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Page 1: Annual accounts 2010 - Presentation of results from SpareBank 1 Gruppen AS

Annual accounts 2010Presentation of results from SpareBank 1 Gruppen SpareBank 1 Gruppen

Kirsten Idebøen, CEO

February 11th 2011 y

Updated version: May 13th 2011

Page 2: Annual accounts 2010 - Presentation of results from SpareBank 1 Gruppen AS

Highlights

SPAREBANK 1 GRUPPEN

11.9 %

15.8 %

18.7 %

• Solid earnings performance in 2010

• Improvements in Return on Equity 18.7 (18.1) %Q1 Q2 Q3 Q4

8.9 %

• Well-capitalised to meet the expected requirements under the Solvency II regulations

Q1 2010

Q2 2010

Q3 2010

Q4 2010

2

Page 3: Annual accounts 2010 - Presentation of results from SpareBank 1 Gruppen AS

Solid earnings performance in 2010

Pre-tax profits per subsidiary (MNOK)• Pre-tax profit in 2010: MNOK 985 (996)641 p ( )

• Pre-tax profit in Q4 was MNOK 343 (177)

• SpareBank 1 Skadeforsikring made a major 392

621641

• SpareBank 1 Skadeforsikring made a major contribution towards the overall result

− A negative goodwill of MNOK 118 was recorded in the accounts in Q4 in connection with the acquisition of

350

accounts in Q4 in connection with the acquisition of Unison Forsikring

• The life insurance company has built up solid buffers throughout 2010

42

-14

565

-38

18

v e N s n g

• The Group's total assets: NOK 40.7 (36.5) billion

• Core capital adequacy ratio of 12 5 (11 8) % and *

SB1

Liv

SB1

Skad

e

OD

IN

Oth

er

subs

idia

ries

Gro

up

corr

ectio

n

• Core capital adequacy ratio of 12.5 (11.8) % and capital adequacy ratio of 16.1 (16.3) %

* s2009 2010

3* Comparison figures for 2009 have been restated and do not include Bank 1 Oslo Group

Page 4: Annual accounts 2010 - Presentation of results from SpareBank 1 Gruppen AS

The Delta profitability project has been completed with an estimated annual profitability effect of MNOK 400 from 2011(against the baseline as at 31 December 2008)(against the baseline as at 31 December 2008)

Results of implemented measures by company (MNOK)

400

360

225

Result of implemented measuresPlanned

360 +40

84

191

94

225

3056

84

2755

Liv GruppenSkade Other Total Delta

• The Delta profitability project has resulted in a staff reduction of 147 fulltime equivalents (SpareBank 1 Gruppen had 1,162 fulltime equivalents as at 31.12.2010)

• The life insurance company: Outsourcing of the defined benefit pension (YTP) portfolio, market adjustment of fees for defined contribution pensions (ITP), unit link and group life, reduction of IT costs, mainly through renegotiation of IT contracts

4

• P&C insurance: Reorganisation and rationalisation of the claims settlement unit

Page 5: Annual accounts 2010 - Presentation of results from SpareBank 1 Gruppen AS

The Delta profitability project contributed to a net result effect of MNOK 140 in 2010

Oth i81221

Profit effect from the Delta profitability project in 2010 (MNOK)

*

SB1 Skade

Other companies

77

7

SB1 Skade140

SB1 Liv 137

Permanent profit improvement

as at 31.12.2010

Non-recurring implementation costs

as at 31.12.2010

Net profit effect as at 31.12.2010

* Expenses related mainly to IT development and the use of consultants. Costs of MNOK 26 were i d i Q4 2010

as at 31.12.2010 as at 31.12.2010

5

recognised in Q4 2010.

Page 6: Annual accounts 2010 - Presentation of results from SpareBank 1 Gruppen AS

SpareBank 1 Li f ik iLivsforsikring

Built up solid buffers

6

Page 7: Annual accounts 2010 - Presentation of results from SpareBank 1 Gruppen AS

SpareBank 1 LivsforsikringGood risk result

Pre-tax profit, quarterly (MNOK) Development in Risk result (MNOK)

352325

206

210

325

24

92

44

10081 8681 72

-52-335

2008 2009 2010

• Administration result in 2010: MNOK -187 (-193)

-6962008 2009 2010

Q1 Q2 Q3 Q4

• Pre-tax profit in 2010: MNOK 350 (392). MNOK 72 (81) in Q4

I t t lt MNOK 317 (557) i 2010

( )

• Gross due premium income NOK 3.3 (3.1) billion− CM: NOK 2.0 (1.9) billion

RM NOK 1 3 (1 2) billi• Investment result: MNOK 317 (557) in 2010 and MNOK 49 (125) in Q4– Provisions for increased life expectancy:

MNOK 45 in 2010 and MNOK 9 in Q4

− RM: NOK 1.3 (1.2) billion

• Total assets: NOK 26.5 billion up NOK 2.2 billion from year-end 2009

7

Page 8: Annual accounts 2010 - Presentation of results from SpareBank 1 Gruppen AS

SpareBank 1 LivsforsikringBuilt up solid buffersBuilt up solid buffers

Buffer capital trend, per quarter (%)

Securities adjustment reserve per year(MNOK)13 7 %

15.4 %16.1 %

14.6 % (MNOK)

401327

617

6 0 %

11.7 %

13.7 %

11.7 %13.0 %

0

3276.0 %

2007 2008 2009 2010Q1

2009Q2

2009Q3

2009Q4

2009Q1

2010Q2

2010Q3

2010Q4

2010

Core capital in excess of minimum Interim profitAdditional provisions Securities adjustment reserve

