preliminary accounts q4 2012 sparebank 1 gruppen as
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Q4Preliminary Accounts 2012
Q4y
Presentation of results from SpareBank 1 Gruppen
Kirsten Idebøen, CEO
14 February 201314 February 2013
The pre-tax profit for 2012 was more than doubled compared with 2011compared with 2011
Pre-tax profit Group (MNOK) – quarterly
• Pre-tax profit: MNOK 787 (387) in 2012 and MNOK 234 (140) in Q4
256234
Q1 Q2 Q3 Q4
• Net profit in 2012: MNOK 439 (526)
• High tax charge due to the MNOK 193 non-recurring effect related to the introduction of new rules concerning the tax
ti d l f lif i i *
162 173145 123
140
exemption model for life insurance companies*
• Return on equity: 8.6 (11.1) %– Adjusted for the extraordinary tax charge, the return on
equity for 2012 was 12 3 %equity for 2012 was 12.3 %
• Total assets: NOK 46.6 (42.0) billion
G d l
-602011 2012
• Good solvency:– Capital adequacy ratio: 14.9 (16.2) %– Core capital adequacy ratio: 13.4 (14.6) %– Well capitalised to satisfy the new, stricter capital
requirements upon introduction of the Solvency II requirements upon introduction of the Solvency II regulations
• SpareBank 1 Gruppen AS (holding company) aims to pay out the net profit for the period, currently calculated at
2
out the net profit for the period, currently calculated at MNOK 687, as dividends
* The new regulations did not include transitional rules related to the tax opening value. The use of historical cost price thus led to a significant non-recurring effect when calculating the latent deferred tax.
Financial performance per business area
619
Pre-tax profit per subsidiary (MNOK) • Record high profit in life insurance. Improved risk and administration results, built up buffer capital and reserves for higher life expectancy
414
479
619
2011 2012
capital and reserves for higher life expectancy.
• Strong improvement in result for P&C insurance. High net financial income and significant
185
improvement in insurance result.
• Negative result in ODIN due to lower average total assets and non-recurring costs185
22 28 25
total assets and non-recurring costs.
• Good income growth in SpareBank 1 Markets. The company substantially strengthened its
-155
-20
-169
Liv
B1 ade 1 ets
1G ans
gposition in the market for bond issues during the year. Deficit in 2012 due to continued build up of a leading capital markets unit.
SB1
L
SB Ska
OD
IN
SB1
Mar
ke
SB1
Fina
• The result in SpareBank 1 Gruppen Finans was affected by a decline in turnover in Conecto and pressure on margins in Factoring. Good income growth in the Portfolio business area
3
growth in the Portfolio business area.
SpareBank 1 Livsforsikring
Improved administration and risk results cont ib ted to a eco d high p e ta p ofitcontributed to a record high pre-tax profit
4
SpareBank 1 LivsforsikringImproved administration and risk results contributed to a record p o ed ad st at o a d s esu ts co t buted to a eco dhigh pre-tax profit
• Pre-tax profit: MNOK 479 (414) in 2012 and MNOK 99 (98) i Q4
P t fit (MNOK) t l
142 145Q1 Q2 Q3 Q4
– The result for Q4 2012 was affected by the increased build up of reserves for higher life expectancy*
– Sales of defined contribution pensions increased by 25.0 % in 2012
Pre-tax profit (MNOK) – quarterly
129
94
10998 99
– Sales of personal insurance increased by 15.3 % in 2012
• Administration result: MNOK -56 (-66) in 2012 and MNOK -27 (-3) in Q4
78( ) Q
– Weaker result in the quarter mainly due to non-recurring costs linked to restructuring
• Risk result: MNOK 292 (241) in 2012 and MNOK 90 (38) in
2011 2012
Risk result: MNOK 292 (241) in 2012 and MNOK 90 (38) in Q4
• Investment result: MNOK 269 (369) in 2012 and MNOK 51 (3) in Q4(3) in Q4
• High tax charge of MNOK -290 (98) due to new rules concerning the tax exemption model. The non-recurring
5
effect linked to the change amounted to MNOK 193
* In December, The Financial Supervisory Authority of Norway (Finanstilsynet) urged life insurance companies to allocate the risk profit from group defined benefit pensions and paid-up policies to provisions for higher life expectancy.
