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Download presentation from press conference October 28th 2010. Presented by CEO Kirsten Idebøen.
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3rd quarter 2010Presentation of results
SpareBank 1 Gruppen
Kirsten Idebøen, CEO
28 October 2010
2
Highlights
• Good earnings performance for SpareBank 1 Gruppen in the 3rd quarter
• SpareBank 1 Skadeforsikring reports the lowest quarterly claims ratio in four years in the 3rd quarter
• Argo Securities establishes SpareBank 1 Markets in collaboration with the alliance banks. The aim is to strengthen SpareBank 1's position within the markets-area
• Strategic focus within receivables management
– Acquisition of the debt collection company Conecto AS was completed in the 3rd quarter
– New structure for SpareBank 1 Gruppen Finans with focus on growth, control and greater efficiency
• The Delta profitability project is ahead of schedule and has contributed to a net result improvement of MNOK 77 year to date
3
Good year-to-date earnings performance for SpareBank 1 Gruppen
• Pre-tax profit as of Q3 was MNOK 643 (818). Pre-tax profit for Q3 was MNOK 347 (358)*
• Profit after tax as of Q3 was MNOK 508 (567). Profit after tax for Q3 was MNOK 259 (330)
• Annualised return on equity was 15.8 % (19.1 %) year to date and 24.4 % (35.0 %) for Q3 alone
• Total assets as of 30 September 2010 was NOK 39.8 billion, up NOK 3.3 billion from 31 December 2009
• Core ratio and capital ratio were 11.5 % and 16.7 % as of 30 September 2010**, compared with 15.0 % and 20.9 % at year-end 2009
• MNOK 43 were recognised as income in Q3 in connection with employer's National Insurance contributions, associated with a ten year-old tax case, that SpareBank 1 Gruppen AS previously had covered on behalf of First Securities
Group pre-tax profit, quarterly
* Comparison figures for 2009 have been restated and do not include Bank 1 Oslo
Group. Including Bank 1 Oslo Group, the pre-tax profit as of the 3rd quarter 2009 would
have been MNOK 974
** Year-to-date profit has not been included in the calculation of the capital adequacy
ratio
6887
131163
374
164
24
358 347
0
50
100
150
200
250
300
350
400
450
2008 2009 2010
MN
OK
Pre-tax profit - Q1 Pre-tax profit - Q2 Pre-tax profit - Q3
4
361
306
262
79
16
321
286
148
21
2H 20101H 20102H 20091H 2009 3Q 2010
Delta profitability project still ahead of schedule in realising profitability effects, and has contributed to a net result effect of MNOK 77 year to date
REALISED EFFECTS AS OF 30 SEPTEMBER 2010* (excluding Bank 1 Oslo)
*A completed measure qualifies for full annual effect. This method ensures focus on implementation.
Realisation of profitability effects over time (MNOK, cumulative annual effect)
Realised effects
Planned
PROFIT EFFECT FROM THE DELTA PROFITABILITY PROJECT AS OF 30 SEPTEMBER 2010 (MNOK)
**Costs of MNOK 55 related mainly to IT development
and the use of consultants. Costs of MNOK 20 were recognised in Q3 2010.
55
34
77
96
Permanent profit improvement as of 30.09.10
55
SB1 Skade
Others
34
SB1 Liv
77
One-off implementation
costs as of 30.09.10**Net profit effect as of 30.09.10
96
77
55
34
77
277
96
132
5
SpareBank 1 LivsforsikringGood risk result and solid buffer capital
6
SpareBank 1 Livsforsikring
Good risk result and solid buffer capital
• Pre-tax profit as of Q3 was MNOK 278 (311). Pre-tax
profit for Q3 was MNOK 86 (81)
• Risk result was MNOK 260 (277) year to date. Risk
result was MNOK 72 (87) for Q3
• Investment result was MNOK 269 (432) as of Q3.