• Buffer capital after allocation of the profit for 2010: 14.6 (11.7) %

• Additional provisions amounted to MNOK 379. MNOK 125 regarding additional provisions have been allocated under paid-up policies and group

• Buffer capital including the profit for 2010: 17.9 (15.1) %

been allocated under paid up policies and group pensions in 2010

• Securities adjustment reserve: MNOK 617

8

• Capital adequacy: 19.3 (19.0) % (327)

Page 9: Annual accounts 2010 - Presentation of results from SpareBank 1 Gruppen AS

SpareBank 1 LivsforsikringValue adjusted return for customer portfolios with guarantee at year end Value adjusted return for customer portfolios with guarantee at year end (excluding property value change)

Q32010

Q42010

Q32010

Q42010

Q32010

Q42010

Q32010

Q42010

*

7 1

5.7

6.86.4

7.1

3.7

4.64.1 4.0

N/AN/A

SpareBank 1 Storebrand Vital Nordea

9 Source: company presentations

* Recognised return in Q4 was 5.2 %

Page 10: Annual accounts 2010 - Presentation of results from SpareBank 1 Gruppen AS

SpareBank 1 SpareBank 1 Skadeforsikring GroupStrong profit improvement throughout the year and

profitable growth

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Page 11: Annual accounts 2010 - Presentation of results from SpareBank 1 Gruppen AS

SpareBank 1 Skadeforsikring GroupStrong profit improvement throughout the year and Strong profit improvement throughout the year and profitable growth

Pre-tax profit, quarterly (MNOK)• Pre-tax profit for 2010 was MNOK 641 (621)

– MNOK 118 negative goodwill recognised in the t i Q4 i ti ith th i iti

Pre tax profit, quarterly (MNOK)

251 254

308

accounts in Q4 in connection with the acquisition of Unison Forsikring

– Profit on sale of property in Q4 of MNOK 21125

207

115

• Pre-tax profit in Q4 was MNOK 308 (115)

• Financial return in 2010 of 4 9 (6 8) %

54 48 36 4358

• Financial return in 2010 of 4,9 (6.8) %

• Good cost performance in 2010. Net cost ratio of 21.0 (22.5) %

-192008 2009 2010

Q1 Q2 Q3 Q4

( )

11

Page 12: Annual accounts 2010 - Presentation of results from SpareBank 1 Gruppen AS

SpareBank 1 Skadeforsikring GroupProfitable portfolio growthProfitable portfolio growth

Portfolio growth 2005–2010 (MNOK)g ( )

• Total portfolio growth of MNOK 629, corresponding to 15.4 %− MNOK 311 from Unison Forsikring and 3,358

125 14984 109 258

629 4,712

MNOK 311 from Unison Forsikring and Skandia Lifeline

• Premium income for own account NOK 4.2 (3 8) billion corresponding to a growth of (3.8) billion, corresponding to a growth of 8.9 %

• Market share in Q3 2010 including Unison k 0 % k h 2009Forsikring: 10.5 %. Market share in 2009

was 9.8 %.

12

Page 13: Annual accounts 2010 - Presentation of results from SpareBank 1 Gruppen AS

SpareBank 1 Skadeforsikring GroupWinter related claims triggered an increased claims ratio Winter-related claims triggered an increased claims ratio in 2010

Net combined ratio – cumulative (%)Net combined ratio – quarterly (%)

%

100.6 %93 9 %

99.6 %108.6 %

100 3 % % 7 % % 5 %

.0 %87.2 % 89.9 %

94.6 % 94.0 % 96.2 % 97.7 %

21.1

%

22.2

%

21.8

% 24.8

% 20.2

%

17.1

%

22.7

% 23.8

%

93.9 % 90.9 % 92.9 % 89.8 %100.3 %

20.5

%

20.6

%

20.7

21.9

22. 5

21.

79.5

%

71.7

%

69.2

%

74.8

%

88.3

%

75.9

%

67.1

%

76.6

%

66.7

%

69.3

%

73.9

%

72.1

%

73.8

%

76.7

%

Q12009

Q22009

Q32009

Q42009

Q12010

Q22010

Q32010

Q42010 2005 2006 2007 2008 2009 2010

Net claims ratio Net cost ratio Net claims ratio Net cost ratio

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Page 14: Annual accounts 2010 - Presentation of results from SpareBank 1 Gruppen AS

SpareBank 1 Skadeforsikring GroupGrowth through acquisition of new companiesGrowth through acquisition of new companies

B ht 100 % f th h i U i T k Sk di Lif li ' tf li f • Bought 100 % of the shares in Unison Forsikring AS on 19 July 2010 for MNOK 56.4

• Took over Skandia Lifeline's portfolio of private healthcare insurance and child insurance in Norway from 1 November 2010

• Boosted equity through a share issue of MNOK 150

• Unison Forsikring will continue as an

• Operations from the former Skandia Lifeline NUF have been integrated into SpareBank 1 Skadeforsikring AS

• Unison Forsikring will continue as an independent company with respect to the corporate market

l f l f l O

• 1,200 customers and 16,000 insured

• Total portfolio of approximately MNOK 30• Total portfolio of approximately MNOK

280

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Page 15: Annual accounts 2010 - Presentation of results from SpareBank 1 Gruppen AS

