Storebrand ASA

Investor Presentation • Oct 25, 2023

Storebrand Q3 2023

25 October 2023

Odd Arild Grefstad – CEO Lars Aa. Løddesøl – CFO

Guiding our customers through challenging times

In a challenging time for many people, we contribute by giving customers greater financial freedom and security

We seek to deliver value beyond return, cultivating financial value, a thriving society and a healthy planet

~30 000 phone calls regarding P&C related topics during Q3, including claims due to the storm 'Hans' and torrential rain in Oslo

With increasing disability in Norway, we actively participate and seek to be a part of the solution through both reactivation- and preventive measures

Norwegian policy rate development Development of natural damage claims in Norway

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Highlights Q3 2023 Record-high solvency and strong Group results

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Pursuing our Group Strategy: Leading The Way In Sustainable Value Creation to be a leading Sustainable Nordic Savings and Insurance Group

Double-digit growth, financial markets reduce AUM growth

¹ Growth figures expressed as CAGR from FY 2016 to FY 2022

² Growth figures expressed as year-over-year growth from Q3 2022 to Q3 2023

Continued focus on employee development to enable commercial growth and customer satisfaction

Continued focus on employee satisfaction and growth Changes in the executive management

Employee satisfaction of 8,4/10, 0,5 percentage points above industry average. ¹

9 11
	t

Average sick leave percentage so far this year 2,7% in Norway 2,0 % in Sweden

Democratization of AI is in focus. Encouraging all employees to utilize AI powered tools to increase personal productivity

Camilla Leikvoll is appointed Executive Vice President Retail Market

Will enter the role from 1st of November

Danica acquisition exemplifies the scalability and execution ability in our pension business

Divestment of 50% ownership in Storebrand Helseforsikring AS

Deal rationale

Positive financial impact on Storebrand group result in 1st quarter 2024

"We have had a successful history of developing SBH together with ERGO for many years. After a strategic review we believe that it is in the company's best interest to be further developed under the ownership of one owner.

We are therefore pleased to have reached an agreement with our long-term partner ERGO, that enables us to continue as a distributor of health insurance in the Norwegian and Swedish market."

Odd Arild Grefstad, CEO Storebrand Group

Key Figures

Improved financial result and a solid solvency position

Expected return above guaranteed interest rate, Norway⁴ SII Own funds³ and SCR

¹ Result before amortisation and tax.

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² Earnings per share after tax adjusted for amortisation of intangible assets.

³ Own Funds including transitional capital.

⁴ Average of Defined benefit, Paid up and Individual in Norway

⁵ Expected return is calculated based on current asset allocation using normal risk premiums for the next 12 months

Solvency movement from Q2 2023 to Q3 2023 Storebrand Group

SII position Storebrand Group

Target SII margin 150%

Key takeaways

• Reduced equity exposure is the main explanation behind the strengthening
• Increased interest rates, reduced symmetrical adjustment (SA) and the post tax result also contributed positively
• Write-downs in the real estate portfolio and soft equity markets impacted the solvency ratio negatively

Storebrand Group

Strong financial result and satisfactory results from operations given extraordinary quarter in Insurance

Profit¹

	Q 3		YTD
NOK million	2023	2022	2023	2022
Fee and administration income	1 681	1 507	4 824	4 421
Insurance result	318	475	1 057	1 274
Operational cost	-1 394	-1 272	-4 245	-3 598
Cash equivalent earnings from operations	605	710	1 636	2 097
Financial items and risk result life	378	-38	897	-206
Cash before equivalent earnings amortisation	983	672	2 533	1 891
Amortisation and write-downs of intangible assets	-146	-61	-265	-140
Cash equivalent earnings before tax	837	611	2 268	1 751
Tax	-195	-136	97	213
Cash equivalent earnings after tax	642	475	2 365	1 964

Storebrand Group

Profit by line of business

Group

Profit¹

	Q 3		YTD
NOK million	2023	2022	2023	2022
Fee and administration income	1 681	1 507	4 824	4 421
Insurance result	318	475	1 057	1 274
Operational cost	-1 394	-1 272	-4 245	-3 598
Cash equivalent earnings from operations	605	710	1 636	2 097
Financial items and risk result life	378	-38	897	-206
Cash equivalent earnings before amortisation	983	672	2 533	1 891

