Investor r Presenta tatio tion Q4 2019 Compelling combination of - - PowerPoint PPT Presentation

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Investor r Presenta tatio tion

Q4 2019

Compelling combination of self-funded savings growth and capital return from maturing guaranteed back-book

Important information:

This document may contain forward-looking statements. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances that may be beyond the Storebrand Group’s control. As a result, the Storebrand Group’s actual future financial condition, performance and results may differ materially from the plans, goals and expectations set forth in these forward-looking

• statements. Important factors that may cause such a difference for the Storebrand Group include, but are not limited to: (i) the macroeconomic

development, (ii) change in the competitive climate, (iii) change in the regulatory environment and other government actions and (iv) market related risks such as changes in equity markets, interest rates and exchange rates, and the performance of financial markets generally. The Storebrand Group assumes no responsibility to update any of the forward looking statements contained in this document or any other forward-looking statements it may make.

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▪ Transformed business from guaranteed to non- guaranteed ▪ Well positioned to capture capital light and profitable savings growth ▪ Back book capital consumption has peaked: increased capital return to shareholders ▪ Delivering on financial targets

Key Takeaways

Strategy

4

250 years of pioneering in the Nordic financial industry

5

1767 1861 1917 1995

Foundation

• among the first

Norwegian P&C companies delivering fire insurance Pioneered Life Insurance Pioneered Occupational Pensions Pioneered sustainable investments

1847

Expanded into

• ther P&C

insurance

2006

First fully digital P&C operation

6

Pension & Savings

▪ 40k corporate customers ▪ 2m individual customers ▪ NOK ~480bn of reserves of which 45% Unit Linked Asset Management ▪ NOK 831bn in AuM of which 40% external clients ▪ 100% of investments subject to sustainability screening Retail Bank ▪ Internet Bank ▪ NOK 48bn of net lending Insurance ▪ Health, P&C and group life insurance ▪ NOK 4.7bn in portfolio premiums

• Capital synergies
• Customer synergies
• Cost synergies
• Data synergies

Storebran and - An Integrated Financial Service Group

All numbers as of Q4 2019

Leading position in Norway and strong contender in Sweden

7

Market share occupational pensions (Defined Contribution)

✓ Best customer satisfaction with all time high score for large Norwegian corporates

Clear value proposition

Sparebank 1 Gjensidige Nordea Storebrand 28% DNB 31% 14% 9% 9% 20% 17% 15% 14% 7% LF SEB Movestic Skandia SPP

✓ Best customer service in Sweden

Norway 1 Sweden 2

World's most sustainable insurance company 2020

World leader in corporate sustainability

1 Finance Norway. Gross premiums defined contribution with and without investment choice. Q4 2018 2 Insurance Sweden. Segment Non-unionised pensions labelled 'Other occupational pensions' (written premiums) Q4 2018

Demographic change has driven pension reforms in Norway with

• pportunities emerging

8

II III I

1950 Now 2050

55 % 40 % Before Now 60 % 100 % Before Now 380 1 000 Now Soon

Workers per pensioner Public pension replacement rate1 Occupational pension coverage2 Retail savings (AuM, bn NOK)3

Pension pillar

1 OECD (2005-2017) Pensions at a Glance. Gross pension replacement rates from mandatory public pensions based on

average earner.

2 NOU 2005:15 Obligatorisk tjenestepensjon. Utredning nr. 13 fra Banklovkommisjonen. 3 See page 20.

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Moderate replacement rates and a wealthy population with an overweight in bank deposits fuel growth potential in retail market for savings

55% 49%

Germany Sweden France Netherlands Greece Italy Spain Norway Switzerland United Kingdom

37 554 31 947

United Kingdom France Netherlands Norway Switzerland Germany Sweden Italy Spain Greece

Household financial assets Norway3 Household disposable income1 Net replacement rate2

70% 15% 9% 6% Bank deposits Stocks

• Ind. Life & pension

Mutual funds

NOK 1 600 bn

1 OECD (2018), Household disposable income (indicator). Gross adjusted, USD 2016. 2 OECD (2017), Pensions at a Glance 2017: OECD and G20 Indicators. Net mandatory public

and private pension replacement rates, average earner.

3 Bank Deposits: SSB (2016) Formuesrekneskap for hushald – Bankinnskot. Mutual funds: VFF (2017) Norske

personkunder – Forvaltningskapital. Stocks: VPS ASA (2017) Eierfordeling i børsnoterte selskap – Aksjer – Lønnstakere

• .a., Ind. Life & Pensoin: see next page

Continued shift from Guaranteed to Non-guaranteed pension

10

Historic premium income1 Current share of reserves2 Expected flow of reserves3

2 000 4 000 6 000 8 000 10 000 12 000 14 000 16 000 18 000 Guaranteed Non-guaranteed NOKm 0% 1% 2% 3% 4% 5% 10 20 30 40 50 60 70 80 90 100 Share of reserves Policyholder age Guaranteed Non-guaranteed 2022E 2023E 2020E 2021E 3 2

• 13

2

• 13

2

• 13
• 13

16 17 17 18

• 4
• 4
• 5
• 6

Guaranteed premiums Claims Non-guaranteed premiums NOKbn

2012 2019 2012 2019

1 Guaranteed: Defined Benefit Norway and Guaranteed npension Swede, excl. transfers. Non-guaranteed: Unit Linked (occupational pension) Norway and Sweden, excl. transfers. 2 Guaranteed: Defined Benefit and Paid-up policies Norway and Guaranteed pension Sweden. Non-guaranteed: Unit Linked (occupational pension) Norway and Sweden. As of 2018. 3 Aggregated numbers from Norwegian and Swedish pension products. Acquired premiums from Silver excluded.

