Presentation Financial Results Q3 - 2012 SpareBank 1 Gruppen AS
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Transcript of Presentation Financial Results Q3 - 2012 SpareBank 1 Gruppen AS
Q33rd Quarter 2012
Q3Q
Presentation of results from SpareBank 1 Gruppen
Kirsten Idebøen, CEO
18 October 201218 October 2012
Solid improvement in profits compared with last year- Measures to further improve competitive strength and profitabilityMeasures to further improve competitive strength and profitability
Pre-tax profit Group – quarterly (MNOK) • Pre-tax profit as at Q3: MNOK 553 (248)Pre tax profit as at Q3: MNOK 553 (248)
• Net profit as at Q3: MNOK 491 (245)
256
Q1
Q2• Annualised return on equity: 12.7 (7.0) %
• Group’s total assets were NOK 46.6 billion, d t NOK 42 0 billi t d
162 173145
256Q
Q3
compared to NOK 42.0 billion at year-end 2011
• Good solvency:
145 123
Good solvency:– Capital adequacy ratio: 16.7 % against 16.2 %
as at 31.12.2011– Core capital adequacy ratio: 15.3 % against
14 6 % as at 31 12 2011-60 14.6 % as at 31.12.2011– Well capitalised to satisfy the new, stricter
capital requirements upon introduction of the Solvency II regulations
2011 2012
2
Financial performance per business area
421
Pre-tax profit per subsidiary – YTD (MNOK) • The administration result in SpareBank 1 Livsforsikring has showed a positive trend. The company built up further buffers and
316
380421
YTD 2011YTD 2012
The company built up further buffers and increased reserves for long life expectancy.
• Higher financial result contributed to a b t ti l i i fit i S B k 1 substantial increase in profits in SpareBank 1
Skadeforsikring. Improved insurance result.
• Lower average total assets in 2012 than in 18 30 220 18
• Lower average total assets in 2012 than in 2011 in ODIN Forvaltning has led to reduced management fees.
S k G i i i i-77-154
Liv
ade
N an
s
kets
• SpareBank 1 Gruppen Finans is experiencing pressure on margins in the factoring business and weaker growth in the debt collection market. Good growth in portfolio activities.
SB1
SB1
Ska
OD
IN
SB1G
Fin
a
SB1
Mar
k
• Good growth in turnover in SpareBank 1 Markets, mainly within DCM, but still net loss for the period
3
for the period.
Combining life insurance and P&C insurance into a single business area – ”SpareBank 1 Forsikring”business area SpareBank 1 Forsikring
SpareBank 1 is consolidating its insurance services, in order to create a comprehensive customer offering, better customer experience – as well as increased competitive
• Create more efficient processes throughout the entire value chain and better coordination with
g, p pstrength and a better basis for additional sales and cross-selling.
Combining the business operations will also:
• Create more efficient processes throughout the entire value chain and better coordination with distributors (the SpareBank 1 banks and LO)
• Result in lower costs
• Mean fewer employees, a process that has primarily been attempted through reductions in temporary staff, natural turnover and voluntary packages
• Preliminary estimates of cost synergies indicate a full annual effect of about MNOK 100 from 2014
• Turid Grotmoll has been appointed to lead the new
Key figures as at 30/09/2012
SpareBank 1 Livsforsikring
SpareBank 1 SkadeforsikringTurid Grotmoll has been appointed to lead the new,
consolidated insurance unit.
• A consolidation of the business units will require the authorities’ approval
Gross written premium (MNOK) 2,711.6 4,316.8Pre-tax profit (MNOK) 380.4 421.0Total assets (MNOK) 28,411.7 14,477.6Number of employees 271 428
4
authorities approval
SpareBank 1 Livsforsikring
Improved administration result. Good b ffe capitalGood buffer capital
5
SpareBank 1 LivsforsikringImproved administration result. Good buffer capitalImproved administration result. Good buffer capital
• Pre-tax profit: MNOK 380 (316) as at Q3 and MNOK 145 (78) in Q3
P t fit t l (MNOK)
Q1
Q2
• Administration result: MNOK -30 (-63) as at Q3 and MNOK -3 (-20) in Q3
Risk result: MNOK 202 (203) as at Q3 and MNOK 80 (63)
Pre-tax profit – quarterly (MNOK)
129
94100
109
142 145Q3 • Risk result: MNOK 202 (203) as at Q3 and MNOK 80 (63)
in Q3– Good risk result in spite of large compensation payments in Q1
and increased reserves in connection with disability compensation
92 9486
78 • Investment result: MNOK 218 (365) as at Q3 and MNOK 97 (52) in Q3– MNOK 74 allocated to strengthen reserves for longer life
t t Q3
2010 2011 2012
expectancy as at Q3– Net forward exchange gains of MNOK 3 were realised for the
year-to-date, compared with MNOK 161 last year
C f th l t d th l ti • Consequences of the proposal to amend the regulations relating to the tax exemption method*:– Estimated one-off cost in the range of MNOK 175-200 that will be
recognised in Q4**C t h d ill h l t f 28 %
6
– Company tax ahead will approach a normal rate of 28 %
* The proposal does not include transition rules related to the tax opening value. Historical cost price will lead to a significant one-off cost when calculating the latent deferred tax.
