Preliminary accounts for 2011 - Presentation of results from SpareBank 1 Gruppen - Kirsten Idebøen CEO

18,099 views

Published on

Download presentation from press conference February 15th 2012. Presented by CEO Kirsten Idebøen. http://investor.sparebank1.no

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
18,099
On SlideShare
0
From Embeds
0
Number of Embeds
16,316
Actions
Shares
0
Downloads
11
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Preliminary accounts for 2011 - Presentation of results from SpareBank 1 Gruppen - Kirsten Idebøen CEO

  1. 1. Preliminary accountsfor 2011 Q4Presentation of resultsfrom SpareBank 1 GruppenKirsten Idebøen, CEO 15 February 2012
  2. 2. Volatile securities market, combined with damage due to natural perils and large claims led to reduced earnings claims, Group pre-tax profit* (MNOK) quarterly (MNOK), • Pre-tax profit for 2011: MNOK 389 (985) Pre-tax profit in Q4: MNOK 142 (343) Q1 • Profit after tax for 2011: MNOK 479 (832) 374 Q2 358 347 343 Q3 Profit after tax in Q4: MNOK 235 (324) Q4 • Annualised return on equity: 10.0 (18.7 %) q y ( ) 177 164 162 145 142 13187 • Capital adequacy ratio: 16.0 (16.1 %) Core capital adequacy ratio: 14.4 (12.5 %) • Total assets for the Group were NOK 42.0 -61 billion, compared with NOK 40.7 billion at 2009 2010 2011 year end year-end 2010 * Comparison figures for 2009 have been restated and do not include the Bank 1 Oslo Group. 2
  3. 3. Record earnings within life insurance. Earnings within P&C insurance were affected by natural perils and large claims y p g Pre-tax profit per subsidiary (MNOK) • Significantly improved administration result within life assurance. The company has 641 maintained good b ff i t i d d buffers th throughout th year h t the 2010 2011 • Strong portfolio growth has provided 414 increased premium income in P&C insurance.350 Negative insurance results and turbulent financial markets led to weaken results 188 • Weak t k W k stock markets contributed t reduced k t t ib t d to d d earnings for ODIN 65 22 27 • Profit growth for SB1G Finans: improved loss 9 situation within Factoring, strong growth in -58 -155 portfolio volume for Portfolio and good revenues from Conecto SB1G Finans s SB1 Skade e SB1 Markets s SB1 Liv v ODIN • Results from SB1 Markets have been affected by large, though planned investments linked to building up a leading capital market g p g p environment, as well as by volatile markets 3
  4. 4. SpareBank 1 Skadeforsikring Group High proportion of large claims, flood and storm. Positive portfolio growth4
  5. 5. SpareBank 1 Skadeforsikring Group High proportion of large claims, flood and storm. Positive portfolio growth Pre-tax profit, quarterly P e ta p ofit q a te l (MNOK) • Total portfolio growth of MNOK 515, of which MNOK 308 Q1 230 from Unison Forsikring. Portfolio volum as at Q2 31.12.2011 was NOK 5.2 billion 251 254 Q3 Q4 – Market share grew from 10 8 % in 2010 to 10.8 207 11.2 % in Q3 2011 171 • Pre-tax profit for 2011: MNOK 188 (641) and 115 MNOK 171 (308) in Q4 56 – Insurance result*: MNOK -35 (267) and48 50 36 43 MNOK -13 (123) in Q4 – Net financial income: MNOK 260 (433) and MNOK 161 (201) in Q4 -89 • Financial return of 2.9 (4.9) % 2009 2010 2011 – Low interest rate level and negative development for Norwegian shares* Insurance result for 2011 includes Unison Forsikring andmedical treatment insurance. 5