Successful transition from Guaranteed to non-guaranteed Savings

11 2019 2012 64% 21% 15% 14% 41% 45% 1 960 3 037 20% 2012 49% 15% 36% 15% 2019 65% 24 584 26 278 Savings Guaranteed Insurance NOK m NOK m 14% 18% 9% 2% 59% 32% 40% 2012 26% 2018 442 831 External Savings Other/internal Guaranteed

Premiums Storebrand1 Profit Storebrand2 Shift in total Storebrand AUM3

Guaranteed Insurance Savings NOK bn

1 Pension premiums in Guaranteed products, Insurance and Unit Linked products, Storebrand Group. 2 Profit before amortisation. "Guaranteed" includes "Other" segment. 3 Savings: Unit linked reserves, Guaranteed: Guaranteed reserves, External: External AUM in Storebrand Asset

Managment, Other/internal: residual group internal AUM including company portfolio.

Our strategy: A compelling combination of self-funding growth and capital

return from maturing guaranteed back-book

12

Build a world class Savings business

• supported by

Insurance Leading position Occupational Pension Uniquely positioned in growing retail savings market Asset manager with strong competitive position and clear growth opportunities Bolt-on M&A

A B C D

1 Manage balance sheet and capital 2

• A. Cost discipline

2018 2020 0%

176% Q4 2019

150% 180%

• B. SII capital management framework
• C. Increased return

Manage for capital release and increased dividend pay-out ratio

Growth in Savings and Insurance

64 85 105 128 140 168 179 220 2018 2012 2013 2014 2015 2016 2017 2019 +19% 831 2018 2012 2013 2014 2015 2016 2017 442 535 571 487 577 721 707 2019 +9%

UL reserves (NOKbn)

2013 2015 2014 2012 2018 2017 2016 23.7 23.9 23.9 48.2 26.9 35.4 46.5 42.1 2019 +11%

AuM (NOKbn) Balance (NOKbn) Portfolio premiums (NOKm)

Unit Linked Retail bank Asset management

13 3 308 3 569 3 699 4 327 4 502 4 462 4 455 4 698 2012 2013 2015 2014 2019 2018 2016 2017 +5%

Insurance

1

Net premiums and market return drive AuM growth

14

NOK bn

40 80 220 60 100 180 160 200 280 140 120 240 260 2016 2017 2014 2021E 2012 2013 2015 2018 2019 2020E

Expected market return

2013 2012

19%

AuM development Unit Linked

Drivers of expected net premiums

▪ Majority of premiums generated by active policies ▪ Growth driven by:

─ Increased salaries and savings rates ─ Population growth ─ Age distribution of policyholders ─ DB conversions ─ New sales ─ New retail savings products ─ Positive transfer balance ─ Market returns

Occupational Pension A

12-15%

1 Premiums net of claims.

Storebrand to enter Norwegian public sector pension market

15

29 52

Public Sector2 Private Sector Defined Contribution

Annual market premium NOK bn1

▪ With effect from 2020, the pension system for public employees will be adjusted to better fit the 2010 Norwegian pension reform. ▪ Market monopoly today. ▪ Capital efficient product offering. ▪ 5% expected annual market premium growth. ▪ Storebrand will build on existing systems and solutions and execute within previously communicated cost target for the group.

Large public sector market

• pening up for competition

New regulation will make it attractive for Storebrand to enter the market again

1 Private sector as of 2018, Public sector est. 2018 2 Norwegian municipalities, does not include pay as you go scheme for state employees.

Occupational Pension A

1 Private sector as of 2018, Public sector est. 2018 2 Norwegian municipalities, does not include pay as you go scheme for state employees.

Building on our relationship with employers to reach out to individuals

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Our position in the Norwegian

• ccupational pension market…

...gives us a customer base of 1.3 million individuals.. ..with above average financials and savings capacity

31%

Market share

DNB 28% Nordea 14% Customers with a paid-up policy or pension certificate Customers with

• ccupational

pension Retail customers Spb 1 9%

Household income Household assets

Retail B

785 000 1 090 000 1 800 000 3 200 000 All of Norway (age 30-70) Customers (age 30-70) All of Norway (age 30-70) Customers (age 30-70) +39% +78%

Fast growing Nordic asset manager with a blend of captive pension assets and external clients

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Main channels for AuM (NOK bn)1

Pension savings NO

296 bn 168 bn 42 bn 325 bn

Institutional mandates and distributors2 Direct retail savings NO

External share Asset types

42% 51% 5% 0% 2% 40% 60% Equities Real estate Money market Bonds Other External Captive

Pension savings SE AuM 831 bn

1 Data as of Q4 2019. 2 Includes company capital.

Asset Mgmt C

Increased external share in Asset Management

18 62% 47% 32% 9% 7% 12% 22% 26% 16% 24% 40% 2009 2015 2019 2% 2015 External Other Unit Linked Guaranteed