** Large degree of uncertainty associated with the estimate because details of the new regulations are not known.
SpareBank 1 LivsforsikringThe company has built up solid buffersThe company has built up solid buffers
Securities adjustment reserve – accrued (MNOK)
Buffer capital trend – per quarter (%)16.3 %
14.6 % 15.2 %14.0 % 14.1 %
11.0 %12.8 %
14.8 %617
556
327
185
Q42010
Q12011
Q22011
Q32011
Q42011
Q12012
Q22012
Q32012
Core capital in excess of minimum Interim profitAdditional provisions Securities adjustment reserve
13
2009 2010 2011 30/09/2011 30/09/2012
• Total assets: NOK 28.4 (26.6) billion
• Capital adequacy ratio: 19 0 % against 18 5 % at • Capital adequacy ratio: 19.0 % against 18.5 % at 31.12.2011– The entire subordinated loan comprises core capital– Estimated solvency margin of 320.7 %, compared to 303.5 %
t e end 2011
7
at year end 2011
SpareBank 1 SpareBank 1 Skadeforsikring GroupHi h fi i l i d i d i ltHigher financial income and improved insurance result.The market's most satisfied insurance customers
8
SpareBank 1 Skadeforsikring GroupHigher financial income and improved insurance result. The market's most satisfied insurance customers
• Pre-tax profit: MNOK 421 (18) as at Q3 and MNOK 185 ( 89) i Q3Pre-tax profit – quarterly (MNOK)
254
Q1
Q2
Q3
MNOK 185 (-89) in Q3
• Insurance result*: MNOK 37 (-21) as at Q3 and MNOK 25 (1) in Q3
Pre tax profit quarterly (MNOK)
166185
Q3 MNOK 25 (1) in Q3– The underlying underwriting profitability has improved
during the year, particularly for the parent company– The sales process for Unison Forsikring was closed –
365043 56
70 the company will be integrated into SpareBank 1 Skadeforsikring
• Net financial income: MNOK 418 (100) as at Q3
-89
2010 2011 2012
• Net financial income: MNOK 418 (100) as at Q3 and MNOK 173 (-62) in Q3– Financial return: 4.1 (1.1) %
• Net earned premium of NOK 3.8 (3.5) billion, corresponding to a growth of 9.0 % compared with the same period last year* Insurance result in Q3 2011 and 2012 includes Unison
F ik i
9
Forsikring
SpareBank 1 Skadeforsikring GroupImproved profitability within house and home insurance A number of Improved profitability within house and home insurance. A number of measures implemented to improve the combined ratio
Combined ratio for own account – quarterly (%) Combined ratio for own account – accumulated (%)
22.6
99.9
21.9 22.5 21.022.9
94.0 96.2 97.7103.5
21 9 21 189 8100.3
105.5 101.9 105.8100.7 101.6
96.5101.5
96.9* 94.5*
96.6*
22.723.8
21.9 22.421.1
26.0 21.322.3 24.2
89.8
77.372.1 73.8 76.7 80.6
67.176.6 83.6 79.4 84.7
74.7 80.4 74.1 77.4
YTD 20122008 2009 2010 2011
Net claims ratio Net cost ratioQ3
2010Q4
2010Q1
2011Q2
2011Q3
2011Q4
2011Q1
2012Q2
2012Q3
2012
Net claims ratio Net cost ratioNet claims ratio Net cost ratio
* C bi d i f i l di l i i S B k 1 Li f ik i
10
* Combined ratio for own account including personal insurance in SpareBank 1 Livsforsikring
SpareBank 1 Skadeforsikring GroupWe have the market's most satisfied insurance customers
• The insurance company is at the top of customer satisfaction surveys in the P&C insurance industry
We have the market s most satisfied insurance customers
P&C insurance industry
Norwegian Finance Barometer (Norsk Finansbarometer) 2012
55606570Høy Customer
Retention
2006 2007 2008 2009 2010 2011 2012
SpareBank 1 Skadeforsikring 61 64 61 68 63 64 63
303540455055
Gjensidige Skadeforsikring 61 63 61 65 62 64 61
Skadeforsikring 58 59 58 61 61 61 61
Tryg 56 54 56 52 58 57 60
If Skadeforsikring 53 54 55 52 52 49 55
• The company is actively working to maintain its position as the P&C insurance company with the most satisfied customers, before and after a claim
11
claim
SpareBank 1 MarketsStrengthened position within DCM, but still net g p ,loss for the period
12
SpareBank 1 MarketsStrengthened position within DCM, but still net loss for the
● Total turnover− As at Q3: MNOK 99 (71), up 40 %
Results
Strengthened position within DCM, but still net loss for the period
” Q ( ), p− In Q3: MNOK 27 (13), up 111 %− Gross value creation in the SB1-alliance of
MNOK 165 for the year-to-date, of which MNOK 66 is recognised as income in the owner banks
SpareBank 1 can, through SpareBank 1 Markets, provide the entire capital structure, from bank loans to bonds and equity
”
” ● Pre-tax profit− As at Q3: MNOK -154 (-77)− In Q3: MNOK -64 (-52)
• Significantly strengthened position in the market for
”g y g p
bond issues during the year.
