Download presentation from press conference February 15th 2012. Presented by CEO Kirsten Idebøen. http://investor.sparebank1.no

1. Preliminary accounts
for 2011
Q4
Presentation of results
from SpareBank 1 Gruppen
Kirsten Idebøen, CEO
15 February 2012

2. Volatile securities market, combined with damage due to
natural perils and large claims led to reduced earnings
claims,
Group pre-tax profit* (MNOK) quarterly
(MNOK),
• Pre-tax profit for 2011: MNOK 389 (985)
Pre-tax profit in Q4: MNOK 142 (343)
Q1
• Profit after tax for 2011: MNOK 479 (832)
374 Q2
358 347 343
Q3 Profit after tax in Q4: MNOK 235 (324)
Q4
• Annualised return on equity: 10.0 (18.7 %)
q y ( )
177 164 162
145 142
131
87 • Capital adequacy ratio: 16.0 (16.1 %)
Core capital adequacy ratio: 14.4 (12.5 %)
• Total assets for the Group were NOK 42.0
-61
billion, compared with NOK 40.7 billion at
2009 2010 2011 year end
year-end 2010
* Comparison figures for 2009 have been restated and do not include the Bank 1 Oslo Group.
2

3. Record earnings within life insurance. Earnings within P&C
insurance were affected by natural perils and large claims
y p g
Pre-tax profit per subsidiary (MNOK) • Significantly improved administration result
within life assurance. The company has
641 maintained good b ff
i t i d d buffers th
throughout th year
h t the
2010 2011 • Strong portfolio growth has provided
414 increased premium income in P&C insurance.
350
Negative insurance results and turbulent
financial markets led to weaken results
188
• Weak t k
W k stock markets contributed t reduced
k t t ib t d to d d
earnings for ODIN
65
22 27
• Profit growth for SB1G Finans: improved loss
9
situation within Factoring, strong growth in
-58
-155 portfolio volume for Portfolio and good
revenues from Conecto
SB1G Finans
s
SB1 Skade
e
SB1 Markets
s
SB1 Liv
v
ODIN
• Results from SB1 Markets have been affected
by large, though planned investments linked
to building up a leading capital market
g p g p
environment, as well as by volatile markets
3

4. SpareBank 1
Skadeforsikring Group
High proportion of large claims, flood and storm.
Positive portfolio growth
4

5. SpareBank 1 Skadeforsikring Group
High proportion of large claims, flood and storm. Positive
portfolio growth
Pre-tax profit, quarterly
P e ta p ofit q a te l (MNOK)
• Total portfolio growth of MNOK 515, of which MNOK
308 Q1 230 from Unison Forsikring. Portfolio volum as at
Q2 31.12.2011 was NOK 5.2 billion
251 254 Q3
Q4 – Market share grew from 10 8 % in 2010 to
10.8
207 11.2 % in Q3 2011
171
• Pre-tax profit for 2011: MNOK 188 (641) and
115
MNOK 171 (308) in Q4
56
– Insurance result*: MNOK -35 (267) and
48 50
36 43 MNOK -13 (123) in Q4
– Net financial income: MNOK 260 (433) and
MNOK 161 (201) in Q4
-89
• Financial return of 2.9 (4.9) %
2009 2010 2011 – Low interest rate level and negative development for
Norwegian shares
* Insurance result for 2011 includes Unison Forsikring and
medical treatment insurance.
5

6. SpareBank 1 Skadeforsikring Group
High proportion of large claims, flood, storm and terrorism
g p p g , ,
Combined ratio for own account – quarterly (%) Combined ratio for own account (%)
103.4
108.6 105.5 105.8 97.7
94.6 96.2
99.6 100.3 101.9 100.5 94.0
22.9
20.2
89.9
21.0
87.2
21.9
92.9
21.0
22.5
22.4
89.8
20.7
23.8
26.0
24.8
21.9
17.1
20.6
20.5
22.7
2
88.3
84.7
83.6
79.4
76.6
75.9
74.8
74.5
80.5
7.1
6.7
3.9
3.8
2.1
67
69.3
3
76
8
73
66.7
7
73
72
Q
Q4 Q
Q1 Q
Q2 Q
Q3 Q
Q4 Q
Q1 Q
Q2 Q
Q3 Q
Q4
2009 2010 2010 2010 2010 2011 2011 2011 2011
2005 2006 2007 2008 2009 2010 2011
Net claims ratio Net cost ratio
Net claims ratio Net cost ratio
- Profit commission costs in Q4 2011 of MNOK 32 represented a
significant portion of the increase in cost ratio High proportion of large claims within central
- The cost ratio for 2010 was low as a result of the non-recurring product groups in the CM-portfolio has meant a
effect of pensions and lack of profit commissions significant increase in claims ratio in 2011
• Claims h
l have b
been incurred f around MNOK 52 in conjunction with the terrorist attack on 22 July 2011.
d for d h h k l
6

