Q4 2008 Financial results for SpareBank 1 Gruppen presented by acting CEO Kirsten Idebøen
Presentation SpareBank 1 Gruppen Q2- 2012 English Version
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Transcript of Presentation SpareBank 1 Gruppen Q2- 2012 English Version
Q2Q21st half-year and 2nd quarter 20121 half-year and 2 quarter 2012Presentation of results from SpareBank 1 Gruppenfrom SpareBank 1 Gruppen
Kirsten Idebøen, CEO
9 August 20129 August 2012
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)
162173
Q1 Q2
Pre-tax profit Group quarterly (MNOK) Pre tax profit for 1 half year: MNOK 296 (308)
• Net profit for 1st half-year: MNOK 263 (249)
162145
123
• Annualised return on equity: 10.5 (10.5) %
G ’ t t l t NOK 45 2 billi • Group’s total assets were NOK 45.2 billion, compared to NOK 42.0 billion at year-end 2011
• Good solvency:
2011 2012
Good solvency:– Capital adequacy ratio: 15.9 % against 16.2
% as at 31.12.2011– Core capital adequacy ratio: 14.5 % against
14 6 % t 31 12 201114.6 % as at 31.12.2011– Well capitalised to satisfy the new, stricter
capital requirements upon introduction of the Solvency II regulations
2
y g
Financial performance per business area
238 236 236
Pre-tax profit per subsidiary (MNOK)• SpareBank 1 Livsforsikring has built up
further reserves during 1st half-year. Administration result continued to improve.
238 236 236
1H20111H2012 • Good financial result and improved
insurance result contributed to a significantly improved profit for Sparebank
107
g y p p p1 Skadeforsikring.
• A decrease in total assets under management in ODIN Fo altning ga e
2410
-2
14
management in ODIN Forvaltning gave reduced management fees.
• SB1G Finans: strong pressure on margins in -26
-90
Liv
ade
ans
ets
SB1G Finans: strong pressure on margins in factoring and weaker performance in debt collection market, but good growth in portfolio business.
SB1
L
SB1
Ska
OD
IN
SB1G
Fin
a
SB1
Mar
ke
• Higher turnover in SpareBank 1 Markets, despite reduced activity in the financial markets. Strengthened market share in b d k d h f Q2
3
bond market during the course of Q2.
SpareBank 1 Livsforsikring
Improved administration result and inc eased b ffe capitalincreased buffer capital
4
SpareBank 1 LivsforsikringImproved administration result and increased buffer 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 fit (MNOK) t lQ1Q2Q3
• Administration result: MNOK -26 (-43) for 1st half-year and MNOK -19 (-24) in Q2– Stable operating costs and increased income from fees
Pre-tax profit (MNOK), quarterly
92
129
94100
109
142
98
Q4Stab e ope at g costs a d c eased co e o ees
• Risk result: MNOK 122 (140) for 1st half-year and MNOK 93 (70) in Q2– Strong risk result in Q2 after Q1 saw some large compensation 92 94
867872
– Strong risk result in Q2 after Q1 saw some large compensation payments
– Increased reserves in connection with disability compensation reduced year-to-date risk result
2010 2011 2012
• Investment result: MNOK 120 (314) for 1st half-year and MNOK 47 (108) in Q2– MNOK 42 allocated to strengthen provisions for longer life
expectancyexpectancy– 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
5
reserve totalled MNOK 390, against MNOK 185 at year-end 2011
SpareBank 1 LivsforsikringThe company built up further buffers during 1st half-yearThe company built up further buffers during 1 half year
Buffer capital trend, per quarter (%) Securities adjustment reserve (MNOK)Buffer capital trend, per quarter (%)
14.6 % 15.2 %14.0 % 14.1 % 14.8 %