• Weak on Corporate Finance in the 3rd quarter.
Market share for bond issues is growing strongly*
7 %
10 %
• The goal of profitable operations from Q4, given normalised markets, stands firm. The company has implemented a number of measures focused on income. A strong growth in income is expected in the future.
2 %
* Source: Norsk TillitsmannLooking ahead the focus will be to realise the substantial potential of being a bank-owned brokerage firm with access to the bank balance sheet, considerable expertise and good customer relations. Consequently, the company's position
f
2011 2012(as of 30/09)
01/05 - 30/09/2012after start-up rated balance
13
and competitive strength is expected to be further enhanced during the next quarters.
ODIN ForvaltningO o a gStrong focus on management results and cost structure
14
ODIN ForvaltningStrong focus on management results and cost structureStrong focus on management results and cost structure
• Pre-tax profit as at Q3: MNOK 0 (30)
17 17Q1
p Q ( )– Management fees totalled MNOK 195 (242)
• Pre-tax profit in Q3: MNOK 2 (6)
Pre-tax profit – quarterly (MNOK)
14
12 12
Q1
Q2
Q3
p Q ( )– Management fees totalled MNOK 64 (69)
• Total assets of NOK 24.4 billion as at 30
6
1.9
September 2012– Lower average daily total assets than at the end of
September last yearIncreased by NOK 0 8 billion in Q3 2012
-0.5-1.5
– Increased by NOK 0.8 billion in Q3 2012– Up by NOK 0.9 billion from 31.12.2011
• Measures to improve earnings2010 2011 2012
• Measures to improve earnings– Focus on the management processes– New CEO took over in Q3– Measures will be implemented on the cost side
15
p
ODIN ForvaltningNine out of twelve equity funds performed better than Nine out of twelve equity funds performed better than their benchmark as at 30 September 2012
17 8
22.6
17 220.2 Fund Benchmark
Return on equity fund as at 30.09.2012 (%)
9.3
13.710.1
7.8
17.8
9.07.1
9.5
3 0
17.2
13.5
3.5
12.4
6.7
14.4
8.3 8.87.0
12.0
0.13.03.5
-0.7
-9.9
ODIN Norge
ODIN Sverige
ODIN Finland
ODIN Norden
ODIN Europa
ODIN Europa
SMB
ODIN Global
ODIN Global SMB
ODIN Emerging Markets
ODIN Maritim
ODIN Offshore
ODIN Eiendom I
16
SpareBank 1 Gruppen Finans GroupSpareBank 1 Gruppen Finans GroupPressure on margins in the factoring business and weaker performance in the debt collection market. Good growth in portfolio activitiesg p
17
SpareBank 1 Gruppen Finans GroupPressure on margins in the factoring business and weaker performance in the d bt ll ti k t G d th i tf li ti itidebt collection market. Good growth in portfolio activities
Pre-tax profit – accumulated (MNOK) • Pre-tax profit as at Q3: MNOK 18 0 (22 0)• Pre tax profit as at Q3: MNOK 18.0 (22.0)
• Pre-tax profit in Q3: MNOK 3.8 (12.2)
F t i h t l th l t b t
21.5 22.0YTD 2011
YTD 2012
• Factoring has grown strongly over the last year, but a reduced operating margin is putting pressure on earnings
• Flat growth in the debt collection market. Lower debt ll ti i C t d t d d b f
13.8
18.0
collection revenues in Conecto due to a reduced number of referrals and customer loss
• Higher interest income in Portfolio administration as a result f hi h tf li l ll d
11.0
7.8
5.0 of higher portfolio volume, as well as good recovery• Business area within the acquisition of portfolios of claims that
are then recovered by the Group's debt collection company
• Measures have been implemented on the pricing side in
2.5
5.0
Factoring Conecto Portfolio SB1G Finans • Measures have been implemented on the pricing side in Factoring, collaboration with the alliance banks has been expanded and sales resources have been bolstered to improve earnings in Conecto
P t fit f S B k 1 G Fi G l i l d
Factoring Conecto(debt
collection)
Portfolio SB1G Finans Group
18
Pre-tax profit for SpareBank 1 Gruppen Finans Group also includes management and amortisation.
Outlook
SPAREBANK 1 GRUPPEN
• SpareBank 1 Gruppen will continue, in close collaboration with the SpareBank 1-banks, its work on cooperation right across the companies to extract efficiency gains within costs, income and know-how.
• Underwriting profitability within P&C insurance is expected to be improved further over the next several quarters.
• 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.
• SpareBank 1 Gruppen is well equipped to face the new capital requirements in relation to the introduction of the Solvency II reforms.