NAF chose Unison Forsikring

• The Norwegian Automobile Federation NAF chose Unison Forsikring over several other bidders as its future partner for insurance solutions for its members

• The contract was signed on 3 January 2011

• Long-term agreement, initial period: 5 years

• Founded in 1924• Norway's largest private consumer

The Norwegian Automobile Federation (NAF)

• Norway's largest private consumer organisation

• Annual revenue of approx. MNOK 750• Number of members: 530,000

NAF Key figures NorwayPopulation 4,852,200 ”Market share” 10.3 %Population > 18 years 3,683,000 ”Market share” 13.6 %Registered cars< 3 5 t 2 241 000 ”Market share” 22 4 %• Politically neutral and financially independent

• Owned by the members• Number of employees: 500 + approx. 2,000

union representatives

Registered cars< 3.5 t 2,241,000 Market share 22.4 %

15

• Nationwide

Page 16: Annual accounts 2010 - Presentation of results from SpareBank 1 Gruppen AS

NAF establishing NAF Forsikring AS

• NAF's members want insurance to be included in membership

• NAF has a strong focus on the further development of membership and wants to coordinate • NAF has a strong focus on the further development of membership and wants to coordinate insurance with other membership benefits to a greater degree

• NAF wants to exploit the commercial and strategic value that a membership represents to their members' advantage

• NAF is following the lead of its sister organisations in Europe where insurance is an integral part of the membership benefitspart of the membership benefits

• NAF wants to play a key role in the value chain and wishes to front the services it offers to its members

f– NAF Forsikring is therefore being established as a separate insurance agency– NAF Forsikring will offer specially adapted insurance policies to NAF members– NAF insurance is being launched in spring 2011

16

Page 17: Annual accounts 2010 - Presentation of results from SpareBank 1 Gruppen AS

ODIN ForvaltningIncreased assets under management

17

Page 18: Annual accounts 2010 - Presentation of results from SpareBank 1 Gruppen AS

ODIN ForvaltningIncreased assets under managementIncreased assets under management

• Pre-tax profit for 2010 was MNOK 65 (42)

Pre-tax profit, quarterly (MNOK)

3029 30 p ( )

• Pre-tax profit in Q4 was MNOK 16 (24)14

17

26

16 17

24

16

• NOK 32.3 (28.0) billion in assets under management

• 10.7 (11.6) % market share for equity funds

10

10.7 (11.6) % market share for equity funds

• 18.0 (19.2) % market share for equity funds for private banking customers in Norway

-7

2008 2009 2010

Q1 Q2 Q3 Q4

18

Page 19: Annual accounts 2010 - Presentation of results from SpareBank 1 Gruppen AS

ODIN ForvaltningStrategic focus areas in 2010Strategic focus areas in 2010

Combination funds: ODIN Konservativ, ODIN Flex, ODIN Horisont

• Signed an agreement for the acquisition of SpareBank 1 SR-Fondsforvaltning in September 2010

• Start-up 2 February 2011

, ,

• Both equity and bonds

• Higher expected rate of return than bank deposits and fixed income funds

• Index-independent Nordic industry fund

ODIN Eiendom I

• Index-independent global fund

ODIN Emerging Markets

Index independent Nordic industry fund

• Invests in shares in real estate companies and real estate related activities

• Minimum one off subscription amount is NOK 3 000

Index independent global fund

• Took over the management responsibilities on 1 December 2010

• Minimum one off subscription amount is NOK 3 000 • Minimum one-off subscription amount is NOK 3,000

• Investors can enter into agreements to save at least NOK 300 per month

• Minimum one-off subscription amount is NOK 3,000

• Investors can enter into agreements to save at least NOK 300 per month

19

Page 20: Annual accounts 2010 - Presentation of results from SpareBank 1 Gruppen AS

Argo SecuritiesArgo SecuritiesStrong commitment through “SpareBank 1 Markets”

20

Page 21: Annual accounts 2010 - Presentation of results from SpareBank 1 Gruppen AS

Argo SecuritiesStrong commitment through “SpareBank 1 Markets”Strong commitment through SpareBank 1 Markets

• Result in 2010:− Pre-tax: MNOK -58

Proactive recruitment in Argo Securities− Pre-tax: MNOK -58− After tax: MNOK -41

• Increased revenue− Commission income on stocks and

• Martin Hagen appointed new CEO• Further recruitment ensures Argo Securities expertise wwithin defined business areasCommission income on stocks and

derivatives: MNOK 37 (25)− Debt capital markets: MNOK 15 (12)− Corporate Finance: MNOK 18 (6) SpareBank 1 Markets

• The goal is to create a leading centre of expertise for capital market servicescapital market services

• Phase I was established through a pooled ledger balance of NOK 2.4 billion, which will be used to guarantee equity and d b ldebt capital transactions

• A project group has been established to work on the next phase

21

phase

Page 22: Annual accounts 2010 - Presentation of results from SpareBank 1 Gruppen AS

SpareBank 1 Gruppen p ppFinans GroupStrategic focus within receivables managementStrategic focus within receivables management

22

Page 23: Annual accounts 2010 - Presentation of results from SpareBank 1 Gruppen AS

SpareBank 1 Gruppen Finans GroupReorganisation of SpareBank 1 Gruppen FinansReorganisation of SpareBank 1 Gruppen Finans

SpareBank 1 Gruppen Finans AS

From 10 September 2010 to 31 December 2010

From 1 January 2011

SpareBank 1 Gruppen

Finans Holding

Prior to 9 September 2010

SpareBank 1 Gruppen Finans AS

Actor Fordringsforvaltning AS- Dept. Verdigjenvinning

(100 %)