7. SpareBank 1
p
Livsforsikring
Record profit in a demanding market
7

8. SpareBank 1 Livsforsikring
Record profit in a demanding market
p g
• Pre-tax profit for 2011: MNOK 414 (350) and
MNOK 98 (73) in Q4
Pre-tax profit (MNOK) quarterly
P t fit (MNOK), t l
• Administration result for 2011: MNOK -66 (-187) and
206 Q1 MNOK -3 (-62) in Q4
Q2 - Lower operating costs and increased fee revenues
Q3
Q4 • Investment result for 2011: MNOK 369 (317) and
MNOK 3 (49) in Q4
129 - MNOK 187 set aside for increasing reserves as a result of longer
life expectancy
109
100 98
92
81 81 86 • Risk result for 2011: MNOK 241 (325) and
78
72 MNOK 39 (65) in Q4
- Higher costs in conjunction with disability compensation
24 • Tax revenue for 2011 of MNOK 98 (-60)
- Combined effect of the tax exemption model and of the securities
adjustment reserve coming under the provisions of the Norwegian
2009 2010 2011 Taxes Act on entitlement to make deductions for insurance-related
provisions
• The Norwegian Ministry of Finance has proposed limiting the
tax exemption model for shares, etc. owned by life insurance
companies
8

9. SpareBank 1 Livsforsikring
Good buffers throughout 2011
Buffer capital trend, per quarter (%)
Buffer capital trend, per quarter (%) Securities adjustment reserve (MNOK)
14.6 % 15.2 %
14.0 % 14.1 %
617
10.8 %
327
185
Q4 Q1 Q2 Q3 Q4
2010 2011 2011 2011 2011
Core capital in excess of minimum Interim profit 2009 2010 2011
Additional provisions Securities adjustment reserve
• Buffer capital after allocation of the profit for 2011: 10.8 (14.6) %
- The main reason for the change is the fall in the securities adjustment reserve from MNOK 617 to MNOK 185
• Total assets: NOK 26 (26.5) b ll
l O 26.5 (26 ) billion
• Capital adequacy ratio: 18.3 (19.3) %
• The company is considered to be well capitalised with regard to the expected requirements under Solvency II
9

10. SpareBank 1 Forsikring
Asset allocation per portfolio as at 31.12.11 (31.12.10)
SB1 Livsforsikring SB1 Skadeforsikring Group
Investment portfolio Group portfolio Company portfolio
0.0 (0.1) %
13.8 (14.8) % -4.5 (-1.6) % 10.4 (10.6) %
( )
0.0 (0.1) %
37.4 (34.8) % -0.2 (0.9) % 18.8 (21.0) % 7.9 (9.4) % 12.7 (13.6) %
45.9 (61.0) %
54.2 (39.0) % 21.0 (21.5) % 60.9 (48.4) %
28.0 (28.0) % 24.8 (28.8) %
-0.1 (0.0) %
69.0 (66.3) %
( )
Stocks Other
Stocks Other
Stocks Other Bonds Real estate Bonds - amortized cost
Bonds - market value Real Estate Bonds at amortised cost
Bonds at Market value
NOK 6.9 (6.7) billion
6 9 (6 7) NOK 15.7 (16.0) billion
15 7 (16 0) NOK 2.9 (2.8) billion
2 9 (2 8) NOK 9.6 (8.9) billion
9 6 (8 9)
10

