0 160.8 160 8 -62 3 62.3 66.8 66 8 95.1 95 1 260.3 260 3 Net result for the period (MNOK) 42.2 139.5 90.8 -81.7 41.8 39.8 90.7 Claims ratio, net (%) 74.1 % 80.4 % 74.7 % 84.7 % 79.4 % 83.6 % 80.6 % Cost ratio, net (%) 22.3 % 21.3 % 26.0 % 21.1 % 22.4 % 21.9 % 22.9 % Combined ratio, net (%) 96.5 % 101.6 % 100.7 % 105.8 % 101.9 % 105.5 % 103.5 % Portfolio (MNOK) 5,407 5,328 5,198 5,092 4,986 4,825 5,198 ODIN Forvaltning Management fees (MNOK) a age e t ees ( O ) 63 63.4 6 67.2 6 8 61.8 69 69.4 85 5 85.5 86 8 86.8 303 5 303.5 Net result for the period (MNOK) -1.0 -0.3 -7.0 4.3 8.9 8.6 14.8 Total assets under management, cumulative (MNOK) 23,541 26,173 23,433 22,539 30,101 33,348 23,433 Market share equity fund, cumulative (%) 8.4 % 8.9 % 8.9 % 8.8 % 9.9 % 10.6 % 8.9 % Market share combination fund, cumulative (%) 4.1 % 3.8 % 3.8 % 3.8 % 3.5 % 3.2 % 3.8 % SB1 Markets Total operating income (MNOK) 40.0 32.9 15.3 12.6 23.5 34.8 86.3 Net result for the period (MNOK) -32.6 -32.5 -57.4 -37.3 -15.9 -2.4 -113.1 SB1G Finans Group Net result for the period SB1G Finans Group (MNOK) 5.4 4.9 4.4 8.4 1.8 4.5 19.1 Net result for the period SB1G Finans - parent company (MNOK) 1.0 2.2 4.1 3.7 0.1 1.4 9.3 Net result for the period Conecto (MNOK) 5.0 3.3 2.2 6.7 3.7 5.1 17.7 *) Buffer capital as at Q4 is shown after profits have been allocated25
  • 26. SpareBank 1 Gruppen Result for 1st half-year 2012 half year Q2 Q1 Q2 Half year Year Figures in MNOK Fi i 2012 2012 2011 2012 2011 2011 Part of result from subsidiaries before tax - SpareBank 1 Livsforsikring 141.8 94.1 109.0 235.8 238.4 414.1 - SpareBank 1 Skadeforsikring Group 70.4 165.5 56.2 235.9 106.5 185.3 - ODIN Forvaltning -1.5 -1 5 -0.5 -0 5 12.2 12 2 -2.0 -2 0 24.1 24 1 21.8 21 8 - SpareBank 1 Markets -44.9 -44.8 -22.1 -89.7 -25.5 -154.8 - SpareBank 1 Medlemskort 2.4 2.8 2.5 5.2 5.6 12.1 - SpareBank 1 Gruppen Finans Group 7.5 6.8 3.0 14.2 9.8 27.9 - Correction Group -9.0 0.0 15.1 -9.0 14.2 28.6 Net result before tax from subsidiaries 166.6 223.8 175.9 390.5 373.1 535.1 Total operating costs (parent company) -26.1 -33.5 -15.6 -59.6* -43.2 -88.6 Net investment charges (parent company) -17.7 -16.8 -15.0 -34.5 -22.1 -59.3 Share of associated company 0.0 0.0 0.0 0.0 0.0 0.2 Pre-tax result 122.9 173.5 145.4 296.4 307.7 387.3 Taxes -59.5 26.4 -48.1 -33.1 -58.6 138.5 Net result for the period 63.4 199.9 97.2 263.3 249.1 525.8 Majority interest 64.2 200.7 98.0 264.9 250.4 529.8 Minority interest -0.8 -0.8 -0.8 -1.6 -1.3 -4.0 Half year Year Key figures 2012 2011 2011 Annualised return on equity 10.5 % 10.5 % 11.1 %*Of the total operating costs in the year-to-date 2012, MNOK 19 was due to the project aimed at establishing the Groups own card company, which is currently being run as project in the parent company.Once the company is established, SpareBank 1 Gruppen AS will be refunded the project costs it has incurred.26