SpareBank 1 LivsforsikringThe company has built up solid buffers
16.3 %
The company has built up solid buffersBuffer capital trend, per quarter (%) Securities adjustment reserve (MNOK) -
accumulatedBuffer capital trend (%) – per quarter617 590
14.6 % 15.2 %14.0 % 14.1 %
11.0 %12.8 %
14.8 %13.6 %
327
185185
2009 2010 2011 2012
Q42010
Q12011
Q22011
Q32011
Q42011
Q12012
Q22012
Q32012
Q42012
Core capital in excess of minimum Interim profitAdditional provisions Securities adjustment reserve
• In 2012, the provisions for higher life expectancy were strengthened by MNOK 83 in defined benefit pensions and now account for 5.4 % of the premium reserve. Additional provisions account for 4.4 %
• Total assets: NOK 29.1 (26.6) billion
• Capital adequacy ratio: 18.5 % - unchanged
• MNOK 62 was allocated in paid-up policies and the provisions now account for 3.3 % of the premium reserve. Additional provisions account for 2.0 %
• The company's total defined benefit pension and paid-up policies portfolio Capital adequacy ratio: 18.5 % unchanged from 2011– The entire subordinated loan comprises core
capital– Estimated solvency margin of 317.4 %,
• The company s total defined benefit pension and paid up policies portfolio amounts to around NOK 7 billion, equivalent to a market share of 2.3 %– Defined benefit pensions: approx. NOK 3 billion in insurance liabilities.
Corresponds to a market share of 2.2%– Paid-up policies: approx. NOK 4 billion in insurance liabilities.
d k h f
6
y g ,compared to 303.5 % in 2011 Corresponds to a market share of 2.5%
SpareBank 1 SpareBank 1 Skadeforsikring GroupHi h t fi i l i d i d i ltHigher net financial income and improved insurance result
7
SpareBank 1 Skadeforsikring GroupHigher net financial income and improved insurance resultg p
• Pre-tax profit: MNOK 619 (185) in 2012 and MNOK 198 (168) in Q4
Q1 Q2 Q3 Q4
• Insurance result: MNOK 62 (-37) in 2012 and MNOK 26 (-16) in Q4– Substantially improved insurance result with increased income
Pre-tax profit (MNOK) - quarterly
166185
168198
y pand lower claims ratio, both in the retail and corporate markets in the parent company, which fell by 5.3 and 12.8 percentage points respectively from 2011 to 2012.
– Claims settlement cost project: Target MNOK 140 in the period Q1 2012 Q2 2013 R li d MNOK 112 Q4 2012
50 5670
Q1 2012 - Q2 2013. Realised MNOK 112 as per Q4 2012
• Net financial income: MNOK 538 (260) in 2012 and MNOK 120 (161) in Q4
-89
( )– Financial return: 5.2 (2.9) %
• Net earned premium NOK 5.1 (4.7) billion, corresponding to a growth of 8 0 %2011 2012 corresponding to a growth of 8.0 %
• Portfolio growth of MNOK 248, corresponding to an increase of 4.8 %. Total portfolio as per 31.12.2012 of
8
p pNOK 5.45 billion.
SpareBank 1 Skadeforsikring GroupIncome growth and lower claims ratio in the retail and corporate g pmarkets in 2012
Combined ratio, net (%) – quarterlyCombined ratio, net (%) – accumulated
*Combined ratio, net – including personal insurance in SB1 Livsforsikring
18.2 18.8 17.418.8
94.0 96.2 97.7103.5
20.0
98.2
17.3 18.417.3
22.2 16.718.5 20.2
105.5101.9
105.8100.7 101.6
96.5 101.593.4
96.8*93.4*
88 2 83 4 88 5 84 9 81 4
24.4
75.8 77.5 80.3 84.678.3
88.2 83.4 88.578.5 84.9 78.0 81.4
69.1
2008 2009 2010 2011
Net claims ratio Net cost ratio
2012
Q12011
Q22011
Q32011
Q42011
Q12012
Q22012
Q32012
Q42012
Net claims ratio Net cost ratio
According to the new regulations, indirect claims settlement expenses shall be classified as claims payments with effect from 2012. This results in an allocation from insurance operating costs to incurred claims. The claims ratio and cost ratio figures for previous years have been estated in acco dance ith the ne eg lations
9
been restated in accordance with the new regulations.
