Post on 08-May-2015
description
Q4Preliminary accountsfor 2011
Q4Presentation of results from SpareBank 1 Gruppen
Kirsten Idebøen, CEO
15 February 201215 February 2012
Volatile securities market, combined with damage due to natural perils and large claims led to reduced earningsnatural perils and large claims, led to reduced earnings
Group pre-tax profit* (MNOK) quarterlyGroup pre-tax profit* (MNOK), quarterly • Pre-tax profit for 2011: MNOK 389 (985)Pre-tax profit in Q4: MNOK 142 (343)
• Profit after tax for 2011: MNOK 479 (832)374 358
Q1Q2 • Profit after tax for 2011: MNOK 479 (832)
Profit after tax in Q4: MNOK 235 (324)
• Annualised return on equity: 10.0 (18.7 %)
358 347 343Q2Q3Q4
q y ( )
• Capital adequacy ratio: 16.0 (16.1 %) Core capital adequacy ratio: 14.4 (12.5 %)
87
131162164
145177
142
• Total assets for the Group were NOK 42.0 billion, compared with NOK 40.7 billion at year-end 2010
-61
2009 2010 2011 year end 20102009 2010 2011
2* Comparison figures for 2009 have been restated and do not include the Bank 1 Oslo Group.
Record earnings within life insurance. Earnings within P&C insurance were affected by natural perils and large claimsy p g
Pre-tax profit per subsidiary (MNOK) • Significantly improved administration resultwithin life assurance. The company has
i t i d d b ff th h t thmaintained good buffers throughout the year
• Strong portfolio growth has providedincreased premium income in P&C insurance.
641
414
2010 2011increased premium income in P&C insurance. Negative insurance results and turbulent financial markets led to weaken results
W k t k k t t ib t d t d d
350
414
188 • Weak stock markets contributed to reducedearnings for ODIN
• Profit growth for SB1G Finans: improved loss 65
9
188
22 27• Profit growth for SB1G Finans: improved loss
situation within Factoring, strong growth in portfolio volume for Portfolio and goodrevenues from Conecto
-58
-155
v e s s
• Results from SB1 Markets have been affectedby large, though planned investments linkedto building up a leading capital market
SB1
Liv
SB1
Skad
e
OD
IN
SB1G
Fin
ans
SB1
Mar
kets
3
g p g penvironment, as well as by volatile markets
SpareBank 1 SpareBank 1 Skadeforsikring Group
High proportion of large claims, flood and storm.Positive portfolio growth
4
SpareBank 1 Skadeforsikring GroupHigh proportion of large claims, flood and storm. Positive High proportion of large claims, flood and storm. Positive portfolio growth
P e ta p ofit q a te l (MNOK)• Total portfolio growth of MNOK 515, of which MNOK
230 from Unison Forsikring. Portfolio volum as at 31.12.2011 was NOK 5.2 billion– Market share grew from 10 8 % in 2010 to
Pre-tax profit, quarterly (MNOK)
251 254
308 Q1Q2Q3
Market share grew from 10.8 % in 2010 to 11.2 % in Q3 2011
• Pre-tax profit for 2011: MNOK 188 (641) and
207
115
171
Q4
MNOK 171 (308) in Q4– Insurance result*: MNOK -35 (267) and
MNOK -13 (123) in Q4– Net financial income: MNOK 260 (433) and
48 365043 56
115
Net financial income: MNOK 260 (433) andMNOK 161 (201) in Q4
• Financial return of 2.9 (4.9) %-89
– Low interest rate level and negative development for Norwegian shares
* Insurance result for 2011 includes Unison Forsikring and
2009 2010 2011
5
medical treatment insurance.
SpareBank 1 Skadeforsikring GroupHigh proportion of large claims, flood, storm and terrorismg p p g , ,
Combined ratio for own account – quarterly (%) Combined ratio for own account (%)103.4
24.8
20.2
17.1
22.7 23
.8 21.9
22.4 21
.0
26.0
99.6108.6
92.9 89.8
100.3105.5 101.9 105.8
100.5
20.5 20.6 20
.7
21.9 22
.5 21.0 22
.987.2 89.994.6 94.0 96.2 97.7
74.8 88
.3
75.9
7.1 76.6 83
.6
79.4 84.7
74.5
2
7 3 3.9
2.1
3.8 6.7
80.5
67
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
66.7
69.3 73 72 73 76 8
- Profit commission costs in Q4 2011 of MNOK 32 represented a
Q2009
Q2010
Q2010
Q2010
Q2010
Q2011
Q2011
Q2011
Q2011
Net claims ratio Net cost ratio2005 2006 2007 2008 2009 2010 2011
Net claims ratio Net cost ratio
High proportion of large claims within centralproduct groups in the CM-portfolio has meant a significant increase in claims ratio in 2011
significant portion of the increase in cost ratio - The cost ratio for 2010 was low as a result of the non-recurringeffect of pensions and lack of profit commissions
l h b d f d h h k l
6
• Claims have been incurred for around MNOK 52 in conjunction with the terrorist attack on 22 July 2011.