AuM mix Revenue mix1

Asset Mgmt C

2019 37% 24% 36% 3% 14% 11% 72% 1%

1 Revenue & AuM include Skagen from 01.01.2017 proforma

Solutions Active

• wnership

Exclusions

Asset Mgmt C

All assets under management are subject to sustainability screening

Sustainability at the core of our business

NOK 831 bn AuM aligned to contribute to the UN Sustainability Goals

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831 bn

AUM Sustainability Enhanced, NOK bn

2015 59.8 277.3 3.0 2016 68.1 2017 2018 10.3 2019

AuM Q4 2019

Storebrand's History of Sustainable Investments

Storebrand

Decision to integrate sustainability in all funds (2010) Kyoto Protocol (2009) (2015) (2017-2030) (2005) Next generation sustainability funds

• Global Solutions
• Green Bond Fund
• Plus fund family

Storebrand standard launched (2005)d Sustainability team established (1995) Exclusions across life insurance (2001) UN Sustainable Development Goals

1995 2000 2005 2010 2015 2020

World

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Asset Mgmt C

Ambition: Build a world class Savings business supported by Insurance

Insurance

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Savings Insurance

#1

Market position Pension Norway

Double digit

CAGR Pension Sweden1

Double digit

CAGR retail savings Norway

>10%

Bank ROE2

#1

Norwegian asset manager with European footprint

~5%

Long term growth

90-92%

Combined Ratio Leading position Occupational Pension

A

Uniquely positioned in growing retail savings market

B

Asset manager with strong competitive position and clear growth opportunities

C

Supported by Insurance

1

1 Within segment 'Other occupational pensions'. 2 RoE Retail banking only.

Savings

Significant difference in capital consumption and return profile between old and new business

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1 552

Allocated Equity2 (NOKbn) IFRS earnings1 (NOKm) Group Insurance Guaranteed3

638 982 3 172 5.5 2.0 23.6 31.1

Pro forma RoE adj(%)4

31% 36% 5% 11%

The equity in the Group sits within different legal units. This allocation of equity is done on a pro-forma basis to reflect an approximation to the IFRS equity consumed in the different reporting segments after group diversification. The estimated allocation is based on the capital consumption under SII and CRD IV adjusted for positive capital contribution to own

• funds. The Insurance segment has been allocated an increased capital level which is more in line with long-term expected diversification effects.

2

ILLUSTRATIVE FROM CMD 2018

1 Result before amortisation and after tax, Q1 2017 – Q1 2018 2 Based on solvency II position pr. Q1 2018 incl. transitional rules on 165%. IFRS equity allocated on a pro forma basis. 3 Includes reporting segment "Other". 4 Allocated equity 1Q 2018, ROE calculated on 1Q 2017.

Majority of AUM in Storebrand is already capital efficient and growing while capital consumptive guaranteed AUM is trailing off

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Company capital and Other: Company portfolios, buffer capital and BenCo. External AuM: Non-life AuM in Storebrand Asset Management. Non-guaranteed Life: Unit Linked Norway and Sweden. Low capital consumption Guarantees: Capital- light guarantees Sweden. Medium capital consumption Guarantees: Defined Benefit and medium guaranteed Sweden and paid ups with high buffers/low guarantees. High capital consumption Guarantees: Paid-up policies, Individual Norway and capital consumptive guarantees Sweden. Categories change in time du to buffer building. .

200 400 600 800 1 000 1 200 1 400

2019 2020E 2021E 2022E 2023E 2029E 2024E 2027E 2025E 2026E 2028E Company capital and Other External AuM Medium capital consumptive Guarantees Non-guaranteed Life Low capital consumptive Guarantees High capital consumptive Guarantees

2019: 71% of AuM non guaranteed 2029e: ~85% of AuM non guaranteed

ILLUSTRATION

▪ Guaranteed portfolio has reached Solvency II peak capital consumption ▪ New growth in Savings and Insurance need little new capital ▪ Increased free cash flow and dividend capacity ▪ Increased fee and adm. income and reduced sensitivity to financial markets

Forecast assets under management (NOKbn) Implications

2

Capital generation from increasing fee based earnings in front book and capital release from the back book

24 ~10% Expected capital generation Net capital generation ~5% ~5% Dividends

1 Solvency generation (%) on Solvency II ratio without transitional rules.

▪ Expected annual capital generation of ~10pp of improved solvency ratio after new business strain ▪ Further management actions have the potential to further improve solvency Estimated solvency generation (annual) short term1

Capital consumption includes sum of solvency capital requirement and sum of VIF for all guaranteed products NOKbn

ILLUSTRATION

5 10 15 20 25 50 100 150 200 250 2018 2020 2022 2024 2026

Guaranteed reserves Capital consumption

Estimated reduced capital consumption back book ▪ Lower capital consumption because guaranteed portfolio in run-off, interest rate guarantee reduced and new polices have lower guarantees, hence more capital light

From CMD

1 Solvency generation (%) on Solvency II ratio without transitional rules.

2

Strong historical growth in solvency ratio

25

147 2019 2014 124 2015 3 144 2016 4 174 155 179 2018 6 2017 159 101 178 172 6

Solvency ratio without transitional rules development 2014-2019 (%)

2

Dividend paid Set aside for Dividend Solvency ratio without transitionals

Group capital management policy sets thresholds for distribution of cash dividends