-BA Factoring *- BA Portfolio

Conecto AS(100 %) Conecto AS

(100 %)Actor Verdigjenvinning

Finans Holding

SpareBank 1 Factoring(100 %)

Actor Fordringsforvaltning

(100 %)

Actor Portefølje(100 %)

Finans AS- BA Factoring- BA Portfolio

Pre-tax profit/loss 2010 (MNOK)

Verdigjenvinning(100 %)

* Business area

• Pre-tax profit of MNOK 9 (23)

• Pre-tax profit in Q4 MNOK 7 (2)

2523

23

2009 2010

*

Pre tax profit in Q4 MNOK 7 (2)

• Loss provision of MNOK 10.5 in the Factoring business area

7

2 2

9

onec

to**

Act

orFo

rdrin

gs-

orva

ltnin

g

BA

Fa

ctor

ing

B1G

Fin

ans

Gro

up

BA

Po

rtef

ølje • Mandatory reduction in debt recovery fees within

the debt collection business-2

-4

23

Co

* Pre-tax profit/loss for Actor Fordringsforvaltning includes Actor Verdigjenvinning from September 2010 **Conecto was acquired with accounting effect from 10 September 2010. The profit up to the acquisition date has been recorded directly against equity.

F F SB

Page 24: Annual accounts 2010 - Presentation of results from SpareBank 1 Gruppen AS

SpareBank 1 Gruppen Finans GroupSpareBank 1 Factoring is Norway's third largest factoring company

SpareBank 1 Factoring: Third largest factoring company in Norway in Q4 2010 (%)

42.1 % 43.9 % 43.4 %41.5 % 40.5 % 39.5 %

41.1 %37 7 %37.7 %

37.2 % 36.5 % 35.3 % 35.1 % 35.5 % 36.2 %

32.2 %34.3 %

10.7 % 9.8 %11.6 % 12.2 % 12.1 % 12.0 %

13.9 %

13.0 %11 0 % 11 5 %

13.7 %

8.9 % 9.0 % 8.5 % 9.8 % 10.4 % 11.0 % 11.5 %

Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010

DnB SG Nordea SB1F

• 13.7 % market share of ordinary factoring revenue in Q4

• Client revenue: NOK 11 (8) billion• Client revenue: NOK 11 (8) billion

• Volume of new sales: NOK 6 (1) billion

24

Page 25: Annual accounts 2010 - Presentation of results from SpareBank 1 Gruppen AS

SpareBank 1 Gruppen Finans GroupConecto is Norway's third largest debt collection companyy g p y

156172

Ranking 31.12.2009 Company

Revenue MNOK

1 Lindorff 8702 Kredinor 370

3 Conecto/Actor Fordringsforvaltning 157* 6177 87

121

156

4 Aktiv Kapital 1025 Gothia AS 1006 Intrum Justitia 787 Sergel 708 Creno 60

6079 85

2008 2009 2010F d i f lt i C t T t l

• It is expected that the consolidated company will still be the third largest in 2010

Fordringsforvaltning Conecto Total revenue

p p y g

• Combined revenue in 2010: MNOK 172 (157)

• Combined pre-tax profit in 2010: MNOK 32** (25)• Combined pre-tax profit in 2010: MNOK 32** (25)

25* Revenues for Actor Fordringsforvaltning as of 31 December 2009 include Actor Verdigjenvinning

** Includes the pre-tax profit for Conecto AS that has been recognised directly against equity

Page 26: Annual accounts 2010 - Presentation of results from SpareBank 1 Gruppen AS

26

Page 27: Annual accounts 2010 - Presentation of results from SpareBank 1 Gruppen AS

SpareBank 1 Gruppen still on top in terms of return on equity among selected Nordic financial institutions

Q3 2010 Year 2009Year 2010 Q3 2010 Year 2009

SpareBank 1 Gruppen 18.7 % 15.8 % 17.5 %*

Year 2010

Handelsbanken 12 9 % 12 9 % 12 6 %

Gjensidige1 13.1 % 10.8 % 11.3 %DnB NOR 13.6 % 12.2 % 10.6 %

Handelsbanken 12.9 % 12.9 % 12.6 %Nordea 11.5 % 11.0 % 11.3 %

Storebrand 10.8 % 3.9 % 5.6 %

Danske Bank 3.6 % 3.4 % 1.0 %

1Calculated as result after tax divided by average shareholders’ equity for the period

27Source: Companies' interim reports for 2010 and annual reports for 2009

1Calculated as result after tax divided by average shareholders equity for the period.* The Group’s annualised return on equity for 2009 includes Bank 1 Oslo Group.