11. O
ODIN Forvaltning
o a g
Weak development in securities markets in 2011
led to reduced total assets
11

12. ODIN Forvaltning
Weak development in securities markets in 2011 led to
reduced total assets
• Pre-tax profit for 2011: MNOK 22 (65)
Pre-tax profit (MNOK), quarterly
– Management fees of MNOK 304, which is MNOK
14 lower than in 2010
Q1
Q2
24 Q3 • Profit in Q4 was MNOK -9 (16)
Q4
17 17 16
16
14
• Total
T t l assets of NOK 23 4 billi
t f 23.4 billion
12 12
– Down NOK 8.9 billion on 2010
10
6
• Market share of 8 9 % for equity fund for
8.9
2011, compared with 10.7 % for 2010
-7
-9 • Market share of 3 8 % for combination fund
3.8
for 2011, up from 3.2 % as at Q1 2011
2009 2010 2011
12

13. SpareBank 1 Gruppen
p pp
Finans Group
Good growth in all business areas in 2011
13

14. SpareBank 1 Gruppen Finans Group
Good growth in all business areas in 2011
Pre-tax profit to date this year (MNOK)
• Pre-tax profit for 2011: MNOK 27 (9)* and
27 MNOK 5 (7) i Q4
in
2010 2011
24
― Significantly reduced losses and loss provisions
within BA Factoring, as well as good growth in client
20
revenues
 3rd largest factoring business in the country, with a
15 market share in 2011 of 14.1 %, compared with 11.6 %
in 2010
 Factoring shows the fastest growth on the market
9
― BA Portfolio (long-term monitoring) attained a
portfolio volume in 2011 of NOK 1.2 billion,
4 compared with MNOK 620 in 2010
p
2 2  Corresponds to a growth in portfolio volume of 86 %
 Good growth in net interest/credit commission revenues
covery)
folio
cto*
ring
― Conecto has had good revenue growth despite
g g p
p**
SB1G F
Group
Conec
G
(debt rec
Factor
Portf
mandatory reduction in debt recovery fees
*Conecto was acquired with accounting effect from 10 September 2010. The profit up to the acquisition date has been recognised directly against equity in the group.
Co ecto as acqu ed t accou t g e ect o 0 Septe be 0 0 ep o t t e acqu s t o as bee ecog sed d ect y aga st equ ty t e g oup
**Pre-tax profit for SpareBank 1 Gruppen Finans Group also includes management and excess value amortisation.
14

15. SpareBank 1 Markets
Investments i 2011 – market power in 2012
I t t in k t i
15

16. SpareBank 1 Markets
Investments in 2011 – market power in 2012
Operational matters
O i l
• There was large-scale recruitment and company expansion in 2011, in line with approved strategies
and plans, with one of the largest movements in human capital the sector has ever seen
• 2011 largely focused on investments, and the people, infrastructure and systems will be in place
during the course of Q1 2012. SpareBank 1 Markets enters 2012 with strong market power
Results
• Pre-tax profit for 2011: MNOK -155 (-58)
• Pre-tax profit in Q4: MNOK -77 (-24)
• Total revenue for 2011: MNOK 86 (83)
16

17. SpareBank 1 Markets
High level of market activity and profitable
operations during 2012
• SpareBank 1 will have a strong, national capital
market environment, where the banking and capital Corporate
market sectors interact in the market Top-ranked finance
analyst team with
team extensive
• A clear strategy, willingness to invest and experience
perseverance have laid the foundations for a leading
capital ma ket en i onment in No a
market environment Norway
Strong Balance and
• The 1st half of 2012 will be characterised by a high investment risk
level of market activity, with a complete transition ability capacity
from investment to operations
• The company will approach full market power during
2nd half of 2012 and previous indications of profitable
operations from Q4 remains unchanged
SpareBank 1 Markets can deliver the
entire capital structure, from bank
loans to bonds and equity
17

18. Annualised return on equity among selected Nordic financial
institutions
Average
2011
0 2010 2009 2009-2011
2009 2011
Handelsbanken 13.5 % 12.9 % 12.6 % 13.0 %
Gjensidige* 12.2
12 2 % 13.1
13 1 % 11.1
11 1 % 12.1
12 1 %
DNB 11.4 % 13.6 % 10.6 % 11.9 %
Nordea 10.6 % 11.5 % 11.3 % 11.1 %
SpareBank 1 Gruppen 10.0 % 18.7 % 18.1 % 15.6 %
Storebrand 6.0 % 10.8 % 8.2 % 8.3 %
Danske Bank 1.4
14% 3.6
36% 1.7
17% 2.2
22%
* Calculated as net profit distributed over average equity.
Source: Companies' annual reports for 2011
18