61714.0 % 14.1 %
11.0 %12.8 %
327
617
390327
185
Q42010
Q12011
Q22011
Q32011
Q42011
Q12012
Q22012
Core capital in excess of minimum Interim profitAdditional provisions Securities adjustment reserve
2009 2010 2011 1H2012
• Total assets: NOK 28 (27) billion
• Capital adequacy ratio: 20.0 % against 18.5 % as
• From the securities adjustment reserve:– MNOK 182 belongs to the ordinary group
portfolioMNOK 76 belongs to paid up policy portfolioCap ta adequacy at o 0 0 % aga st 8 5 % as
at 31.12.2011– The entire subordinated loan comprises core capital– Estimated solvency margin of 320.5 %, compared to
303.5 % at year-end 2011
– MNOK 76 belongs to paid-up policy portfolio– MNOK 131 belongs to the portfolio for
previously established individual savings products
6
303.5 % at year end 2011
Asset allocation per portfolio as at 30/06/2012 (31/12/11)
SB1 Skadeforsikring GroupSB1 Livsforsikring
(31/12/11)
SB1 Skadeforsikring GroupSB1 Livsforsikring
Group portfolio Company portfolio0.0 (0.0) %
10.3 (10.4) %12.9 (13.8) % 1.0 (-4.5) %
Investment choice portfolio
8.2 (7.9) % 12.2 (12.7) %
( )38.9 (37.4) % 0.5 (-0.2) %
0.0 (0.0) %20.9 (18.8) %
45.7 (45.9) %
69.3 (69.0) %27.9 (28.0) % 19.8 (21.0) % 61.1 (60.9) %
16.9 (24.8) %54.3 (54.2) %
0.0 (-0.1) %69.3 (69.0) %
Stocks Other Bonds
StocksOtherReal estateBonds - amortized costBonds - market value
StocksOtherReal estateBonds - amortized costBonds - market value
Stocks OtherReal Estate Bonds at amortised costBonds at Market value
NOK 16.4 (15.7) billion NOK 2.8 (2.9) billion NOK 10.0 (9.6) billionNOK 7.5 (6.9) billion
7
SpareBank 1 LivsforsikringNew occupational pension products are expected as of 01/01/2014p p p p / /
• Maximum premiums: 8% of salary up to 7.1G* and • Maximum premiums: 7% of salary up to 7.1G* and Standard modelBasic model
26.1% of salary from 7.1G-12G
• No guaranteed return, meaning employees bear some return risk. Returns are paid to employees.
25.1% of salary from 7.1G-12G
• The company must guarantee an annual adjustment of the saved capital equal to wage inflation against it receiving the returns on pension capital
• Slightly more advanced on the return side than the basic model
receiving the returns on pension capital
• Similar to the current defined contribution pension in SpareBank 1 Livsforsikring with the exception of mortality inheritance
•Lower Solvency II requirements than under current regulationsSpareBank 1 Livsforsikring views the new occupational pension models positively
•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
8
opportunity to strengthen its role within the pensions area
*G= National insurance basic amount
SpareBank 1 SpareBank 1 Skadeforsikring GroupG d fi i l lt d i d i ltGood financial result and improved insurance result
9
SpareBank 1 Skadeforsikring GroupGood financial result and improved insurance resultGood financial result and improved insurance result
Pre-tax profit quarterly (MNOK)
254
308 Q1Q2Q3
• Pre-tax profit: MNOK 236 (107) for 1st half-year and MNOK 70 (56) in Q2
Pre tax profit, quarterly (MNOK)
166168
Q4• Insurance result*: MNOK 12 (-22) for 1st half-year
and MNOK 31 (8) in Q2– Lower claims ratio for both PM and BM in the parent
365043 56
70company
• Net financial income: MNOK 245 (162) for 1st half-year and MNOK 51 (67) in Q2
-89
2010 2011 2012
year and MNOK 51 (67) in Q2– Financial return: 2.5 (1.8) %
• Portfolio growth in 1st half year 2012 of 4 0 % to 2010 2011 2012 • Portfolio growth in 1st half-year 2012 of 4.0 %, to NOK 5.4 billion.