SpareBank 1 MarketsStrengthened position within DCM – and g ppositive income growth
10
SpareBank 1 MarketsStrengthened position within DCM – and positive income growth
• Income growth within all business areas in Q4Results
Strengthened position within DCM – and positive income growth
●Total turnover− 2012: MNOK 150 (86), up 73 %− In Q4: MNOK 50 (15), up 228 %
●Positive operating profit in Q4 before t t i d t t t Th
• In 2012, SpareBank 1 Markets established a formalised cooperation with SpareBank 1 SMN concerning own account trading in bonds and derivatives
restructuring and start-up costs. The gross value created in the SB1-alliance amounted to MNOK 198 for 2012, of which MNOK 48 is recognised as income in the owner banks
Pre tax profit:
• The cooperation supports issuing activities and thus investment capacity
Th i ifi tl t th d it iti i th k t ●Pre-tax profit:− 2012: MNOK -169 (-155)− In Q4: MNOK -15 (-77)
• The company significantly strengthened its position in the market for bond issues during the year
Significantly strengthened market share for bond issues
Booked income 2011-2012 (MNOK) - Quarterly development
SpareBank 1 can through "9 %
p
SpareBank 1 can, through SpareBank 1 Markets, provide the entire capital structure, from bank loans to bonds and equity
"
2 %
2011 2012
11
ODIN ForvaltningO o a gOn the offensive again
12
ODIN Forvaltning Result marked by extraordinary costsResult marked by extraordinary costs
• Pre-tax profit: MNOK -20 (22) in 2012 and
Q1 Q2 Q3 Q4
MNOK -20 (-9) in Q4– Extraordinary costs of MNOK 30 marked the result
• Proactive staff and cost cuts completed -restructuring costs charged against profit
Pre-tax profit (MNOK) - quarterly
12 12
6
1.9
Q Q Q Q restructuring costs charged against profit• The value of goodwill in ODIN's subsidiary in Finland
was written down by MNOK 12.6
M t f MNOK 257 (303) f th -0.5 -1.5
-9
• Management fees: MNOK 257 (303) for the year and MNOK 62 (62) in the quarter– Lower average total assets in 2012 compared with
2011-9
-20
• Total assets: NOK 24.8 (23.4) billion– Up by NOK 0.4 billion in Q4 2012
2011 2012• Market share in equity fund of 8.2 (8.9) % and
4.4 (3.8) % for combination funds
13
ODIN ForvaltningImproved investment process have given results – 10 out of 12 p o ed est e t p ocess a e g e esu ts 0 out oequity funds performed better than their benchmark in 2012
22 8
32.4Fund Benchmark
Return on equity fund as of 31.12.2012 (%)
9.4
19.0
12.610.8
22.8
12.515.2
10.7
3.6 4.1
17.421.0
15.9
10.4
15.4
11.2
20.1
7.2 8.5 10.013.4
-2.8-5.0
ODIN ODIN ODIN ODIN ODIN ODIN ODIN ODIN ODIN ODIN ODIN ODIN Norge Sverige Finland Norden Europa Europa
SMBGlobal Global
SMBEmerging Markets
Maritim Offshore Eiendom I
• 10 out of ODIN's 12 equity funds, all 5 fixed q y ,income funds and all 3 combination funds ahead of their benchmark indices in 2012
14
SpareBank 1 Gruppen Finans GroupSpareBank 1 Gruppen Finans GroupPressure on margins in the factoring business area and weak performance in the debt collection market. Good growth in portfolio activitiesg p
15
SpareBank 1 Gruppen Finans GroupPressure on margins in the factoring business area and weak performance in th d bt ll ti k t G d th i tf li ti itithe debt collection market. Good growth in portfolio activities
Pre-tax profit (MNOK) - accumulated • Pre-tax profit*: MNOK 25.2 (27.9) in 2012 and MNOK 7.2 (5.9) in Q4
• Factoring has enjoyed good growth in the last year, but lower margins affect earnings. Market share increased 24.7
27.9
25.22011
2012 lower margins affect earnings. Market share increased to 15.7 % in 2012 from 14.1 % in 2011
• Higher portfolio volume in 2012 compared to 2011 has contributed to increased income in the portfolio
16.7
2012
contributed to increased income in the portfolio administration**. Total portfolio volume was MNOK 1,504 (1,152) at year-end
Z th i th d bt ll ti k t R d d
14.612.8
6 4 • Zero growth in the debt collection market. Reduced debt collection income in Conecto due to a lower number of referrals
3.5
6.4
• SpareBank 1 Gruppen Finans has in 2012 built a foundation for further growth and profitability. The cooperation with the SpareBank 1 banks will in the future provide new opportunities for cross-sales of debt
ll i i h b k '
Factoring Portfolio Conecto(debt
collection)
SB1G Finans Group
16
collection services to the banks' corporate customers.* Pre-tax profit for SpareBank 1 Gruppen Finans Group also include management and amortisation.** Business area within the acquisition of portfolios of claims that are then recovered by the Group's debt
collection company
Outlook – SpareBank 1 Gruppen
• The SpareBank 1 Alliance is stronger than ever. Both the banks and the product areas are doing well in the current competition situation, and financial performance is good. SpareBank 1 Gruppen will, in close cooperation with the alliance banks, continue its work on strengthening the alliance's position.