19
The nation's savings bank20
20
The nation s savings bank
A diAppendix
21
The SpareBank 1 AllianceSpareBank 1
SR-Bank (19.5 %)
SpareBank 1SMN
(19.5 %)
SpareBank 1Nord-Norge
(19.5 %)
SparebankenHedmark (12 %)
Samarbeidende Sparebanker
(19.5 %)
LO (Trade Union)(10 %)
SpareBank 1 Gruppen AS
Alliance Cooperation
SpareBank 1 Livsforsikring
(100 %)
ODIN Forvaltning
(100 %)
SpareBank 1 Markets(97.55 %)
SpareBank 1Skadeforsikring
(100 %)
SpareBank 1 Gruppen Finans
(100 %)
SpareBank 1Medlemskort
(100 %)Broad cooperation- Technology- Brand/communication
E iConecto(100 %)
- Expertise- Common processes and use of best practice- Purchasing
Regional competence centres- Payment services: Trondheim(Bank-owned companies)
Unison Forsikring
(100 %)
y- Credit: Stavanger- Training: Tromsø
SpareBank 1 BoligkredittEiendomsMegler 1
BNbankSpareBank 1 Oslo og Akershus
22
Return on equity after tax among selected Nordic financial institutionsfinancial institutions
2011 2010 2009 Average 2009-2011Q3 2012 2011 2009-2011
SpareBank 1 Gruppen 12.7% 11.1 % 18.7 % 18.1 % 16.0 %
Gjensidige* N/A 11.9 % 13.1 % 11.1 % 12.0 %
Q3 2012
Handelsbanken N/A 13.5 % 12.9 % 12.6 % 13.0 %
Nordea N/A 10.6 % 11.5 % 11.3 % 11.1 %
DNB N/A 11.4 % 13.6 % 10.6 % 11.9 %
Storebrand N/A 6.0 % 10.8 % 8.2 % 8.3 %
Danske Bank N/A 1.4 % 3.6 % 1.7 % 2.2 %
23
* Calculated as net profit distributed over average equity.
Source: The companies' interim reports for Q3 2012
SpareBank 1 GruppenKey figures
Q3 Q2 Q1 Q4 Q3 Q2 Q1 Year2012 2012 2012 2011 2011 2011 2011 2011
GroupNet result for the period (MNOK) 227.7 63.4 199.9 281.0 -4.3 97.2 151.9 525.8R t it (%) 12 7 % 10 5 % 15 9 % 23 2 % 0 3 % 8 1 % 12 9 % 11 1 %
Key figures
Return on equity (%) 12.7 % 10.5 % 15.9 % 23.2 % -0.3 % 8.1 % 12.9 % 11.1 %Capital adequacy ratio, cumulative (%) 16.7 % 15.9 % 14.8 % 16.2 % 16.3 % 16.2 % 16.1 % 16.2 %Core capital adequacy ratio, cumulative (%) 15.3 % 14.5 % 13.1 % 14.6 % 14.0 % 13.9 % 12.6 % 14.6 %
SB1 LivsforsikringRisk result (MNOK) 79.7 92.6 29.4 38.5 63.5 70.1 69.4 241.4Administration result (MNOK) -3.1 -19.0 -7.5 -3.2 -19.8 -24.2 -18.7 -65.9Investment result (MNOK) 97.3 47.0 73.2 3.1 51.6 108.0 205.8 368.5N t lt f th i d (MNOK) 128 7 89 1 125 8 193 7 114 6 73 8 129 9 511 9Net result for the period (MNOK) 128.7 89.1 125.8 193.7 114.6 73.8 129.9 511.9Buffer capital in % of insurance provisions*, cumulative (%) 16.3 % 14.8 % 12.8 % 11.0 % 14.1 % 14.0 % 15.2 % 11.0 %Capital adequacy ratio, cumulative (%) 19.0 % 20.0 % 17.5 % 18.5 % 18.5 % 17.1 % 19.2 % 18.5 %Securities adjustment reserve, cumulative (MNOK) 555.5 389.6 465.9 184.9 13.0 326.3 448.2 184.9
