Download the presentation from our press conference on October 18th 2012.

1. 3rd Quarter 2012
Q
Q3
Presentation of results
from SpareBank 1 Gruppen
Kirsten Idebøen, CEO
18 October 2012

2. Solid improvement in profits compared with last year
- Measures to further improve competitive strength and profitability
Pre-tax profit Group – quarterly (MNOK)
• Pre-tax profit as at Q3: MNOK 553 (248)
Pre tax
Q1 • Net profit as at Q3: MNOK 491 (245)
Q
Q2 256
Q3 • Annualised return on equity: 12.7 (7.0) %
162
173
• Group’s total assets were NOK 46.6 billion,
145
123 compared t NOK 42.0 billi
d to 42 0 billion at year-end
t d
2011
• Good solvency:
– Capital adequacy ratio: 16.7 % against 16.2 %
as at 31.12.2011
– Core capital adequacy ratio: 15.3 % against
-60 14.6
14 6 % as at 31.12.2011
31 12 2011
2011 2012
– Well capitalised to satisfy the new, stricter
capital requirements upon introduction of the
Solvency II regulations
2

3. Financial performance per business area
Pre-tax profit per subsidiary – YTD (MNOK) • The administration result in SpareBank 1
Livsforsikring has showed a positive trend.
421 The company built up further buffers and
380 YTD 2011 increased reserves for long life expectancy.
316 YTD 2012
• Higher financial result contributed to a
substantial increase i profits i S
b t ti l i in fit in SpareBank 1
B k
Skadeforsikring. Improved insurance result.
• Lower average total assets in 2012 than in
18 30 22 18
2011 in ODIN Forvaltning has led to reduced
0
management fees.
-77 •S
SpareBank 1 Gruppen Finans i experiencing
k G i is i i
-154
pressure on margins in the factoring business
and weaker growth in the debt collection
market. Good growth in portfolio activities.
kets
ans
SB1 Liv
ade
SB1G Fina
SB1 Ska
ODIN
N
SB1 Mark
• Good growth in turnover in SpareBank 1
Markets, mainly within DCM, but still net loss
for the period
period.
3

4. Combining life insurance and P&C insurance into a single
business area – ”SpareBank 1 Forsikring”
SpareBank Forsikring
SpareBank 1 is consolidating its insurance services, in order to create a comprehensive
customer offering, better customer experience – as well as increased competitive
g, p p
strength and a better basis for additional sales and cross-selling.
Combining the business operations will also:
• Create more efficient processes throughout the entire value chain and better coordination with
distributors (the SpareBank 1 banks and LO)
• Result in lower costs
• Mean fewer employees, a process that has primarily been attempted through reductions in
temporary staff, natural turnover and voluntary packages
Key figures as at 30/09/2012
• Preliminary estimates of cost synergies indicate a full
annual effect of about MNOK 100 from 2014
SpareBank 1 SpareBank 1
Livsforsikring Skadeforsikring
• Turid Grotmoll has been appointed to lead the new
new,
consolidated insurance unit. Gross written premium (MNOK) 2,711.6 4,316.8
Pre-tax profit (MNOK) 380.4 421.0
Total assets (MNOK) 28,411.7 14,477.6
• A consolidation of the business units will require the Number of employees 271 428
authorities
authorities’ approval
4

5. SpareBank 1
Livsforsikring
Improved administration result.
Good b ffe capital
buffer
5

6. SpareBank 1 Livsforsikring
Improved administration result. Good buffer capital
• Pre-tax profit: MNOK 380 (316) as at Q3 and MNOK 145
(78) in Q3
Pre-tax profit – quarterly (MNOK)
P t fit t l
• Administration result: MNOK -30 (-63) as at Q3 and MNOK
Q1
-3 (-20) in Q3
Q2
Q3 • Risk result: MNOK 202 (203) as at Q3 and MNOK 80 (63)
142 145 in Q3
129 – Good risk result in spite of large compensation payments in Q1
109 and increased reserves in connection with disability compensation
100
92 94
86
78 • Investment result: MNOK 218 (365) as at Q3 and MNOK
97 (52) in Q3
– MNOK 74 allocated to strengthen reserves for longer life
expectancy as at Q3
t t
– Net forward exchange gains of MNOK 3 were realised for the
year-to-date, compared with MNOK 161 last year
2010 2011 2012
• C
Consequences of th proposal to amend the regulations
f the lt d th l ti
relating to the tax exemption method*:
– Estimated one-off cost in the range of MNOK 175-200 that will be
recognised in Q4**
– C
Company ttax ahead will approach a normal rate of 28 %
h d ill h l t f
* The proposal does not include transition rules related to the tax opening value. Historical cost price will lead to a significant
one-off cost when calculating the latent deferred tax.
6 ** Large degree of uncertainty associated with the estimate because details of the new regulations are not known.