26

Solvency II

• Incl. transitional rules

176% Q4 2019

150% 180% 130%

▪ Dividend of more than 50% of Group result after tax ▪ Ambition is to pay ordinary dividends per share of at least the same nominal amount as the previous year ▪ Maintain investments in growth ▪ Reduced dividend pay out ▪ More selective investment in growth ▪ Consider risk reducing measures ▪ Share buybacks to be considered on a semi-annual basis ▪ No dividend ▪ Risk reducing measures

2

Ambitions Capital – back book has reached peak capital and is expected to contribute with cash together with growing front book

27

2021

Expected start of capital release as dividends when S2 ratio >180%

~NOK 10 BN

Back book capital release until 2027

Base case:

Release capital from the business

▪ Regulatory change ▪ Lower interest rates ▪ Margin pressure

Low case:

Release capital from the business

▪ Regulatory change ▪ Higher interest rates ▪ Better profitability

High case:

Release capital from the business

2

FROM CMD 2018

Delivered on Financial Targets

Return on equity1 Dividend pay-out ratio1 8.0% 73% > 10% > 50%

Target Actual 2019

28

Solvency II margin Storebrand Group2 176% > 150%

✓ ✓

%

1 Before amortisation after tax. 2 After tax 3 Including transitional rules.

Capital Management

29

Storebrand Group Structure

Diversified cash flow to holding company Storebrand ASA

Storebrand ASA Storebrand Livsforsikring AS Storebrand Holding AB SPP Pension & Försäkring AB Benco Storebrand Asset Management AS SKAGEN AS Storebrand Bank ASA Storebrand Forsikring AS 30

Legal structure (simplified)

Storebrand ASA Savings (non- guaranteed) Insurance Guaranteed pension Other

Reporting structure

IFRS earnings close to cash allow for a high remittance ratio in the Group

31

Storebrand Life Group 1520 Remittance ratio Remittance2 (NOK m) Storebrand Bank Storebrand Asset Management Storebrand Forsikring Storebrand Helseforsikring 80 65 1 465 82% 79% 271% 0% 112% 2129 72% ∑ Group3 Earnings after tax1 (NOK m) 1846 101 24 213 414 2952

1 As reported by legal entity YE 2018. 2 Upstreamed capital to Storebrand ASA 3 Group sum differs from consolidated earnings since the figure excludes the holding

company Storebrand ASA and tax effects

4,858 (18%) 14,079 (70%) 22,779 (82%) 23,900 (78%) 6,096 (30%) 2012 5,710 (23%) 19,031 (77%) 2016 2014 6,932 (22%) 2017 8,078 (25%) 24,795 (75%) 2018 25,748 (77%) 7,650 (23%) 2019 20,175 24,741 27,637 30,832 32,873 33,398 Tangible equity Intangible equity1

1 Intangible equity: Brand names, IT systems, customer lists and Value of business-in-force (VIF), and goodwill. VIF and goodwill mainly from acquisition of SPP. 2 Specification of subordinated liabilities:

• Hybrid tier 1 capital, Storebrand Bank ASA and Storebrand Livsforsikring AS
• Perpetual subordinated loan capital, Storebrand Livsforsikring AS
• Dated subordinated loan capital, Storebrand Bank ASA and Storebrand Livsforsikring AS

3 (Senior debt – liquidity portfolio) in holding company shown in separate column as it is not part of group capital.

• 503
• 837

7,948 (19%) 7,826 (24%) 7,075 (26%) 20,175 (74%) 24,741 (76%) 27,250 2012 2014 27,637 (78%) 7,621 (22%) 30,832 (78%) 2016 32,873 (81%) 8,867 (22%) 2017 2018 33,398 (79%) 2019 8,925 (21%)

• 1,693

32,567

• 1,462

35,258 39,699 40,821 38 42,323 1,983 Equity Subordinated liabilities Net liquidity STB ASA (Holding)3

Strong Group IFRS equity and capital structure – reduced financial leverage

Group equity (NOK bn) Group capital structure2

32

Term structure debt

33

Term structure sub-debt Storebrand Livsforsikring1 (bn NOK)

1 EUR 300 Million. SEK 750 Million 1,0 BN and 900 Million

Development net liquidity Storebrand ASA Term structure senior debt Storebrand ASA (bn NOK)

2020 0.9 2023 1.1 2021 2022 2024 0.9 2025 3.2 0.7 0.9 2.0 0.8 Non- perpetual Perpetual 2025 2024 2022 2020 2021 2023 0.8 0.5

3.0 0.0 4.0 1.0 2.0 5.0 6.0 7.0 8.0

2019 ~8x

EBITDA/Interest costs

Interest charge coverage Storebrand group2

12% 23% 2019 2019

Subordinated Debt (%) of Solvency II Own Funds Subordinated debt (%) of IFRS Capital

• 20 %
• 10 %

0 % 10 % 20 % MRD NOK

The Solvency Calculation – moving to a market consistent balance sheet and risk sensitive capital requirements

IFRS balance sheet Solvency II balance sheet Solvency II Balance Sheet under 1/200 years shock

SCR Moving to economic balance sheet 1 in 200 years shock

Group solvency II ratio =

Own Funds SCR

=

NOK 47bn NOK 27bn

= 176%1 (Q4 2019)