SB1 Skadeforsikring GroupOperating result before finance (MNOK) 24.9 31.1 -19.5 -16.0 0.5 8.2 -29.9 -37.3Net financial income (MNOK) 172.8 51.0 194.0 160.8 -62.3 66.8 95.1 260.3N t lt f th i d (MNOK) 142 6 42 2 139 5 90 3 81 2 41 8 39 8 90 7Net result for the period (MNOK) 142.6 42.2 139.5 90.3 -81.2 41.8 39.8 90.7Claims ratio, net (%) 77.4 % 74.1 % 80.4 % 74.7 % 84.7 % 79.4 % 83.6 % 80.6 %Cost ratio, net (%) 24.2 % 22.3 % 21.3 % 26.0 % 21.1 % 22.4 % 21.9 % 22.9 %Combined ratio, net (%) 101.5 % 96.5 % 101.6 % 100.7 % 105.8 % 101.9 % 105.5 % 103.5 %Portfolio (MNOK) 5,455 5,407 5,328 5,198 5,092 4,986 4,825 5,198
ODIN ForvaltningManagement fees (MNOK) 64.0 63.4 67.2 61.8 69.4 85.5 86.8 303.5Net result for the period (MNOK) 1.4 -1.0 -0.3 -7.0 4.3 8.9 8.6 14.8Total assets under management, cumulative (MNOK) 24,370 23,541 26,173 23,433 22,539 30,101 33,348 23,433Market share equity fund, cumulative (%) 8.3 % 8.4 % 8.9 % 8.9 % 8.8 % 9.9 % 10.6 % 8.9 %Market share combination fund, cumulative (%) 4.0 % 4.1 % 3.8 % 3.8 % 3.8 % 3.5 % 3.2 % 3.8 %
SB1 MarketsTotal operating income (MNOK) 26.6 40.0 32.9 15.3 12.6 23.5 34.8 86.3Net result for the period (MNOK) -46.6 -32.6 -32.5 -57.4 -37.3 -15.9 -2.4 -113.1
SB1G Finans GroupNet result for the period SB1G Finans Group (MNOK) 2.7 5.4 4.9 4.4 8.4 1.8 4.5 19.1Net result for the period SB1G Finans - parent company (MNOK) 1.8 1.0 2.2 4.1 3.7 0.1 1.4 9.3Net result for the period Conecto (MNOK) 1.6 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 allocated
24
) p Q p
SpareBank 1 GruppenResults year to date 2012
Q3 Q2 Q1 Q3 YearFigures in MNOK 2012 2012 2012 2011 2012 2011 2011
Year to date
Results year to date 2012
Figures in MNOK 2012 2012 2012 2011 2012 2011 2011
Part of result from subsidiaries before tax - SpareBank 1 Livsforsikring 144.6 141.8 94.1 77.7 380.4 316.1 414.1 - SpareBank 1 Skadeforsikring Group 185.0 70.4 165.5 -88.8 421.0 17.7 185.3 - ODIN Forvaltning 1.9 -1.5 -0.5 6.3 0.0 30.4 21.8g - SpareBank 1 Markets -64.2 -44.9 -44.8 -51.8 -153.9 -77.3 -154.8 - SpareBank 1 Medlemskort 2.8 2.4 2.8 2.0 7.9 7.6 12.1 - SpareBank 1 Gruppen Finans Group 3.8 7.5 6.8 12.2 18.0 22.0 27.9 - Correction Group 1.0 -9.0 0.0 16.4 -8.0 30.6 28.6Net result before tax from subsidiaries 274.9 166.6 223.8 -26.1 665.3 347.0 535.1Total operating costs (parent company) 2.9 -26.1 -33.5 -16.0 -56.6 -59.2 -88.6Net investment charges (parent company) -21.6 -17.7 -16.8 -18.0 -56.1 -40.1 -59.3Share of associated company 0.0 0.0 0.0 0.0 0.0 0.0 0.2Pre-tax result 256.2 122.9 173.5 -60.1 552.6 247.7 387.3Taxes -28.5 -59.5 26.4 55.8 -61.6 -2.8 138.5Net result for the period 227 7 63 4 199 9 4 3 491 0 244 8 525 8
*
Net result for the period 227.7 63.4 199.9 -4.3 491.0 244.8 525.8
Majority interest 228.8 64.2 200.7 -3.1 493.7 247.3 529.8Minority interest -1.1 -0.8 -0.8 -1.1 -2.7 -2.4 -4.0
YearYear to date YearKey figures 2012 2011 2011Annualised return on equity 12.7 % 7.0 % 11.1 %
Year to date
* The project related to the creation of a card company was transferred from SpareBank 1 Gruppen AS to SpareBank 1 Kredittkort AS as at 30 September 2012.