7. SpareBank 1 Livsforsikring
The company has built up solid buffers
Buffer capital trend – per quarter (%) Securities adjustment reserve – accrued
(MNOK)
16.3 %
14.6 % 15.2 % 14.8 %
14.0 % 14.1 %
617
12.8 %
11.0 % 556
327
185
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2010 2011 2011 2011 2011 2012 2012 2012 13
Core capital in excess of minimum Interim profit
Additional provisions Securities adjustment reserve 2009 2010 2011 30/09/2011 30/09/2012
• Total assets: NOK 28.4 (26.6) billion
• Capital adequacy ratio: 19 0 % against 18.5 % at
19.0 18 5
31.12.2011
– The entire subordinated loan comprises core capital
– Estimated solvency margin of 320.7 %, compared to 303.5 %
at year end 2011
t e
7

8. SpareBank 1
Skadeforsikring Group
Higher financial i
Hi h fi i l income and i
d improved i
d insurance result.
lt
The market's most satisfied insurance customers
8

9. SpareBank 1 Skadeforsikring Group
Higher financial income and improved insurance result. The market's
most satisfied insurance customers
• Pre-tax profit: MNOK 421 (18) as at Q3 and
Pre-tax profit – quarterly (MNOK)
Pre tax
MNOK 185 ( 89) i Q3
(-89) in
Q1
254
Q2 • Insurance result*: MNOK 37 (-21) as at Q3 and
Q3 MNOK 25 (1) in Q3
185 – The underlying underwriting profitability has improved
166
during the year, particularly for the parent company
– The sales process for Unison Forsikring was closed –
70 the company will be integrated into SpareBank 1
36 43 50 56 Skadeforsikring
• Net financial income: MNOK 418 (100) as at Q3
and MNOK 173 (-62) in Q3
-89
– Financial return: 4.1 (1.1) %
2010 2011 2012
• Net earned premium of NOK 3.8 (3.5) billion,
corresponding to a growth of 9.0 % compared
* Insurance result in Q3 2011 and 2012 includes Unison with the same period last year
Forsikring
F ik i
9

10. SpareBank 1 Skadeforsikring Group
Improved profitability within house and home insurance. A number of
insurance
measures implemented to improve the combined ratio
Combined ratio for own account – accumulated (%)
Combined ratio for own account – quarterly (%)
103.5 96.9*
99.9 94.5*
96.2 97.7
94.0
105.5 105.8 22.9
100.3 101.9 100.7 101.6 101.5 96.6* 21.0 22.6
96.5 21.9 22.5
89.8
89 8 21.9
21 9 21.1
21 1
23.8 22.4 21.3 24.2
26.0 22.3
22.7
76.7 80.6 77.3
84.7 72.1 73.8
83.6 79.4 80.4 77.4
76.6 74.7 74.1
67.1
2008 2009 2010 2011 YTD 2012
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2010 2010 2011 2011 2011 2011 2012 2012 2012 Net claims ratio Net cost ratio
Net claims ratio Net cost ratio
*C
Combined ratio f own account including personal insurance in SpareBank 1 Livsforsikring
bi d i for i l di li i S B k Li f ik i
10

11. SpareBank 1 Skadeforsikring Group
We have the market's most satisfied insurance customers
market s
• The insurance company is at the top of customer satisfaction surveys in the
P&C insurance industry
Norwegian Finance Barometer
(Norsk Finansbarometer) 2012
Høy Customer 70
Retention 65
60
55
50
45
40
35
30
2006 2007 2008 2009 2010 2011 2012
SpareBank 1
61 64 61 68 63 64 63
Skadeforsikring
Gjensidige
61 63 61 65 62 64 61
Skadeforsikring
Skadeforsikring 58 59 58 61 61 61 61
Tryg 56 54 56 52 58 57 60
If Skadeforsikring 53 54 55 52 52 49 55
• The company is actively working to maintain its position as the P&C
insurance company with the most satisfied customers, before and after a
claim
11

12. SpareBank 1 Markets
Strengthened p
g position within DCM, but still net
,
loss for the period
12

13. SpareBank 1 Markets
Strengthened position within DCM, but still net loss for the
period Results
● Total turnover
”
SpareBank 1 can, through SpareBank 1
− As at Q3: MNOK 99 ( ), up 40 %
Q (71), p
− In Q3: MNOK 27 (13), up 111 %
− Gross value creation in the SB1-alliance of
Markets, provide the entire capital structure, MNOK 165 for the year-to-date, of which MNOK
from bank loans to bonds and equity 66 is recognised as income in the owner banks
” ● Pre-tax profit
− As at Q3: MNOK -154 (-77)
− In Q3: MNOK -64 (-52)
• Significantly strengthened position in the market for
g y g p
bond issues during the year. Market share for bond issues is growing
strongly*
10 %
• Weak on Corporate Finance in the 3rd quarter.
7%
• The goal of profitable operations from Q4, given
normalised markets, stands firm. The company has
implemented a number of measures focused on income. 2%
A strong growth in income is expected in the future.
2011 2012 01/05 - 30/09/2012
(as of 30/09) after start-up rated balance
Looking ahead the focus will be to realise the substantial potential of being a bank-owned brokerage firm with access
* Source: Norsk Tillitsmann
to the bank balance sheet, considerable expertise and good customer relations. Consequently, the company's position
and competitive strength is expected to be f further enhanced during the next quarters.
13