Equity Assets Liabilities Own Funds Market value

• f

assets Market value of liabilities

1 Including transitional rules.

Assets after shock Liabilities after shock Own Funds after shock 34

High quality capital base under Solvency II

35

24 3

27 SCR

3

47

7 1 36

Own funds Tier 1 restricted* CRD IV capital Tier 3 Tier 2 Tier 1 unrestricted

CRD IV capital requirements SCR SII regulated entities

Tier 1

Unrestricted

Tier 1

Restricted

Tier 2 Tier 3

Regulatory limit OF %

• f SCR

≥ 50% SCR ∑ All T1 ≤ 20% T1 ≤ 50% SCR ∑ T2+T3 ≤ 15% SCR 148% 5% 29% 1% OF % of total 81% 3% 16% 1%

SCR and own funds Q4 2019 (NOK bn) Own funds in % of SCR (excluding CRD IV subsidiaries)

Solvency Capital Requirements (SCR)

36 26

3 SCR before diversification

• 5
• 7

Risk absorbing capacity of tax Diversification CRD IV from subsidiaries SCR

SCR calculation Q4 2019 SCR dominated by financial market risk…

SCR excludes effect of transitionals on equity of NOK -297m. NOKbn 61% 29% 3% 4% Financial market Counterparty 2% Operational Life P&C & Health 19% 29% 12% 24% 16% Currency Interest Rate Down Equity 0% Property Spread Concentration Life

8%

Financial market Operational Counterparty P&C Health

0% 40% 66% 67% 77%

1 E.g. a NOK 100m increase of Insurance SCR leads to a NOK 23m increase of Basic SCR, because 78% are absorbed by diversification benefit (2019 Q4).

…Strong diversification benefits from adding more insurance risk1

36

Group SII 174% Q4 2019

Savings and Insurance are close to self-financing going forward

• SII-ratio of 204% excluding Savings and Insurance

37 28 16 3 Own funds 47 12 9 Own funds Solvency Capital Requirement

139%

28 16 4 Own funds Solvency Capital Requirement 32

204%

1 Savings includes CRD IV minorities, not included in illustration. All numbers excluding transitionals.

Product contribution to own funds (VIF), i.e no hard capital, covers the capital requirement – low risk for shareholders Capital requirement supported by hard capital SCR Contribution to own funds (’VIF’) Hard capital

Savings & Insurance SII1 Guaranteed & Other SII

16 8 3 1 Solvency Capital Requirement 27 VIF’ CRD IV Hard Capital Insurance Savings Guaranteed

ILLUSTRATIVE PRO FORMA ALLOCATION BASED ON 174% SOLVENCY RATIO PR Q4 20191 NOK bn NOK bn NOK bn

Reduced Solvency Capital Requirement from Guaranteed business

40% 44% 48% 52% 55% 58% 60% 63% 66% 68% 56% 51% 47% 43% 40% 37% 34% 32% 29% 27% 3% 2% 2019 2020 2% 3% 2% 2021 3% 2% 2026 2% 3% 2022 3% 3% 2023 2% 3% 2024 2% 3% 2025 3% 3% 2027 2% 2028 2%

100%

2% Guaranteed Pension Other Savings Insurance ▪ Savings products generates own funds, low need to hold hard capital in the form of equity/sub debt ▪ Low buffer need to SCR because of low volatility ▪ Insurance products have strong diversification effects ▪ Medium buffer need to SCR because of low volatility ▪ Guaranteed products have more financial market risk ▪ High buffer need to SCR because of high volatility

Expected proportion of SCR 2019-2028

38

Investment management

39

Liability Driven Investments are expected to generate SII Capital and Stabilise IFRS Results

40

SII IFRS

Long term perspective Risk management of

• wn funds and SCR

Annual perspective Risk management of financial result and buffers Required Risk Premium Expected Risk Premium 1.2% 0.5% +0.7% Required Book Return Expected Book Return 3.9% 3.2% +0.7% 2019 12.8% 2028 19.7% +6.9% 2019 2028 8.5% 13.0% +4.5% SII buffer – over guaranteed liabilities IFRS buffer development Expected excess mark to market return* Expected excess book return*

* Norwegian portfolio only

Storebrand Life Insurance asset allocation

41

Note: The graph shows the asset allocation for all products with an interest rate guarantee in Storebrand Life Insurance Norwegian operations. Category bonds includes loans on life insurance balance sheet.

Equities Bonds Money market Bonds at amortized cost Real estate Other 31.12.2018 7% 27% 2% 52% 10% 0% 31.03.2019 8% 26% 3% 53% 10% 0% 30.06.2019 8% 26% 3% 52% 10% 0% 30.09.2019 9% 26% 2% 52% 10% 0% 31.12.2019 9% 25% 3% 52% 10% 0% 0% 10% 20% 30% 40% 50% 60%

SPP asset allocation

42

Alternative investments Bonds Equities 31.12.2018 13% 81% 6% 31.03.2019 13% 82% 5% 30.06.2019 13% 83% 5% 30.09.2019 12% 84% 4% 31.12.2019 12% 81% 6% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Note: The graph shows the asset allocation for all products with an interest rate guarantee in SPP.