25
The project related to the creation of a card company was transferred from SpareBank 1 Gruppen AS to SpareBank 1 Kredittkort AS as at 30 September 2012. This entailed a cost reimbursement of MNOK 46 in the parent company in September, which resulted in net revenue recognition of MNOK 2.9 in Q3
SpareBank 1 GruppenQuarterly resultsQuarterly results
Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1Figures in MNOK 2012 2012 2012 2011 2011 2011 2011 2010 2010 2010 2010
Part of result from subsidiaries before tax - SpareBank 1 Livsforsikring 144.6 141.8 94.1 98.1 77.7 109.0 129.4 72.5 85.8 100.3 91.9 - SpareBank 1 Skadeforsikring Group 185.0 70.4 165.5 167.6 -88.8 56.2 50.3 307.5 253.9 43.4 36.3 - ODIN Forvaltning 1.9 -1.5 -0.5 -8.5 6.3 12.2 11.9 16.5 17.0 16.7 14.4 - SpareBank 1 Markets -64.2 -44.9 -44.8 -77.5 -51.8 -22.1 -3.4 -24.0 -29.0 -1.9 -2.7 - SpareBank 1 Medlemskort 2.8 2.4 2.8 4.5 2.0 2.5 3.1 1.9 2.7 3.3 3.4p - SpareBank 1 Gruppen Finans Group 3.8 7.5 6.8 5.9 12.2 3.0 6.8 6.6 -4.9 7.0 -0.1 - Correction Group 1.0 -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 274.9 166.6 223.8 188.1 -26.1 175.9 197.1 374.6 318.1 185.1 158.2Total operating costs (parent company) 2.9 -26.1 -33.5 -29.4 -16.0 -15.6 -27.7 -16.5 40.7 -11.9 -20.0Net investment charges (parent company) -21.6 -17.7 -16.8 -19.2 -18.0 -15.0 -7.1 -15.6 -11.4 -9.3 -6.9Share of associated company 0.0 0.0 0.0 0.2 0.0 0.0 0.0 0.0 0.0 0.0 0.0Pre tax result 256 2 122 9 173 5 139 6 60 1 145 4 162 4 342 5 347 4 163 9 131 3Pre-tax result 256.2 122.9 173.5 139.6 -60.1 145.4 162.4 342.5 347.4 163.9 131.3Taxes -28.5 -59.5 26.4 141.4 55.8 -48.1 -10.5 -18.5 -88.4 -8.3 -38.5Net result for the period 227.7 63.4 199.9 281.0 -4.3 97.2 151.9 324.0 259.1 155.6 92.8
Majority interest 228.8 64.2 200.7 282.6 -3.1 98.0 152.4 327.9 263.9 155.9 93.3Minority interest -1.1 -0.8 -0.8 -1.6 -1.1 -0.8 -0.5 -3.9 -4.8 -0.3 -0.5
26
SpareBank 1 Livsforsikring Results year to date 2012
Q3 Q2 Q1 Q3 YearFigures in MNOK 2012 2012 2012 2011 2012 2011 2011 Insurance risk income 380 6 369 1 361 2 321 6 1 110 9 990 4 1 338 7
Year to date
Results year to date 2012
Insurance risk income 380.6 369.1 361.2 321.6 1 110.9 990.4 1 338.7 Insurance risk claims -291.5 -266.2 -340.4 -249.9 -898.1 -758.1 -1 061.7Risk result 89.2 102.9 20.7 71.7 212.8 232.3 277.0 Tecnical allocations -9.5 -10.3 8.7 -8.2 -11.0 -29.3 -35.6Risk result after tecnical allocations 79.7 92.6 29.4 63.5 201.8 203.0 241.4 Fees 192.3 180.9 184.8 168.3 558.0 511.9 708.6 Expenses, exclusive comissions -130.6 -137.4 -128.6 -128.0 -396.5 -396.3 -527.2 Comissions -64.8 -62.5 -63.7 -60.1 -191.0 -178.3 -247.3Administration result -3.1 -19.0 -7.5 -19.8 -29.5 -62.7 -65.9 Net investment income 218.8 153.1 188.6 151.0 560.5 677.4 791.1 Guaranteed interest to policyholders -121.5 -106.1 -115.4 -99.4 -343.0 -311.9 -422.6I t t lt 97 3 47 0 73 2 51 6 217 5 365 4 368 5Investment result 97.3 47.0 73.2 51.6 217.5 365.4 368.5 Reserves -32.2 -10.3 -31.3 0.0 -73.9 -33.0 -187.3Investment result after reserves 65.0 36.7 41.9 51.6 143.6 332.4 181.2 Compensation guaranteed interest 6.7 6.1 6.3 5.7 19.1 17.0 22.6Result before additional provisions 148.4 116.6 70.1 101.0 335.0 489.6 379.4 Undistributed profits to customers -53 3 -27 7 -15 2 -44 7 -96 3 -223 6 -61 5 Undistributed profits to customers 53.3 27.7 15.2 44.7 96.3 223.6 61.5 Return on company's assets 49.6 52.9 39.2 21.4 141.7 50.0 96.2Net profit to owner before tax 144.6 141.8 94.1 77.7 380.4 316.1 414.1 Taxes -15.9 -52.6 31.7 36.9 -36.8 2.1 97.8Net profit/loss for the period 128.7 89.1 125.8 114.6 343.6 318.2 511.9
Key figures Year to date Year2012 2011 2011
Capital adequacy ratio 19.0 % 18.5 % 18.5 %Buffer capital in % of insurance provisions 16.3 % 14.1 % 11.0 %
27Buffer capital for the year 2011 is shown after profits have been allocated
SpareBank 1 LivsforsikringProfit per portfolio year to date 2012Profit per portfolio year to date 2012
P i l
Figures in MNOKGroup
portfolio
Previouslyestablished
individual productsInvestment choice
portfolioCompanyportfolio Total