14. O
ODIN Forvaltning
o a g
Strong focus on management results and cost structure
14

15. ODIN Forvaltning
Strong focus on management results and cost structure
• Pre-tax profit as at Q3: MNOK 0 ( )
p Q (30)
Pre-tax profit – quarterly (MNOK)
– Management fees totalled MNOK 195 (242)
17
17
Q1
• Pre-tax profit in Q MNOK 2 ( )
p Q3: (6)
14
Q2
– Management fees totalled MNOK 64 (69)
12 12
Q3
• Total assets of NOK 24.4 billion as at 30
September 2012
6
– Lower average daily total assets than at the end of
September last year
1.9
– Increased by NOK 0.8 billion in Q3 2012
08
– Up by NOK 0.9 billion from 31.12.2011
-0.5
-1.5
• Measures to improve earnings
2010 2011 2012
– Focus on the management processes
– New CEO took over in Q3
– Measures will be implemented on the cost side
p
15

16. ODIN Forvaltning
Nine out of twelve equity funds performed better than
their benchmark as at 30 September 2012
Return on equity fund as at 30.09.2012 (%)
22.6
20.2 Fund Benchmark
17.8
17 8 17.2
17 2
13.7 13.5 14.4
12.4 12.0
9.3 10.1 9.5
9.0 8.3 8.8
7.8 7.1 7.0
6.7
3.5 3.0
30
0.1
-0.7
-9.9
ODIN ODIN ODIN ODIN ODIN ODIN ODIN ODIN ODIN ODIN ODIN ODIN
Norge Sverige Finland Norden Europa Europa Global Global Emerging Maritim Offshore Eiendom I
SMB SMB Markets
16

17. SpareBank 1 Gruppen Finans Group
Pressure on margins in the factoring business and weaker performance in
the debt collection market. Good growth in p
g portfolio activities
17

18. SpareBank 1 Gruppen Finans Group
Pressure on margins in the factoring business and weaker performance in the
debt ll ti
d bt collection market. G d growth i portfolio activities
k t Good th in tf li ti iti
Pre-tax profit – accumulated (MNOK)
• Pre-tax profit as at Q3: MNOK 18 0 (22.0)
Pre tax 18.0 (22 0)
YTD 2011
21.5
22.0 • Pre-tax profit in Q3: MNOK 3.8 (12.2)
YTD 2012
18.0 • F t i
Factoring h grown strongly over the last year, but a
has t l th l t b t
reduced operating margin is putting pressure on earnings
13.8
• Flat growth in the debt collection market. Lower debt
11.0
collection revenues in Conecto due to a reduced number of
ll ti i C t d t d d b f
referrals and customer loss
7.8
• Higher interest income in Portfolio administration as a result
5.0
of higher portfolio volume, as well as good recovery
f hi h tf li l ll d
2.5 • Business area within the acquisition of portfolios of claims that
are then recovered by the Group's debt collection company
Factoring Conecto Portfolio SB1G Finans • Measures have been implemented on the pricing side in
(debt Group
collection) Factoring, collaboration with the alliance banks has been
expanded and sales resources have been bolstered to
improve earnings in Conecto
Pre-tax profit for SpareBank 1 Gruppen Finans Group also includes
P t fit f S B k G Fi G l i l d
management and amortisation.
18

19. Outlook
SPAREBANK 1 GRUPPEN
• SpareBank 1 Gruppen will continue, in close collaboration with the SpareBank 1-
banks, its work on cooperation right across the companies to extract efficiency gains
within costs, income and know-how.
• Underwriting profitability within P&C insurance is expected to be improved further over
the next several quarters.
• SpareBank 1 Gruppen is exposed to the securities market through its various
subsidiaries, and the development of stock market prices and interest rates will have a
major effect on the Group's earnings.
• SpareBank 1 Gruppen is well equipped to face the new capital requirements in relation
to the introduction of the Solvency II reforms.
19