* Insurance result in 1st half-year 2011 and 2012 includes U i F ik i
10
Unison Forsikring
SpareBank 1 Skadeforsikring GroupGood underlying profitability in main products and lower Good underlying profitability in main products and lower proportion of large claims
Combined ratio for own account – quarterly (%) Combined ratio for own account (%)
17.122 7
23.821.9 22.4
21.126.0 21.3
22.3
92.9 89.8100.3
105.5 101.9 105.8 100.7 101.696.5
Combined ratio for own account quarterly (%)96.9*
93.4*
21.8
99.0
21.9 22.5 21.022.9
94.0 96.2 97.7103.5
75 9 76 6 83.6 79 4 84.774 7 80.4 74 1
22.7
75.9 67.176.6 79.4 74.7 80.4 74.1
77.272.1 73.8 76.7 80.6
Q22010
Q32010
Q42010
Q12011
Q22011
Q32011
Q42011
Q12012
Q22012
Net claims ratio Net cost ratio
- Lower total claims ratio in both PM and BM in the parent company
1H20122008 2009 2010 2011
Net claims ratio Net cost ratio
- Lower proportion of large claims in BM portfolio in year-to-date
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
* Combined ratio for own account for respectively 2011 and 1st
half-year 2012 including personal insurance
11
cost ratio 21.2%
SpareBank 1 Skadeforsikring GroupGood portfolio growth in 1st half-year 2012Good portfolio growth in 1 half year 2012
• Total portfolio growth of MNOK 209 (277) to NOK 5.4 (5.0) billion as at 30/06/2012,
Portfolio growth per year (MNOK)
5 407
NOK 5.4 (5.0) billion as at 30/06/2012, equivalent to a growth of 4.0 %– Unison Forsikring saw growth in 1st half-year of
MNOK 69 (97)
3 358
– Portfolio growth in the Group in Q2 alone amounted to MNOK 79 (161)
• Net earned premium of NOK 2 5 (2 2) billion 04 05 06 07 08 09 10 11 12 • Net earned premium of NOK 2.5 (2.2) billion, corresponding to a growth of 11.3 %
31.1
2.20
0
200
200
200
200
200
201
20
30.0
6.20
12
SpareBank 1 MarketsVisible effects from result-oriented work
13
SpareBank 1 MarketsVisible effects from result-oriented work
• Total turnoverResults
Visible effects from result-oriented workSB1 Markets - Market share bond issues
12 %Total turnover• 1st half-year: MNOK 73 (58), up 25 %• Q2: MNOK 40 (24), up 70 %
• Pre-tax profit 5 %
12 %
Pre tax profit• 1st half-year: MNOK -90 (-26)• Q2: MNOK -45 (-22)
2 %1 %
3 % 3 %
Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012
Operational matters
MARKET SHAREBOND ISSUE Q2 2012
DNB 23%Swedbank / First Securities 20%Nordea 14%SEB Merchant Banking 13%
• Goal of profitable operations from Q4 stand firm provided normalised markets.
Operational matters SEB Merchant Banking 13%SpareBank 1 Markets 12%Danske Bank 5%AGB Sundal Collier 5%Handelsbanken 4%
• Cooperation with SpareBank 1 SMN on rated balance sheet is operative and has had immediate effects on the company's market share and in the bond market.