Risk result 200.3 -7.7 9.2 0.0 201.8Administration result 57.0 -31.4 -55.0 0.0 -29.5Net investment result 144 1 68 5 3 1 1 9 217 5Net investment result 144.1 68.5 3.1 1.9 217.5Reserves - long life -73.9 0.0 0.0 0.0 -73.9Compensation interest guarantee 19.1 0.0 0.0 0.0 19.1Transferred to policyholders -52.6 -32.5 -11.2 0.0 -96.3Return on company's assets 0.0 0.0 0.0 141.7 141.7Sum 294 0 3 1 54 0 143 5 380 4Sum 294.0 -3.1 -54.0 143.5 380.4
28
SpareBank 1 LivsforsikringPremium income trend year to date 2012Premium income trend year to date 2012
Q3 Q2 Q1 Q3 YearFigures in MNOK 2012 2012 2012 2011 2012 2011 2011
Year to dateFigures in MNOK 2012 2012 2012 2011 2012 2011 2011 Individual annuity and pension insurance 79.6 72.3 72.3 68.7 224.3 212.8 284.9 Individual endowment insurance 154.1 150.2 147.9 143.3 452.2 422.9 570.6 Group pension insurance 95.3 74.4 244.3 73.3 414.0 371.1 465.6 Individual life insurance 56.7 55.1 53.8 50.0 165.6 147.0 199.0 Group life insurance 136.2 132.2 239.1 130.5 507.5 479.5 604.4 Unit Linked - Annuity 8.2 8.5 9.3 8.3 26.1 28.4 39.0 Unit Linked - Endowment 31.6 35.2 36.7 38.4 103.5 136.6 181.1 Defined contribution pension 280.3 273.1 265.1 256.6 818.5 728.4 980.7Total gross due premium income 842.0 801.1 1 068.5 769.0 2 711.6 2 526.8 3 325.5 Premium reserves transferred from other companies 116.8 194.7 102.4 189.1 413.8 444.6 660.8 R i d d 42 4 41 2 28 6 42 9 112 1 123 9 160 4 Reinsurance ceded -42.4 -41.2 -28.6 -42.9 -112.1 -123.9 -160.4Premium income for own account 916.4 954.5 1 142.3 915.2 3 013.2 2 847.4 3 825.9
29
SpareBank 1 LivsforsikringReturn on customer portfolio with guarantee as at Return on customer portfolio with guarantee as at 30/09/2012
Value-adjusted return Value adjusted return excluding change in value construction: Booked return:
Q22012
Q32012
Q22012
Q32012
Q22012
Q32012
Q22012
Q32012
Q22012
Q32012
Q22012
Q32012
Q22012
Q32012
Q22012
Q32012
6.0
2012 2012 2012 2012 2012 2012 2012 2012
3 6
2012 2012 2012 2012 2012 2012 2012 2012
3.5
2.6 2.82.4
Perc
ent
2.21.8
2.8
2.2
3.6
Perc
ent
SpareBank 1 Storebrand DNB Livsforsikring Nordea
N/A N/A N/A
SpareBank 1 Storebrand DNB Livsforsikring Nordea
N/A N/A N/A
30 Source: company presentations
SpareBank 1 LivsforsikringReturn on ordinary customer portfolio with guarantee as at y p g30/09/2012
16.9Norwegian shares
Percent
3.0
13.5
Money market
Foreign shares
6.6
3.0
i b d
Norwegian bonds
Money market
3.8
8.3
Held to maturity
Foreign bonds
5.4Real estate
31
SpareBank 1 LivsforsikringBalance sheet as of 30/09/2012Balance sheet as of 30/09/2012
Yeari i
Year to dateFigures in MNOK 2012 2011 2011 Intangible assets 138 93 107 Investments 3 109 2 558 2 881 Reinsurance's part of insurance obligations 206 222 223 Accounts receivable 75 182 225 Accounts receivable 75 182 225 Other assets 170 431 368 Prepayed liabilities and accrued income 0 0 0 Investments group portfolio 16 798 15 709 15 909 Investments options portfolio 7 914 6 498 6 896 Investments options portfolio 7 914 6 498 6 896Total assets 28 412 25 693 26 607 Paid in capital 2 073 1 825 1 825 Other equity 772 632 435 Subordinated loan capital 200 200 200p Insurance obligations - contractual 16 723 15 453 15 812 Insurance obligations - investment options 8 024 6 583 6 993 Provisions for obligations 70 214 88 Premium deposits from reinsurance companies 139 138 139 Other obligations 337 549 1 043 Accrued liabilities, prepaied income 74 99 73Total liabilities and equity 28 412 25 693 26 607
32
SpareBank 1 LivsforsikringThe Government budget proposal to ”Limit the tax exemption
ConsequencesProposal
model for shares etc. owned by life insurance companies”With the exception of certain amendments, it is largely identical to the discussion document
ConsequencesProposal
• The Ministry of Finance proposes that the tax exemption model should not apply to shares etc.
• The Group may see an increase in taxes in years with good returns and a reduction in p pp y
in life insurance companies that form part of the group and investment choice portfolios as of 01.01.2012
taxes in years with negative returns in the stock market
• The company tax ahead will approach • Revenues from such shares will be taxed as ordinary income. The share revenue will continue to form part of the deduction for insurance fund provisions
a normal rate of 28 %
• The proposal does not include transition rules related to the tax opening value.