  6. 6. SpareBank 1 Skadeforsikring Group High proportion of large claims, flood, storm and terrorism g p p g , , Combined ratio for own account – quarterly (%) Combined ratio for own account (%) 103.4 108.6 105.5 105.8 97.7 94.6 96.2 99.6 100.3 101.9 100.5 94.0 22.9 20.2 89.9 21.0 87.2 21.9 92.9 21.0 22.5 22.4 89.8 20.7 23.8 26.0 24.8 21.9 17.1 20.6 20.5 22.7 2 88.3 84.7 83.6 79.4 76.6 75.9 74.8 74.5 80.5 7.1 6.7 3.9 3.8 2.1 67 69.3 3 76 8 73 66.7 7 73 72 Q Q4 Q Q1 Q Q2 Q Q3 Q Q4 Q Q1 Q Q2 Q Q3 Q Q4 2009 2010 2010 2010 2010 2011 2011 2011 2011 2005 2006 2007 2008 2009 2010 2011 Net claims ratio Net cost ratio Net claims ratio Net cost ratio - Profit commission costs in Q4 2011 of MNOK 32 represented a significant portion of the increase in cost ratio High proportion of large claims within central - The cost ratio for 2010 was low as a result of the non-recurring product groups in the CM-portfolio has meant a effect of pensions and lack of profit commissions significant increase in claims ratio in 2011 • Claims h l have b been incurred f around MNOK 52 in conjunction with the terrorist attack on 22 July 2011. d for d h h k l6
  7. 7. SpareBank 1 p Livsforsikring Record profit in a demanding market7
  8. 8. SpareBank 1 Livsforsikring Record profit in a demanding market p g • Pre-tax profit for 2011: MNOK 414 (350) and MNOK 98 (73) in Q4 Pre-tax profit (MNOK) quarterly P t fit (MNOK), t l • Administration result for 2011: MNOK -66 (-187) and 206 Q1 MNOK -3 (-62) in Q4 Q2 - Lower operating costs and increased fee revenues Q3 Q4 • Investment result for 2011: MNOK 369 (317) and MNOK 3 (49) in Q4 129 - MNOK 187 set aside for increasing reserves as a result of longer life expectancy 109 100 98 92 81 81 86 • Risk result for 2011: MNOK 241 (325) and 78 72 MNOK 39 (65) in Q4 - Higher costs in conjunction with disability compensation24 • Tax revenue for 2011 of MNOK 98 (-60) - Combined effect of the tax exemption model and of the securities adjustment reserve coming under the provisions of the Norwegian 2009 2010 2011 Taxes Act on entitlement to make deductions for insurance-related provisions • The Norwegian Ministry of Finance has proposed limiting the tax exemption model for shares, etc. owned by life insurance companies 8
  9. 9. SpareBank 1 Livsforsikring Good buffers throughout 2011 Buffer capital trend, per quarter (%) Buffer capital trend, per quarter (%) Securities adjustment reserve (MNOK) 14.6 % 15.2 % 14.0 % 14.1 % 617 10.8 % 327 185 Q4 Q1 Q2 Q3 Q4 2010 2011 2011 2011 2011 Core capital in excess of minimum Interim profit 2009 2010 2011 Additional provisions Securities adjustment reserve • Buffer capital after allocation of the profit for 2011: 10.8 (14.6) % - The main reason for the change is the fall in the securities adjustment reserve from MNOK 617 to MNOK 185 • Total assets: NOK 26 (26.5) b ll l O 26.5 (26 ) billion • Capital adequacy ratio: 18.3 (19.3) % • The company is considered to be well capitalised with regard to the expected requirements under Solvency II9