19. Outlook
SPAREBANK 1 GRUPPEN
• Volatile financial markets entails increased uncertainty in terms of investment
results, which constitute a significant portion of value generation at SpareBank 1
Gruppen. The macro situation, however, is considered to provide reason for
cautious optimism.
p
• SpareBank 1 Gruppen is well equipped to face the new capital requirements in
relation to the introduction of Solvency II.
• Competition is considered to be strong and continuous improvement is required
• Greater coordination within the alliance, where the product companies form part of the
value chain.
• Th group will continue to work on cooperation across the companies to extract efficiency
The ill i k i h i ffi i
gains within costs, income and know-how.
19

20. The nation s savings bank
nation's
20
20

21. Appendix
A di
21

22. SpareBank 1 Alliance
SpareBank 1 SpareBank 1 SpareBank 1 Sparebanken Samarbeidende
LO (Trade Union)
SR-Bank SMN Nord-Norge Hedmark Sparebanker
(10%)
(19.5%) (19.5%) (19.5%) (12%) (19.5%)
SpareBank 1 Gruppen AS
SpareBank 1 ODIN
SpareBank 1 Markets
Livsforsikring Forvaltning
(97.2%)
(100%) (100%)
Alliance Cooperation
SpareBank 1 SpareBank 1 SpareBank 1
Medlemskort Gruppen Finans Skadeforsikring
(100%) (100%) (100%)
Broad cooperation
- Technology
- Brand/communication
- Expertise
Unison Forsikring
Conecto - Common processes and use of best practice
(100%) - Purchasing
(100%)
Regional competence centres
(Bank-owned companies) - Payment services: Trondheim
- Credit: Stavanger
SpareBank 1 Boligkreditt
EiendomsMegler 1
- Training: Tromsø
BNbank
SpareBank 1 Oslo og Akershus
22

23. SpareBank 1 Gruppen
Key figures
Q4 Q3 Q2 Q1 Q4 Year
2011 2011 2011 2011 2010 2011 2010
Group
Net result for the period (MNOK) 234.8 -4.8 97.2 151.9 324.0 479.1 831.6
Return on equity (%) 19.2 % -0.3 % 7.8 % 12.4 % 28.3 % 10.0 % 18.7 %
Capital adequacy ratio, cumulative (%) 16.0 % 16.3 % 16.2 % 16.1 % 16.1 % 16.0 % 16.1 %
Core capital adequacy ratio, cumulative (%) 14.4 % 14.0 % 13.9 % 12.6 % 12.5 % 14.4 % 12.5 %
SB1 Livsforsikring
Risk result (MNOK) 38.5 63.5 70.1 69.4 65.3 241.4 325.4
Administration result (MNOK) -3.2 -19.8 -24.2 -18.7 -61.7 -65.9 -186.9
Investment result (MNOK) 3.1 51.6 108.0 205.8 48.7 368.5 317.3
Net result for the period (MNOK) 193.7 114.6 73.8 129.9 55.0 511.9 290.2
Buffer capital in % of insurance provisions, cumulative (%) 10.8 % 14.1 % 14.0 % 15.2 % 14.6 % 10.8 % 14.6 %
Capital adequacy ratio, cumulative (%) 18.3 % 18.5 % 17.1 % 19.2 % 19.3 % 18.3 % 19.3 %
Securities adjustment reserve, cumulative (MNOK) 184.9 13.0 326.3 448.2 616.9 184.9 616.9
SB1 Skadeforsikring Group
Operating result before finance (MNOK) -12.8 0.0 8.2 -29.9 123.0 -34.5 266.9
Net financial income (MNOK) 160.8 -62.3 66.8 95.1 201.1 260.3 432.8
Net result for the period (MNOK) 92.1 -81.7 41.8 39.8 308.2 92.0 581.1
Claims ratio, net (%) 74.5 % 84.7 % 79.4 % 83.6 % 76.6 % 80.5 % 76.7 %
Cost ratio, net (%) 26.0 % 21.1 % 22.4 % 21.9 % 23.8 % 22.9 % 21.0 %
Combined ratio, net (%) 100.5 % 105.8 % 101.9 % 105.5 % 100.3 % 103.4 % 97.7 %
Portfolio (MNOK) 5,198 5,092 4,986 4,825 4,683 5,198 4,683
ODIN Forvaltning
Management fees (MNOK) 61.8 69.4 85.5 86.8 82.0 303.5 317.9
Net result for the period (MNOK) -6.4 4.3 8.9 8.6 10.4 15.4 45.3
Total assets under management, cumulative (MNOK) 23,433 22,539 30,101 33,348 32,292 23,433 32,292
Market share equity fund, cumulative (%) 8.9 % 8.8 % 9.9 % 10.6 % 10.7 % 8.9 % 10.7 %
Market share combination fund, cumulative (%) 3.8 % 3.8 % 3.5 % 3.2 % 0.0 % 3.8 % 0.0 %
SB1 Markets
Total operating income (MNOK) 15.3 12.6 23.5 34.8 18.4 86.3 83.3
Net result for the period (MNOK) -57.4 -37.3 -15.9 -2.4 -16.6 -113.1 -40.8
SB1G Finans Group
Net result for the period SB1G Finans Group (MNOK) 4.7 8.4 1.8 4.5 3.8 19.4 4.3
Net result for the period SB1G Finans - parent company (MNOK) 4.6 3.7 0.1 1.4 0.6 9.8 -4.1
Net result for the period Conecto (MNOK) 2.1 6.7 3.7 5.1 4.5 17.5 13.7
*) Buffer capital as at Q4 is show n after profits have been distributed
23