• 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 subsidiaries, and the development of stock market prices and interest rates will have a major effect on the Group’s earnings.
• Closer cooperation between the P&C and life insurance business areas is expected to generate increased revenue as a consequence of cross-selling opportunities and a more comprehensive offer for customers. The cooperation will also create a basis for more efficient processes throughout the value chain, increased competitiveness and low costscosts.
17
The nation's savings bank18
18
The nation s savings bank
A diAppendix
19
The SpareBank 1 Alliance has a solid business model, with proximity to the customers and a conservative risk profilep
Shareholders d d b SamSparand distributors SamSpar
19.5% 19.5% 19.5% 12% 19.5% 10%
Products, commissions and dividend
S lSales
BN B k B k 1 O l Ak h SpareBank 1 Skadeforsikring ODIN Forvaltning
SpareBank 1 Gruppen AS
Companies in
BN Bank Bank 1 Oslo Akershus
SpareBank 1 NæringskredittSpareBank 1 Boligkreditt
SpareBank 1 Skadeforsikring(100%)
ODIN Forvaltning(100%)
SpareBank 1 Livsforsikring(100%)
SpareBank 1 Medlemskort(100%)
the SpareBank 1 Alliance
EiendomsMegler 1 SpareBank 1 Markets(97.55 %)
Alliance cooperationBrand, technology, competence, processes, best practice and purchasing.
SpareBank 1 Gruppen Finans(100%)
Resource centres: Payment/Trondheim, credit/Stavanger, training/Tromsø
20
SpareBank 1 GruppenKey figures
Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Year2012 2012 2012 2012 2011 2011 2011 2011 2012 2011
GroupNet result for the period (MNOK) -51 8 227 7 63 4 199 9 281 0 -4 3 97 2 151 9 439 2 525 8
Key figures
Net result for the period (MNOK) -51.8 227.7 63.4 199.9 281.0 -4.3 97.2 151.9 439.2 525.8Return on equity (%) -3.8 % 17.2 % 5.0 % 15.9 % 23.2 % -0.3 % 8.1 % 12.9 % 8.6 % 11.1 %Capital adequacy ratio, cumulative (%) 14.9 % 16.7 % 15.9 % 14.8 % 16.2 % 16.3 % 16.2 % 16.1 % 14.9 % 16.2 %Core capital adequacy ratio, cumulative (%) 13.4 % 15.3 % 14.5 % 13.1 % 14.6 % 14.0 % 13.9 % 12.6 % 13.4 % 14.6 %
SB1 LivsforsikringRisk result (MNOK) 89.8 79.7 92.6 29.4 38.5 63.5 70.1 69.4 291.5 241.4Administration result (MNOK) -26.7 -3.1 -19.0 -7.5 -3.2 -19.8 -24.2 -18.7 -56.2 -65.9Investment result (MNOK) 51 2 97 3 47 0 73 2 3 1 51 6 108 0 205 8 268 8 368 5Investment result (MNOK) 51.2 97.3 47.0 73.2 3.1 51.6 108.0 205.8 268.8 368.5Net result for the period (MNOK) -154.4 128.7 89.1 125.8 193.7 114.6 73.8 129.9 189.2 511.9Buffer capital in % of insurance provisions*, cumulative (%) 13.6 % 16.3 % 14.8 % 12.8 % 11.0 % 14.1 % 14.0 % 15.2 % 13.6 % 11.0 %Capital adequacy ratio, cumulative (%) 18.5 % 19.0 % 20.0 % 17.5 % 18.5 % 18.5 % 17.1 % 19.2 % 18.5 % 18.5 %Securities adjustment reserve, cumulative (MNOK) 590.0 555.5 389.6 465.9 184.9 13.0 326.3 448.2 590.0 184.9