Investment result was MNOK 71 (132) for Q3
• Provisions for increased life expectancy amounted to
MNOK 36 year to date and MNOK 12 for Q3
• Total assets amounted to NOK 25.6 billion as of 30
September 2010 , up NOK 1.3 billion from year-end
2009
Pre-tax profit, quarterly
Risk result trend
-52
2492
44
206
100
-335
81 86
-400
-300
-200
-100
0
100
200
300
2008 2009 2010
MN
OK
Pre-tax profit/loss - Q1 Pre-tax profit/loss - Q2 Pre-tax profit/loss - Q3
130
277260
210
352
0
50
100
150
200
250
300
350
400
2008 2009 2010M
NO
K
YTD Year-end
7
SpareBank 1 Livsforsikring
Solid buffer capital
• Core and capital adequacy ratio estimated at
20.1 % and 18.3 % as of 30.09.10, compared
with 19.0 % and 16.1 % as of 31.12.09
• The buffer capital, including the year-to-date
profit, amounted to NOK 2.5 billion as of Q3,
which corresponds to 16.1 % (13.7 %) of the
insurance provisions
• Estimated solvency margin by the end of
September was 306 % (242 %)
• Additional provisions amounted to MNOK 274,
compared with MNOK 289 at the end of 2009
• The securities adjustment reserve was MNOK
410, compared with MNOK 327 at year-end 2009
Development in buffer capital
6.0 %
11.7 %
13.7 %
11.7 %
13.0 %
15.4 %16.1 %
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
Q12009
Q22009
Q32009
Q42009
Q12010
Q22010
Q32010
Pe
rce
nt
Core capital in excess of minimum Interim profit
Additional provisions Securities adjustment reserve
8
SpareBank 1 Livsforsikring
Value adjusted return for customer portfolios with guarantee year to date
(excluding change in value construction)
Source: company presentations
2.1
1.5
4.6
4.1 4.03.7
1.61.4
0
1
2
3
4
5
SpareBank 1 Storebrand Vital Nordea
Pro
se
nt
Q22010
Q32010
Q22010
Q32010
Q22010
Q32010
Q22010
Q32010
*
* Booked return as of 3rd quarter was 4.0%
9
SpareBank 1 Skadeforsikring GroupPositive insurance result development year to date
10
SpareBank 1 Skadeforsikring Group
Positive insurance result development year to date
• Pre-tax profit was MNOK 334 (506) as of Q3. Pre-tax profit for Q3 was MNOK 254 (251), inclusive of a pre-tax loss from Unison Forsikring of MNOK -9 from the date of the acquisition, of which MNOK 7 was non-recurring costs related to the acquisition
• Insurance result was MNOK 144 (118) as of Q3. Insurance result in Q3 was MNOK 121 (96)
• Net combined ratio was 96.8 % (95.1 %) as of 30 September 2010 and 89.8 % (90.9 %) in Q3
– Net cost ratio was 20.0 % (21,7 %) as of Q3 and 22.7 % (21.8 %) in Q3
– Net claims ratio was 76.7 % (73.4 %) as of Q3. The net claims ratio in Q3 was 67.1 % (69.2 %)
• Net financial income was MNOK 232 (405) year to date. Financial return year to date was 2.7 % (5.2 %)
• Positive portfolio growth in both private and corporate markets as of 30 September 2010. Total portfolio growth of MNOK 255 (196) from year-end 2009, which represents 6.3 % (5.1 %)
Pre-tax profit, quarterly
54 4836
125
207
4358
251 254
0
50
100
150
200
250
300
2008 2009 2010
MN
OK
Pre-tax profit - Q1 Pre-tax profit - Q2 Pre-tax profit - Q3
11
SpareBank 1 Skadeforsikring Group
Low claims ratio in Q3
Net combined ratio - quarterlyNet combined ratio - cumulative
79.5
%
71.7
%
69.2
%
74.8
%
88.3
%
75.9
%
67.1
%
21.1
%
22.2
%
21.8
%
24.8
% 20.2
%
17.1
%
22.7
%
0.0 %
20.0 %
40.0 %
60.0 %
80.0 %
100.0 %
120.0 %
Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010
Net claims ratio Net cost ratio
100.6%93.9 % 90.9 %
99.6%
108.6%
92.9 %89.8 %
79.5