24. SpareBank 1 Gruppen
Profit for 2011
Year
Figures in MNOK 2011 2010
Part of result from subsidiaries before tax
- SpareBank 1 Livsforsikring 414.1 350.4
- SpareBank 1 Skadeforsikring Group 188.1 641.1
- ODIN Forvaltning 21.8 64.6
- SpareBank 1 Markets -154 8
154.8 -57 6
57.6
- SpareBank 1 Medlemskort 12.1 11.1
- SpareBank 1 Gruppen Finans Group 27.5 8.6
- Correction Group 28.6 17.6
Net result before tax from subsidiaries 537.4 1,036.0
Total operating costs (parent company) -88.6
88.6 -7.6 *
7.6
Net investment charges (parent company) -59.4 -43.2
Pre- tax result 389.4 985.1
Taxes 89.7 -153.6
Net result for the period 479.1 831.6
Majority interest 483.2 841.0
Minority interest -4.0 -9.5
Year
Key figures
y g 2011 2010
Annualised return on equity 10.0 % 18.7 %
The low operating costs for 2010 are the result of significant revenue recognition of a non-recurring nature. There was net revenue recognition in the 1st half
of 2010 of MNOK 21.6, as a result of changes to the AFP plan and the fact that the company's pension scheme no longer includes a spouse or child pension.
There was also revenue recognition in Q3 2010 of MNOK 43.0 associated with employer's contributions, previously covered by SpareBank 1 Gruppen AS on
e e as a so e e ue ecog t o 0 0o O 3 0 assoc ated t e p oye s co t but o s, p e ous y co e ed Spa e a G uppe So
behalf of First Securities AS.
24