• The tax exemption model will continue to apply to shares that form part of the company portfolio
Historical cost price will lead to a one-off cost in the range of MNOK 175-200 when calculating the latent deferred tax*
• Standard deduction for the company's portion of the returns from paid-up policies, old individual life insurance contracts and products without rights to profits
• The tax effect will, in such case, be recognised in the accounts in Q4
33* Large degree of uncertainty associated with the estimate because details of the new regulations are not known
Asset allocation per portfolio as at 30/09/2012 (31/12/11):
SB1 Skadeforsikring SB1 Li sfo sik ing
(31/12/11):
gGroupSB1 Livsforsikring
Group portfolio Company portfolio
12 9 (13 8) % 2 3 ( 4 5) %
Investment choice portfolio
8.1 (7.9) %11.2 (12.7) %
10.1 (10.4) %38.9 (37.4) %
12.9 (13.8) %0.0 (-0.2) %
2.3 (-4.5) %
18.6 (18.8) %46.3 (45.9) %
70.6 (69.0) %28 2 (28 0) % 20.0 (21.0) % 63.1 (60.9) %15 9 (24 8) %
53.2 (54.2) % 70.6 (69.0) %28.2 (28.0) % ( ) 15.9 (24.8) %0.6 (-0.1) %
Stocks Other Bonds
StocksOtherReal estateBonds - amortized costBonds - market value
StocksOtherReal estateBonds - amortized costBonds - market value
StocksOtherReal estateBonds - amortized costBonds - market value
NOK 16.6 (15.7) billion NOK 3.1 (2.9) billion NOK 10.8 (9.6) billionNOK 7.9 (6.9) billion
Bonds - market value Bonds - market value Bonds market value
34
SpareBank 1 Skadeforsikring GroupResults year to date 2012Results year to date 2012
Q3 Q2 Q1 Q3 YearFigures in MNOK 2012 2012 2012 2011 2012 2011 2011Gross written premium 1 172.6 1 431.1 1 713.1 1 142.9 4 316.8 4 076.8 5 358.2Net earned premium 1 287.9 1 257.3 1 234.5 1 230.6 3 779.7 3 469.1 4 695.9Net incurred claims -996.8 -931.7 -992.3 -1 042.8 -2 920.8 -2 867.3 -3 784.0
Year to date
Net insurance operating costs -311.0 -281.0 -262.4 -259.2 -854.4 -755.5 -1 074.2Other insurance income/costs 11.3 1.7 1.2 17.6 14.2 30.3 31.8Changes in other technical reserves 33.5 -15.1 -0.5 53.8 17.9 101.6 93.2Operating result before finance 24.9 31.1 -19.5 0.0 36.5 -21.7 -37.3Net financial income 172.8 51.0 194.0 -62.3 417.8 99.5 260.3R lt b f h i it 197 7 82 1 174 5 62 3 454 3 77 8 223 0Result before changes in security reserve 197.7 82.1 174.5 -62.3 454.3 77.8 223.0Changes in security reserve -12.7 -11.7 -9.0 -27.0 -33.4 -60.5 -37.7Pre-tax profit 185.0 70.4 165.5 -89.3 421.0 17.2 185.3Taxes -42.4 -28.2 -26.0 7.6 -96.7 -17.3 -94.6Net profit/loss for the period 142.6 42.2 139.5 -81.7 324.3 -0.1 90.7
Key figures Q3 Q2 Q1 Q3 YearFigures in percentage 2012 2012 2012 2011 2012 2011 2011Claims ratio, net 77.4 % 74.1 % 80.4 % 84.7 % 77.3 % 82.7 % 80.6 %Cost ratio, net 24.2 % 22.3 % 21.3 % 21.1 % 22.6 % 21.8 % 22.9 %
Year to date
,Combined ratio, net 101.5 % 96.5 % 101.6 % 105.8 % 99.9 % 104.4 % 103.5 %Capital adequacy ratio 34.6 % 27.6 % 32.8 %
35
ODIN ForvaltningR lt t d t 2012Results year to date 2012
Q3 Q2 Q1 Q3 YearFigures in MNOK 2012 2012 2012 2011 2012 2011 2011M t f 64 0 63 4 67 2 69 4 194 6 241 7 303 5
Year to date
Management fees 64.0 63.4 67.2 69.4 194.6 241.7 303.5Total operating income 64.0 63.4 67.2 69.4 194.6 241.7 303.5Salaries -24.8 -25.9 -24.6 -26.4 -75.3 -83.0 -108.5Depreciations -6.3 -6.8 -6.5 -5.1 -19.6 -13.4 -23.5Other operating costs -31.2 -32.5 -36.9 -32.5 -100.6 -116.3 -151.1Total operating costs -62.3 -65.2 -68.0 -64.0 -195.5 -212.7 -283.1Operating profit 1.7 -1.8 -0.8 5.4 -0.9 29.0 20.3Net financial income 0.2 0.4 0.3 0.9 0.9 1.4 1.5Pre-tax profit 1.9 -1.5 -0.5 6.3 0.0 30.4 21.8Taxes -0.5 0.5 0.2 -2.0 0.2 -8.6 -7.1Net profit/loss for the period 1.4 -1.0 -0.3 4.3 0.1 21.8 14.8
36