SpareBank 1 can, through SpareBank 1 Markets, provide the entire capital structure, from bank loans to bonds and equity
14Source: Norsk Tillitsmann
equity
ODIN ForvaltningO o a gNine out of twelve equity funds performed better than their benchmark in 1st half-year
15
ODIN ForvaltningNine out of twelve equity funds performed better than 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)
14
17 17 16
Q1
Pre tax profit for 1 half year: MNOK 2 (24)– Management fees totalled MNOK 131 (172)
• Pre-tax profit for Q2: MNOK -1.5 (12)
Pre-tax profit (MNOK), quarterly
14
12 12
6
Q1Q2Q3Q4
Pre tax profit for Q2: MNOK 1.5 (12)
• Total assets under management of NOK 23.5 billion as at 30/06/20126 / /– Reduced by NOK 6.6 billion from 30/06/2011– Increased by NOK 0.1 billion from 31/12/2011
-0.5-1.5
-9
• 8.4 % market share for equity funds in 1st
half-year 2012, down 0.5 percentage points 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 31/12/2011
16
points from 31/12/2011
ODIN ForvaltningNine out of twelve equity funds performed better than 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 (%)
2.8
7.1
4.66.2
2.9
8.2 8.8
11.6
5.43.9
5.84.7
8.8
5.3
1.9 1 8
6.95.3 5.7
3.0
Fund Benchmark
q y / / ( )
-0.6-2.2 -1.6
-7.5
1.9 1.8
R S l h b i t d th ODIN Norden
ODIN Finland
ODIN Norge
ODIN Sverige
ODIN Maritim
ODIN Offshore
ODIN Eiendom I
ODIN Europa
ODIN Europa
SMB
ODIN Global
ODIN Global SMB
ODIN Emerging Markets
Rune Selmar has been appointed the new CEO of ODIN Forvaltning
• ODIN has signed up to the UN's Principles for Responsible Investment (PRI)
− The UN's Principles for Responsible Investment set out six rules for a sustainable, i ll ibl d d i t t hil hsocially responsible and owner-managed investment philosophy
− 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 society's investments
17
SpareBank 1 Gruppen Finans GroupSpareBank 1 Gruppen Finans GroupContinued focus on growth and cost-efficiency
18
SpareBank 1 Gruppen Finans GroupContinued focus on growth and cost-efficiencyContinued focus on growth and cost efficiency
Pre-tax profit (MNOK)• SpareBank 1 Gruppen Finans Group reported a pre-tax p pp p p p
profit for 1st half-year of MNOK 14.2 (9.8)
• Higher costs in the factoring business area reduced the year-to-date result somewhat, MNOK 4.4 (4.9)
12.211.6
14.2
1H2011
y , ( )− Good growth in turnover in Q2 helped to improve pre-tax profit in
the quarter of MNOK 2.7 (2.1)− Factoring's market share continued to grow; market share as at
Q2 2012 of 14.6 % against 14.1 % as at 31/12/2011
9.81H2012
• Good growth in portfolio (long-term monitoring) due to new portfolio acquisitions in 1st half-year− Pre-tax profit: MNOK 3.8 (1.6) in 1st half-year and MNOK 1.2
(0 4) in Q2
4.9 4.43.8
(0.4) in Q2
• Weak growth in the debt collection market− Pre-tax profit: MNOK 11.6 (12.2) in 1st half-year and MNOK 7.0
(5.1) in Q2
1.6
factoring portfolio Conecto(debt
SB1G Finans Group (5.1) in Q2
− Low debt collection income in year-to-date, but improved result in Q2 alone due to the sale of a larger portfolio
Pre-tax profit for SpareBank 1 Gruppen Finans Group also includes
collection)
19
Pre tax profit for SpareBank 1 Gruppen Finans Group also includes management and amortisation.
Outlook
• SpareBank 1 Skadeforsikring has started a number of measures aimed at improving profitability The effect of the measures has been satisfactory so far and is expected to
SPAREBANK 1 GRUPPEN
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 • 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 earningseffect on the Group s earnings.
• SpareBank 1 Gruppen is well equipped to face new capital requirements in relation to the introduction of the Solvency II.
20
The nation's savings bank21
21
The nation s savings bank
A diAppendix
22
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(97.47%)
SpareBank 1Skadeforsikring
(100%)
SpareBank 1 Gruppen Finans
(100%)
SpareBank 1Medlemskort
(100%)Broad cooperation
- Technology- Brand/communication
Conecto(100%)
/- Expertise- Common processes and use of best practice- Purchasing
Regional competence centres(Bank-owned companies)
Unison Forsikring
(100%)
- Payment services: Trondheim- Credit: Stavanger- Training: Tromsø
SpareBank 1 BoligkredittEiendomsMegler 1
BNbankSpareBank 1 Oslo og Akershus
23
Return on equity after tax among selected Nordic financial institutionsfinancial institutions
2011 2010 2009Average
2009-20111H2012 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%
1H2012
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%
24
* Calculated as net profit distributed over average equity.