SB1 Skadeforsikring GroupOperating result before finance (MNOK) 25.8 24.9 31.1 -19.5 -16.0 0.5 8.2 -29.9 62.4 -37.3Net financial income (MNOK) 119 8 172 8 51 0 194 0 160 8 62 3 66 8 95 1 537 6 260 3Net financial income (MNOK) 119.8 172.8 51.0 194.0 160.8 -62.3 66.8 95.1 537.6 260.3Net result for the period (MNOK) 147.6 142.6 42.2 139.5 90.3 -81.2 41.8 39.8 471.9 90.7Claims ratio, net (%) 69.1 % 81.4 % 78.0 % 84.9 % 78.5 % 88.5 % 83.4 % 88.2 % 78.3 % 84.6 %Cost ratio, net (%) 24.4 % 20.2 % 18.5 % 16.7 % 22.2 % 17.3 % 18.4 % 17.3 % 20.0 % 18.8 %Combined ratio, net (%) 93.4 % 101.5 % 96.5 % 101.6 % 100.7 % 105.8 % 101.9 % 105.5 % 98.2 % 103.5 %Portfolio (MNOK) 5,446 5,455 5,407 5,328 5,198 5,092 4,986 4,825 5,446 5,198
ODIN ForvaltningManagement fees (MNOK) 62.5 64.0 63.4 67.2 61.8 69.4 85.5 86.8 257.1 303.5Net result for the period (MNOK) -18.6 1.4 -1.0 -0.3 -7.0 4.3 8.9 8.6 -18.5 14.8Total assets under management, cumulative (MNOK) 24,803 24,370 23,541 26,173 23,433 22,539 30,101 33,348 24,803 23,433Market share equity fund, cumulative (%) 8.2 % 8.3 % 8.4 % 8.9 % 8.9 % 8.8 % 9.9 % 10.6 % 8.2 % 8.9 %Market share combination fund, cumulative (%) 4.4 % 4.0 % 4.1 % 3.8 % 3.8 % 3.8 % 3.5 % 3.2 % 4.4 % 3.8 %
SB1 MarketsTotal operating income (MNOK) 50.1 26.6 40.0 32.9 15.3 12.6 23.5 34.8 149.6 86.3p g ( )Net result for the period (MNOK) -12.7 -46.6 -32.6 -32.5 -57.4 -37.3 -15.9 -2.4 -124.4 -113.1
SB1G Finans GroupNet result for the period SB1G Finans Group (MNOK) 5.4 2.7 5.4 4.9 4.4 8.4 1.8 4.5 18.4 19.1Net result for the period SB1G Finans - parent company (MNOK) 4.0 1.8 1.0 2.2 4.1 3.7 0.1 1.4 9.0 9.3Net result for the period Conecto (MNOK) 2.1 1.6 5.0 3.3 2.2 6.7 3.7 5.1 12.0 17.7
21
*) Buffer capital as at Q4 is shown after profits have been allocated
SpareBank 1 GruppenResult for 2012
Figures in MNOK 2012 2011Year
Result for 2012
Figures in MNOK 2012 2011
Part of result from subsidiaries before tax - SpareBank 1 Livsforsikring 479.4 414.1 - SpareBank 1 Skadeforsikring Group 618.9 185.3 - ODIN Forvaltning -20.4 21.8g - SpareBank 1 Markets -168.5 -154.8 - SpareBank 1 Medlemskort 10.4 12.1 - SpareBank 1 Gruppen Finans Group 25.1 27.9 - Correction Group -8.4 28.6Net result before tax from subsidiaries 936.4 535.1Total operating costs (parent company) -75.1 -88.6Net investment charges (parent company) -74.7 -59.3Share of associated company 0.0 0.2Pre-tax result 786.6 387.3Taxes -347.5 138.5Net result for the period 439 2 525 8
*Net result for the period 439.2 525.8
Majority interest 442.2 529.8Minority interest -3.0 -4.0
YearKey figures 2012 2011Annualised return on equity 8.6 % 11.1 %
Year
* High tax in the Group due to the MNOK 193 non-recurring effect related to the introduction of new rules concerning limiting the tax exemption
22
High tax in the Group due to the MNOK 193 non recurring effect related to the introduction of new rules concerning limiting the tax exemption model for shares owned by life insurance companies.