Page 28: Annual accounts 2010 - Presentation of results from SpareBank 1 Gruppen AS

Outlook

SPAREBANK 1 GRUPPEN

Well positioned, operationally and strategically, for profitable growth

Well-capitalised to meet the expected requirements under the Solvency II regulationsregulations

The unique and robust business model in the SpareBank 1 Alliance givesda strategic advantage

28

Page 29: Annual accounts 2010 - Presentation of results from SpareBank 1 Gruppen AS

The nation's savings bank29

29

The nation s savings bank

Page 30: Annual accounts 2010 - Presentation of results from SpareBank 1 Gruppen AS

A diAppendix

30

Page 31: Annual accounts 2010 - Presentation of results from SpareBank 1 Gruppen AS

SpareBank 1 AllianceSpareBank 1

SR-Bank (19.5 %)

SpareBank 1SMN

(19.5 %)

SpareBank 1Nord-Norge

(19.5 %)

SparebankenHedmark (12 %)

SamarbeidendeSparebanker

(19.5 %)

LO (Trade Union)(10 %)

SpareBank 1 Gruppen AS

Alliance CooperationSpareBank 1Livsforsikring

(100 %)

ODIN Forvaltning

(100 %)

Argo Securities(76.75 %)

SpareBank 1Skadeforsikring

(100 %)

SpareBank 1 Gruppen Finans

(100 %)

SpareBank 1Medlemskort

(100 %) Broad cooperation

- Technology- Brand/communication- Expertise

Conecto(100 %)

- Joint processes and best practice- Purchasing

Regional competence centres

- Payment services: Trondheim(Bank-owned companies)

UNISON

(100 %)

- Credit: Stavanger- Training: TromsøSpareBank 1 Boligkreditt

EiendomsMegler 1BNbank

SpareBank 1 Oslo og Akershus

31

Page 32: Annual accounts 2010 - Presentation of results from SpareBank 1 Gruppen AS

SpareBank 1 GruppenProfit for 2010

Figures in MNOK 2010 2009

Part of result from subsidiaries before tax

Year

Profit for 2010*

Part of result from subsidiaries before tax - SpareBank 1 Livsforsikring 350.4 392.2 - SpareBank 1 Skadeforsikring Group 641.1 621.1 - ODIN Forvaltning 64.6 42.1 - Argo Securities -57.6 -48.9 SpareBank 1 Medlemskort 11 1 12 1 - SpareBank 1 Medlemskort 11.1 12.1 - SpareBank 1 Gruppen Finans Group 8.6 22.5 - Correction Group 17.6 4.8Net result before tax from subsidiaries 1,036.0 1,046.0Total operating costs (parent company) -7.6 -54.1N i h ( ) 43 2 36 3

**Net investment charges (parent company) -43.2 -36.3Gains from sale of companies 0.0 29.2Share of associated company 0.0 10.8Pre-tax result 985.1 995.5Taxes -153.6 -260.5Net result for the period 831.6 735.1

Majority interest 841.0 743.9Minority interest -9.5 -8.8

Key figures 2010 2009Annualised return on equity 18.7 % 18.1 %

Year

* Comparison figures for 2009 have been restated and do not include the Bank 1 Oslo Group.** MNOK 43 as ecognised as income in Q3 2010 in connection ith emplo e 's National Ins ance cont ib tions associated ith a ten ea old co t case that

32

** MNOK 43 was recognised as income in Q3 2010 in connection with employer's National Insurance contributions associated with a ten year-old court case that SB1 Gruppen AS had previously covered on behalf of First Securities

Page 33: Annual accounts 2010 - Presentation of results from SpareBank 1 Gruppen AS

SpareBank 1 Gruppen Quarterly resultsQuarterly results

Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1Figures in MNOK 2010 2010 2010 2010 2009 2009 2009 2009

Part of result from subsidiaries before tax - SpareBank 1 Livsforsikring 72.5 85.8 100.3 91.9 81.0 81.2 205.6 24.4 - SpareBank 1 Skadeforsikring Group 307.5 253.9 43.4 36.3 115.3 272.8 184.9 48.1p g p - ODIN Forvaltning 16.5 17.0 16.7 14.4 24.0 16.0 9.6 -7.5 - Argo Securities -24.0 -29.0 -1.9 -2.7 -9.5 -14.6 -11.9 -12.9 - SpareBank 1 Medlemskort 1.9 2.7 3.3 3.4 0.7 1.8 4.1 5.6 - SpareBank 1 Gruppen Finans Group 6.6 -4.9 7.0 -0.1 2.3 3.9 11.0 5.3 - Correction Group -6.3 -7.4 16.3 15.1 -8.6 12.0 -6.0 7.4Net result before tax from subsidiaries 374 6 318 1 185 1 158 2 205 2 373 1 355 4 112 3Net result before tax from subsidiaries 374.6 318.1 185.1 158.2 205.2 373.1 355.4 112.3Total operating costs (parent company) -16.5 40.7 -11.9 -20.0 -15.5 -13.2 -12.1 -13.3Net investment charges (parent company) -15.6 -11.4 -9.3 -6.9 -9.8 -2.1 -7.0 -17.3Gains from sale of companies 0.0 0.0 0.0 0.0 0.0 0.0 29.2 0.0Share of associated company 0.0 0.0 0.0 0.0 -2.8 0.0 8.4 5.1Pre-tax result 342.5 347.4 163.9 131.3 177.2 357.7 373.8 86.8Taxes 18 5 88 4 8 3 38 5 9 3 27 3 131 4 92 5Taxes -18.5 -88.4 -8.3 -38.5 -9.3 -27.3 -131.4 -92.5Net result for the period 324.0 259.1 155.6 92.8 167.9 330.4 242.4 -5.7

Majority interest 327.9 263.9 155.9 93.3 169.6 333.1 244.6 -3.4Minority interest -3.9 -4.8 -0.3 -0.5 -1.7 -2.6 -2.1 -2.3

33

Page 34: Annual accounts 2010 - Presentation of results from SpareBank 1 Gruppen AS