Source: The companies' interim reports for 1st half-year 2012
SpareBank 1 GruppenKey figures
Q2 Q1 Q4 Q3 Q2 Q1 Year2012 2012 2011 2011 2011 2011 2011
Group
Key figures
pNet result for the period (MNOK) 63.4 199.9 281.5 -4.8 97.2 151.9 525.8Return 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 LivsforsikringRisk result (MNOK) 92.6 29.4 38.5 63.5 70.1 69.4 241.4Administration result (MNOK) -19.0 -7.5 -3.2 -19.8 -24.2 -18.7 -65.9I t t lt (MNOK) 47 0 73 2 3 1 51 6 108 0 205 8 368 5Investment result (MNOK) 47.0 73.2 3.1 51.6 108.0 205.8 368.5Net result for the period (MNOK) 89.1 125.8 193.7 114.6 73.8 129.9 511.9Buffer 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 GroupOperating result before finance (MNOK) 31.1 -19.5 -15.5 0.0 8.2 -29.9 -37.3Net financial income (MNOK) 51 0 194 0 160 8 -62 3 66 8 95 1 260 3Net financial income (MNOK) 51.0 194.0 160.8 62.3 66.8 95.1 260.3Net result for the period (MNOK) 42.2 139.5 90.8 -81.7 41.8 39.8 90.7Claims 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 ForvaltningManagement fees (MNOK) 63.4 67.2 61.8 69.4 85.5 86.8 303.5a age e t ees ( O ) 63 6 6 8 69 85 5 86 8 303 5Net result for the period (MNOK) -1.0 -0.3 -7.0 4.3 8.9 8.6 14.8Total assets under management, cumulative (MNOK) 23,541 26,173 23,433 22,539 30,101 33,348 23,433Market 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 MarketsTotal operating income (MNOK) 40.0 32.9 15.3 12.6 23.5 34.8 86.3Net result for the period (MNOK) -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) 5.4 4.9 4.4 8.4 1.8 4.5 19.1Net result for the period SB1G Finans - parent company (MNOK) 1.0 2.2 4.1 3.7 0.1 1.4 9.3Net 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 allocated
25
SpareBank 1 GruppenResult for 1st half-year 2012
Q2 Q1 Q2 YearFi i MNOK 2012 2012 2011 2012 2011 2011
Half year
Result for 1 half year 2012
Figures in MNOK 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 -0 5 12 2 -2 0 24 1 21 8 - ODIN Forvaltning -1.5 -0.5 12.2 -2.0 24.1 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 28.6Net result before tax from subsidiaries 166.6 223.8 175.9 390.5 373.1 535.1Total operating costs (parent company) -26.1 -33.5 -15.6 -59.6 -43.2 -88.6Net investment charges (parent company) -17.7 -16.8 -15.0 -34.5 -22.1 -59.3Share of associated company 0.0 0.0 0.0 0.0 0.0 0.2Pre-tax result 122.9 173.5 145.4 296.4 307.7 387.3Taxes -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 98.0 264.9 250.4 529.8Minority interest -0.8 -0.8 -0.8 -1.6 -1.3 -4.0
YearHalf year YearKey figures 2012 2011 2011Annualised return on equity 10.5 % 10.5 % 11.1 %
Half year
26
*Of the total operating costs in the year-to-date 2012, MNOK 19 was due to the project aimed at establishing the Group's 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.