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

21. Appendix
A di
21

22. The 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
(97.55 %)
(100 %) (100 %)
Alliance Cooperation
SpareBank 1 SpareBank 1 SpareBank 1
Medlemskort Gruppen Finans Skadeforsikring
(100 %) (100 %) (100 %)
Broad cooperation
- Technology
- Brand/communication
Unison Forsikring -EExpertise
i
Conecto - Common processes and use of best practice
(100 %)
(100 %) - Purchasing
Regional competence centres
(Bank-owned companies) - Payment services: Trondheim
y
SpareBank 1 Boligkreditt
- Credit: Stavanger
EiendomsMegler 1 - Training: Tromsø
BNbank
SpareBank 1 Oslo og Akershus
22

23. Return on equity after tax among selected Nordic
financial institutions
Average
Q3 2012 2011 2010 2009 2009-2011
SpareBank 1 Gruppen 12.7% 11.1 % 18.7 % 18.1 % 16.0 %
Gjensidige* N/A 11.9 % 13.1 % 11.1 % 12.0 %
Handelsbanken N/A 13.5 % 12.9 % 12.6 % 13.0 %
Nordea N/A 10.6 % 11.5 % 11.3 % 11.1 %
DNB N/A 11.4 % 13.6 % 10.6 % 11.9 %
Storebrand N/A 6.0 % 10.8 % 8.2 % 8.3 %
Danske Bank N/A 1.4 % 3.6 % 1.7 % 2.2 %
* Calculated as net profit distributed over average equity.
Source: The companies' interim reports for Q3 2012
23

24. SpareBank 1 Gruppen
Key figures
Q3 Q2 Q1 Q4 Q3 Q2 Q1 Year
2012 2012 2012 2011 2011 2011 2011 2011
Group
Net result for the period (MNOK) 227.7 63.4 199.9 281.0 -4.3 97.2 151.9 525.8
Return on equity (%)
R t it 12.7
12 7 % 10.5
10 5 % 15.9
15 9 % 23.2
23 2 % -0.3 %
03 8.1
81% 12.9
12 9 % 11.1
11 1 %
Capital adequacy ratio, cumulative (%) 16.7 % 15.9 % 14.8 % 16.2 % 16.3 % 16.2 % 16.1 % 16.2 %
Core capital adequacy ratio, cumulative (%) 15.3 % 14.5 % 13.1 % 14.6 % 14.0 % 13.9 % 12.6 % 14.6 %
SB1 Livsforsikring
Risk result (MNOK) 79.7 92.6 29.4 38.5 63.5 70.1 69.4 241.4
Administration result (MNOK) -3.1 -19.0 -7.5 -3.2 -19.8 -24.2 -18.7 -65.9
Investment result (MNOK) 97.3 47.0 73.2 3.1 51.6 108.0 205.8 368.5
Net
N t result for the period (MNOK)
lt f th i d 128.7
128 7 89.1
89 1 125.8
125 8 193.7
193 7 114.6
114 6 73.8
73 8 129.9
129 9 511.9
511 9
Buffer capital in % of insurance provisions*, cumulative (%) 16.3 % 14.8 % 12.8 % 11.0 % 14.1 % 14.0 % 15.2 % 11.0 %
Capital adequacy ratio, cumulative (%) 19.0 % 20.0 % 17.5 % 18.5 % 18.5 % 17.1 % 19.2 % 18.5 %
Securities adjustment reserve, cumulative (MNOK) 555.5 389.6 465.9 184.9 13.0 326.3 448.2 184.9
SB1 Skadeforsikring Group
Operating result before finance (MNOK) 24.9 31.1 -19.5 -16.0 0.5 8.2 -29.9 -37.3
Net financial income (MNOK) 172.8 51.0 194.0 160.8 -62.3 66.8 95.1 260.3
Net
N t result for the period (MNOK)
lt f th i d 142.6
142 6 42.2
42 2 139.5
139 5 90.3
90 3 -81.2
81 2 41.8
41 8 39.8
39 8 90.7
90 7
Claims ratio, net (%) 77.4 % 74.1 % 80.4 % 74.7 % 84.7 % 79.4 % 83.6 % 80.6 %
Cost ratio, net (%) 24.2 % 22.3 % 21.3 % 26.0 % 21.1 % 22.4 % 21.9 % 22.9 %
Combined ratio, net (%) 101.5 % 96.5 % 101.6 % 100.7 % 105.8 % 101.9 % 105.5 % 103.5 %
Portfolio (MNOK) 5,455 5,407 5,328 5,198 5,092 4,986 4,825 5,198
ODIN Forvaltning
Management fees (MNOK) 64.0 63.4 67.2 61.8 69.4 85.5 86.8 303.5
Net result for the period (MNOK) 1.4 -1.0 -0.3 -7.0 4.3 8.9 8.6 14.8
Total assets under management, cumulative (MNOK) 24,370 23,541 26,173 23,433 22,539 30,101 33,348 23,433
Market share equity fund, cumulative (%) 8.3 % 8.4 % 8.9 % 8.9 % 8.8 % 9.9 % 10.6 % 8.9 %
Market share combination fund, cumulative (%) 4.0 % 4.1 % 3.8 % 3.8 % 3.8 % 3.5 % 3.2 % 3.8 %
SB1 Markets
Total operating income (MNOK) 26.6 40.0 32.9 15.3 12.6 23.5 34.8 86.3
Net result for the period (MNOK) -46.6 -32.6 -32.5 -57.4 -37.3 -15.9 -2.4 -113.1
SB1G Finans Group
Net result for the period SB1G Finans Group (MNOK) 2.7 5.4 4.9 4.4 8.4 1.8 4.5 19.1
Net result for the period SB1G Finans - parent company (MNOK) 1.8 1.0 2.2 4.1 3.7 0.1 1.4 9.3
Net result for the period Conecto (MNOK) 1.6 5.0 3.3 2.2 6.7 3.7 5.1 17.7
*) Buffer capital as at Q is shown after p
) p Q4 profits have been allocated
24