SpareBank 1 pLivsforsikring
Record profit in a demanding marketRecord profit in a demanding market
7
SpareBank 1 LivsforsikringRecord profit in a demanding marketp g
• Pre-tax profit for 2011: MNOK 414 (350) andMNOK 98 (73) in Q4
P t fit (MNOK) t l• Administration result for 2011: MNOK -66 (-187) and
MNOK -3 (-62) in Q4- Lower operating costs and increased fee revenues
Pre-tax profit (MNOK), quarterly
206 Q1Q2Q3
• Investment result for 2011: MNOK 369 (317) andMNOK 3 (49) in Q4- MNOK 187 set aside for increasing reserves as a result of longer life expectancy
129
109
Q3Q4
• Risk result for 2011: MNOK 241 (325) andMNOK 39 (65) in Q4- Higher costs in conjunction with disability compensation
92100
109
81 867881
72
98
• Tax revenue for 2011 of MNOK 98 (-60)- Combined effect of the tax exemption model and of the securitiesadjustment reserve coming under the provisions of the Norwegian Taxes Act on entitlement to make deductions for insurance-related
24
2009 2010 2011provisions
• The Norwegian Ministry of Finance has proposed limiting thetax exemption model for shares, etc. owned by life insurancecompanies
2009 2010 2011
8
companies
SpareBank 1 LivsforsikringGood buffers throughout 2011Good buffers throughout 2011
Buffer capital trend, per quarter (%) Securities adjustment reserve (MNOK)Buffer capital trend, per quarter (%)
14.6 % 15.2 %14.0 % 14.1 %
61710.8 %
327
185
2009 2010 2011
Q42010
Q12011
Q22011
Q32011
Q42011
Core capital in excess of minimum Interim profitAdditional 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
l O 26 (26 ) b ll• Total assets: NOK 26.5 (26.5) billion
• Capital adequacy ratio: 18.3 (19.3) %
9
• The company is considered to be well capitalised with regard to the expected requirements under Solvency II
SpareBank 1 ForsikringAsset allocation per portfolio as at 31.12.11 (31.12.10)
SB1 Skadeforsikring GroupSB1 Livsforsikring
Asset allocation per portfolio as at 31.12.11 (31.12.10)
SB1 Skadeforsikring GroupSB1 Livsforsikring
Group portfolio Company portfolio0.0 (0.1) %
10.4 (10.6) %13.8 (14.8) % -4.5 (-1.6) %
Investment portfolio
7.9 (9.4) % 12.7 (13.6) %
( )37.4 (34.8) % -0.2 (0.9) %
0.0 (0.1) %18.8 (21.0) %
45.9 (61.0) %
69.0 (66.3) %28.0 (28.0) % 21.0 (21.5) % 60.9 (48.4) %
24.8 (28.8) %54.2 (39.0) %
-0.1 (0.0) %
NOK 15 7 (16 0) billion NOK 2 9 (2 8) billion NOK 9 6 (8 9) billion
( )
NOK 6 9 (6 7) billion
Stocks Other Bonds
Stocks OtherReal estate Bonds - amortized costBonds - market value
Stocks OtherReal Estate Bonds at amortised costBonds at Market value
NOK 15.7 (16.0) billion NOK 2.9 (2.8) billion NOK 9.6 (8.9) billion NOK 6.9 (6.7) billion
10
ODIN ForvaltningO o a gWeak development in securities markets in 2011 led to reduced total assets
11
ODIN ForvaltningWeak development in securities markets in 2011 led to Weak development in securities markets in 2011 led to reduced total assets
• Pre-tax profit for 2011: MNOK 22 (65)– Management fees of MNOK 304, which is MNOK
14 lower than in 2010
Pre-tax profit (MNOK), quarterly
Q1
• Profit in Q4 was MNOK -9 (16)
T t l t f NOK 23 4 billi1716 17
24
16
Q2Q3Q4
• Total assets of NOK 23.4 billion– Down NOK 8.9 billion on 2010
Market share of 8 9 % for equity fund for
1412
1012
16
6
16
• Market share of 8.9 % for equity fund for 2011, compared with 10.7 % for 2010
• Market share of 3 8 % for combination fund -7 • Market share of 3.8 % for combination fund for 2011, up from 3.2 % as at Q1 2011
-9
2009 2010 2011
12
SpareBank 1 Gruppen p ppFinans GroupGood growth in all business areas in 2011Good growth in all business areas in 2011