25. SpareBank 1 Gruppen
Quarterly profits
Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4
Figures in MNOK 2011 2011 2011 2011 2010 2010 2010 2010 2009
Part of result from subsidiaries before tax
- SpareBank 1 Livsforsikring 98.1 77.7 109.0 129.4 72.5 85.8 100.3 91.9 81.0
- SpareBank 1 Skadeforsikring Group 170.8 -89.3 56.2 50.3 307.5 253.9 43.4 36.3 115.3
- ODIN Forvaltning -8.5 6.3 12.2 11.9 16.5 17.0 16.7 14.4 24.0
- SpareBank 1 Markets -77.5 -51.8 -22.1 -3.4 -24.0 -29.0 -1.9 -2.7 -9.5
- SpareBank 1 Medlemskort
p 4.5 2.0 2.5 3.1 1.9 2.7 3.3 3.4 0.7
- SpareBank 1 Gruppen Finans Group 5.5 12.2 3.0 6.8 6.6 -4.9 7.0 -0.1 2.3
- Correction Group -1.9 16.4 15.1 -0.9 -6.3 -7.4 16.3 15.1 -8.6
Net result before tax from subsidiaries 190.9 - 26.6 175.9 197.1 374.6 318.1 185.1 158.2 205.2
Total operating costs (parent company) -29.4 -16.0 -15.6 -27.7 -16.5 40.7 -11.9 -20.0 -15.5
Net investment charges (parent company) -19.3 -18.0 -15.0 -7.1 -15.6 -11.4 -9.3 -6.9 -9.8
Pre- tax result
P t lt 142.2
142 2 - 60 6
60.6 145.4
145 4 162.4
162 4 342.5
342 5 347.4
347 4 163.9
163 9 131.3
131 3 177.2
177 2
Taxes 92.6 55.8 -48.1 -10.5 -18.5 -88.4 -8.3 -38.5 -9.3
Net result for the period 234.8 -4.8 97.2 151.9 324.0 259.1 155.6 92.8 167.9
Majority interest 236.4 -3.6 98.0 152.4 327.9 263.9 155.9 93.3 169.6
Minority interest -1.6
1.6 -1.1
1.1 -0.8
0.8 -0.5
0.5 -3.9
3.9 -4.8
4.8 -0.3
0.3 -0.5
0.5 -1.7
1.7
25

26. SpareBank 1 Livsforsikring
Profit for 2011
Q4 Q3 Q2 Q1 Q4 Year
Figures in MNOK 2011 2011 2011 2011 2010 2011 2010
Insurance risk income 348.4
348 4 321.6
321 6 333.0
333 0 335.8
335 8 328.3
328 3 1 338 7
338.7 1 292 6
292.6
Insurance risk claims -303.6 -249.9 -252.6 -255.5 -266.2 -1 061.7 -939.0
Risk result 44.8 71.7 80.4 80.2 62.1 277.0 353.6
Tecnical allocations -6.3 -8.2 -10.3 -10.8 3.2 -35.6 -28.2
Risk result after tecnical allocations 38.5 63.5 70.1 69.4 65.3 241.4 325.4
Fees 196.7 168.3 172.8 170.7 166.5 708.6 637.9
Expenses, exclusive comissions -130.9 -128.0 -138.6 -129.7 -166.6 -527.2 -589.2
Comissions -69.0 -60.1 -58.5 -59.8 -61.6 -247.3 -235.6
Administration result -3.2 -19.8 -24.2 -18.7 -61.7 -65.9 -186.9
Net investment income 113.7 151.0 207.3 319.1 177.0 791.1 764.3
Guaranteed interest to policyholders -110.6 -99.4 -99.2 -113.3 -128.2 -422.6 -447.0
Investment result 3.1 51.6 108.0 205.8 48.7 368.5 317.3
Reserves -154.3 0.0 0.0 -33.0 -9.3 -187.3 -45.3
Investment result after reserves -151.2 51.6 108.0 172.8 39.5 181.2 272.0
Compensation guaranteed interest 5.7 5.7 5.9 5.4 7.5 22.6 29.9
Result before additional provisions -110.2 101.0 159.8 228.8 50.6 379.4 440.4
Allocation to additional provisions 124.8 -10.0 -48.1 -66.6 -125.3 0.0 -125.3
Transferred to policyholders
T f dt li h ld 37.4
37 4 -34.7
34 7 -11.9
11 9 -52.3
52 3 124.7
124 7 -61.5
61 5 -36.3
36 3
Return on company's assets 46.1 21.4 9.2 19.5 22.6 96.2 71.6
Net profit to owner before tax 98.1 77.7 109.0 129.4 72.5 414.1 350.4
Taxes 95.6 36.9 -35.3 0.5 -17.5 97.8 -60.2
Net profit/loss for the period 193.7 114.6 73.8 129.9 55.0 511.9 290.2
Key figures Year
2011 2010
Capital adequacy ratio 18.3 % 19.3 %
Buffer capital in % of insurance provisions 10.8 % 14.6 %
26

27. SpareBank 1 Livsforsikring
Profit by portfolio for 2011
Previously
Group established Investment choice Company
Figures in MNOK portfolio individual products portfolio portfolio Total
Risk result 247.3 -3.7 -2.1 0.0 241.4
Administration result 67.0 -37.7 -95.2 0.0 -65.9
Net investment result 285.0 77.0 4.5 2.1 368.5
Reserves - long life -154.3 -33.0 0.0 0.0 -187.3
Compensation interest guarantee 22.6 0.0 0.0 0.0 22.6
Transferred to policyholders -53.9 -7.2 -0.4 0.0 -61.5
Return on company's assets
company s 0.0
00 0.0
00 0.0
00 96.2
96 2 96.2
96 2
Sum 413.7 -4.5 -93.2 98.2 414.1
27