  10. 10. SpareBank 1 Forsikring Asset allocation per portfolio as at 31.12.11 (31.12.10) SB1 Livsforsikring SB1 Skadeforsikring Group Investment portfolio Group portfolio Company portfolio 0.0 (0.1) % 13.8 (14.8) % -4.5 (-1.6) % 10.4 (10.6) % ( ) 0.0 (0.1) % 37.4 (34.8) % -0.2 (0.9) % 18.8 (21.0) % 7.9 (9.4) % 12.7 (13.6) %45.9 (61.0) % 54.2 (39.0) % 21.0 (21.5) % 60.9 (48.4) % 28.0 (28.0) % 24.8 (28.8) % -0.1 (0.0) % 69.0 (66.3) % ( ) Stocks Other Stocks OtherStocks Other Bonds Real estate Bonds - amortized cost Bonds - market value Real Estate Bonds at amortised cost Bonds at Market value NOK 6.9 (6.7) billion 6 9 (6 7) NOK 15.7 (16.0) billion 15 7 (16 0) NOK 2.9 (2.8) billion 2 9 (2 8) NOK 9.6 (8.9) billion 9 6 (8 9)10
  11. 11. O ODIN Forvaltning o a g Weak development in securities markets in 2011 led to reduced total assets11
  12. 12. ODIN Forvaltning Weak development in securities markets in 2011 led to reduced total assets • Pre-tax profit for 2011: MNOK 22 (65) Pre-tax profit (MNOK), quarterly – Management fees of MNOK 304, which is MNOK 14 lower than in 2010 Q1 Q2 24 Q3 • Profit in Q4 was MNOK -9 (16) Q4 17 17 16 16 14 • Total T t l assets of NOK 23 4 billi t f 23.4 billion 12 12 – Down NOK 8.9 billion on 2010 10 6 • Market share of 8 9 % for equity fund for 8.9 2011, compared with 10.7 % for 2010-7 -9 • Market share of 3 8 % for combination fund 3.8 for 2011, up from 3.2 % as at Q1 2011 2009 2010 201112
  13. 13. SpareBank 1 Gruppen p pp Finans Group Good growth in all business areas in 201113
  14. 14. SpareBank 1 Gruppen Finans Group Good growth in all business areas in 2011 Pre-tax profit to date this year (MNOK) • Pre-tax profit for 2011: MNOK 27 (9)* and 27 MNOK 5 (7) i Q4 in 2010 2011 24 ― Significantly reduced losses and loss provisions within BA Factoring, as well as good growth in client 20 revenues  3rd largest factoring business in the country, with a 15 market share in 2011 of 14.1 %, compared with 11.6 % in 2010  Factoring shows the fastest growth on the market 9 ― BA Portfolio (long-term monitoring) attained a portfolio volume in 2011 of NOK 1.2 billion, 4 compared with MNOK 620 in 2010 p 2 2  Corresponds to a growth in portfolio volume of 86 %  Good growth in net interest/credit commission revenues covery) folio cto* ring ― Conecto has had good revenue growth despite g g p p** SB1G F Group Conec G (debt rec Factor Portf mandatory reduction in debt recovery fees*Conecto was acquired with accounting effect from 10 September 2010. The profit up to the acquisition date has been recognised directly against equity in the group. Co ecto as acqu ed t accou t g e ect o 0 Septe be 0 0 ep o t t e acqu s t o as bee ecog sed d ect y aga st equ ty t e g oup**Pre-tax profit for SpareBank 1 Gruppen Finans Group also includes management and excess value amortisation.14
  15. 15. SpareBank 1 Markets Investments i 2011 – market power in 2012 I t t in k t i15
  16. 16. SpareBank 1 Markets Investments in 2011 – market power in 2012 Operational matters O i l • There was large-scale recruitment and company expansion in 2011, in line with approved strategies and plans, with one of the largest movements in human capital the sector has ever seen • 2011 largely focused on investments, and the people, infrastructure and systems will be in place during the course of Q1 2012. SpareBank 1 Markets enters 2012 with strong market power Results • Pre-tax profit for 2011: MNOK -155 (-58) • Pre-tax profit in Q4: MNOK -77 (-24) • Total revenue for 2011: MNOK 86 (83)16