25. SpareBank 1 Gruppen
Results year to date 2012
Q3 Q2 Q1 Q3 Year to date Year
Figures in MNOK 2012 2012 2012 2011 2012 2011 2011
Part of result from subsidiaries before tax
- SpareBank 1 Livsforsikring 144.6 141.8 94.1 77.7 380.4 316.1 414.1
- SpareBank 1 Skadeforsikring Group 185.0 70.4 165.5 -88.8 421.0 17.7 185.3
- ODIN Forvaltning
g 1.9 -1.5 -0.5 6.3 0.0 30.4 21.8
- SpareBank 1 Markets -64.2 -44.9 -44.8 -51.8 -153.9 -77.3 -154.8
- SpareBank 1 Medlemskort 2.8 2.4 2.8 2.0 7.9 7.6 12.1
- SpareBank 1 Gruppen Finans Group 3.8 7.5 6.8 12.2 18.0 22.0 27.9
- Correction Group 1.0 -9.0 0.0 16.4 -8.0 30.6 28.6
Net result before tax from subsidiaries 274.9 166.6 223.8 -26.1 665.3 347.0 535.1
Total operating costs (parent company) 2.9 * -26.1 -33.5 -16.0 -56.6 -59.2 -88.6
Net investment charges (parent company) -21.6 -17.7 -16.8 -18.0 -56.1 -40.1 -59.3
Share of associated company 0.0 0.0 0.0 0.0 0.0 0.0 0.2
Pre-tax result 256.2 122.9 173.5 -60.1 552.6 247.7 387.3
Taxes -28.5 -59.5 26.4 55.8 -61.6 -2.8 138.5
Net result for the period 227.7
227 7 63.4
63 4 199.9
199 9 -4.3
43 491.0
491 0 244.8
244 8 525.8
525 8
Majority interest 228.8 64.2 200.7 -3.1 493.7 247.3 529.8
Minority interest -1.1 -0.8 -0.8 -1.1 -2.7 -2.4 -4.0
Year to date Year
Key figures 2012 2011 2011
Annualised return on equity 12.7 % 7.0 % 11.1 %
* The project related to the creation of a card company was transferred from SpareBank 1 Gruppen AS to SpareBank 1 Kredittkort AS as at 30 September 2012.
This entailed a cost reimbursement of MNOK 46 in the parent company in September, which resulted in net revenue recognition of MNOK 2.9 in Q3
25

26. SpareBank 1 Gruppen
Quarterly results
Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1
Figures in MNOK 2012 2012 2012 2011 2011 2011 2011 2010 2010 2010 2010
Part of result from subsidiaries before tax
- SpareBank 1 Livsforsikring 144.6 141.8 94.1 98.1 77.7 109.0 129.4 72.5 85.8 100.3 91.9
- SpareBank 1 Skadeforsikring Group 185.0 70.4 165.5 167.6 -88.8 56.2 50.3 307.5 253.9 43.4 36.3
- ODIN Forvaltning 1.9 -1.5 -0.5 -8.5 6.3 12.2 11.9 16.5 17.0 16.7 14.4
- SpareBank 1 Markets -64.2 -44.9 -44.8 -77.5 -51.8 -22.1 -3.4 -24.0 -29.0 -1.9 -2.7
- SpareBank 1 Medlemskort
p 2.8 2.4 2.8 4.5 2.0 2.5 3.1 1.9 2.7 3.3 3.4
- SpareBank 1 Gruppen Finans Group 3.8 7.5 6.8 5.9 12.2 3.0 6.8 6.6 -4.9 7.0 -0.1
- Correction Group 1.0 -9.0 0.0 -1.9 16.4 15.1 -0.9 -6.3 -7.4 16.3 15.1
Net result before tax from subsidiaries 274.9 166.6 223.8 188.1 - 26.1 175.9 197.1 374.6 318.1 185.1 158.2
Total operating costs (parent company) 2.9 -26.1 -33.5 -29.4 -16.0 -15.6 -27.7 -16.5 40.7 -11.9 -20.0
Net investment charges (parent company) -21.6 -17.7 -16.8 -19.2 -18.0 -15.0 -7.1 -15.6 -11.4 -9.3 -6.9
Share of associated company 0.0 0.0 0.0 0.2 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Pre-
Pre tax result 256.2
256 2 122.9
122 9 173.5
173 5 139.6
139 6 - 60 1
60.1 145.4
145 4 162.4
162 4 342.5
342 5 347.4
347 4 163.9
163 9 131.3
131 3
Taxes -28.5 -59.5 26.4 141.4 55.8 -48.1 -10.5 -18.5 -88.4 -8.3 -38.5
Net result for the period 227.7 63.4 199.9 281.0 - 4.3 97.2 151.9 324.0 259.1 155.6 92.8
Majority interest 228.8 64.2 200.7 282.6 -3.1 98.0 152.4 327.9 263.9 155.9 93.3
Minority interest -1.1 -0.8 -0.8 -1.6 -1.1 -0.8 -0.5 -3.9 -4.8 -0.3 -0.5
26