SpareBank 1 GruppenQuarterly resultsQuarterly results
Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3Figures in MNOK 2012 2012 2012 2012 2011 2011 2011 2011 2010 2010
Part of result from subsidiaries before tax - SpareBank 1 Livsforsikring 99.0 144.6 141.8 94.1 98.1 77.7 109.0 129.4 72.5 85.8 - SpareBank 1 Skadeforsikring Group 197.9 185.0 70.4 165.5 167.6 -88.8 56.2 50.3 307.5 253.9 - ODIN Forvaltning -20.3 1.9 -1.5 -0.5 -8.5 6.3 12.2 11.9 16.5 17.0 - SpareBank 1 Markets -14.6 -64.2 -44.9 -44.8 -77.5 -51.8 -22.1 -3.4 -24.0 -29.0 - SpareBank 1 Medlemskort 2.4 2.8 2.4 2.8 4.5 2.0 2.5 3.1 1.9 2.7 - SpareBank 1 Gruppen Finans Group 7.2 3.8 7.5 6.8 5.9 12.2 3.0 6.8 6.6 -4.9 - Correction Group -0.4 1.0 -9.0 0.0 -1.9 16.4 15.1 -0.9 -6.3 -7.4Net result before tax from subsidiaries 271.1 274.9 166.6 223.8 188.1 -26.1 175.9 197.1 374.6 318.1Total operating costs (parent company) -18.4 2.9 -26.1 -33.5 -29.4 -16.0 -15.6 -27.7 -16.5 40.7Net investment charges (parent company) -18.6 -21.6 -17.7 -16.8 -19.2 -18.0 -15.0 -7.1 -15.6 -11.4Share of associated company 0.0 0.0 0.0 0.0 0.2 0.0 0.0 0.0 0.0 0.0Pre-tax result 234.0 256.2 122.9 173.5 139.6 -60.1 145.4 162.4 342.5 347.4Taxes -285.9 -28.5 -59.5 26.4 141.4 55.8 -48.1 -10.5 -18.5 -88.4Net result for the period -51.8 227.7 63.4 199.9 281.0 -4.3 97.2 151.9 324.0 259.1
Majority interest -51.5 228.8 64.2 200.7 282.6 -3.1 98.0 152.4 327.9 263.9Minority interest -0.3 -1.1 -0.8 -0.8 -1.6 -1.1 -0.8 -0.5 -3.9 -4.8
23
SpareBank 1 Livsforsikring Results for Q4 and full year 2012
Q4 Q3 Q2 Q1 Q4Figures in MNOK 2012 2012 2012 2012 2011 2012 2011 Insurance risk income 502.4 380.6 369.1 361.2 348.4 1 613.3 1 338.7
Year
Q y
Insurance risk claims -405.2 -291.5 -266.2 -340.4 -303.6 -1 303.3 -1 061.7Risk result 97.2 89.2 102.9 20.7 44.8 310.0 277.0 Tecnical allocations -7.4 -9.5 -10.3 8.7 -6.3 -18.5 -35.6Risk result after tecnical allocations 89.8 79.7 92.6 29.4 38.5 291.5 241.4 Reserves -50.6 0.0 0.0 0.0 0.0 -50.6 0.0Risk result after tecnical allocations and reserves 39.1 79.7 92.6 29.4 38.5 240.9 241.4
*
Fees 189.2 192.3 180.9 184.8 196.7 747.1 708.6 Expenses, exclusive comissions -144.7 -130.6 -137.4 -128.6 -130.9 -541.3 -527.2 Comissions -71.1 -64.8 -62.5 -63.7 -69.0 -262.1 -247.3Administration result -26.7 -3.1 -19.0 -7.5 -3.2 -56.2 -65.9 Net investment income 171.8 218.8 153.1 188.6 113.7 732.3 791.1 Guaranteed interest to policyholders -120 6 -121 5 -106 1 -115 4 -110 6 -463 6 -422 6 Guaranteed interest to policyholders 120.6 121.5 106.1 115.4 110.6 463.6 422.6Investment result 51.2 97.3 47.0 73.2 3.1 268.8 368.5 Reserves -20.8 -32.2 -10.3 -31.3 -154.3 -94.7 -187.3Investment result after reserves 30.4 65.0 36.7 41.9 -151.2 174.1 181.2 Compensation guaranteed interest 6.8 6.7 6.1 6.3 5.7 25.9 22.6Result before additional provisions 49.7 148.4 116.6 70.1 -110.2 384.7 379.4 Allocation to additional p o isions 11 2 32 5 0 0 0 0 124 8 43 7 0 0 Allocation to additional provisions -11.2 -32.5 0.0 0.0 124.8 -43.7 0.0 Transferred to policyholders 20.7 -20.9 -27.7 -15.2 37.4 -43.1 -61.5 Return on company's assets 39.8 49.6 52.9 39.2 46.1 181.5 96.2Net profit to owner before tax 99.0 144.6 141.8 94.1 98.1 479.4 414.1 Taxes -253.4 -15.9 -52.6 31.7 95.6 -290.2 97.8Net profit/loss for the period -154.4 128.7 89.1 125.8 193.7 189.2 511.9
Key figures Year2012 2011
Capital adequacy ratio 18.5 % 18.5 %Buffer capital in % of insurance provisions 13.6 % 11.0 %
24
p p
* In December, The Financial Supervisory Authority of Norway (Finanstilsynet) urged life insurance companies to allocate the risk profit from group defined benefit pensions and paid-up policies to provisions for higher life expectancy.