SpareBank 1 Livsforsikring Profit for 2010Profit for 2010

Q4 Q3 Q2 Q1 Q4Figures in MNOK 2010 2010 2010 2010 2009 2010 2009 Insurance risk income 328.3 327.3 321.7 315.3 301.6 1,292.6 1,220.6 Insurance risk claims -266.2 -250.1 -213.4 -209.3 -218.9 -939.0 -829.4Risk result 62.1 77.1 108.3 106.0 82.7 353.6 391.2

Year

Risk result 62.1 77.1 108.3 106.0 82.7 353.6 391.2 Tecnical allocations 3.2 -5.5 -11.6 -14.2 -7.8 -28.2 -38.9Risk result after tecnical allocations 65.3 71.6 96.7 91.8 74.9 325.4 352.3 Fees 166.5 161.1 164.1 146.3 140.1 637.9 563.2 Expenses, exclusive comissions -166.6 -147.0 -144.5 -131.2 -150.0 -589.2 -554.7 Comissions -61.6 -58.7 -59.4 -55.9 -57.3 -235.6 -201.6Ad i i t ti lt 61 7 44 6 39 8 40 8 67 2 186 9 193 1Administration result -61.7 -44.6 -39.8 -40.8 -67.2 -186.9 -193.1 Net investment income 177.0 177.0 234.0 176.3 237.0 764.3 1,002.4 Guaranteed interest to policyholders -128.2 -106.3 -105.5 -107.0 -111.8 -447.0 -445.0Investment result 48.7 70.8 128.5 69.3 125.2 317.3 557.4 Reserves -9.3 -12.0 -12.0 -12.0 -74.5 -45.3 -74.5Investment result after reserves 39.5 58.8 116.5 57.3 50.7 272.0 482.9 Compensation guaranteed interest 7.5 7.5 9.7 5.2 3.7 29.9 14.6Result before additional provisions 50.6 93.2 183.1 113.6 62.1 440.4 656.7 Allocation to additional provisions -125.3 0.0 0.0 0.0 28.9 -125.3 -127.9 Transferred to policyholders 124.7 -39.6 -79.3 -42.2 -50.2 -36.3 -209.5 Return on company's assets 22.6 32.1 -3.5 20.5 40.3 71.6 73.0Net profit to owner before tax 72 5 85 8 100 3 91 9 81 0 350 4 392 2Net profit to owner before tax 72.5 85.8 100.3 91.9 81.0 350.4 392.2 Taxes -17.5 -24.9 -17.8 0.0 0.0 -60.2 0.0Net profit/loss for the period 55.0 60.9 82.5 91.9 81.0 290.2 392.2

Key figures Year

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 company's 20 0 d O 60 2 C l l d h d l l d d f O 38 d

2010 2009Capital adequacy ratio 19.3 % 19.0 %Buffer capital in % of insurance provisions after allocation of profits 14.6 % 11.7 %Buffer capital in % of insurance provisions 17.9 % 15.1 %

34

tax cost in 2010 amounted to MNOK 60.2. Calculations according to the tax exemption model entailed a reduction in tax cost of MNOK 38.1, as compared to a calculation using 28 % tax charge

Page 35: Annual accounts 2010 - Presentation of results from SpareBank 1 Gruppen AS

SpareBank 1 Livsforsikring Profits by portfolio for 2010Profits by portfolio for 2010

Figures in MNOKGroup

portfolio

Previouslyestablished

individual productsInvestment choice

portfolioCompanyportfolio Total

Risk result 323.3 2.9 -0.7 0.0 325.5Administration result 17.6 -61.8 -142.7 0.0 -186.9Net investment result 208.3 105.0 2.2 1.9 317.3Reserves - long life 0.0 -45.3 0.0 0.0 -45.3Compensation interest guarantee 29.9 0.0 0.0 0.0 29.9Transferred to policyholders -160.5 -0.9 -0.3 0.0 -161.7Return on company's assets 0.0 0.0 0.0 71.6 71.6Sum 418.5 0.0 -141.7 73.5 350.4

35

Page 36: Annual accounts 2010 - Presentation of results from SpareBank 1 Gruppen AS

SpareBank 1 LivsforsikringPremium income trendsPremium income trends

Q4 Q3 Q2 Q1 Q4 YearFigures in MNOK 2010 2010 2010 2010 2009 2010 2009Figures in MNOK 2010 2010 2010 2010 2009 2010 2009 Individual annuity and pension insurance 79.8 68.6 83.1 75.2 77.5 306.7 269.6 Individual endowment insurance 133.7 129.5 128.9 126.9 125.5 519.1 486.7 Group pension insurance 120.0 105.4 72.1 252.1 87.2 549.5 564.1 Individual life insurance 47.1 46.1 45.4 44.5 43.9 183.1 171.0 Group life insurance 122.0 130.1 125.8 209.8 118.1 587.7 575.0 Group life insurance 122.0 130.1 125.8 209.8 118.1 587.7 575.0 Unit Linked - Annuity 11.6 10.4 10.8 13.7 14.0 46.6 47.9 Unit Linked - Endowment 68.8 53.9 55.4 59.0 69.6 237.0 258.3 Defined contribution pension 223.0 224.6 216.6 200.0 184.7 864.2 753.7Total gross due premium income 805.9 768.6 737.9 981.3 720.5 3,293.8 3,126.4 Premium reserves transferred from other companies 126.4 64.8 80.5 80.8 45.0 352.5 285.4 Premium reserves transferred from other companies 126.4 64.8 80.5 80.8 45.0 352.5 285.4 Reinsurance ceded -32.3 -34.2 -42.0 -43.5 -39.0 -152.0 -157.7Premium income for own account 900.0 799.2 776.4 1,018.6 726.5 3,494.2 3,254.1