27. SpareBank 1 Livsforsikring
Results year to date 2012
Q3 Q2 Q1 Q3 Year to date Year
Figures in MNOK 2012 2012 2012 2011 2012 2011 2011
Insurance risk income 380.6
380 6 369.1
369 1 361.2
361 2 321.6
321 6 1 110 9
110.9 990.4
990 4 1 338 7
338.7
Insurance risk claims -291.5 -266.2 -340.4 -249.9 -898.1 -758.1 -1 061.7
Risk result 89.2 102.9 20.7 71.7 212.8 232.3 277.0
Tecnical allocations -9.5 -10.3 8.7 -8.2 -11.0 -29.3 -35.6
Risk result after tecnical allocations 79.7 92.6 29.4 63.5 201.8 203.0 241.4
Fees 192.3 180.9 184.8 168.3 558.0 511.9 708.6
Expenses, exclusive comissions -130.6 -137.4 -128.6 -128.0 -396.5 -396.3 -527.2
Comissions -64.8 -62.5 -63.7 -60.1 -191.0 -178.3 -247.3
Administration result -3.1 -19.0 -7.5 -19.8 -29.5 -62.7 -65.9
Net investment income 218.8 153.1 188.6 151.0 560.5 677.4 791.1
Guaranteed interest to policyholders -121.5 -106.1 -115.4 -99.4 -343.0 -311.9 -422.6
Investment result
I t t lt 97.3
97 3 47.0
47 0 73.2
73 2 51.6
51 6 217.5
217 5 365.4
365 4 368.5
368 5
Reserves -32.2 -10.3 -31.3 0.0 -73.9 -33.0 -187.3
Investment result after reserves 65.0 36.7 41.9 51.6 143.6 332.4 181.2
Compensation guaranteed interest 6.7 6.1 6.3 5.7 19.1 17.0 22.6
Result before additional provisions 148.4 116.6 70.1 101.0 335.0 489.6 379.4
Undistributed profits to customers -53 3
53.3 -27 7
27.7 -15 2
15.2 -44 7
44.7 -96 3
96.3 -223 6
223.6 -61 5
61.5
Return on company's assets 49.6 52.9 39.2 21.4 141.7 50.0 96.2
Net profit to owner before tax 144.6 141.8 94.1 77.7 380.4 316.1 414.1
Taxes -15.9 -52.6 31.7 36.9 -36.8 2.1 97.8
Net profit/loss for the period 128.7 89.1 125.8 114.6 343.6 318.2 511.9
Key figures Year to date Year
2012 2011 2011
Capital adequacy ratio 19.0 % 18.5 % 18.5 %
Buffer capital in % of insurance provisions 16.3 % 14.1 % 11.0 %
Buffer capital for the year 2011 is shown after profits have been allocated
27

28. SpareBank 1 Livsforsikring
Profit per portfolio year to date 2012
Previously
P i l
Group established Investment choice Company
Figures in MNOK portfolio individual products portfolio portfolio Total
Risk result 200.3 -7.7 9.2 0.0 201.8
Administration result 57.0 -31.4 -55.0 0.0 -29.5
Net investment result 144.1
144 1 68.5
68 5 3.1
31 1.9
19 217.5
217 5
Reserves - long life -73.9 0.0 0.0 0.0 -73.9
Compensation interest guarantee 19.1 0.0 0.0 0.0 19.1
Transferred to policyholders -52.6 -32.5 -11.2 0.0 -96.3
Return on company's assets 0.0 0.0 0.0 141.7 141.7
Sum 294.0
294 0 -3.1
31 -54.0
54 0 143.5
143 5 380.4
380 4
28