High quality assets with fixed income as the backbone

43

55% 10% 9%

Norway

25% 6% 12% 82%

Sweden

NOK 192 bn SEK 82 bn

Fixed income Equities Real estate Average rating

AA-

Average rating

A

Amortising bonds and loans

80%

MSCI World

20%

Local Index (OMX & OBX)

Prime

Location & Quality

Equities Alternative investments Fixed income Amortising Bonds and Loans

High Quality Fixed Income I

• Characteristics of Bonds at Amortised Cost1

44

Market & book value – no reinvestment (NOKbn) Yield and rating development – no reinvestment

1 Norwegian portfolio only.

2 % 0 % 3 % 1 % 4 % AA A 2023 2021 2019 2020 2022 2024 2025 2026 2027 2028 2029 2030

Rating distribution (%) Sector distribution (%)

34% 23% 23% 14% 6%

AAA AA A BBB Loans and unrated

26% 21% 41% 12%

Sovereign and gov. Guaranteed Covered Bonds Financials Corporate

93 83 77 72 60 48 42 34 26 23 113 5 2019 24 108 2021 5 2020 4 27 2022 3 2023 3 2024 2 2025 117 4 2 2028 2026 1 2027 97 1 1 2029 2030 50 113 86 81 75 62 43 35 1 Book value Excess value

1 Norwegian portfolio only.

High Quality Fixed Income II

• Characteristics of Mark to Market Fixed Income1

45 26% 31% 39% 0% 4% US Europe ex. NO & SWE Norway Sweden Other

Rating distribution (%) Geographical distribution (%) Sector distribution (%)

1 Total of Norwegian and Swedish portfolio.

27% 11% 12% 11% 39%

AAA AA A BBB Loans and unrated

21% 16% 17% 33% 7% 5% Sovereign and gov. Guaranteed Covered Bonds Financials Corporate Mortgages and loans Bank deposits and others

1 Total of Norwegian and Swedish portfolio.

Paid up policies in Norway: Segmentation According to Risk Capacity

46

Low Buffer level High Required book return Low High

Segment 4 44 bn. Segment 3 27 bn. Segment 2 25 bn. Segment 1 21 bn.

Equities Real Estate Credit Government bonds Amortizing bonds and loans

Segment 5 20 bn.

Q4 2019 Results

47

Highlights Q4 2019

48

Group result1

MNOK

707 2 298 319 739

3 037 1 026 Q4 2019 Full year 2019

Financial items and risk result life Operating profit

23% Unit Linked reserve growth2 #1 sustainable insurance company in the world4 176% Solvency margin5

1 Result before amortisation and tax. Operating result

adjusted for booked performance related result.

2 Growth figures are from YTD 2018 to YTD 2019. 3 Subject to AGM approval 22 April 2020 4 Corporate Knights Global 100, 2020. 5 Including transitional rules.

NOK 124bn AuM growth Asset Management2 NOK 3.25kr proposed ordinary dividend3

Dividend 2019

49

0.40 2016 1.55 2019 2.10 2017 2018 1.55 2.50 3.00 3.25 +8.3% Special dividends Ordinary dividends ▪ IFRS result growth - Ordinary dividends minimum 50% of result after tax with nominal growth ▪ Capital release from back book when solvency ratio is above 180%. Share buy backs preferred

50

% of customer funds3

Q4 2018 Q3 2019 Q1 2019

1.22

Q2 2019 Q4 2019

1.21 1.26 4.18 1.68 7.4% 6.4% 9.9%

Q4 2018 Q2 2019 Q1 2019 Q3 2019 Q4 2019

7.9% 8.7% 9.4% 8.3% 9.8% 8.6% 10.7%

Customer buffers Norway Customer buffers Sweden

MNOK

569 546 568 635 456 202 251 319 700

Q4 2018

85 11

• 44 -50
• 103
• 18

105 563

Q1 2019 Q2 2019

114

• 49

Q3 2019 Q4 2019

730 579 1,026

Result development1 Earnings per share2 Customer buffers development SII Own funds and SCR4

Financial items and risk result life Special items Performance related result Operating profit

Group

BNNOK 173% 173% 167% 177% 176% 172% 171% 165% 172% 174% Q3 2019 Q4 2018 Q1 2019 Q2 2019 Q4 2019 45.6 25.5 43.8 26.6 44.4 26.9 45.2 26.3 46.9 27.0

SII Own Funds SII Capital Requirement

Key figures

1 Result before amortisation and tax, adjusted for performance related result. 2 Earnings per share after tax adjusted for amortisation of intangible assets. 3 Excluding customer buffers Benco. Surplus values of HTM bonds cost excluded. 4 Bars and green line are without the use of transitional capital. Black line is with transitional.

Movement from Q3 2019 to Q4 2019

Storebrand ASA

51

+9 % +2 % +1 % +2 % Business mix and asset allocation VA, equity stress level and regulatory changes

• 7 %

0 % Q4 2019 Q3 2019 without transitionals

• 3 %

Changes in interest rates Model improvements & assumption changes Subordinated loan Operating earnings Q4 2019 without transitionals Transitionals +172 % +176 % +174 % Group

Movement full year 2019

Storebrand ASA

52

Group 3% 10% 10% 2%

Q4 2019 without transitionals Q4 2019 Q4 2018 without transitionals Subordinated liabilities Q4 2019 before dividend Reinsurance VA, equity stress and regulatory changes M&A

• 5%

172%

• 1%

0%

• 8%
• 1%

179% 174% 6%

Changes in interest rates Dividend Model improvements & assumption changes Transitionals Operating earnings Business mix and asset allocation

176%

SII position Storebrand Group

53

1 The estimated Economic solvency position of Storebrand Group is calculated using the current Storebrand implementation of the Solvency II Standard model with the company's interpretation of the

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.