13
SpareBank 1 Gruppen Finans GroupGood growth in all business areas in 2011
Pre-tax profit to date this year (MNOK)
• Pre-tax profit for 2011: MNOK 27 (9)* and MNOK 5 (7) i Q4MNOK 5 (7) in Q4
― Significantly reduced losses and loss provisionswithin BA Factoring, as well as good growth in client
20
24
272010 2011
revenues 3rd largest factoring business in the country, with a
market share in 2011 of 14.1 %, compared with 11.6 % in 2010
Factoring shows the fastest growth on the market
20
15
Factoring shows the fastest growth on the market
― BA Portfolio (long-term monitoring) attained a portfolio volume in 2011 of NOK 1.2 billion, compared with MNOK 620 in 2010
9
4
cto*
cove
ry)
ring
G F
p*
*
folio
p Corresponds to a growth in portfolio volume of 86 % Good growth in net interest/credit commission revenues
― Conecto has had good revenue growth despite
2 2
Con
ec(d
ebt r
ec
*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.
Fact
or
SB1G
Gro
up
Port
f g g pmandatory reduction in debt recovery fees
14
Co ecto as acqu ed t accou t g e ect o 0 Septe be 0 0 e p o t up to t e acqu s t o date 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.
SpareBank 1 MarketsI t t i 2011 k t i 2012Investments in 2011 – market power in 2012
15
SpareBank 1 MarketsInvestments in 2011 – market power in 2012
O i l
Investments in 2011 – market power in 2012
• There was large-scale recruitment and company expansion in 2011, in line with approved strategiesand plans, with one of the largest movements in human capital the sector has ever seen
Operational matters
•2011 largely focused on investments, and the people, infrastructure and systems will be in placeduring 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
SpareBank 1 MarketsHigh level of market activity and profitable High level of market activity and profitable operations during 2012
• SpareBank 1 will have a strong, national capitalmarket environment, where the banking and capitalmarket sectors interact in the market Top-ranked
Corporatefinancemarket sectors interact in the market
• A clear strategy, willingness to invest and perseverance have laid the foundations for a leadingcapital ma ket en i onment in No a
Top-rankedanalystteam
financeteam withextensiveexperience
capital market environment in Norway
• The 1st half of 2012 will be characterised by a highlevel of market activity, with a complete transitionfrom investment to operations
Balance and risk capacity
Stronginvestmentability
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 unchangedoperations from Q4 remains unchanged
SpareBank 1 Markets can deliver the entire capital structure, from bank loans to bonds and equity
17
Annualised return on equity among selected Nordic financial institutions
2011 2010 2009 Average 2009 20110 2009 2009-2011
Handelsbanken 13.5 % 12.9 % 12.6 % 13.0 %Gjensidige* 12 2 % 13 1 % 11 1 % 12 1 %Gjensidige* 12.2 % 13.1 % 11.1 % 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 % 3 6 % 1 7 % 2 2 %Danske Bank 1.4 % 3.6 % 1.7 % 2.2 %
18
* Calculated as net profit distributed over average equity.
Source: Companies' annual reports for 2011
Outlook
Volatile financial markets entails increased uncertainty in terms of investment
SPAREBANK 1 GRUPPEN
• Volatile financial markets entails increased uncertainty in terms of investmentresults, 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 ill i k i h i ffi i• The group will continue to work on cooperation across the companies to extract efficiencygains within costs, income and know-how.