SpareBank 1 Livsforsikring Profit per portfolio for 2012Profit per portfolio for 2012
Previously
Figures in MNOKGroup
portfolio
Previouslyestablished
individual productsInvestment choice
portfolioCompanyportfolio Total
Risk result 280.8 13.1 -2.3 0.0 291.5Administration result 68.9 -44.6 -80.4 0.0 -56.2Net investment result 193 9 68 1 4 1 2 6 268 8Net investment result 193.9 68.1 4.1 2.6 268.8Reserves - long life -145.3 0.0 0.0 0.0 -145.3Compensation interest guarantee 25.9 0.0 0.0 0.0 25.9Transferred to policyholders -43.1 -43.7 0.0 0.0 -86.8Return on company's assets 0.0 0.0 0.0 181.5 181.5Sum 381 0 7 1 78 6 184 1 479 4Sum 381.0 -7.1 -78.6 184.1 479.4
25
SpareBank 1 LivsforsikringPremium income trendPremium income trend
Q4 Q3 Q2 Q1 Q4 YearFigures in MNOK 2012 2012 2012 2012 2011 2012 2011 Individual annuity and pension insurance 101.0 79.6 72.3 72.3 72.1 325.3 284.9 Individual endowment insurance 155.6 154.1 150.2 147.9 147.7 607.7 570.6 Group pension insurance 115.0 95.3 74.4 244.3 94.4 528.9 465.6 Individual life insurance 57.3 56.7 55.1 53.8 52.0 223.0 199.0 G lif i 125 0 136 2 132 2 239 1 125 0 632 5 604 4 Group life insurance 125.0 136.2 132.2 239.1 125.0 632.5 604.4 Unit Linked - Annuity 8.3 8.2 8.5 9.3 10.6 34.4 39.0 Unit Linked - Endowment 31.1 31.6 35.2 36.7 44.6 134.7 181.1 Defined contribution pension 305.3 280.3 273.1 265.1 252.3 1 123.8 980.7Total gross due premium income 898.6 842.0 801.1 1 068.5 798.7 3 610.2 3 325.5 Premium reserves transferred from other companies 161 4 116 8 194 7 102 4 216 3 575 2 660 8 Premium reserves transferred from other companies 161.4 116.8 194.7 102.4 216.3 575.2 660.8 Reinsurance ceded -42.4 -42.4 -41.2 -28.6 -36.4 -154.5 -160.4Premium income for own account 1 017.6 916.4 954.5 1 142.3 978.5 4 030.8 3 825.9
26
SpareBank 1 LivsforsikringReturn on customer portfolio with guarantee as at p g31/12/2012Value-adjusted return
l di h i l t ti Booked return:
7 3
Q32012
Q42012
Q32012
Q42012
Q32012
Q42012
Q32012
Q42012
excluding change in value construction: Booked return:
Q32012
Q42012
Q32012
Q42012
Q32012
Q42012
Q32012
Q42012
6.0
4.5 4.5
7.3
6.25.7
5.2
t 3.64.0
4.7
5.6 5.4
4.3
4.0
Perc
ent
3.1 3.0
Perc
ent
SpareBank 1 Storebrand DNB Livsforsikring Nordea SpareBank 1 Storebrand DNB Livsforsikring Nordea
27 Source: company presentations
SpareBank 1 LivsforsikringReturn on ordinary customer portfolio with guarantee as at y p g31/12/2012
16.5Norwegian shares
Percent
3.8
17.2
Money market
Foreign shares
9 9
8.5
Foreign bonds
Norwegian bonds
5.1
9.9
Held to maturity
Foreign bonds
6.0Real estate
28
SpareBank 1 LivsforsikringBalance sheet as of 31/12/2012Balance sheet as of 31/12/2012
Fi i MNOK 2012 2011Year
Figures in MNOK 2012 2011 Intangible assets 165 107 Investments 3 140 2 881 Reinsurance's part of insurance obligations 213 223 Accounts receivable 105 225 Accounts receivable 105 225 Other assets 128 368 Prepayed liabilities and accrued income 6 0 Investments group portfolio 17 062 15 909 Investments options portfolio 8 239 6 896 Investments options portfolio 8 239 6 896Total assets 29 059 26 607 Paid in capital 2 073 1 825 Other equity 428 435 Subordinated loan capital 200 200 Subordinated loan capital 200 200 Insurance obligations - contractual 16 953 15 812 Insurance obligations - investment options 8 347 6 993 Provisions for obligations 275 88 Premium deposits from reinsurance companies 139 139 Premium deposits from reinsurance companies 139 139 Other obligations 553 1 043 Accrued liabilities, prepaied income 90 73Total liabilities and equity 29 059 26 607