%
75.6
%
73.4
%
73.8
%
88.3
%
82.0
%
76.7
%
21.1
%
21.7
%
21.7
%
22.5
%
20.2
%
18.6
%
20.0
%
0 %
20 %
40 %
60 %
80 %
100 %
Per Q1 2009
Per Q2 2009
Per Q3 2009
Per Q4 2009
Per Q1 2010
Per Q2 2010
Per Q3 2010
Net claims ratio Net cost ratio
100.6 %95.1 %97.2 %
108.5 %
100.6 %96.8 %96.2%
12
ODIN ForvaltningIncreased assets under management
13
ODIN Forvaltning
Increased assets under management
• Pre-tax profit was MNOK 48 (18) year to date. Pre-tax profit in Q3 was MNOK 17 (16)
• Total assets have increased by NOK 1.0 billion from year-end 2009 and amounted to NOK 29.0 billion as of 30 September 2010
• In September ODIN entered into an agreement to acquire SpareBank 1 SR-Fondsforvaltning AS. Consequently, ODIN will add combination funds to the range of funds offered from early 2011
• In October 2010 ODIN launched a mass-market version of ODIN Eiendom (Real Estate), a Nordic industry fund that invests in shares in companies that are engaged in the property market and property related businesses. The fund has provided a 17 % annual return since it was established for over ten years ago
Pre-tax profit, quarterly
30
-7
14
29
10
17
26
16 17
-10
-5
0
5
10
15
20
25
30
35
2008 2009 2010
MN
OK
Pre-tax profit/loss - Q1 Pre-tax profit - Q2 Pre-tax profit - Q3
14
Argo SecuritiesStronger position through the "SpareBank 1Markets" collaboration
15
Q3 2009
Q4 2009
Q1 2010
Q2 2010
Q3 2010
• Pre-tax loss was MNOK -34 (-39) as of Q3. Pre-tax loss in Q3 was MNOK -29 (-15)
– Provisions for employee bonuses were allocated in Q3
• Positive development in revenue year to date compared with the same period last year
– Commission income on stocks and derivatives amounted to MNOK 27 (17)
– Debt capital markets was MNOK 12 (5)
– Fee income Corporate Finance totalled MNOK 17 (1)
• SpareBank 1 Nord-Norge Markets, SpareBank 1 SMN Markets, SpareBank 1 SR-Bank Markets and Argo Securities will establish "SpareBank 1 Markets"
– Finansavisen, 26 October 2010: ”Bank-owned brokerage firms that can guarantee for new issues have been preferred as facilitators in the turbulent market over the last two years”
– SpareBank 1 Markets is a formalised collaboration to strengthen the markets area, including, for example, a pooled ledger balance of NOK 2.4 billion, which will be used to guarantee equity and debt capital transactions
Argo Securities
Stronger position through the "SpareBank 1 Markets" collaboration
Pre-tax loss, quarterly
Ranking in Oslo Børs's brokerage statistics
32
26
1514 8
-12.9
-2.7
-11.9
-1.9
-14.6
-29.0
-35.0
-30.0
-25.0
-20.0
-15.0
-10.0
-5.0
0.0
2009 2010
Pre-tax loss - Q1 Pre-tax loss - Q2
Pre-tax loss - Q3
16
SpareBank 1 Gruppen FinansStrategic focus within receivables management
17
0.0
5.0
-1.2
20.4
0.0
20.2
-7.5
-0.5
1.4
11.4
1.2 2.0
-8
-4
0
4
8
12
16
20
YTD 2009 YTD 2010
*
SpareBank 1 Gruppen Finans
Strategic focus within receivables management
*Conecto was acquired with accounting effect from 10 September 2010. The profit up to the acquisition date was recorded directly against equity
Pre-tax profit/loss as of Q3 2010
MN
OK
Fo
rdri
ng
s-
forv
alt
nin
g
Fac
tori
ng
Co
ne
cto
SB
1G
Fin
an
s
Gro
up
• SpareBank 1 Gruppen Finans reported a pre-tax profit of MNOK 2 (20) year to date
• The Factoring business area reported a pre-tax loss of MNOK -0.5 (5), marked by a loss provision of MNOK 10.5, related to a bankruptcy commitment, MNOK 5.5 of which was allocated in Q3