Target SII margin 150%

172 174 2 5

Q4 2019 Q3 2019

177 176

SII standard model Transitional rules

174 161 186 167 169 172 169

Interest rates +50 bp

168

2

188

2

SII-margin Q4

9

Interest rates -50bp

2

176

1

Equity -25%

2

Spread +50 bp, VA +15bp UFR = 3.75%

2

UFR = 3.60%

170 171 174 171 ▪ Positive effect from increased interest rates partly offset by decreased VA ▪ Subordinated loan with call in March excluded ▪ Business mix strengthens balance sheet

Solvency position(%)1 Estimated sensitivities Key takeaways

Group

Storebrand Group

1 The result includes special items. Please see storebrand.com/ir for a complete overview.

54

Group

Profit1

NOK million 2019 2018 2019 2018 Fee and administration income 1 561 1 301 5 308 5 011 Insurance result 223 282 1 005 1 291 Operational cost

• 1 077
• 1 031
• 4 015
• 3 786

Operating profit 707 551 2 298 2 516 Financial items and risk result life 319 11 739 642 Profit before amortisation 1 026 563 3 037 3 158 Amortisation and write-downs of intangible assets

• 117
• 99
• 444
• 360

Profit before tax 909 464 2 593 2 799 Tax

• 234

1 392

• 511

897 Profit after tax 675 1 856 2 082 3 696 Q4 Full year

Storebrand Group

55

Group

Profit1

NOK million 2019 2018 2019 2018 Fee and administration income 1 561 1 301 5 308 5 011 Insurance result 223 282 1 005 1 291 Operational cost

• 1 077
• 1 031
• 4 015
• 3 786

Operating profit 707 551 2 298 2 516 Financial items and risk result life 319 11 739 642 Profit before amortisation 1 026 563 3 037 3 158 Q4 Full year

Profit per line of business

NOK million 2019 2018 2019 2018 Savings - non-guaranteed 547 325 1 364 1 257 Insurance 70 97 439 748 Guaranteed pension 332 217 1 029 1 148 Other profit 77

• 76

205 5 Profit before amortisation 1 026 563 3 037 3 158 Q4 Full year

1 The result includes special items. Please see storebrand.com/ir for a complete overview.

Storebrand Group

56

Group

Profit1 Operating profit adjusted for performance related income and costs2

NOK million 2019 2018 2019 2018 Fee and administration income 1 561 1 301 5 308 5 011 Insurance result 223 282 1 005 1 291 Operational cost

• 1 077
• 1 031
• 4 015
• 3 786

Operating profit 707 551 2 298 2 516 Q4 Full year

1 The result includes special items. Please see storebrand.com/ir for a complete overview. 2 Performance related costs refer to performance bonuses and kick-backs in funds with performance fees that are booked on a quarterly basis. The corresponding income is not booked until the end of the

• year. The numbers will vary with performance development through the year.

NOK million 2019 2018 2019 2018 Performance related income 225 96 225 96 Performance related OPEX 26

• 11
• 84
• 11

Adjusted operating profit 456 466 2 157 2 431 Q4 Full year

Savings (non-guaranteed)

57 Profit Profit per product line

Savings

NOK million 2019 2018 2019 2018 Unit linked Norway 57 44 275 224 Unit linked Sweden 89 71 291 267 Asset management 329 160 526 542 Retail banking 72 50 272 224 Profit before amortisation 547 325 1 364 1 257 Q4 Full year NOK million 2019 2018 2019 2018 Fee and administration income 1 233 1 006 3 996 3 709 Operational cost

• 692
• 652
• 2 621
• 2 405

Operating profit 541 354 1 375 1 303 Financial items and risk result life 6

• 29
• 11
• 46

Profit before amortisation 547 325 1 364 1 257 Q4 Full year

Savings (non-guaranteed)

58

Group

1 Performance related costs refer to performance bonuses and kick-backs in funds with performance fees that are booked on a quarterly basis. The corresponding income is not booked until the end of the

• year. The numbers will vary with performance development through the year.

Operating profit adjusted for performance related income and costs1

NOK million 2019 2018 2019 2018 Fee and administration income 1 233 1 006 3 996 3 709 Operational cost

• 692
• 652
• 2 621
• 2 405

Operating profit 541 354 1 375 1 303 Q4 Full year

Profit

NOK million 2019 2018 2019 2018 Performance related income 225 96 225 96 Performance related OPEX 26

• 11
• 84
• 11

Adjusted operating profit 290 269 1 234 1 218 Q4 Full year

Savings (non-guaranteed) – strong AuM growth

59

BNOK

Q4 2019 831 Q3 2019 Q1 2019 Q4 2018 752 Q2 2019 707 729 786 4.6 4.1 4.2 4.2 4.2 1.21 1.33 Q2 2019 Q4 2018 1.16 Q3 2019 Q1 2019 1.22 1.31 Q4 2019

Savings 18 17 18 18

18 46 29 29 28 29 30 48 47 46 47

Life insurance balance sheet Bank balance sheet

MNOK BNOK

Retail bank balance and net interest margin (%) Reserves and premiums Unit Linked Assets under management2 Comments1 ▪ 11% premium growth in UL premiums ▪ 23% growth in UL reserves ▪ 18% growth in assets under management2 ▪ Higher net interest margin in the bank

Q3 2019 179 Q2 2019 Q4 2018 Q1 2019 Q4 2019 191 198 207 220

1 Growth figures from YTD 2018 to YTD 2019. 2 Includes a reclassification of NOK 16bn in assets under administration to assets under management

Insurance

60 Profit Profit per product line

Insurance

NOK million 2019 2018 2019 2018 Insurance premiums f.o.a. 1 014 1 003 3 909 3 854 Claims f.o.a.