29
Asset allocation per portfolio as at 31/12/2012 (31/12/2011):
SB1 Skadeforsikring SB1 Li sfo sik ing
(31/12/2011):
gGroupSB1 Livsforsikring
Group portfolio Company portfolio
12 6 (13 8) % 0 2 ( 4 5) %
Investment choice portfolio
8.2 (7.9) %11.0 (12.7) %
10.1 (10.4) %39.2 (37.4) %
12.6 (13.8) %0.7 (-0.2) %
0.2 (-4.5) %
18.4 (18.8) %46.3 (45.9) %
70.7 (69.0) %27 8 (28 0) % 19.6 (21.0) % 65.7 (60.9) %15 8 (24 8) %
53.2 (54.2) % 70.7 (69.0) %27.8 (28.0) % ( ) 15.8 (24.8) %0.4 (-0.1) %
Stocks Other Bonds
StocksOtherReal estateBonds - amortized costBonds - market value
OtherReal estateBonds - amortized costBonds - market value
StocksReal estateBonds - amortized costBonds - market value
NOK 16.9 (15.7) billion NOK 3.1 (2.9) billion NOK 11.0 (9.6) billionNOK 8.2 (6.9) billion
30
SpareBank 1 Skadeforsikring GroupResults for Q4 and full year 2012
Q4 Q3 Q2 Q1 Q4Figures in MNOK 2012 2012 2012 2012 2011 2012 2011
Year
Results for Q4 and full year 2012
gGross written premium 1 283.6 1 172.6 1 431.1 1 713.1 1 281.4 5 600.4 5 358.2Net earned premium 1 293.4 1 287.9 1 257.3 1 234.5 1 226.8 5 073.1 4 695.9Net incurred claims -893.5 -1 048.2 -980.7 -1 048.5 -963.5 -3 970.9 -3 973.5Net insurance operating costs -315.1 -259.6 -232.1 -206.2 -271.9 -1 012.9 -884.7Other insurance income/costs 0.1 11.3 1.7 1.2 1.5 14.3 31.8Changes in other technical reserves -59.1 33.5 -15.1 -0.5 -8.4 -41.2 93.2Operating result before finance 25.8 24.9 31.1 -19.5 -15.5 62.4 -37.3Net financial income 119.8 172.8 51.0 194.0 160.8 537.6 260.3Other costs -0.1 0.0 0.0 0.0 0.0 -0.1 0.0Result before changes in security reserve 145.6 197.7 82.1 174.5 145.3 599.9 223.0Changes in security reserve 52 4 12 7 11 7 9 0 22 9 19 0 37 7Changes in security reserve 52.4 -12.7 -11.7 -9.0 22.9 19.0 -37.7Pre-tax profit 197.9 185.0 70.4 165.5 168.1 618.9 185.3Taxes -50.3 -42.4 -28.2 -26.0 -77.3 -147.0 -94.6Net profit/loss for the period 147.6 142.6 42.2 139.5 90.8 471.9 90.7
Key figures Q4 Q3 Q2 Q1 Q4Figures in percentage 2012 2012 2012 2012 2011 2012 2011Claims ratio, net 69.1 % 81.4 % 78.0 % 84.9 % 78.5 % 78.3 % 84.6 %Cost ratio, net 24.4 % 20.2 % 18.5 % 16.7 % 22.2 % 20.0 % 18.8 %Combined ratio, net 93.4 % 101.5 % 96.5 % 101.6 % 100.7 % 98.2 % 103.5 %
Year
Capital adequacy ratio 33.7 % 32.8 %
31
ODIN ForvaltningResults for Q4 and full year 2012Results for Q4 and full year 2012
Q4 Q3 Q2 Q1 Q4Figures in MNOK 2012 2012 2012 2012 2011 2012 2011Management fees 62 5 64 0 63 4 67 2 61 8 257 1 303 5
Year
Management fees 62.5 64.0 63.4 67.2 61.8 257.1 303.5Total operating income 62.5 64.0 63.4 67.2 61.8 257.1 303.5Salaries -34.8 -24.8 -25.9 -24.6 -25.5 -110.1 -108.5Depreciations -6.4 -6.3 -6.8 -6.5 -10.2 -26.0 -23.5Other operating costs -30.0 -31.2 -32.5 -36.9 -34.9 -130.5 -151.1T t l ti t 71 1 62 3 65 2 68 0 70 5 266 6 283 1Total operating costs -71.1 -62.3 -65.2 -68.0 -70.5 -266.6 -283.1Operating profit -8.6 1.7 -1.8 -0.8 -8.7 -9.6 20.3Net financial income -11.7 0.2 0.4 0.3 0.2 -10.8 1.5Pre-tax profit -20.3 1.9 -1.5 -0.5 -8.5 -20.4 21.8Taxes 1.7 -0.5 0.5 0.2 1.5 1.9 -7.1Net profit/loss for the period -18.6 1.4 -1.0 -0.3 -7.0 -18.5 14.8
32