  • 27. SpareBank 1 Gruppen Quarterly results Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1Figures in MNOK 2012 2012 2011 2011 2011 2011 2010 2010 2010 2010Part of result from subsidiaries before tax - SpareBank 1 Livsforsikring 141.8 94.1 98.1 77.7 109.0 129.4 72.5 85.8 100.3 91.9 - SpareBank 1 Skadeforsikring Group 70.4 165.5 168.1 -89.3 56.2 50.3 307.5 253.9 43.4 36.3 - ODIN Forvaltning -1.5 -0.5 -8.5 6.3 12.2 11.9 16.5 17.0 16.7 14.4 - SpareBank 1 Markets -44.9 -44.8 -77.5 -51.8 -22.1 -3.4 -24.0 -29.0 -1.9 -2.7 - SpareBank 1 Medlemskort p 2.4 2.8 4.5 2.0 2.5 3.1 1.9 2.7 3.3 3.4 - SpareBank 1 Gruppen Finans Group 7.5 6.8 5.9 12.2 3.0 6.8 6.6 -4.9 7.0 -0.1 - Correction Group -9.0 0.0 -1.9 16.4 15.1 -0.9 -6.3 -7.4 16.3 15.1Net result before tax from subsidiaries 166.6 223.8 188.6 - 26.6 175.9 197.1 374.6 318.1 185.1 158.2Total operating costs (parent company) -26.1 -33.5 -29.4 -16.0 -15.6 -27.7 -16.5 40.7 -11.9 -20.0Net investment charges (parent company) -17.7 -16.8 -19.2 -18.0 -15.0 -7.1 -15.6 -11.4 -9.3 -6.9Share of associated company p y 0.0 0.0 0.2 0.0 0.0 0.0 0.0 0.0 0.0 0.0Pre- tax result 122.9 173.5 140.1 - 60.6 145.4 162.4 342.5 347.4 163.9 131.3Taxes -59.5 26.4 141.4 55.8 -48.1 -10.5 -18.5 -88.4 -8.3 -38.5Net result for the period 63.4 199.9 281.5 - 4.8 97.2 151.9 324.0 259.1 155.6 92.8Majority interest 64.2 200.7 283.1 -3.6 98.0 152.4 327.9 263.9 155.9 93.3Minority interest -0.8 -0.8 -1.6 -1.1 -0.8 -0.5 -3.9 -4.8 -0.3 -0.527
  • 28. SpareBank 1 Livsforsikring Result for 1st half-year 2012 half year Q2 Q1 Q2 Half year Year Figures in MNOK g 2012 2012 2011 2012 2011 2011 Insurance risk income 369.1 361.2 333.0 730.3 668.7 1,338.7 Insurance risk claims -266.2 -340.4 -252.6 -606.6 -508.2 -1,061.7 Risk result 102.9 20.7 80.4 123.6 160.6 277.0 Tecnical alloc ations -10.3 8.7 -10.3 -1.6 -21.1 -35.6 Risk result after tecnical allocations 92.6 29.4 70.1 122.0 139.5 241.4 Fees 180.9 180 9 184.8 184 8 172.8 172 8 365.7 365 7 343.5 343 5 708.6 708 6 Expenses, exclusive comissions -137.4 -128.6 -138.6 -265.9 -268.2 -527.2 Comissions -62.5 -63.7 -58.5 -126.2 -118.2 -247.3 Administration result -19.0 -7.5 -24.2 -26.4 -42.9 -65.9 Net investment income 153.1 188.6 207.3 341.7 526.4 791.1 Guaranteed interest to policyholders -106.1 -115.4 -99.2 -221.5 -212.5 -422.6 Investment result 47.0 73.2 108.0 120.2 313.8 368.5 Reserves -10.3 -31.3 0.0 -41.6 -33.0 -187.3 Investment result after reserves 36.7 41.9 108.0 78.6 280.8 181.2 Compensation guaranteed interest 6.1 6.3 5.9 12.4 11.3 22.6 Result before additional provisions 116.6 70.1 159.8 186.6 388.7 379.4 Undistributed profits to customers p -27.7 -15.2 -60.0 -42.9 -178.9 -61.5 Return on companys assets 52.9 39.2 9.2 92.1 28.7 96.2 Net profit to owner before tax 141.8 94.1 109.0 235.8 238.4 414.1 Taxes -52.6 31.7 -35.3 -20.9 -34.7 97.8 Net profit/loss for the period 89.1 125.8 73.8 214.9 203.6 511.9 Key figures Half year Year 2012 2011 2011 Capital adequacy ratio 20.0 % 17.1 % 18.5 % Buffer c apital in % of insurance provisions 14.8 % 14.0 % 11.0 % Buffer capital for the year 2011 is shown after profits have been allocated28