SpareBank 1 GruppenQuarterly resultsQuarterly results
Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1Figures in MNOK 2012 2012 2011 2011 2011 2011 2010 2010 2010 2010
Part 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 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 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 0.0 0.0 0.2 0.0 0.0 0.0 0.0 0.0 0.0 0.0p yPre-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 92.8
Majority 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 -0.5
27
SpareBank 1 LivsforsikringResult for 1st half-year 2012Result for 1 half year 2012
Q2 Q1 Q2 YearFigures in MNOK 2012 2012 2011 2012 2011 2011
Half yearg
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 -1,061.7Risk result 102.9 20.7 80.4 123.6 160.6 277.0 Tecnical allocations -10.3 8.7 -10.3 -1.6 -21.1 -35.6Risk result after tecnical allocations 92.6 29.4 70.1 122.0 139.5 241.4 Fees 180 9 184 8 172 8 365 7 343 5 708 6 Fees 180.9 184.8 172.8 365.7 343.5 708.6 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 -247.3Administration 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 -422.6Investment result 47.0 73.2 108.0 120.2 313.8 368.5 Reserves -10.3 -31.3 0.0 -41.6 -33.0 -187.3Investment 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 22.6Result before additional provisions 116.6 70.1 159.8 186.6 388.7 379.4 Undistributed profits to customers -27.7 -15.2 -60.0 -42.9 -178.9 -61.5p Return on company's assets 52.9 39.2 9.2 92.1 28.7 96.2Net 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 97.8Net profit/loss for the period 89.1 125.8 73.8 214.9 203.6 511.9
Key figures Half year Year2012 2011 2011
Capital adequacy ratio 20.0 % 17.1 % 18.5 %Buffer capital in % of insurance provisions 14.8 % 14.0 % 11.0 %
28Buffer capital for the year 2011 is shown after profits have been allocated
SpareBank 1 LivsforsikringProfit per portfolio for 1st half-year 2012Profit per portfolio for 1 half-year 2012
P i l
Figures in MNOKGroup
portfolio
Previouslyestablished
individual productsInvestment choice
portfolioCompanyportfolio Total
Risk result 123.8 -2.9 1.1 0.0 122.0Administration result 33.8 -20.6 -39.6 0.0 -26.4Net investment result 84 4 33 1 1 8 1 0 120 2Net investment result 84.4 33.1 1.8 1.0 120.2Reserves - long life -41.6 0.0 0.0 0.0 -41.6Compensation interest guarantee 12.4 0.0 0.0 0.0 12.4Transferred to policyholders -33.6 -6.5 -2.8 0.0 -42.9Return on company's assets 0.0 0.0 0.0 92.1 92.1Sum 179 2 3 2 39 6 93 1 235 8Sum 179.2 3.2 -39.6 93.1 235.8
29
SpareBank 1 LivsforsikringPremium income trend for 1st half-year 2012Premium income trend for 1 half year 2012
Q2 Q1 Q2 YearFigures in MNOK 2012 2012 2011 2012 2011 2011
Half year
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 273.1 265.1 235.6 538.2 471.8 980.7Total gross due premium income 801.1 1,068.5 739.5 1,869.6 1,757.7 3,325.5 Premium reserves transferred from other companies 194.7 102.4 113.5 297.0 255.5 660.8p Reinsurance ceded -41.2 -28.6 -40.8 -69.8 -81.1 -160.4Premium income for own account 954.5 1,142.3 812.1 2,096.8 1,932.1 3,825.9
30
SpareBank 1 LivsforsikringReturn on customer portfolio with guarantee as at 30/06/2012
Value-adjusted return l di h i l t ti Booked return:excluding change in value construction: Booked return:
Q12012
Q22012
Q12012
Q22012
Q12012
Q22012
Q12012
Q22012 Q1
2012Q2
2012Q1
2012Q2
2012Q1