− Client revenues as of Q3 of NOK 7 billion increased by 23.1 % compared with the same period in 2009
− SpareBank 1 Factoring shows the strongest growth in the market and has a market share of 11 % (4th
place)
• The pre-tax profit for Actor Fordringsforvaltning of MNOK 11 (20) was affected by mandatory reduction in debt recovery fees and increased personnel expenses
Ma
nag
e-
me
nt
Po
rte
følje
18
SpareBank 1 Gruppen Finans
Simplified legal structure implemented in Q3
Old structure New structure
Actor Fordringsforvaltning
(100%)
Actor Verdigjenvinning
(100%)
SpareBank 1 Gruppen Finans
(100%)
SpareBank 1 Gruppen
SpareBank 1 Gruppen
SpareBank 1 Gruppen Finans
Holding(100%)
SpareBank 1 Factoring(100%)
Actor Fordringsforvaltning
(100%)
Actor Portefølje(100%) Conecto
(100%)
19
• Combined, SpareBank 1-owned Actor Fordringsforvaltning and Conecto represent the third largest debt collection company in Norway
• Actor Fordringsforvaltning and Conecto will be merged as of 1 January 2011. The merger will contribute to:
− Income-related diversification
− Increased access to expertise and systems
− Improved quality, competitiveness and business models
SpareBank 1 Gruppen Finans
Acquisition of debt collection company Conecto AS in Q3 strengthens SpareBank 1 Gruppen's countercyclical business
* Shows the combined revenues for Conecto and Actor Fordringsforvaltning
** Revenues for Actor Fordringsforvaltning as of 31 December 2009 include Actor Verdigjenvinning
Ranking Revenue
31.12.2009 Company (MNOK)
1 Lindorff 870
2 Kredinor 370
3 Conecto/Actor Fordringsforvaltning 157*
4 Aktiv Kapital 102
5 Gothia AS 100
6 Intrum Justitia 78
7 Sergel 70
8 Creno 60
Number of
Company Revenue (MNOK) employees
Conecto 78 86
Actor Fordringsforvaltning** 79 59
20
Competitive return on equity among selectedNordic financial institutions
SpareBank 1 Gruppen 15.8 % 17.5 %
Handelsbanken 12.9 % 12.6 %
Nordea 11.0 % 11.3 %
Storebrand 3.9 % 5.6 %
Danske Bank 3.4 % 1.0 %
Gjensidige 10.8 % 11.3 %
DnB NOR 12.2 % 10.6 %
3rd quarter 2010* Year 2009**
Source: Companies' interim reports for 2010 and annual reports for 2009
*For comparison purposes only, the annualised return on equity is calculated on the basis of the profit for the period (profit attributable to shareholders)**The annualised return on equity for 2009 is based on the companies’ annual reports for 2009
2121
The nation's savings bank
22
Appendix
23
SpareBank 1 Gruppen AS
SpareBank 1SR-Bank (19.5 %)
SpareBank 1SMN
(19.5%)
SpareBank 1Nord-Norge
(19.5%)
SparebankenHedmark (12%)
SamarbeidendeSparebanker
(19.5%)
LO (Trade Union)(10%)
Alliance Cooperation
SpareBank 1Livsforsikring
(100%)
SpareBank 1Skadeforsikring
(100%)
ODIN Forvaltning
(100%)
Actor Fordringsforvaltning
(100%)
Argo Securities(76.75%)
Conecto(100%)
SpareBank 1 Gruppen Finans
(100%)
SpareBank 1Medlemskort
(100%)Broad cooperation
- Technology- Brand/communication- Expertise- Joint processes and best practice- Purchasing
Regional competence centres- Payment services: Trondheim- Credit: Stavanger- Training: Tromsø
(Bank-owned companies)
SpareBank 1 BoligkredittEiendomsMegler 1
BNbankSpareBank 1 Oslo og Akershus
UNISON
(100%)
SpareBank 1 Alliance
24
18
6
48
20
50
100
150
200
SB
1
L
ivs
fors
.
SB
1
S
ka
de
fors
.
OD
IN
Oth
er
MN
OK
Pre-tax profit - YTD 2009 Pre-tax profit - YTD 2010
311
506
186
278
334
48
20
50
100
150
200
250
300
350
400
450
500
550
SB
1
L
ivs
fors
.
SB
1
Sk
ad
efo
rs.