19
The nation's savings bank20
20
The nation s savings bank
A diAppendix
21
SpareBank 1 AllianceSpareBank 1
SR-Bank (19.5%)
SpareBank 1SMN
(19.5%)
SpareBank 1Nord-Norge
(19.5%)
SparebankenHedmark (12%)
SamarbeidendeSparebanker
(19.5%)
LO (Trade Union)(10%)
SpareBank 1 Gruppen AS
Alliance CooperationSpareBank 1 Livsforsikring
(100%)
ODIN Forvaltning
(100%)
SpareBank 1 Markets(97.2%)
SpareBank 1Skadeforsikring
(100%)
SpareBank 1 Gruppen Finans
(100%)
SpareBank 1Medlemskort
(100%)Broad cooperation
- Technology- Brand/communication
ExpertiseConecto(100%)
- Expertise- Common processes and use of best practice- Purchasing
Regional competence centres- Payment services: Trondheim(Bank-owned companies)
Unison Forsikring
(100%)
- Credit: Stavanger- Training: TromsøSpareBank 1 Boligkreditt
EiendomsMegler 1BNbank
SpareBank 1 Oslo og Akershus
22
SpareBank 1 GruppenKey figuresKey figures
Q4 Q3 Q2 Q1 Q42011 2011 2011 2011 2010 2011 2010
GroupNet result for the period (MNOK) 234.8 -4.8 97.2 151.9 324.0 479.1 831.6
Year
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 LivsforsikringRisk result (MNOK) 38.5 63.5 70.1 69.4 65.3 241.4 325.4Administration result (MNOK) -3.2 -19.8 -24.2 -18.7 -61.7 -65.9 -186.9Investment result (MNOK) 3.1 51.6 108.0 205.8 48.7 368.5 317.3Net result for the period (MNOK) 193.7 114.6 73.8 129.9 55.0 511.9 290.2Buffer 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 GroupOperating result before finance (MNOK) -12.8 0.0 8.2 -29.9 123.0 -34.5 266.9Net financial income (MNOK) 160.8 -62.3 66.8 95.1 201.1 260.3 432.8Net result for the period (MNOK) 92.1 -81.7 41.8 39.8 308.2 92.0 581.1Claims 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 ForvaltningManagement fees (MNOK) 61.8 69.4 85.5 86.8 82.0 303.5 317.9Net result for the period (MNOK) -6.4 4.3 8.9 8.6 10.4 15.4 45.3Total assets under management, cumulative (MNOK) 23,433 22,539 30,101 33,348 32,292 23,433 32,292Market 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 MarketsTotal operating income (MNOK) 15.3 12.6 23.5 34.8 18.4 86.3 83.3Net result for the period (MNOK) -57.4 -37.3 -15.9 -2.4 -16.6 -113.1 -40.8
SB1G Finans GroupNet result for the period SB1G Finans Group (MNOK) 4.7 8.4 1.8 4.5 3.8 19.4 4.3Net result for the period SB1G Finans - parent company (MNOK) 4.6 3.7 0.1 1.4 0.6 9.8 -4.1Net 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 shown after profits have been distributed
23
SpareBank 1 GruppenProfit for 2011Profit for 2011
Figures in MNOK 2011 2010Year
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 -57 6
*
SpareBank 1 Markets 154.8 57.6 - SpareBank 1 Medlemskort 12.1 11.1 - SpareBank 1 Gruppen Finans Group 27.5 8.6 - Correction Group 28.6 17.6Net result before tax from subsidiaries 537.4 1,036.0Total operating costs (parent company) -88.6 -7.6Total operating costs (parent company) 88.6 7.6Net investment charges (parent company) -59.4 -43.2Pre-tax result 389.4 985.1Taxes 89.7 -153.6Net result for the period 479.1 831.6
Majority interest 483.2 841.0Minority interest -4.0 -9.5
Key figures 2011 2010Year
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 company's pension scheme no longer includes a spouse or child pension. There was also revenue recognition in Q3 2010 of MNOK 43.0 associated with employer's contributions, previously covered by SpareBank 1 Gruppen AS on
y gAnnualised return on equity 10.0 % 18.7 %
24
e e as a so e e ue ecog t o Q3 0 0 o O 3 0 assoc ated t e p oye s co t but o s, p e ous y co e ed by Spa e a G uppe S obehalf of First Securities AS.