  17. 17. SpareBank 1 Markets High level of market activity and profitable operations during 2012 • SpareBank 1 will have a strong, national capital market environment, where the banking and capital Corporate market sectors interact in the market Top-ranked finance analyst team with team extensive • A clear strategy, willingness to invest and experience perseverance have laid the foundations for a leading capital ma ket en i onment in No a market environment Norway Strong Balance and • The 1st half of 2012 will be characterised by a high investment risk level of market activity, with a complete transition ability capacity from investment to operations • The company will approach full market power during 2nd half of 2012 and previous indications of profitable operations from Q4 remains unchanged SpareBank 1 Markets can deliver the entire capital structure, from bank loans to bonds and equity17
  18. 18. Annualised return on equity among selected Nordic financial institutions Average 2011 0 2010 2009 2009-2011 2009 2011 Handelsbanken 13.5 % 12.9 % 12.6 % 13.0 % Gjensidige* 12.2 12 2 % 13.1 13 1 % 11.1 11 1 % 12.1 12 1 % DNB 11.4 % 13.6 % 10.6 % 11.9 % Nordea 10.6 % 11.5 % 11.3 % 11.1 % SpareBank 1 Gruppen 10.0 % 18.7 % 18.1 % 15.6 % Storebrand 6.0 % 10.8 % 8.2 % 8.3 % Danske Bank 1.4 14% 3.6 36% 1.7 17% 2.2 22% * Calculated as net profit distributed over average equity. Source: Companies annual reports for 201118
  19. 19. Outlook SPAREBANK 1 GRUPPEN • Volatile financial markets entails increased uncertainty in terms of investment results, which constitute a significant portion of value generation at SpareBank 1 Gruppen. The macro situation, however, is considered to provide reason for cautious optimism. p • SpareBank 1 Gruppen is well equipped to face the new capital requirements in relation to the introduction of Solvency II. • Competition is considered to be strong and continuous improvement is required • Greater coordination within the alliance, where the product companies form part of the value chain. • Th group will continue to work on cooperation across the companies to extract efficiency The ill i k i h i ffi i gains within costs, income and know-how.19
  20. 20. The nation s savings bank nations 2020
  21. 21. Appendix A di21
  22. 22. 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 (97.2%) (100%) (100%) Alliance Cooperation SpareBank 1 SpareBank 1 SpareBank 1 Medlemskort Gruppen Finans Skadeforsikring (100%) (100%) (100%) Broad cooperation - Technology - Brand/communication - Expertise Unison Forsikring Conecto - Common processes and use of best practice (100%) - Purchasing (100%) Regional competence centres (Bank-owned companies) - Payment services: Trondheim - Credit: Stavanger SpareBank 1 Boligkreditt EiendomsMegler 1 - Training: Tromsø BNbank SpareBank 1 Oslo og Akershus22