29. SpareBank 1 Livsforsikring
Premium income trend year to date 2012
Q3 Q2 Q1 Q3 Year to date Year
Figures in MNOK 2012 2012 2012 2011 2012 2011 2011
Individual annuity and pension insurance 79.6 72.3 72.3 68.7 224.3 212.8 284.9
Individual endowment insurance 154.1 150.2 147.9 143.3 452.2 422.9 570.6
Group pension insurance 95.3 74.4 244.3 73.3 414.0 371.1 465.6
Individual life insurance 56.7 55.1 53.8 50.0 165.6 147.0 199.0
Group life insurance 136.2 132.2 239.1 130.5 507.5 479.5 604.4
Unit Linked - Annuity 8.2 8.5 9.3 8.3 26.1 28.4 39.0
Unit Linked - Endowment 31.6 35.2 36.7 38.4 103.5 136.6 181.1
Defined contribution pension 280.3 273.1 265.1 256.6 818.5 728.4 980.7
Total gross due premium income 842.0 801.1 1 068.5 769.0 2 711.6 2 526.8 3 325.5
Premium reserves transferred from other companies 116.8 194.7 102.4 189.1 413.8 444.6 660.8
Reinsurance ceded
R i d d -42.4
42 4 -41.2
41 2 -28.6
28 6 -42.9
42 9 -112.1
112 1 -123.9
123 9 -160.4
160 4
Premium income for own account 916.4 954.5 1 142.3 915.2 3 013.2 2 847.4 3 825.9
29

30. SpareBank 1 Livsforsikring
Return on customer portfolio with guarantee as at
30/09/2012
Value adjusted
Value-adjusted return
excluding change in value construction: Booked return:
Q2 Q3 Q2 Q3 Q2 Q3 Q2 Q3 Q2 Q3 Q2 Q3 Q2 Q3 Q2 Q3
2012 2012 2012 2012 2012 2012 2012 2012 2012 2012 2012 2012 2012 2012 2012 2012
6.0
3.6
36
Percent
Percent
3.5
2.8
2.6 2.8
2.4
2.2 2.2
1.8
N/A N/A N/A N/A N/A N/A
SpareBank 1 Storebrand DNB Livsforsikring Nordea SpareBank 1 Storebrand DNB Livsforsikring Nordea
30 Source: company presentations

31. SpareBank 1 Livsforsikring
Return on ordinary customer portfolio with guarantee as at
y p g
30/09/2012
Percent
Norwegian shares 16.9
Foreign shares 13.5
Money market 3.0
Norwegian bonds 6.6
Foreign b d
i bonds 8.3
Held to maturity 3.8
Real estate 5.4
31

32. SpareBank 1 Livsforsikring
Balance sheet as of 30/09/2012
Year to date Year
Figures in MNOK
i i 2012 2011 2011
Intangible assets 138 93 107
Investments 3 109 2 558 2 881
Reinsurance's part of insurance obligations 206 222 223
Accounts receivable 75 182 225
Other assets 170 431 368
Prepayed liabilities and accrued income 0 0 0
Investments group portfolio 16 798 15 709 15 909
Investments options portfolio 7 914 6 498 6 896
Total assets 28 412 25 693 26 607
Paid in capital 2 073 1 825 1 825
Other equity 772 632 435
Subordinated loan capital
p 200 200 200
Insurance obligations - contractual 16 723 15 453 15 812
Insurance obligations - investment options 8 024 6 583 6 993
Provisions for obligations 70 214 88
Premium deposits from reinsurance companies 139 138 139
Other obligations 337 549 1 043
Accrued liabilities, prepaied income 74 99 73
Total liabilities and equity 28 412 25 693 26 607
32

33. SpareBank 1 Livsforsikring
The Government budget proposal to ”Limit the tax exemption
model for shares etc. owned by life insurance companies”
With the exception of certain amendments, it is largely identical to the discussion document
Proposal Consequences
• The Ministry of Finance proposes that the tax • The Group may see an increase in taxes in
exemption model should not apply to shares etc.
p pp y years with good returns and a reduction in
in life insurance companies that form part of the taxes in years with negative returns in the
group and investment choice portfolios as of stock market
01.01.2012
• The company tax ahead will approach
• Revenues from such shares will be taxed as a normal rate of 28 %
ordinary income. The share revenue will continue
to form part of the deduction for insurance fund • The proposal does not include transition
provisions rules related to the tax opening value.
Historical cost price will lead to a one-
• The tax exemption model will continue to apply off cost in the range of MNOK 175-200
to shares that form part of the company portfolio when calculating the latent deferred
tax*
• Standard deduction for the company's portion of
the returns from paid-up policies, old individual • The tax effect will, in such case, be
life insurance contracts and products without recognised in the accounts in Q4
rights to profits
* Large degree of uncertainty associated with the estimate because details of the new regulations are not known
33