28. SpareBank 1 Livsforsikring
Premium income trends
Q4 Q3 Q2 Q1 Q4 Year
Figures in MNOK 2011 2011 2011 2011 2010 2011 2010
Individual annuity and pension insurance 72.1 68.7 71.1 73.1 79.8 284.9 306.7
Individual endowment insurance 147.7 143.3 141.1 138.5 133.7 570.6 519.1
Group pension insurance 94.4 73.3 55.2 242.7 120.0 465.6 549.5
Individual life insurance 52.0 50.0 49.0 48.0 47.1 199.0 183.1
Group life insurance 125.0 130.5 131.5 217.5 122.0 604.4 587.7
Unit Linked - Annuity 10.6 8.3 9.5 10.7 11.6 39.0 46.6
Unit Linked - Endowment 44.6 38.4 46.6 51.6 68.8 181.1 237.0
Defined contribution pension 252.3 256.6 235.6 236.2 223.0 980.7 864.2
Total gross due premium income 798.7 769.0 739.5 1 018.2 805.9 3 325.5 3 293.8
Premium reserves transferred from other companies 216.3 189.1 113.5 142.0 126.4 660.8 352.5
Reinsurance ceded
R i d d -36.4
36 4 -42.9
42 9 -40.8
40 8 -40.2
40 2 -32.3
32 3 -160.4
160 4 -152.0
152 0
Premium income for own account 978.5 915.2 812.1 1 120.0 900.0 3 825.9 3 494.2
28

29. SpareBank 1 Livsforsikring
Return on customer portfolios with guarantee as at the end of the
quarter
Value-adjusted return
excluding change i value construction:
l di h in l t ti Booked return:
Q3 Q4 Q3 Q4 Q3 Q4 Q3 Q4 Q3 Q4 Q3 Q4 Q3 Q4 Q3 Q4
2011 2011 2011 2011 2011 2011 2011 2011 2011 2011 2011 2011 2011 2011 2011 2011
5.4
3.4
4.6 4.6
2.5
4.0
cent
Perc
2.1 3.2
Percent
2.0 3.0 3.0
1.7
1.0 1.7
0.6
0.4
SpareBank 1 Storebrand DNB Livsforsikring Nordea
SpareBank 1 Storebrand DNB Livsforsikring Nordea
29 Source: company presentations

30. SpareBank 1 Livsforsikring
Return on ordinary customer portfolio with guarantee as at
y p g
31.12.2011
Percent
Norwegian shares -20.0
Foreign shares -7.6
Money market 3.5
Norwegian bonds 4.6
Foreign bonds 8.6
86
Hold to maturity 5.1
Real estate 5.1
30

31. SpareBank 1 Livsforsikring
Balance Sheet 2011
Year
Figures in MNOK 2011 2010
Intangible assets 107 42
Investments 2 881 2 862
Reinsurance's part of insurance obligations
' f bl 223 221
22
Accounts receivable 225 153
Other assets 281 335
Prepayed liabilities and accrued income 0 0
Investments group portfolio 15 909 16 169
Investments options portfolio 6 896 6 701
Total assets 26 521 26 483
Paid in capital 1 825 1 602
Other equity 825 386
Subordinated l
S b di t d loan capital it l 200 400
Insurance obligations - contractual 15 812 16 127
Insurance obligations - investment options 6 993 6 805
Provisions for obligations 118 144
Premium deposits from reinsurance companies
p p 139 134
Other obligations 535 764
Accrued liabilities, prepaied income 73 120
Total liabilities and equity 26 521 26 483
31