  23. 23. SpareBank 1 Gruppen Key figures Q4 Q3 Q2 Q1 Q4 Year 2011 2011 2011 2011 2010 2011 2010 Group Net result for the period (MNOK) 234.8 -4.8 97.2 151.9 324.0 479.1 831.6 Return on equity (%) 19.2 % -0.3 % 7.8 % 12.4 % 28.3 % 10.0 % 18.7 % Capital adequacy ratio, cumulative (%) 16.0 % 16.3 % 16.2 % 16.1 % 16.1 % 16.0 % 16.1 % Core capital adequacy ratio, cumulative (%) 14.4 % 14.0 % 13.9 % 12.6 % 12.5 % 14.4 % 12.5 % SB1 Livsforsikring Risk result (MNOK) 38.5 63.5 70.1 69.4 65.3 241.4 325.4 Administration result (MNOK) -3.2 -19.8 -24.2 -18.7 -61.7 -65.9 -186.9 Investment result (MNOK) 3.1 51.6 108.0 205.8 48.7 368.5 317.3 Net result for the period (MNOK) 193.7 114.6 73.8 129.9 55.0 511.9 290.2 Buffer capital in % of insurance provisions, cumulative (%) 10.8 % 14.1 % 14.0 % 15.2 % 14.6 % 10.8 % 14.6 % Capital adequacy ratio, cumulative (%) 18.3 % 18.5 % 17.1 % 19.2 % 19.3 % 18.3 % 19.3 % Securities adjustment reserve, cumulative (MNOK) 184.9 13.0 326.3 448.2 616.9 184.9 616.9 SB1 Skadeforsikring Group Operating result before finance (MNOK) -12.8 0.0 8.2 -29.9 123.0 -34.5 266.9 Net financial income (MNOK) 160.8 -62.3 66.8 95.1 201.1 260.3 432.8 Net result for the period (MNOK) 92.1 -81.7 41.8 39.8 308.2 92.0 581.1 Claims ratio, net (%) 74.5 % 84.7 % 79.4 % 83.6 % 76.6 % 80.5 % 76.7 % Cost ratio, net (%) 26.0 % 21.1 % 22.4 % 21.9 % 23.8 % 22.9 % 21.0 % Combined ratio, net (%) 100.5 % 105.8 % 101.9 % 105.5 % 100.3 % 103.4 % 97.7 % Portfolio (MNOK) 5,198 5,092 4,986 4,825 4,683 5,198 4,683 ODIN Forvaltning Management fees (MNOK) 61.8 69.4 85.5 86.8 82.0 303.5 317.9 Net result for the period (MNOK) -6.4 4.3 8.9 8.6 10.4 15.4 45.3 Total assets under management, cumulative (MNOK) 23,433 22,539 30,101 33,348 32,292 23,433 32,292 Market share equity fund, cumulative (%) 8.9 % 8.8 % 9.9 % 10.6 % 10.7 % 8.9 % 10.7 % Market share combination fund, cumulative (%) 3.8 % 3.8 % 3.5 % 3.2 % 0.0 % 3.8 % 0.0 % SB1 Markets Total operating income (MNOK) 15.3 12.6 23.5 34.8 18.4 86.3 83.3 Net result for the period (MNOK) -57.4 -37.3 -15.9 -2.4 -16.6 -113.1 -40.8 SB1G Finans Group Net result for the period SB1G Finans Group (MNOK) 4.7 8.4 1.8 4.5 3.8 19.4 4.3 Net result for the period SB1G Finans - parent company (MNOK) 4.6 3.7 0.1 1.4 0.6 9.8 -4.1 Net result for the period Conecto (MNOK) 2.1 6.7 3.7 5.1 4.5 17.5 13.7 *) Buffer capital as at Q4 is show n after profits have been distributed23
  24. 24. SpareBank 1 Gruppen Profit for 2011 Year Figures in MNOK 2011 2010 Part of result from subsidiaries before tax - SpareBank 1 Livsforsikring 414.1 350.4 - SpareBank 1 Skadeforsikring Group 188.1 641.1 - ODIN Forvaltning 21.8 64.6 - SpareBank 1 Markets -154 8 154.8 -57 6 57.6 - SpareBank 1 Medlemskort 12.1 11.1 - SpareBank 1 Gruppen Finans Group 27.5 8.6 - Correction Group 28.6 17.6 Net result before tax from subsidiaries 537.4 1,036.0 Total operating costs (parent company) -88.6 88.6 -7.6 * 7.6 Net investment charges (parent company) -59.4 -43.2 Pre- tax result 389.4 985.1 Taxes 89.7 -153.6 Net result for the period 479.1 831.6 Majority interest 483.2 841.0 Minority interest -4.0 -9.5 Year Key figures y g 2011 2010 Annualised return on equity 10.0 % 18.7 % The low operating costs for 2010 are the result of significant revenue recognition of a non-recurring nature. There was net revenue recognition in the 1st half of 2010 of MNOK 21.6, as a result of changes to the AFP plan and the fact that the companys pension scheme no longer includes a spouse or child pension. There was also revenue recognition in Q3 2010 of MNOK 43.0 associated with employers contributions, previously covered by SpareBank 1 Gruppen AS on e e as a so e e ue ecog t o 0 0o O 3 0 assoc ated t e p oye s co t but o s, p e ous y co e ed Spa e a G uppe So behalf of First Securities AS.24