OD
IN
Øv
rig
e/
jus
teri
ng
er
MN
OK
Resultat før skatt per 3. kv 2009 Resultat før skatt per 3. kv 2010
Earnings performance by company year to date
• Solid buffers in SpareBank 1 Livsforsikring
• Positive insurance result development for
SpareBank 1 Skadeforsikring. Unison
Forsikring became a wholly owned subsidiary
of SpareBank 1 Skadeforsikring in Q3
• Increased assets under management in ODIN
Forvaltning
Pre-tax profit in subsidiaries
25
Year
Figures in MNOK 2010 2009 2009
Part of result from subsidiaries before tax
- SpareBank 1 Livsforsikring 277.9 311.2 392.2
- Additional provisions recognised as
income in consolidated accounts 0.0 0.0 0.0
- SpareBank 1 Skadeforsikring 333.6 505.8 621.1
- ODIN Forvaltning 48.2 18.1 42.1
- Argo Securities -33.6 -39.4 -48.9
- SpareBank 1 Medlemskort 9.3 11.4 12.1
- SpareBank 1 Gruppen Finans Group 2.0 20.2 22.5
- Correction Group 23.9 13.4 4.8
Net result before tax from subsidiaries 661.4 840.7 1,046.0
Total operating costs (parent company) 8.8 -38.6 -54.1
Net investment charges (parent company) -27.6 -26.5 -36.3
Gains from sale of companies 0.0 29.2 29.2
Share of associated company 0.0 13.5 10.8
Net result before amortisation 642.6 818.4 995.5
Amortisation 0.0 0.0 0.0
Pre-tax result 642.6 818.4 995.5
Taxes -135.1 -251.2 -260.5
Net result for the period 507.5 567.2 735.1
Majority interest 513.3 574.3 743.9
Minority interest -5.8 -7.1 -8.8
Year to date
SpareBank 1 Gruppen
Profit year to date 2010
*
* Consists primarily of actuarial gains and losses on pensions, revaluation of property and adjustment of insurance liabilities** MNOK 43 were recognised as income in Q3 2010 in connection with employer's National Insurance contributions, associated with a ten year-old tax case, that SpareBank 1 Gruppen AS had previously covered on behalf of First Securities
**
Year
Key figures 2010 2009 2009
Annualised return on equity 15.8% 19.1% 17.5%
Year to date
26
SpareBank 1 Gruppen
Quarterly profits
Q3 Q2 Q1 Q4 Q3 Q2 Q1
Figures in MNOK 2010 2010 2010 2009 2009 2009 2009
Part of result from subsidiaries before tax
- SpareBank 1 Livsforsikring 85.8 100.3 91.9 81.0 81.2 205.6 24.4
- Additional provisions recognised as
income in consolidated accounts 0.0 0.0 0.0 0.0 0.0 -42.0 42.0
- SpareBank 1 Skadeforsikring Group 253.9 43.4 36.3 115.3 272.8 184.9 48.1
- ODIN Forvaltning 17.0 16.7 14.4 24.0 16.0 9.6 -7.5
- Argo Securities -29.0 -1.9 -2.7 -9.5 -14.6 -11.9 -12.9
- SpareBank 1 Medlemskort 2.7 3.3 3.4 0.7 1.8 4.1 5.6
- SpareBank 1 Gruppen Finans Group -4.9 7.0 -0.1 2.3 3.9 11.0 5.3
- Correction Group -7.4 16.3 15.1 -8.6 12.0 -6.0 7.4
Net result before tax from subsidiaries 318.1 185.1 158.2 205.2 373.1 355.4 112.3
Total operating costs (parent company) 40.7 -11.9 -20.0 -15.5 -13.2 -12.1 -13.3
Net investment charges (parent company) -11.4 -9.3 -6.9 -9.8 -2.1 -7.0 -17.3
Gains from sale of companies 0.0 0.0 0.0 0.0 0.0 29.2 0.0
Share of associated company 0.0 0.0 0.0 -2.8 0.0 8.4 5.1
Net result before amortisation 347.4 163.9 131.3 177.2 357.7 373.8 86.8
Amortisation 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Pre-tax result 347.4 163.9 131.3 177.2 357.7 373.8 86.8
Taxes -88.4 -8.3 -38.5 -9.3 -27.3 -131.4 -92.5
Net result for the period 259.1 155.6 92.8 167.9 330.4 242.4 -5.7
Majority interest 263.9 156.1 93.3 169.6 333.1 244.6 -3.4
Minority interest -4.9 -0.4 -0.5 -1.7 -2.6 -2.1 -2.3