34. Asset allocation per portfolio as at 30/09/2012
(31/12/11):
SB1 Skadeforsikring
g
SB1 Li sfo sik ing
Livsforsikring
Group
Investment choice Group portfolio Company portfolio
portfolio
12.9 (13.8)
12 9 (13 8) % 2.3 (-4.5)
2 3 ( 4 5) %
8.1 (7.9) % 10.1 (10.4) %
38.9 (37.4) % 0.0 (-0.2) % 18.6 (18.8) % 11.2 (12.7) %
46.3 (45.9) %
53.2 (54.2) % 20.0 (21.0) %
( ) 63.1 (60.9) %
28.2 (28.0)
28 2 (28 0) % 15.9 (24.8)
15 9 (24 8) % 70.6 (69.0) %
0.6 (-0.1) %
Stocks Stocks Stocks
Other Other Other
Real estate Real estate Real estate
Stocks Other Bonds
Bonds - amortized cost Bonds - amortized cost Bonds - amortized cost
Bonds - market value Bonds - market value Bonds - market value
NOK 7.9 (6.9) billion NOK 16.6 (15.7) billion NOK 3.1 (2.9) billion NOK 10.8 (9.6) billion
34

35. SpareBank 1 Skadeforsikring Group
Results year to date 2012
Q3 Q2 Q1 Q3 Year to date Year
Figures in MNOK 2012 2012 2012 2011 2012 2011 2011
Gross written premium 1 172.6 1 431.1 1 713.1 1 142.9 4 316.8 4 076.8 5 358.2
Net earned premium 1 287.9 1 257.3 1 234.5 1 230.6 3 779.7 3 469.1 4 695.9
Net incurred claims -996.8 -931.7 -992.3 -1 042.8 -2 920.8 -2 867.3 -3 784.0
Net insurance operating costs -311.0 -281.0 -262.4 -259.2 -854.4 -755.5 -1 074.2
Other insurance income/costs 11.3 1.7 1.2 17.6 14.2 30.3 31.8
Changes in other technical reserves 33.5 -15.1 -0.5 53.8 17.9 101.6 93.2
Operating result before finance 24.9 31.1 -19.5 0.0 36.5 -21.7 -37.3
Net financial income 172.8 51.0 194.0 -62.3 417.8 99.5 260.3
Result b f
R lt before changes in security reserve
h i it 197.7
197 7 82.1
82 1 174.5
174 5 -62.3
62 3 454.3
454 3 77.8
77 8 223.0
223 0
Changes in security reserve -12.7 -11.7 -9.0 -27.0 -33.4 -60.5 -37.7
Pre-tax profit 185.0 70.4 165.5 -89.3 421.0 17.2 185.3
Taxes -42.4 -28.2 -26.0 7.6 -96.7 -17.3 -94.6
Net profit/loss for the period 142.6 42.2 139.5 -81.7 324.3 -0.1 90.7
Key figures Q3 Q2 Q1 Q3 Year to date Year
Figures in percentage 2012 2012 2012 2011 2012 2011 2011
Claims ratio, net 77.4 % 74.1 % 80.4 % 84.7 % 77.3 % 82.7 % 80.6 %
Cost ratio, net
, 24.2 % 22.3 % 21.3 % 21.1 % 22.6 % 21.8 % 22.9 %
Combined ratio, net 101.5 % 96.5 % 101.6 % 105.8 % 99.9 % 104.4 % 103.5 %
Capital adequacy ratio 34.6 % 27.6 % 32.8 %
35

36. ODIN Forvaltning
Results year t d t 2012
R lt to date
Q3 Q2 Q1 Q3 Year to date Year
Figures in MNOK 2012 2012 2012 2011 2012 2011 2011
Management fees
M tf 64.0
64 0 63.4
63 4 67.2
67 2 69.4
69 4 194.6
194 6 241.7
241 7 303.5
303 5
Total operating income 64.0 63.4 67.2 69.4 194.6 241.7 303.5
Salaries -24.8 -25.9 -24.6 -26.4 -75.3 -83.0 -108.5
Depreciations -6.3 -6.8 -6.5 -5.1 -19.6 -13.4 -23.5
Other operating costs -31.2 -32.5 -36.9 -32.5 -100.6 -116.3 -151.1
Total operating costs -62.3 -65.2 -68.0 -64.0 -195.5 -212.7 -283.1
Operating profit 1.7 -1.8 -0.8 5.4 -0.9 29.0 20.3
Net financial income 0.2 0.4 0.3 0.9 0.9 1.4 1.5
Pre-tax profit 1.9 -1.5 -0.5 6.3 0.0 30.4 21.8
Taxes -0.5 0.5 0.2 -2.0 0.2 -8.6 -7.1
Net profit/loss for the period 1.4 -1.0 -0.3 4.3 0.1 21.8 14.8
36