  25. 25. SpareBank 1 Gruppen Quarterly profits Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4Figures in MNOK 2011 2011 2011 2011 2010 2010 2010 2010 2009Part of result from subsidiaries before tax - SpareBank 1 Livsforsikring 98.1 77.7 109.0 129.4 72.5 85.8 100.3 91.9 81.0 - SpareBank 1 Skadeforsikring Group 170.8 -89.3 56.2 50.3 307.5 253.9 43.4 36.3 115.3 - ODIN Forvaltning -8.5 6.3 12.2 11.9 16.5 17.0 16.7 14.4 24.0 - SpareBank 1 Markets -77.5 -51.8 -22.1 -3.4 -24.0 -29.0 -1.9 -2.7 -9.5 - SpareBank 1 Medlemskort p 4.5 2.0 2.5 3.1 1.9 2.7 3.3 3.4 0.7 - SpareBank 1 Gruppen Finans Group 5.5 12.2 3.0 6.8 6.6 -4.9 7.0 -0.1 2.3 - Correction Group -1.9 16.4 15.1 -0.9 -6.3 -7.4 16.3 15.1 -8.6Net result before tax from subsidiaries 190.9 - 26.6 175.9 197.1 374.6 318.1 185.1 158.2 205.2Total operating costs (parent company) -29.4 -16.0 -15.6 -27.7 -16.5 40.7 -11.9 -20.0 -15.5Net investment charges (parent company) -19.3 -18.0 -15.0 -7.1 -15.6 -11.4 -9.3 -6.9 -9.8Pre- tax resultP t lt 142.2 142 2 - 60 6 60.6 145.4 145 4 162.4 162 4 342.5 342 5 347.4 347 4 163.9 163 9 131.3 131 3 177.2 177 2Taxes 92.6 55.8 -48.1 -10.5 -18.5 -88.4 -8.3 -38.5 -9.3Net result for the period 234.8 -4.8 97.2 151.9 324.0 259.1 155.6 92.8 167.9Majority interest 236.4 -3.6 98.0 152.4 327.9 263.9 155.9 93.3 169.6Minority interest -1.6 1.6 -1.1 1.1 -0.8 0.8 -0.5 0.5 -3.9 3.9 -4.8 4.8 -0.3 0.3 -0.5 0.5 -1.7 1.725
  26. 26. SpareBank 1 Livsforsikring Profit for 2011 Q4 Q3 Q2 Q1 Q4 Year Figures in MNOK 2011 2011 2011 2011 2010 2011 2010 Insurance risk income 348.4 348 4 321.6 321 6 333.0 333 0 335.8 335 8 328.3 328 3 1 338 7 338.7 1 292 6 292.6 Insurance risk claims -303.6 -249.9 -252.6 -255.5 -266.2 -1 061.7 -939.0 Risk result 44.8 71.7 80.4 80.2 62.1 277.0 353.6 Tecnical allocations -6.3 -8.2 -10.3 -10.8 3.2 -35.6 -28.2 Risk result after tecnical allocations 38.5 63.5 70.1 69.4 65.3 241.4 325.4 Fees 196.7 168.3 172.8 170.7 166.5 708.6 637.9 Expenses, exclusive comissions -130.9 -128.0 -138.6 -129.7 -166.6 -527.2 -589.2 Comissions -69.0 -60.1 -58.5 -59.8 -61.6 -247.3 -235.6 Administration result -3.2 -19.8 -24.2 -18.7 -61.7 -65.9 -186.9 Net investment income 113.7 151.0 207.3 319.1 177.0 791.1 764.3 Guaranteed interest to policyholders -110.6 -99.4 -99.2 -113.3 -128.2 -422.6 -447.0 Investment result 3.1 51.6 108.0 205.8 48.7 368.5 317.3 Reserves -154.3 0.0 0.0 -33.0 -9.3 -187.3 -45.3 Investment result after reserves -151.2 51.6 108.0 172.8 39.5 181.2 272.0 Compensation guaranteed interest 5.7 5.7 5.9 5.4 7.5 22.6 29.9 Result before additional provisions -110.2 101.0 159.8 228.8 50.6 379.4 440.4 Allocation to additional provisions 124.8 -10.0 -48.1 -66.6 -125.3 0.0 -125.3 Transferred to policyholders T f dt li h ld 37.4 37 4 -34.7 34 7 -11.9 11 9 -52.3 52 3 124.7 124 7 -61.5 61 5 -36.3 36 3 Return on companys assets 46.1 21.4 9.2 19.5 22.6 96.2 71.6 Net profit to owner before tax 98.1 77.7 109.0 129.4 72.5 414.1 350.4 Taxes 95.6 36.9 -35.3 0.5 -17.5 97.8 -60.2 Net profit/loss for the period 193.7 114.6 73.8 129.9 55.0 511.9 290.2 Key figures Year 2011 2010 Capital adequacy ratio 18.3 % 19.3 % Buffer capital in % of insurance provisions 10.8 % 14.6 %26