  • 29. SpareBank 1 Livsforsikring Profit per portfolio for 1st half-year 2012 Previously P i l Group established Investment choice Company Figures in MNOK portfolio individual products portfolio portfolio Total Risk result 123.8 -2.9 1.1 0.0 122.0 Administration result 33.8 -20.6 -39.6 0.0 -26.4 Net investment result 84.4 84 4 33.1 33 1 1.8 18 1.0 10 120.2 120 2 Reserves - long life -41.6 0.0 0.0 0.0 -41.6 Compensation interest guarantee 12.4 0.0 0.0 0.0 12.4 Transferred to policyholders -33.6 -6.5 -2.8 0.0 -42.9 Return on companys assets 0.0 0.0 0.0 92.1 92.1 Sum 179.2 179 2 3.2 32 -39.6 39 6 93.1 93 1 235.8 235 829
  • 30. SpareBank 1 Livsforsikring Premium income trend for 1st half-year 2012 half year Q2 Q1 Q2 Half year Year Figures in MNOK 2012 2012 2011 2012 2011 2011 Individual annuity and pension insurance 72.3 72.3 71.1 144.6 144.1 284.9 Individual endowment insurance 150.2 147.9 141.1 298.1 279.6 570.6 Group pension insurance 74.4 244.3 55.2 318.7 297.9 465.6 Individual life insurance 55.1 53.8 49.0 108.9 97.0 199.0 Group life insurance 132.2 239.1 131.5 371.3 348.9 604.4 Unit Linked - Annuity 8.5 9.3 9.5 17.9 20.2 39.0 Unit Linked - Endowment 35.2 36.7 46.6 71.9 98.2 181.1 Defined contribution pension 273.1 265.1 235.6 538.2 471.8 980.7 Total gross due premium income 801.1 1,068.5 739.5 1,869.6 1,757.7 3,325.5 p Premium reserves transferred from other companies 194.7 102.4 113.5 297.0 255.5 660.8 Reinsurance ceded -41.2 -28.6 -40.8 -69.8 -81.1 -160.4 Premium income for own account 954.5 1,142.3 812.1 2,096.8 1,932.1 3,825.930
  • 31. SpareBank 1 Livsforsikring Return on customer portfolio with guarantee as at 30/06/2012 Value-adjusted return excluding change i value construction: l di h in l t ti Booked return: Q1 Q2 Q1 Q2 Q1 Q2 Q1 Q2 2012 2012 2012 2012 2012 2012 2012 2012 Q1 Q2 Q1 Q2 Q1 Q2 Q1 Q2 2012 2012 2012 2012 2012 2012 2012 2012 3.5 3.0 2.8 2.8 2.6 2.4 2.2 2.2 ent 2.1 nt PercePercen 1.9 1.8 1.7 1.3 1.2 0.9 1.0 SpareBank 1 Storebrand DNB Livsforsikring Nordea SpareBank 1 Storebrand DNB Livsforsikring Nordea Source: company presentations 31
  • 32. SpareBank 1 LivsforsikringReturn on ordinary customer portfolio with guarantee as at30/06/2012 Percent Norwegian shares 7.8 78 Foreign shares 7.5 Money market 1.8 Norwegian bonds 3.6 Foreig bonds 4.5 Held to maturity 2.6 26 Real estate 3.532