27
SpareBank 1 Livsforsikring
Profit year to date 2010
The company's accounts did not show the tax cost in 2009 since the tax benefit was not included in accordance with the IAS 12 accounting standard. The group contribution in Q2 2010 resulted in a net deferred tax liability of MNOK 10.8. The company's total tax cost amounted to MNOK 42.7 year to date
Q3 Q2 Q1 Q3 Year
Figures in MNOK 2010 2010 2010 2009 2010 2009 2009
Insurance risk income 327.3 321.7 315.3 303.9 964.3 919.0 1,220.6
Insurance risk claims -250.1 -213.4 -209.3 -208.0 -672.8 -610.5 -829.4
Risk result 77.1 108.3 106.0 95.9 291.5 308.5 391.2
Tecnical allocations -5.5 -11.6 -14.2 -8.5 -31.3 -31.1 -38.9
Risk result after tecnical allocations 71.6 96.7 91.8 87.4 260.1 277.4 352.3
Fees 161.1 164.1 146.3 148.2 471.4 423.1 563.2
Expenses, exclusive comissions -147.0 -144.5 -131.2 -132.7 -422.6 -404.7 -554.7
Comissions -58.7 -59.4 -55.9 -49.7 -174.0 -144.3 -201.6
Administration result -44.6 -39.8 -40.8 -34.2 -125.2 -125.9 -193.1
Net investment income 177.0 234.0 176.3 241.8 587.4 765.5 1,002.4
Guaranteed interest to policyholders -106.3 -105.5 -107.0 -110.3 -318.8 -333.3 -445.0
Investment result 70.8 128.5 69.3 131.5 268.6 432.2 557.4
Reserves -12.0 -12.0 -12.0 0.0 -36.0 0.0 -74.5
Investment result after reserves 58.8 116.5 57.3 131.5 232.6 432.2 482.9
Compensation guaranteed interest 7.5 9.7 5.2 3.7 22.4 10.9 14.6
Result before additional provisions 93.2 183.1 113.6 188.3 389.9 594.6 656.7
Undistributed profits to customers -39.6 -79.3 -42.2 -93.7 -161.0 -316.1 -337.4
Return on company's assets 32.1 -3.5 20.5 -13.4 49.1 32.7 73.0
Net profit to owner before tax 85.8 100.3 91.9 81.2 277.9 311.2 392.2
Taxes -24.9 -17.8 0.0 0.0 -42.7 0.0 0.0
Net profit/loss for the period 60.9 82.5 91.9 81.2 235.2 311.2 392.2
Key figures Year to date Year
2010 2009 2009
Capital adequacy ratio 20.1 % 18.3 % 19.0 %
Buffer capital in % of insurance provisions 16.1 % 13.7 % 11.7 %
Year to date
28
SpareBank 1 Livsforsikring
Profit by portfolio year to date 2010
Figures in MNOK
Group
portfolio
Previously
established
individual products
Investment choice
portfolio
Company
portfolio Total
Risk result 252.2 7.5 0.4 0.0 260.1
Administration result 25.2 -42.7 -107.8 0.0 -125.2
Net investment result 188.6 78.0 0.5 1.5 268.6
Reserves - long life -0.2 -35.8 0.0 0.0 -36.0
Compensation interest guarantee 22.4 0.0 0.0 0.0 22.4
Transferred to policyholders -155.5 -4.6 -1.0 0.0 -161.0
Return on company's assets 0.0 0.0 0.0 49.1 49.1
Sum 332.8 2.5 -107.9 50.6 277.9
29
SpareBank 1 Livsforsikring
Premium income trends
Q3 Q2 Q1 Q3 Year to date Year
Figures in MNOK 2010 2010 2010 2009 2010 2009 2009
Individual annuity and pension insurance 68.6 83.1 75.2 64.1 226.9 192.2 269.6
Individual endowment insurance 129.5 128.9 126.9 121.7 385.4 361.2 486.7
Group pension insurance 105.4 72.1 252.1 109.4 429.5 476.9 564.1
Individual life insurance 46.1 45.4 44.5 43.1 136.0 127.1 171.0
Group life insurance 130.1 125.8 209.8 128.7 465.7 456.9 575.0
Unit Linked - Annuity 10.4 10.8 13.7 11.2 34.9 33.9 47.9
Unit Linked - Endowment 53.9 55.4 59.0 67.8 168.2 188.8 258.3
Defined contribution pension 224.6 216.6 200.0 185.2 641.2 569.0 753.7
Total gross due premium income 768.6 737.9 981.3 731.1 2,487.9 2,405.9 3,126.4
Premium reserves transferred from other companies 64.8 80.5 80.8 90.9 226.1 240.4 285.4