SpareBank 1 Gruppen Quarterly profitsQuarterly profits
Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4Figures in MNOK 2011 2011 2011 2011 2010 2010 2010 2010 2009
Part of result from subsidiaries before taxPart 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 4.5 2.0 2.5 3.1 1.9 2.7 3.3 3.4 0.7p - 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 -9.8P t lt 142 2 60 6 145 4 162 4 342 5 347 4 163 9 131 3 177 2Pre-tax result 142.2 -60.6 145.4 162.4 342.5 347.4 163.9 131.3 177.2Taxes 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 92.8 167.9
Majority interest 236.4 -3.6 98.0 152.4 327.9 263.9 155.9 93.3 169.6Minority interest -1.6 -1.1 -0.8 -0.5 -3.9 -4.8 -0.3 -0.5 -1.7Minority interest 1.6 1.1 0.8 0.5 3.9 4.8 0.3 0.5 1.7
25
SpareBank 1 Livsforsikring Profit for 2011Profit for 2011
Q4 Q3 Q2 Q1 Q4Figures in MNOK 2011 2011 2011 2011 2010 2011 2010 Insurance risk income 348 4 321 6 333 0 335 8 328 3 1 338 7 1 292 6
Year
Insurance risk income 348.4 321.6 333.0 335.8 328.3 1 338.7 1 292.6 Insurance risk claims -303.6 -249.9 -252.6 -255.5 -266.2 -1 061.7 -939.0Risk 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 -28.2Risk 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 -235.6Administration 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 -447.0Investment result 3.1 51.6 108.0 205.8 48.7 368.5 317.3Investment 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 -45.3Investment 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 29.9Result 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 T f d t li h ld 37 4 34 7 11 9 52 3 124 7 61 5 36 3 Transferred to policyholders 37.4 -34.7 -11.9 -52.3 124.7 -61.5 -36.3 Return on company's assets 46.1 21.4 9.2 19.5 22.6 96.2 71.6Net 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 -60.2Net profit/loss for the period 193.7 114.6 73.8 129.9 55.0 511.9 290.2
Key figures Year2011 2010
Capital adequacy ratio 18.3 % 19.3 %Buffer capital in % of insurance provisions 10.8 % 14.6 %
26
SpareBank 1 LivsforsikringProfit by portfolio for 2011Profit by portfolio for 2011
Figures in MNOKGroup
portfolio
Previouslyestablished
individual productsInvestment choice
portfolioCompanyportfolio Total
Risk result 247.3 -3.7 -2.1 0.0 241.4Administration result 67.0 -37.7 -95.2 0.0 -65.9Net investment result 285.0 77.0 4.5 2.1 368.5Reserves - long life -154.3 -33.0 0.0 0.0 -187.3Compensation interest guarantee 22.6 0.0 0.0 0.0 22.6Transferred to policyholders -53.9 -7.2 -0.4 0.0 -61.5Return on company's assets 0 0 0 0 0 0 96 2 96 2Return on company s assets 0.0 0.0 0.0 96.2 96.2Sum 413.7 -4.5 -93.2 98.2 414.1
27
SpareBank 1 LivsforsikringPremium income trendsPremium income trends
Q4 Q3 Q2 Q1 Q4Figures in MNOK 2011 2011 2011 2011 2010 2011 2010
YearFigures 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 252.3 256.6 235.6 236.2 223.0 980.7 864.2Total 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 R i d d 36 4 42 9 40 8 40 2 32 3 160 4 152 0 Reinsurance ceded -36.4 -42.9 -40.8 -40.2 -32.3 -160.4 -152.0Premium income for own account 978.5 915.2 812.1 1 120.0 900.0 3 825.9 3 494.2
28
SpareBank 1 LivsforsikringReturn on customer portfolios with guarantee as at the end of the quarter
Value-adjusted returnl di h i l t ti Booked return:excluding change in value construction: Booked return:
Q32011
Q42011
Q32011
Q42011
Q32011
Q42011
Q32011
Q42011
Q32011
Q42011
Q32011
Q42011
Q32011
Q42011
Q32011
Q42011
2.5
3.4
cent
4.6
5.4
4.6
4.0
1.0
2.1 2.0
1.7
Perc
3.03.23.0
1.7
Perc
ent
0.60.4
SpareBank 1 Storebrand DNB Livsforsikring Nordea SpareBank 1 Storebrand DNB Livsforsikring Nordea
29 Source: company presentations
SpareBank 1 LivsforsikringReturn on ordinary customer portfolio with guarantee as at y p g31.12.2011
-20.0Norwegian shares
Percent
3.5
-7.6
Money market
Foreign shares
8 6
4.6
Foreign bonds
Norwegian bonds
5.1
8.6
Hold to maturity
Foreign bonds
5.1Real estate
30
SpareBank 1 LivsforsikringBalance Sheet 2011Balance Sheet 2011
