3Q 2015 28 October 2015 Better pensions Odd Arild Grefstad CEO - PowerPoint PPT Presentation

– Storebrand 3Q 2015 28 October 2015 Better pensions Odd Arild Grefstad – CEO Lars Aa. Løddesøl – CFO

– Highlights 3Q 2015 17% Insurance written Group result premium growth 2 176 MNOK 27% Unit Linked 440 premium growth 2 -264 Q3 2015 Result before profit sharing and loan losses 67% of longevity Net profit sharing and loan losses/Longevity provision strengthening completed  8,5 % growth in fee and admin income 1  Results impacted by weak financial markets during the quarter 146% Estimated Solvency II ratio 3 1 Adjusted for business in run off (corporate banking and public sector) and FX. YTD/YTD 2 2 Growth figures are 3Q2014-3Q2015. 3 Including transitional rules.

– Transformation of the business model continues Dual strategy reiterated and reinforced Manage the guaranteed balance sheet Continued growth in savings and insurance Retail customers Employees Capital Risk Corporate relation optimization reduction >130% Save for < Solvency II retirement Margin Product optimization Cost reduction We work hard to reach our vision: Recommended by our customers 3

– Estimated SII position Storebrand Group Manage guaranteed balance sheet Economic Solvency position(%) 1 Estimated Sensitivities 2 Target SII margin 154 146 1.1.2016 =130% 40 42 Estimated economic 104 42 146 SII-margin Q2 2015 114 104 Interest 87 59 146 rates -50bp Q2 2015 Q3 2015 Interest 119 27 146 Transitional rules SII standard model rates +50 bp Key takeaways 95 39 134 Equity -25% Falling interest rates between Q2 and Q3  45bps in Norway and 23bps in Sweden o **10 bn additional 99 45 144 conversion paid-ups Reduced stress on equities  from Defined Benefit From 42% per Q2 to 36% per Q3 o ** In addition to NOK 8 bn included in the projection for 2015. On track to improve underlying Solvency II  ratio with 10% points during 2015 1 The estimated Economic solvency position of Storebrand Life Group is calculated using the current Storebrand implementation of the Solvency II Standard model with the company's interpretation of the suggested transition rules from the NFSA. Output is sensitive to changes in financial markets, development of reserves, changes in assumptions and improvements of the calculation framework in the economic capital model as well as changes in the Solvency II legislation and national interpretation of transition rules. 2 Indicative sensitivities after the implementation of Solvency II in 2016. Market movements in 2015 and until the introduction of Solvency II in 2016 will have a 4 smaller effect than stated in the sensitivities because of the mitigating effects of the transition rules.

– Fee and administration income shifts from Guaranteed to Savings Dual strategy Income growth of 8.5% adjusted for business in run-off 1 Storebrand Group income development Fee- and admin income 12 months rolling Q3 2014 compared to Q3 2015 (YTD, NOK mill.) Savings and Guaranteed pension (NOK mill.) 3.6% 2,600 Savings 19 2,500 86 2,400 2,300 3,155 56 206 2,200 28 2,100 2,000 3,044 1,900 1,800 Guaranteed pension 1,700 1,600 1,500 3Q 13 3Q 14 3Q 15 Q3 2014 Savings Guaranteed Public Corporate Other Q3 2015 pension sector banking excl public sector 1 Adjusted for business in run off (corporate banking and public sector) and FX 5

– Customer centricity, innovation and efficiency Dual strategy BPO/ITO Customer centric organization  Increase profitability  Negotiations with potential partners,  Improve customer centricity including partial ownership change of Storebrand Baltic  Leverage innovation capacity and create Support functions Customer Areas NO/SE customer friendly solutions  Automation of manual processes Asset Mgmt. Customer Service  Additional operational cost reductions  From fixed to variable costs Product Cost/Income target announced Cost efficiency measures CMD 2014  Manage back book  Customer Area Norway: Staff reductions challenges of 65 FTEs 2015 (15%)  Support growth  Further FTE reductions in other areas 60% initiatives expected in 2016 6

– Growth in Savings and Insurance continues Continued growth in Savings and Insurance Unit Linked Asset management 26% 12% 119 27% Premium 562  503 Gathering  94 growth 3Q assets from Paid-up  life company policies Strong sales  w/investment choice adds growth Q3 2014 Q3 2015 Q3 2014 Q3 2015 UL reserves (BNOK) AuM (BNOK) Save for retirement Insurance Retail loans 17% 4.2% 4 275 Premium 25.4  24.4 Growth from 3 657  growth from introduction of Akademikerne new product Sales to large  customers Q3 2014 Q3 2015 Q3 2014 Q3 2015 Written Balance (BNOK) Premiums (MNOK) 7

– Competitive retail bank offering Continued growth in Savings and Insurance 20 year: 10 year: 3,8% Floating: 3,1% 2,1% 8 Note: All figures are nominal interest rates p.a. Floating rate of 2,1% represents best interest rate in Storebrand's "BLU40" offering.