  • 33. SpareBank 1 Livsforsikring Balance sheet as of 30/06/2012 Half year Year Figures in MNOK 2012 2011 2011 Intangible assets 134 80 107 Investments 2,851 2,569 2,881 Reinsurances part of insurance obligations 207 221 223 Accounts receivable 90 117 225 Other assets 276 261 368 Prepayed liabilities and accrued income 0 0 0 Investments group portfolio 16,581 15,782 15,909 Investments options portfolio 7,451 6,782 6,896 Total assets 27,589 25,811 26,607 Paid in capital 2,073 1,602 1,825 Other equity 643 590 435 Subordinated loan capital 200 200 200 Insurance obligations - contractual 16,401 15,719 15,812 Insurance obligations - investment options 7,557 6,894 6,993 Provisions for obligations 73 176 88 Premium deposits from reinsurance companies 139 136 139 Other bli ti Oth obligations 437 406 1,043 1 043 Accrued liabilities, prepaied income 67 88 73 Total liabilities and equity 27,589 25,811 26,60733
  • 34. SpareBank 1 Skadeforsikring Group Result for 1st half-year 2012 half year Q2 Q1 Q2 Half H lf year Year Y Figures in MNOK 2012 2012 2011 2012 2011 2011 Gross written premium 1,431.1 1,713.1 1,380.6 3,144.2 2,933.9 5,358.2 Net earned premium 1,257.3 1,234.5 1,137.7 2,491.8 2,238.5 4,695.9 Net incurred claims -931.7 -992.3 -903.9 -1,924.0 -1,824.6 -3,784.0 Net insurance operating costs -281.0 281 0 -262.4 262 4 -255.2 255 2 -543.4 543 4 -496.3 496 3 -1,074.2 1 074 2 Other insurance income/costs 1.7 1.2 8.2 2.9 12.7 31.8 Changes in other technical reserves -15.1 -0.5 21.4 -15.6 47.9 93.2 Operating result before finance 31.1 -19.5 8.2 11.6 -21.7 -37.3 Net financial income 51.0 194.0 66.8 244.9 161.8 260.3 Result before changes in security reserve 82.1 174.5 75.0 256.6 140.1 223.0 Changes in security reserve -11.7 -9.0 -18.8 -20.7 -33.6 -37.7 Pre-tax profit 70.4 165.5 56.2 235.9 106.5 185.3 Taxes -28.2 -26.0 -14.4 -54.2 -25.0 -94.6 Net profit/loss for the period 42.2 139.5 41.8 181.7 81.6 90.7 Key figures Q2 Q1 Q2 Half year Year Figures in percentage 2012 2012 2011 2012 2011 2011 Claims ratio, net 74.1 % 80.4 % 79.4 % 77.2 % 81.5 % 80.6 % Cost ratio, net 22.3 % 21.3 % 22.4 % 21.8 % 22.2 % 22.9 % Combined ti C bi d ratio, net t 96.5 96 5 % 101.6 101 6 % 101.9 101 9 % 99.0 99 0 % 103.7 103 7 % 103.5 103 5 % Capital adequacy ratio 34.1 % 29.0 % 32.8 %34
  • 35. ODIN Forvaltning Result for 1st half-year 2012 half year Q2 Q1 Q2 Half year Year Figures in MNOK 2012 2012 2011 2012 2011 2011 Management fees M tf 63.4 63 4 67.2 67 2 85.5 85 5 130.6 130 6 172.3 172 3 303.5 303 5 Total operating income 63.4 67.2 85.5 130.6 172.3 303.5 Salaries -25.9 -24.6 -27.5 -50.5 -56.6 -108.5 Depreciations -6.8 -6.5 -4.4 -13.3 -8.3 -23.5 Other operating costs -32.5 -36.9 -41.2 -69.4 -83.7 -151.1 Total operating costs -65.2 -68.0 -73.1 -133.2 -148.7 -283.1 Operating profit -1.8 -0.8 12.4 -2.6 23.6 20.3 Net financial income 0.4 0.3 -0.2 0.7 0.5 1.5 Pre-tax profit -1.5 -0.5 12.2 -2.0 24.1 21.8 Taxes 0.5 0.2 -3.3 0.6 -6.6 -7.1 Net profit/loss for the period -1.0 -0.3 8.9 -1.3 17.5 14.835