• 792
• 721
• 2 904
• 2 562

Operational cost

• 177
• 175
• 648
• 614

Operating profit 45 107 357 677 Financial result 25

• 9

83 71 Profit before amortisation 70 97 439 748 Q4 Full year NOK million 2019 2018 2019 2018 P&C & Individual life 87 71 335 372 Health & Group life

• 34
• 7
• 41

185 Pension related disability insurance Nordic 16 34 145 192 Profit before amortisation 70 97 439 748 Q4 Full year

Insurance – overall in line with target

61

1 138 1 124 1 134 1 130 1 144 1 574 1 548 1 563 1 609 1 639 1 743 1 769 1 810 1 845 1 915 4 442

Q3 2019 Q4 2018 Q1 2019

4 455

Q2 2019 Q4 2019

4 507 4 583 4 698

P&C & Individual life Health & Group life Disability insurance

72% 16% 74% 73%

Q4 2018

72%

Q4 2019

17%

Q1 2019

16%

Q2 2019

17%

Q3 2019

78% 17%

Claims ratio Cost ratio

MNOK

89% 89% 90% 89% 96%

Combined ratio

Insurance

Combined ratio Portfolio premiums Comments premiums and growth1 Comments Combined ratio and results ▪ 5% overall premium growth in line with target ▪ 10% P&C & Individual life growth ▪ 91% combined ratio 2019, target ratio 90-92% ▪ Good cost control ▪ Group life re-priced from 1 January 2020

1 Growth figures from YTD 2018 to YTD 2019.

Guaranteed pension

62 Profit

Guaranteed

Profit per product line

NOK million 2019 2018 2019 2018 Fee and administration income 368 333 1 475 1 440 Operational cost

• 225
• 223
• 819
• 816

Operating profit 143 111 657 624 Risk result life & pensions 71 58 215 191 Net profit sharing 118 48 157 333 Profit before amortisation 332 217 1 029 1 148 Q4 Full year NOK million 2019 2018 2019 2018 Defined benefit (fee based) 63 82 287 314 Paid-up policies, Norway 91 51 409 511 Individual life and pension, Norway 11 29 21 35 Guaranteed products, Sweden 167 55 312 288 Profit before amortisation 332 217 1 029 1 148 Q4 Full year

Guaranteed pension

• strong financial result and robust buffer situation

63

BNOK

59.2 % 56.1 % Q4 2018 Q3 2019 57.7 % Q1 2019 57.0 % Q2 2019 54.5 % Q4 2019

Guaranteed

81 79 80 81 80 133 136 137 137 137 33 32 33 33 33 Q2 2019 Q4 2018 Q1 2019 13 13 262 Q3 2019 12 13 12 Q4 2019 261 261 264 263

Defined Benefit NO Paid up policies NO Guaranteed products SE Individual NO

Reserves guaranteed products Comments Buffer capital Guaranteed reserves in % of total reserves ▪ As companies convert to DC schemes, the migration from DB to paid up policies continues to reduce fee income in Guaranteed pensions ▪ Strong financial result Sweden ▪ Strong risk result

NOK million Q4 2019 Q3 2019

Change

Market value adjustment reserve 5 500 5 893

• 393

Excess value of bonds at amortised cost 4 697 6 495

• 1 798

Additional statutory reserve 9 023 8 194 + 829 Conditional bonuses Sweden 7 802 7 213 + 589 Total 27 022 27 795

• 773

The term Buffer capital in this table is not consistent with the definition of buffer capital made in the IFRS accounting

Other1

64 Profit Profit per product line

Other

1 Excluding eliminations. For more information on eliminations, see Supplementary Information.

NOK million 2019 2018 2019 2018 Fee and administration income 13 23 51 102 Operational cost

• 35
• 42
• 143
• 190

Operating profit

• 22
• 20
• 91
• 89

Financial items and risk result life 99

• 56

296 128 Profit before amortisation 77

• 76

205 40 Q4 Full year NOK million 2019 2018 2019 2018 BenCo 26

• 1

33 30 Holding company costs and net financial results in company portfolios 52

• 75

173 24 Profit before amortisation 77

• 76

205 40 Q4 Full year

65 To register, please visit Storebrand.com/ir

Investor Relations contacts

Lars Aa. Løddesøl Kjetil R. Krøkje Daniel Sundahl Group CFO Group Head of Finance, Strategy and M&A Head of Investor Relations & Rating lars.loddesol@storebrand.no kjetil.r.krokje@storebrand.no daniel.sundahl@storebrand.no +47 9348 0151 +47 9341 2155 +47 9136 1899

This document contains Alternative Performance Measures as defined by the European Securities and Market Authority (ESMA). An overview of APMs used in financial reporting is available on storebrand.com/ir.