– Group Key figures Earnings per share 1 Result development Net profit sharing and loan losses Sale discontinued business/change in pension plan MNOK Result before profit sharing and loan losses 1.78 Longevity provision 923 25 632 1.08 459 477 450 62 0.80 0.78 58 176 0.37 660 661 541 546 440 -90 -121 -154 -167 -51 -151 -96 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Customer buffers development Solvency ratio Storebrand Life Group Solidity capital Customer buffers Norway 3 % of customer funds 2 MNOK Solvency I ratio Customer buffers Sweden 182% 183% 179% 175% 173% 15.0% 12.5% 12.4% 11.7% 11.1% 66,052 64,664 64,020 62,293 61,904 6.6% 6.5% 5.7% 5.4% 4.8% Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 1 Earnings per share after tax adjusted for amortisation of intangible assets 2 Customer buffers in Benco of NOK 2.0 bn not included 3 Solidity capital/customer buffers does not include provisions for future longevity reservations 9

– Group Storebrand Group Profit 3Q 01.01 - 30.09 Full year NOK million 2015 2014 2015 2014 2014 Fee and administration income 1 046 1 045 3 155 3 044 4 160 Risk result life & pensions 40 37 103 157 480 Insurance premiums f.o.a. 894 773 2 708 2 313 3 115 Claims f.o.a. -697 -564 -2 031 -1 614 -2 226 Operational cost -755 -732 -2 357 -2 238 -2 446 Financial result -90 95 68 370 349 Result before profit sharing and loan losses 440 655 1 646 2 032 3 431 Net profit sharing and loan losses -167 67 -159 348 -8 Provision longevity -96 -90 -402 -270 -391 Result before amortisation and write-downs 176 632 1 085 2 110 3 032 Amortisation and write-downs of intangible assets -108 -108 -316 -326 -431 Result before tax 67 524 768 1 783 2 601 Tax -3 -147 -187 -401 -516 Sold/liquidated business -0 -0 -0 -1 -1 Profit after tax 64 376 581 1 382 2 085 10

– Group Storebrand Group Profit 3Q 01.01 - 30.09 Full year NOK million 2015 2014 2015 2014 2014 Fee and administration income 1 046 1 045 3 155 3 044 4 160 Risk result life & pensions 40 37 103 157 480 Insurance premiums f.o.a. 894 773 2 708 2 313 3 115 Claims f.o.a. -697 -564 -2 031 -1 614 -2 226 Operational cost -755 -732 -2 357 -2 238 -2 446 Financial result -90 95 68 370 349 Result before profit sharing and loan losses 440 655 1 646 2 032 3 431 Net profit sharing and loan losses/Provision longevity -264 -23 -561 78 -399 Profit before amortisation 176 632 1 085 2 110 3 032 Profit per line of business 3Q 01.01 - 30.09 Full year NOK million 2015 2014 2015 2014 2014 Savings - non-guaranteed 264 240 720 622 1 091 Insurance 120 135 471 516 675 Guaranteed pension -76 233 37 847 1 074 Other result -133 24 -143 124 193 Profit before amortisation 176 632 1 085 2 110 3 032 11

– Savings (non-guaranteed) Savings - strong results growth Profit 3Q 01.01 - 30.09 Full year NOK million 2015 2014 2015 2014 2014 Fee and administration income 646 588 1 902 1 696 2 375 Risk result life & pensions -5 7 -4 -1 -11 Operational cost -381 -354 -1 183 -1 075 -1 289 Financial result 0 0 0 0 0 Result before profit sharing and loan losses 261 240 715 620 1 075 Net profit sharing and loan losses 3 -1 5 2 16 Provision longevity - - - - - Result before amortisation 264 240 720 622 1 091 Profit per product line 3Q 01.01 - 30.09 Full year NOK million 2015 2014 2015 2014 2014 Unit Linked Storebrand 71 63 163 131 205 Unit Linked SPP 41 32 113 74 99 Asset Management segment 116 87 306 240 513 Retail Banking 36 57 137 177 274 Result before amortisation 264 240 720 622 1 091 12

– Savings (non-guaranteed) Savings - strong growth in UL premiums Reserves and premiums Unit Linked Comments 1 3,2 3,0 2,9 2,6  27% premium growth in UL 2,5 premiums 2 119 117 116 105  12% top line growth in Savings 3 BNOK 94  Strong result development in Asset Management continues Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Assets Under Management Net Interest margin retail banking (%) 1,39 1,35 1,36 1,23 1,21 BNOK 562 558 552 503 535 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 1 Growth figures show development from 3Q 2014 to 3Q 2015. 3 Growth figures show development from 3Q 2014 to 3Q 2015 13 2 Excluding transfers.