32. SpareBank 1 Livsforsikring
Limitation of tax exemption model for shares etc. owned
by life insurance companies
Proposal
l Consequences
• The Ministry of Finance proposes that the • The Group may see an increase in taxes in
tax exemption model should not apply t
t ti d l h ld t l to years with good returns and a reduction i
ih d d d i in
shares etc. in life insurance companies that taxes in years with negative returns in the
form part of collective and investment stock market
portfolios as of 01.01.2012
• Will there b transition rules related to the
h be ii l l d h
• Revenues from such shares will be taxed as tax opening value – historical cost price or
ordinary income. The share revenue will value as at 31.12.2011? Without transition
continue to form part of the deduction for rules, the proposal will to some extent
insurance f d provisions
i fund i i increase th company's challenges i t
i the ' h ll in terms of
f
fulfilling the requirements of Solvency II
• The tax exemption model will continue to
apply to shares that form part of company • The company's tax cost will in future
portfolios
tf li approach a normal t
h l tax cost of 28 %
t f
32

33. SpareBank 1 Skadeforsikring Group
Profit for 2011
Q4 Q3 Q2 Q1 Q4 Year
Figures in MNOK 2011 2011 2011 2011 2010 2011 2010
Gross written premium 1 281.4 1 142.9 1 380.6 1 553.3 1 175.6 5 358.2 4 731.8
Net earned premium 1 226.8 1 230.6 1 137.7 1 100.8 1 135.1 4 695.9 4 184.4
Net incurred claims -913.9 -1 042.8 -903.9 -920.7 -869.2 -3 781.2 -3 208.5
Net insurance operating costs -318.8 -259.2 -255.2 -241.1 -269.6 -1 074.2 -880.6
Other insurance income/costs 1.5 17.6 8.2 4.5 115.4 31.8 132.0
Changes in other technical reserves -8.4 53.8 21.4 26.5 11.4 93.2 39.6
Operating result before finance -12.8 0.0 8.2 -29.9 123.0 -34.5 266.9
Net financial income 160.8 -62.3 66.8 95.1 201.1 260.3 432.8
Other costs 0.0 0.0 0.0 0.0 0.0 0.0 -2.7
Result before changes in security reserve 148.0 -62.3 75.0 65.1 324.1 225.8 697.0
Changes in security reserve 22.9 -27.0 -18.8 -14.8 -16.5 -37.7 -55.8
Pre-tax profit 170.8 -89.3 56.2 50.3 307.5 188.1 641.2
Taxes -78.7 7.6 -14.4 -10.5 0.7 -96.1 -60.2
Net profit/loss for the period 92.1 -81.7 41.8 39.8 308.2 92.0 581.1
Key figures Q4 Q3 Q2 Q1 Q4 Year
Figures in percentage 2011 2011 2011 2011 2010 2011 2010
Claims ratio, net 74.5 % 84.7 % 79.4 % 83.6 % 76.6 % 80.5 % 76.7 %
Cost ratio, net 26.0 % 21.1 % 22.4 % 21.9 % 23.8 % 22.9 % 21.0 %
Combined ratio net
ratio, 100.5
100 5 % 105.8
105 8 % 101.9
101 9 % 105.5
105 5 % 100.3
100 3 % 103.4
103 4 % 97.7
97 7 %
Capital adequacy ratio 31.0 % 32.5 %
33

34. ODIN Forvaltning
Profit for 2011
Q4 Q3 Q2 Q1 Q4 Year
Figures in MNOK 2011 2011 2011 2011 2010 2011 2010
Management fees 61.8 69.4 85.5 86.8 82.0 303.5 317.9
Total operating income 61.8 69.4 85.5 86.8 82.0 303.5 317.9
Salaries 25.5 26.4 27.5 29.2 27.3 108.5 104.2
Depreciations 10.2 5.1 4.4 3.9 3.6 23.5 14.8
Other
Oth operating costs
ti t 34.9
34 9 32.5
32 5 41.2
41 2 42.5
42 5 36.3
36 3 151.1
151 1 137.8
137 8
Total operating costs 70.5 64.0 73.1 75.6 67.2 283.1 256.8
Operating profit -8.7 5.4 12.4 11.2 14.8 20.3 61.1
Net financial income 0.2 0.9 -0.2 0.7 1.7 1.5 3.6
Pre-tax profit -8.5 6.3 12.2 11.9 16.5 21.8 64.6
Taxes -2.2
22 2.0
20 3.3
33 3.3
33 6.1
61 6.4
64 19.3
19 3
Net profit/loss for the period -6.4 4.3 8.9 8.6 10.4 15.4 45.3
34