Figures in MNOK 2011 2010 Intangible assets 107 42 Investments 2 881 2 862
' f bl 223 22
Year
Reinsurance's part of insurance obligations 223 221 Accounts receivable 225 153 Other assets 281 335 Prepayed liabilities and accrued income 0 0 Investments group portfolio 15 909 16 169 Investments group portfolio 15 909 16 169 Investments options portfolio 6 896 6 701Total assets 26 521 26 483 Paid in capital 1 825 1 602 Other equity 825 386 S b di t d l it l 200 400 Subordinated loan capital 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 139 134p p Other obligations 535 764 Accrued liabilities, prepaied income 73 120Total liabilities and equity 26 521 26 483
31
SpareBank 1 LivsforsikringLimitation of tax exemption model for shares etc. owned
l
Limitation of tax exemption model for shares etc. ownedby life insurance companies
ConsequencesProposal
• The Ministry of Finance proposes that thet ti d l h ld t l t
• The Group may see an increase in taxes in i h d d d i i tax exemption model should not apply to
shares etc. in life insurance companies thatform part of collective and investmentportfolios as of 01.01.2012
years with good returns and a reduction in taxes in years with negative returns in thestock market
Will h b i i l l d h• Revenues from such shares will be taxed as ordinary income. The share revenue willcontinue to form part of the deduction for i f d i i
• Will there be transition rules related to thetax opening value – historical cost price or value as at 31.12.2011? Without transitionrules, the proposal will to some extenti th ' h ll i t finsurance fund provisions
• The tax exemption model will continue to apply to shares that form part of company
tf li
increase the company's challenges in terms offulfilling the requirements of Solvency II
• The company's tax cost will in futureh l t t f 28 %portfolios approach a normal tax cost of 28 %
32
SpareBank 1 Skadeforsikring Group Profit for 2011Profit for 2011
Q4 Q3 Q2 Q1 Q4Figures in MNOK 2011 2011 2011 2011 2010 2011 2010
YearFigures 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 4 731.8Net earned premium 1 226.8 1 230.6 1 137.7 1 100.8 1 135.1 4 695.9 4 184.4Net incurred claims -913.9 -1 042.8 -903.9 -920.7 -869.2 -3 781.2 -3 208.5Net insurance operating costs -318.8 -259.2 -255.2 -241.1 -269.6 -1 074.2 -880.6Other insurance income/costs 1.5 17.6 8.2 4.5 115.4 31.8 132.0Other insurance income/costs 1.5 17.6 8.2 4.5 115.4 31.8 132.0Changes in other technical reserves -8.4 53.8 21.4 26.5 11.4 93.2 39.6Operating result before finance -12.8 0.0 8.2 -29.9 123.0 -34.5 266.9Net financial income 160.8 -62.3 66.8 95.1 201.1 260.3 432.8Other costs 0.0 0.0 0.0 0.0 0.0 0.0 -2.7Result before changes in security reserve 148.0 -62.3 75.0 65.1 324.1 225.8 697.0Changes in security reserve 22.9 -27.0 -18.8 -14.8 -16.5 -37.7 -55.8Pre-tax profit 170.8 -89.3 56.2 50.3 307.5 188.1 641.2Taxes -78.7 7.6 -14.4 -10.5 0.7 -96.1 -60.2Net 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 Q4Figures in percentage 2011 2011 2011 2011 2010 2011 2010Claims 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 %
Year
Combined ratio, net 100.5 % 105.8 % 101.9 % 105.5 % 100.3 % 103.4 % 97.7 %Capital adequacy ratio 31.0 % 32.5 %
33
ODIN ForvaltningProfit for 2011Profit for 2011
Q4 Q3 Q2 Q1 Q4 YearFigures in MNOK 2011 2011 2011 2011 2010 2011 2010Management fees 61.8 69.4 85.5 86.8 82.0 303.5 317.9Total operating income 61.8 69.4 85.5 86.8 82.0 303.5 317.9Salaries 25.5 26.4 27.5 29.2 27.3 108.5 104.2Depreciations 10.2 5.1 4.4 3.9 3.6 23.5 14.8Oth ti t 34 9 32 5 41 2 42 5 36 3 151 1 137 8Other operating costs 34.9 32.5 41.2 42.5 36.3 151.1 137.8Total operating costs 70.5 64.0 73.1 75.6 67.2 283.1 256.8Operating profit -8.7 5.4 12.4 11.2 14.8 20.3 61.1Net financial income 0.2 0.9 -0.2 0.7 1.7 1.5 3.6Pre-tax profit -8.5 6.3 12.2 11.9 16.5 21.8 64.6Taxes 2 2 2 0 3 3 3 3 6 1 6 4 19 3Taxes -2.2 2.0 3.3 3.3 6.1 6.4 19.3Net profit/loss for the period -6.4 4.3 8.9 8.6 10.4 15.4 45.3
34