Reinsurance ceded -34.2 -42.0 -43.5 -39.0 -119.7 -118.7 -157.7
Premium income for own account 799.2 776.4 1,018.6 783.0 2,594.2 2,527.5 3,254.1
30
Stocks Other BondsStocks Other
Real estate Bonds held to maturity
Bonds
Stocks Other
Real estate Bonds held to maturity
Bonds
SpareBank 1 Livsforsikring
Asset allocation by portfolio
NOK 15.8 (15.5) billion NOK 2.8 (2.5) billion NOK 6.3 (5.6) billion
As of 30.09.2010 *)
37.4 (34.2) %
22.0 (24.3) %
14.0 (14.5) %
21.4 (21.7) %
5.1 (5.2) %20.2 (19.4) %
0.1 (0.1) %
46.9 (48.7) %
11.2 (14.7) %
21.6 (17.0) %
34.7 (31.5) %
59.3 (61.4) %6.0 (7.1) %
* Figures in brackets are as of 31.12.09
**
** The reduction came as a result of reducing shareholding in Group Pension Insurance to 10 % in 1st half-year 2010
Group portfolio Company portfolio Investment choice portfolio
31
SpareBank 1 Livsforsikring
Return on ordinary customer portfolio with guarantee as of 30.09.10
7.1
4.1
8.2
4.6
1.8
3.3
1.7
0 2 4 6 8 10
Real estate
Held to maturity
Foreign bonds
Norwegian bonds
Money market
Foreign shares
Norwegian shares
Percent
32
2.8
1.6
4.0
3.2
3.8
3.1
1.6
2.1
0
1
2
3
4
5
SpareBank 1 Storebrand Vital Nordea
Pe
rce
nt
SpareBank 1 Livsforsikring
Booked return on customer portfolios with guarantee year to date
Source: company presentations
Q22010
Q32010
Q22010
Q32010
Q22010
Q32010
Q22010
Q32010
33
SpareBank 1 Livsforsikring
Balance sheet as of 30 September 2010
Year
Figures in MNOK 2010 2009 2009
Intangible assets 28 61 38
Investments 2,837 2,013 2,498
Reinsurance's part of insurance obligations 228 217 221
Accounts receivable 119 585 90
Other assets 170 300 241
Prepayed liabilities and accrued income 0 0 0
Investments group portfolio 15,978 15,386 15,629
Investments options portfolio 6,256 5,221 5,576
Total assets 25,616 23,783 24,294
Paid in capital 1,602 1,243 1,243
Other equity 622 616 397
Subordinated loan capital 400 525 525
Insurance obligations - contractual 15,843 15,449 15,513
Insurance obligations - investment options 6,348 5,300 5,658
Provisions for obligations 149 100 88
Premium deposits from reinsurance companies 133 127 129
Other obligations 443 307 658
Accrued liabilities, prepaied income 77 118 83
Total liabilities and equity 25,616 23,783 24,294
Year to date
34
SpareBank 1 Skadeforsikring Group
Profit year to date 2010
Q3 Q2 Q1 Q3 Year
Figures in MNOK 2010 2010 2010 2009 2010 2009 2009
Gross written premium 1,059.1 1,171.9 1,325.2 944.7 3,556.2 3,266.8 4,271.2
Net earned premium 1,077.0 1,007.0 965.4 971.0 3,049.4 2,831.3 3,814.3
Net incurred claims -722.7 -764.0 -852.5 -671.6 -2,339.3 -2,077.3 -2,813.1
Net insurance operating costs -244.1 -171.8 -195.1 -211.3 -611.0 -614.2 -858.0
Other insurance income/costs 17.4 -0.5 -0.4 -1.6 16.6 -0.1 0.8
Changes in other technical reserves -6.3 4.6 29.9 9.2 28.2 -21.1 -27.5
Operating result before finance 121.3 75.3 -52.8 95.6 143.9 118.4 116.6
Net financial income 149.0 -15.0 97.6 160.3 231.6 404.5 532.6
Other costs -0.7 -1.0 -1.0 -1.1 -2.7 -4.7 -5.8
Result before changes in security reserve 269.7 59.4 43.8 254.8 372.8 518.2 643.3
Changes in security reserve -15.8 -15.9 -7.5 -4.2 -39.2 -12.4 -22.2
Pre-tax profit 253.9 43.4 36.3 250.6 333.6 505.8 621.1
Taxes -54.0 -12.2 5.4 -58.3 -60.8 -124.5 -118.1
Net profit/loss for the period 199.9 31.2 41.7 192.3 272.8 381.3 503.0
Key figures Q3 Q2 Q1 Q3 Year