36

Page 37: Annual accounts 2010 - Presentation of results from SpareBank 1 Gruppen AS

SpareBank 1 LivsforsikringAsset allocation by portfolioAsset allocation by portfolio

As at 31 12 2010 (31 12 09)As at 31.12.2010 (31.12.09)

Group portfolio Company portfolio Investment choice portfolio

34.8 (34.2) % 14.8 (14.5) %7.1 (5.2) %

17.0 (19.4) %

0.1 (0.1) %

50.1 (48.7) % 39.0 (31.5) %*

21.8 (24.3) %21.5 (21.7) %

11 1 (14 7) %21.7 (17.0) %

61 0 (61 4) %

O 6 ( 6) billi

11.1 (14.7) % 61.0 (61.4) %0.0 (7.1) %Stocks OtherReal estate Bonds held to maturityBonds

Stocks OtherReal estate Bonds held to maturityBonds

Stocks Other Bonds

NOK 16.0 (15.5) billion NOK 2.8 (2.5) billion NOK 6.7 (5.6) billion

37

* The reduction came as a result of reducing shareholding in Group Pension Insurance to 10 % in 1st half-year 2010

Page 38: Annual accounts 2010 - Presentation of results from SpareBank 1 Gruppen AS

SpareBank 1 LivsforsikringR t di t tf li ith tReturn on ordinary customer portfolio with guarantee

20.5Norwegian shares

2.5

12.5

Money market

Foreign shares

6.9

4.9

Foreign bonds

Norwegian bonds

10.0

5.4

Real estate

Held to maturity

38

Page 39: Annual accounts 2010 - Presentation of results from SpareBank 1 Gruppen AS

SpareBank 1 Livsforsikring

Booked return on customer portfolios with guarantee

6.2

Q32010

Q42010

Q32010

Q42010

Q32010

Q42010

Q32010

Q42010

4 0

5.24.9 4.8

4.0

3.13.2

3.8

SpareBank 1 Storebrand Vital Nordea

39 Source: company presentations

Page 40: Annual accounts 2010 - Presentation of results from SpareBank 1 Gruppen AS

SpareBank 1 LivsforsikringBalance sheet for 2010Balance sheet for 2010

Figures in MNOK 2010 2009 Intangible assets 42 38 Investments 2,862 2,498 Reinsurance's part of insurance obligations 221 221

Year

Reinsurance s part of insurance obligations 221 221 Accounts receivable 153 90 Other assets 335 241 Prepayed liabilities and accrued income 0 0 Investments group portfolio 16,169 15,629 Investments options portfolio 6 701 5 576 Investments options portfolio 6,701 5,576Total assets 26,483 24,294 Paid in capital 1,602 1,243 Other equity 386 397 Subordinated loan capital 400 525 I bli ti t t l 16 127 15 513 Insurance obligations - contractual 16,127 15,513 Insurance obligations - investment options 6,805 5,658 Provisions for obligations 144 88 Premium deposits from reinsurance companies 134 129 Other obligations 764 658 Accrued liabilities, prepaied income 120 83Total liabilities and equity 26,483 24,294

40

Page 41: Annual accounts 2010 - Presentation of results from SpareBank 1 Gruppen AS

SpareBank 1 SkadeforsikringProfit for 2010Profit for 2010

Q4 Q3 Q2 Q1 Q4Figures in MNOK 2010 2010 2010 2010 2009 2010 2009

YearFigures in MNOK 2010 2010 2010 2010 2009 2010 2009Gross written premium 1,175.6 1,059.1 1,171.9 1,325.2 1,004.4 4,731.8 4,271.2Net earned premium 1,135.1 1,077.0 1,007.0 965.4 983.1 4,184.4 3,814.3Net incurred claims -869.2 -722.7 -764.0 -852.5 -735.8 -3,208.5 -2,813.1Net insurance operating costs -269.6 -244.1 -171.8 -195.1 -243.8 -880.6 -858.0Other insurance income/costs 115.4 17.4 -0.5 -0.4 1.0 132.0 0.8Other insurance income/costs 115.4 17.4 0.5 0.4 1.0 132.0 0.8Changes in other technical reserves 11.4 -6.3 4.6 29.9 -6.3 39.6 -27.5Operating result before finance 123.0 121.3 75.3 -52.8 -1.9 266.9 116.6Net financial income 201.1 149.0 -15.0 97.6 128.1 432.7 532.6Other costs 0.0 -0.7 -1.0 -1.0 -1.1 -2.7 -5.8Result before changes in security reserve 324.1 269.7 59.4 43.8 125.1 696.9 643.3Changes in security reserve -16.5 -15.8 -15.9 -7.5 -9.8 -55.8 -22.2Pre-tax profit 307.5 253.9 43.4 36.3 115.3 641.1 621.1Taxes 0.7 -54.0 -12.2 5.4 6.3 -60.1 -118.1Net profit/loss for the period 308.2 199.9 31.2 41.7 121.7 581.1 503.0

Key figures Q4 Q3 Q2 Q1 Q4Figures in percentage 2010 2010 2010 2010 2009 2010 2009Claims ratio, net 76.6 % 67.1 % 75.9 % 88.3 % 74.8 % 76.7 % 73.8 %Cost ratio, net 23.8 % 22.7 % 17.1 % 20.2 % 24.8 % 21.0 % 22.5 %Combined ratio net 100 3 % 89 8 % 92 9 % 108 5 % 99 6 % 97 7 % 96 2 %