  27. 27. SpareBank 1 Livsforsikring Profit by portfolio for 2011 Previously Group established Investment choice Company Figures in MNOK portfolio individual products portfolio portfolio Total Risk result 247.3 -3.7 -2.1 0.0 241.4 Administration result 67.0 -37.7 -95.2 0.0 -65.9 Net investment result 285.0 77.0 4.5 2.1 368.5 Reserves - long life -154.3 -33.0 0.0 0.0 -187.3 Compensation interest guarantee 22.6 0.0 0.0 0.0 22.6 Transferred to policyholders -53.9 -7.2 -0.4 0.0 -61.5 Return on companys assets company s 0.0 00 0.0 00 0.0 00 96.2 96 2 96.2 96 2 Sum 413.7 -4.5 -93.2 98.2 414.127
  28. 28. SpareBank 1 Livsforsikring Premium income trends Q4 Q3 Q2 Q1 Q4 Year Figures in MNOK 2011 2011 2011 2011 2010 2011 2010 Individual annuity and pension insurance 72.1 68.7 71.1 73.1 79.8 284.9 306.7 Individual endowment insurance 147.7 143.3 141.1 138.5 133.7 570.6 519.1 Group pension insurance 94.4 73.3 55.2 242.7 120.0 465.6 549.5 Individual life insurance 52.0 50.0 49.0 48.0 47.1 199.0 183.1 Group life insurance 125.0 130.5 131.5 217.5 122.0 604.4 587.7 Unit Linked - Annuity 10.6 8.3 9.5 10.7 11.6 39.0 46.6 Unit Linked - Endowment 44.6 38.4 46.6 51.6 68.8 181.1 237.0 Defined contribution pension 252.3 256.6 235.6 236.2 223.0 980.7 864.2 Total gross due premium income 798.7 769.0 739.5 1 018.2 805.9 3 325.5 3 293.8 Premium reserves transferred from other companies 216.3 189.1 113.5 142.0 126.4 660.8 352.5 Reinsurance ceded R i d d -36.4 36 4 -42.9 42 9 -40.8 40 8 -40.2 40 2 -32.3 32 3 -160.4 160 4 -152.0 152 0 Premium income for own account 978.5 915.2 812.1 1 120.0 900.0 3 825.9 3 494.228
  29. 29. SpareBank 1 Livsforsikring Return on customer portfolios with guarantee as at the end of the quarter Value-adjusted return excluding change i value construction: l di h in l t ti Booked return: Q3 Q4 Q3 Q4 Q3 Q4 Q3 Q4 Q3 Q4 Q3 Q4 Q3 Q4 Q3 Q4 2011 2011 2011 2011 2011 2011 2011 2011 2011 2011 2011 2011 2011 2011 2011 2011 5.4 3.4 4.6 4.6 2.5 4.0 centPerc 2.1 3.2 Percent 2.0 3.0 3.0 1.7 1.0 1.7 0.6 0.4 SpareBank 1 Storebrand DNB Livsforsikring Nordea SpareBank 1 Storebrand DNB Livsforsikring Nordea29 Source: company presentations
  30. 30. SpareBank 1 LivsforsikringReturn on ordinary customer portfolio with guarantee as at y p g31.12.2011 Percent Norwegian shares -20.0 Foreign shares -7.6 Money market 3.5 Norwegian bonds 4.6 Foreign bonds 8.6 86 Hold to maturity 5.1 Real estate 5.130
  31. 31. SpareBank 1 Livsforsikring Balance Sheet 2011 Year Figures in MNOK 2011 2010 Intangible assets 107 42 Investments 2 881 2 862 Reinsurances part of insurance obligations f bl 223 221 22 Accounts receivable 225 153 Other assets 281 335 Prepayed liabilities and accrued income 0 0 Investments group portfolio 15 909 16 169 Investments options portfolio 6 896 6 701 Total assets 26 521 26 483 Paid in capital 1 825 1 602 Other equity 825 386 Subordinated l S b di t d loan capital it l 200 400 Insurance obligations - contractual 15 812 16 127 Insurance obligations - investment options 6 993 6 805 Provisions for obligations 118 144 Premium deposits from reinsurance companies p p 139 134 Other obligations 535 764 Accrued liabilities, prepaied income 73 120 Total liabilities and equity 26 521 26 48331