Figures in percentage 2010 2010 2010 2009 2010 2009 2009
Claims ratio, net 67.1 % 75.9 % 88.3 % 69.2 % 76.7 % 73.4 % 73.8 %
Cost ratio, net 22.7 % 17.1 % 20.2 % 21.8 % 20.0 % 21.7 % 22.5 %
Combined ratio, net 89.8 % 92.9 % 108.5 % 90.9 % 96.8 % 95.1 % 96.2 %
Capital adequacy ratio 27.2 % 27.0 % 34.2 %
Year to date
Year to date
35
Bonds held as current assets
Bonds held to maturity
Real state
Stocks
Bank
Hedgefond
SpareBank 1 Skadeforsikring Group
Allocation of financial assets
NOK 8.1 (8.2) billion
As of 30.09.2010 *)
* Figures in brackets are as of 31.12.09
65.3 (64.3) %
11.5 (11.0) %
14.6 (14.4) %
0.1 (0.3) %0.1 (2.9) % 8.4 (7.1) %
36
ODIN Forvaltning
Profit year to date 2010
Q3 Q2 Q1 Q3 Year
Figures in MNOK 2010 2010 2010 2009 2010 2009 2009
Management fees 78.0 79.6 78.3 66.9 235.9 170.2 244.8
Subscription and redemption fees 0.0 0.0 0.0 6.1 0.0 19.1 25.9
Total operating income 78.0 79.6 78.3 73.0 235.9 189.3 270.7
Salaries 27.1 24.1 25.6 23.4 76.9 61.1 88.1
Depreciations 3.6 3.7 3.9 4.0 11.2 12.0 16.0
Other operating costs 31.1 35.8 34.6 28.0 101.5 90.6 124.2
Total operating costs 61.9 63.6 64.1 55.4 189.6 163.8 228.3
Operating profit 16.2 16.0 14.2 17.6 46.3 25.6 42.4
Net financial income 0.9 0.7 0.3 -1.7 1.8 -7.4 -0.3
Pre-tax profit 17.0 16.7 14.4 16.0 48.2 18.1 42.1
Taxes 4.7 4.6 3.9 4.4 13.2 5.1 13.5
Net profit/loss for the period 12.3 12.1 10.5 11.5 34.9 13.1 28.6
Year to date
37
84
79
47
37
16
2
80
57
31
22
7
4848
15
10
4
2
48
18
6
15
9
Realised effects by quarter (MNOK)
Realised staff reduction by quarter (annual full-time equivalents)
EFFECT REALISATION FROM PROFITABILITY PROJECT
SUB-PROJECT SpareBank 1 Skadeforsikring REPORT DATE 15/10/2010
Q3-09Q2-09 Q4-10Q1-10Q4-09 Q3-10Q2-10 Q1-10Q4-09Q3-09 Q4-10Q3-10Q2-10Q2-09
Realised so far
Planned Planned
Realised so far
38
101
9494
79
68
2420
7878
7168
50
25
191
162
150
119
43
1813
172166
137
86
66
18
EFFECT REALISATION FROM PROFITABILITY PROJECT
SUB-PROJECT SpareBank 1 Livsforsikring REPORT DATE 15/10/2010
Realised staff reduction by quarter (annual full-time equivalents)
Q1-10Q4-09Q3-09Q2-09 Q2-10 Q4-10Q3-10 Q4-10Q3-10Q2-10Q1-10Q4-09Q3-09Q2-09
Realised so far
Planned
Realised so far
Planned
Realised effects by quarter (MNOK)
39
157150
116
76
24
136
105
92
29
2H 20101H 20102H 20091H 2009 3Q 2010
The Delta profitability project was behind schedule in respect of staff reductions. This is a result of giving priority to measures that have the best profitability effect, irrespective of whether or not they have an impact on staff numbers
REALISED EFFECTS AS OF 30 SEPTEMBER 2010 (excluding Bank 1 Oslo)
A large part of the reduction in annual full time equivalents comes from natural reduction in the use of temporary staff
Realisation of staffing consequences over time (annual full-time equivalents, cumulative)
Realised so far
Planned
40
21
1919
10
777
21
18
12
9
7
2189
7171
59
46
29
14
84
70
61
44
25
14
EFFECT REALISATION FROM PROFITABILITY PROJECT
SUB-PROJECT Bank 1 Oslo REPORT DATE 15/10/2010
Realised staff reduction by quarter (annual full-time equivalents)
Q1-10Q4-09Q3-09Q2-09 Q2-10 Q4-10Q3-10 Q4-10Q3-10Q2-10Q1-10Q4-09Q3-09Q2-09
As of 1 January 2010, the reports for SB1 Gruppen do not include Bank 1 Oslo, but the bank is still part of the Delta Project
Realised so far
Planned
Realised so far
Planned
Realised effects by quarter (MNOK)