Year

Combined ratio, net 100.3 % 89.8 % 92.9 % 108.5 % 99.6 % 97.7 % 96.2 %Capital adequacy ratio 32.5 % 34.2 %

41

Page 42: Annual accounts 2010 - Presentation of results from SpareBank 1 Gruppen AS

SpareBank 1 SkadeforsikringAllocation of financial assetsAllocation of financial assets

As at 31.12.2010 (31.12.09)

65.6 (64.3) %

11.1 (11.0) %Bonds held as current assetsBonds held to maturity

14.1 (14.4) %

Real stateStocksBankHedgefond

0.1 (0.3) %0.0 (2.9) % 9.1 (7.1) %

NOK 8.5 (8.2) billion

42

Page 43: Annual accounts 2010 - Presentation of results from SpareBank 1 Gruppen AS

ODIN ForvaltningProfit for 2010Profit for 2010

Q4 Q3 Q2 Q1 Q4Figures in MNOK 2010 2010 2010 2010 2009 2010 2009Management fees 82.0 78.0 79.6 78.3 74.5 317.9 244.8

Year

gSubscription and redemption fees 0.0 0.0 0.0 0.0 6.8 0.0 25.9Total operating income 82.0 78.0 79.6 78.3 81.4 317.9 270.7Salaries 27.3 27.1 24.1 25.6 27.0 104.2 88.1Depreciations 3.6 3.6 3.7 3.9 4.0 14.8 16.0Other operating costs 36 3 31 1 35 8 34 6 33 6 137 8 124 2Other operating costs 36.3 31.1 35.8 34.6 33.6 137.8 124.2Total operating costs 67.2 61.9 63.6 64.1 64.6 256.8 228.3Operating profit 14.8 16.2 16.0 14.2 16.8 61.1 42.4Net financial income 1.7 0.9 0.7 0.3 7.2 3.6 -0.3Pre-tax profit 16.5 17.0 16.7 14.4 24.0 64.6 42.1T 6 1 4 7 4 6 3 9 8 5 19 3 13 5Taxes 6.1 4.7 4.6 3.9 8.5 19.3 13.5Net profit/loss for the period 10.4 12.3 12.1 10.5 15.5 45.3 28.6

43

Page 44: Annual accounts 2010 - Presentation of results from SpareBank 1 Gruppen AS

Effect realisation from profitability project Delta(does not include Bank 1 Oslo)

Realisation of staffing consequences over time Realisation of profit effects over time

(does not include Bank 1 Oslo)

Realisation of staffing consequences over time (fulltime equivalents, cumulative)

Realisation of profit effects over time (MNOK, cumulative annual effect)

400156

Realised effects

Planned

Realised effectsPlanned

361

262286

156

116

147

105

92

79

148

76

92

29

16 21

2H 20101H 20102H 20091H 2009

2429

2H 20101H 20102H 20091H 2009

A large part of the reduction in fulltime equivalents comes from natural reduction in the use of

temporary staff

A completed measure qualifies for full annual effect. This method ensures focus on implementation

44

Page 45: Annual accounts 2010 - Presentation of results from SpareBank 1 Gruppen AS

The Delta project:Slightly smaller staff reductions than estimated. This is due to changes in the order in which measures were implemented meaning that measures entailing further staff which measures were implemented, meaning that measures entailing further staff cutbacks will be made after completion of the project

Results of implemented measures per company (FTEs)Results of implemented measures per company (FTEs)

147156

-9

101

PlannedEffect of implemented measures

48 49

85

713

Skade GruppenLiv Totalt Delta

A large part of the reduction in fulltime equivalents comes from natural reduction in the use of temporary staff

Skade GruppenLiv Totalt Delta

45

A large part of the reduction in fulltime equivalents comes from natural reduction in the use of temporary staff

Page 46: Annual accounts 2010 - Presentation of results from SpareBank 1 Gruppen AS

EFFECT REALISATION FROM PROFITABILITY PROJECT

SUB-PROJECT SpareBank 1 Livsforsikring FINAL REPORT 2010

Planned

Profit effects realised by quarter (MNOK)

Realised staff reduction by quarter (annual fulltime equivalents)

Planned101

9494225

Effect of implemented measures Effect of implemented measures9494

79

68

7878

7168

85191

162150

172166

50

150

119

137

86

2420

25

43

1813

66

18

Q1-10Q4-09Q3-09Q2-09 Q2-10 Q4-10Q3-10 Q4-10Q3-10Q2-10Q1-10Q4-09Q3-09Q2-09

13

46

Page 47: Annual accounts 2010 - Presentation of results from SpareBank 1 Gruppen AS

EFFECT REALISATION FROM PROFITABILITY PROJECT

SUB-PROJECT SpareBank 1 Skadeforsikring FINAL REPORT 2010

Profit effects realised by quarter (MNOK)

Realised staff reduction by quarter (annual fulltime equivalents)

Planned Planned

944848 48

49

Effect of implemented measures Effect of implemented measures8479 80

57

47

37

57

31 18

16

2

22

7

15

10

42

6

15

9

Q3-09Q2-09 Q4-10Q1-10Q4-09 Q3-10Q2-10 Q1-10Q4-09Q3-09 Q4-10Q3-10Q2-10Q2-09

2 2

47