2012Q2
2012Q1
2012Q2
2012
3.0
2.1
3.5
2.62.8
2.4
nt
2.2
2.8
2.2
ent
2012 2012 2012 2012 2012 2012
2.11.9
1.7Perc
en
1.20.9
1.31.0
1.8
Perc
e
SpareBank 1 Storebrand DNB Livsforsikring Nordea SpareBank 1 Storebrand DNB Livsforsikring Nordea
31Source: company presentations
SpareBank 1 LivsforsikringReturn on ordinary customer portfolio with guarantee as at Return on ordinary customer portfolio with guarantee as at 30/06/2012
7 8Norwegian shares
Percent
7.5
7.8
Foreign shares
Norwegian shares
3.6
1.8
Norwegian bonds
Money market
2 6
4.5
Held to maturity
Foreig bonds
3.5
2.6
Real estate
Held to maturity
32
SpareBank 1 LivsforsikringBalance sheet as of 30/06/2012Balance sheet as of 30/06/2012
YearFigures in MNOK 2012 2011 2011 Intangible assets 134 80 107 Investments 2,851 2,569 2,881 Reinsurance's part of insurance obligations 207 221 223
Half year
Reinsurance's 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 6,896Total 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 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 Oth bli ti 437 406 1 043 Other obligations 437 406 1,043 Accrued liabilities, prepaied income 67 88 73Total liabilities and equity 27,589 25,811 26,607
33
SpareBank 1 Skadeforsikring GroupResult for 1st half-year 2012Result for 1 half year 2012
Q2 Q1 Q2 YH lfQ2 Q1 Q2 YearFigures in MNOK 2012 2012 2011 2012 2011 2011Gross written premium 1,431.1 1,713.1 1,380.6 3,144.2 2,933.9 5,358.2Net earned premium 1,257.3 1,234.5 1,137.7 2,491.8 2,238.5 4,695.9Net incurred claims -931.7 -992.3 -903.9 -1,924.0 -1,824.6 -3,784.0Net insurance operating costs 281 0 262 4 255 2 543 4 496 3 1 074 2
Half year
Net insurance operating costs -281.0 -262.4 -255.2 -543.4 -496.3 -1,074.2Other insurance income/costs 1.7 1.2 8.2 2.9 12.7 31.8Changes in other technical reserves -15.1 -0.5 21.4 -15.6 47.9 93.2Operating result before finance 31.1 -19.5 8.2 11.6 -21.7 -37.3Net financial income 51.0 194.0 66.8 244.9 161.8 260.3Result before changes in security reserve 82.1 174.5 75.0 256.6 140.1 223.0Result before changes in security reserve 82.1 174.5 75.0 256.6 140.1 223.0Changes in security reserve -11.7 -9.0 -18.8 -20.7 -33.6 -37.7Pre-tax profit 70.4 165.5 56.2 235.9 106.5 185.3Taxes -28.2 -26.0 -14.4 -54.2 -25.0 -94.6Net profit/loss for the period 42.2 139.5 41.8 181.7 81.6 90.7
Key figures Q2 Q1 Q2 YearFigures in percentage 2012 2012 2011 2012 2011 2011Claims 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 %C bi d ti t 96 5 % 101 6 % 101 9 % 99 0 % 103 7 % 103 5 %
Half year
Combined ratio, net 96.5 % 101.6 % 101.9 % 99.0 % 103.7 % 103.5 %Capital adequacy ratio 34.1 % 29.0 % 32.8 %
34
ODIN ForvaltningResult for 1st half-year 2012Result for 1 half year 2012
Q2 Q1 Q2 YearFigures in MNOK 2012 2012 2011 2012 2011 2011M t f 63 4 67 2 85 5 130 6 172 3 303 5
Half year
Management fees 63.4 67.2 85.5 130.6 172.3 303.5Total operating income 63.4 67.2 85.5 130.6 172.3 303.5Salaries -25.9 -24.6 -27.5 -50.5 -56.6 -108.5Depreciations -6.8 -6.5 -4.4 -13.3 -8.3 -23.5Other operating costs -32.5 -36.9 -41.2 -69.4 -83.7 -151.1Total operating costs -65.2 -68.0 -73.1 -133.2 -148.7 -283.1Operating profit -1.8 -0.8 12.4 -2.6 23.6 20.3Net financial income 0.4 0.3 -0.2 0.7 0.5 1.5Pre-tax profit -1.5 -0.5 12.2 -2.0 24.1 21.8Taxes 0.5 0.2 -3.3 0.6 -6.6 -7.1Net profit/loss for the period -1.0 -0.3 8.9 -1.3 17.5 14.8
35