  32. 32. SpareBank 1 Livsforsikring Limitation of tax exemption model for shares etc. owned by life insurance companies Proposal l Consequences • The Ministry of Finance proposes that the • The Group may see an increase in taxes in tax exemption model should not apply t t ti d l h ld t l to years with good returns and a reduction i ih d d d i in shares etc. in life insurance companies that taxes in years with negative returns in the form part of collective and investment stock market portfolios as of 01.01.2012 • Will there b transition rules related to the h be ii l l d h • Revenues from such shares will be taxed as tax opening value – historical cost price or ordinary income. The share revenue will value as at 31.12.2011? Without transition continue to form part of the deduction for rules, the proposal will to some extent insurance f d provisions i fund i i increase th companys challenges i t i the h ll in terms of f fulfilling the requirements of Solvency II • The tax exemption model will continue to apply to shares that form part of company • The companys tax cost will in future portfolios tf li approach a normal t h l tax cost of 28 % t f32
  33. 33. SpareBank 1 Skadeforsikring Group Profit for 2011 Q4 Q3 Q2 Q1 Q4 Year Figures in MNOK 2011 2011 2011 2011 2010 2011 2010 Gross written premium 1 281.4 1 142.9 1 380.6 1 553.3 1 175.6 5 358.2 4 731.8 Net earned premium 1 226.8 1 230.6 1 137.7 1 100.8 1 135.1 4 695.9 4 184.4 Net incurred claims -913.9 -1 042.8 -903.9 -920.7 -869.2 -3 781.2 -3 208.5 Net insurance operating costs -318.8 -259.2 -255.2 -241.1 -269.6 -1 074.2 -880.6 Other insurance income/costs 1.5 17.6 8.2 4.5 115.4 31.8 132.0 Changes in other technical reserves -8.4 53.8 21.4 26.5 11.4 93.2 39.6 Operating result before finance -12.8 0.0 8.2 -29.9 123.0 -34.5 266.9 Net financial income 160.8 -62.3 66.8 95.1 201.1 260.3 432.8 Other costs 0.0 0.0 0.0 0.0 0.0 0.0 -2.7 Result before changes in security reserve 148.0 -62.3 75.0 65.1 324.1 225.8 697.0 Changes in security reserve 22.9 -27.0 -18.8 -14.8 -16.5 -37.7 -55.8 Pre-tax profit 170.8 -89.3 56.2 50.3 307.5 188.1 641.2 Taxes -78.7 7.6 -14.4 -10.5 0.7 -96.1 -60.2 Net profit/loss for the period 92.1 -81.7 41.8 39.8 308.2 92.0 581.1 Key figures Q4 Q3 Q2 Q1 Q4 Year Figures in percentage 2011 2011 2011 2011 2010 2011 2010 Claims ratio, net 74.5 % 84.7 % 79.4 % 83.6 % 76.6 % 80.5 % 76.7 % Cost ratio, net 26.0 % 21.1 % 22.4 % 21.9 % 23.8 % 22.9 % 21.0 % Combined ratio net ratio, 100.5 100 5 % 105.8 105 8 % 101.9 101 9 % 105.5 105 5 % 100.3 100 3 % 103.4 103 4 % 97.7 97 7 % Capital adequacy ratio 31.0 % 32.5 %33
  34. 34. ODIN Forvaltning Profit for 2011 Q4 Q3 Q2 Q1 Q4 Year Figures in MNOK 2011 2011 2011 2011 2010 2011 2010 Management fees 61.8 69.4 85.5 86.8 82.0 303.5 317.9 Total operating income 61.8 69.4 85.5 86.8 82.0 303.5 317.9 Salaries 25.5 26.4 27.5 29.2 27.3 108.5 104.2 Depreciations 10.2 5.1 4.4 3.9 3.6 23.5 14.8 Other Oth operating costs ti t 34.9 34 9 32.5 32 5 41.2 41 2 42.5 42 5 36.3 36 3 151.1 151 1 137.8 137 8 Total operating costs 70.5 64.0 73.1 75.6 67.2 283.1 256.8 Operating profit -8.7 5.4 12.4 11.2 14.8 20.3 61.1 Net financial income 0.2 0.9 -0.2 0.7 1.7 1.5 3.6 Pre-tax profit -8.5 6.3 12.2 11.9 16.5 21.8 64.6 Taxes -2.2 22 2.0 20 3.3 33 3.3 33 6.1 61 6.4 64 19.3 19 3 Net profit/loss for the period -6.4 4.3 8.9 8.6 10.4 15.4 45.334

×