Profit per line of business

	Q 3		YTD
NOK million	2023	2022	2023	2022
Savings - non-guaranteed	487	401	1 243	1 197
Insurance	100	211	220	504
Guaranteed pension	314	148	892	633
Other profit	82	-89	178	-443
Cash equivalent earnings before amortisation	983	672	2 533	1 891

Savings (non-guaranteed)

Continued growth and strong result development across the board

Savings

Profit

	Q 3		YTD
NOK million	2023	2022	2023	2022
Fee and administration income	1 333	1 174	3 836	3 440
Operational cost	-852	-763	-2 611	-2 183
Cash equivalent earnings from operations	481	410	1 226	1 256
Financial result	6	-9	18	-60
Cash equivalent earnings before amortisation	487	401	1 243	1 197

Profit per product line

	Q 3		YTD
NOK million	2023	2022	2023	2022
Unit linked Norway	137	91	375	291
Unit linked Sweden	69	80	188	253
Asset management	148	144	347	458
Retail banking	147	85	395	194
Kron*	-14		-62
Cash equivalent earnings before amortisation	487	401	1 243	1 197

Savings (non-guaranteed) Key figures

Assets under management

Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023

Life insurance balance sheet Bank balance sheet

Movement in asset under management YTD¹

17 17 17 17 17

Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023

^{1 001 1 020}

BNOK

Insurance

Weak Q3 results due to the storm "Hans" and torrential rain impacting 'P&C and Individual'

Profit

	Q 3		YTD
NOK million	2023	2022	2023	2022
Insurance premiums f .o.a.	1 734	1 613	132 5	4 459
Claims f .o.a.	-1 415	-1 138	-4 075	-3 185
Operational cost	-305	-284	-923	-794
Cash equivalent earnings from operations	13	192	134	480
Financial result	86	20	85	24
Cash equivalent earnings before amortisation	100	211	220	504

Profit per product line

	Q 3		YTD
NOK million	2023	2022	2023	2022
P&C & Individual life	32	112	186	318
Health & Group life	4	17	-101	26
Pension related disability insurance Nordic	65	82	135	160
Cash equivalent earnings before amortisation	100	211	220	504

Insurance Key figures

Key Takeaways Combined Ratio and Results

• 99% overall combined ratio in the quarter
• The quarter is negatively impacted by the storm "Hans" and torrential rain in Oslo and the surrounding regions in August
• Reassurance programs dampen negative effects significantly
• Measures including repricing implemented to improve profitability

Portfolio premiums Key Takeaways Premiums and Growth

• 7% overall growth in premiums f.o.a. compared to the corresponding period last year
• 6.5% market share in Norwegian retail P&C compared to 6.2% in the same quarter last year

Guaranteed pension

Strong growth in profits driven by increased financial results and solid operational performance

Profit

	Q 3		YTD
NOK million	2023	2022	2023	2022
Fee and administration income	413	398	1 179	1 184
Operational cost	-209	-208	-617	-617
Cash equivalent earnings from operations	204	190	561	567
Risk result life & pensions	69	74	218	210
profit Net sharing	41	-116	113	-143
Cash equivalent earnings before amortisation	314	148	892	633

Profit per product line

	Q 3		YTD
NOK million	2023	2022	2023	2022
Defined benefit (private & public sector) Norway ,	80	55	198	207
Paid-up policies Norway ,	107	149	337	365
Individual life and pension Norway ,	10	11	23	20
Guaranteed Sweden products ,	116	-68	336	41
Cash equivalent earnings before amortisation	314	148	892	633

Guaranteed pension

Key figures

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NOK million	Q3 2023	Q2 2023	Change
Market value adjustment reserve 2	2 565	2 687	- 122
Excess value of bonds at amortised cost	-17 086	-15 542	- 1 544
Additional statutory reserve	6 997	8 308	- 1 312
Conditional bonuses SPP	13 880	14 408	- 528
Total	6 357	9 862	- 3 505

• Stable result development from operations
• Continued strong risk result
• Improved, but moderate, profit sharing result

Buffer capital ¹Guaranteed reserves in % of total reserves

Other ¹

Financial result improving from a higher interest rate level

Profit

	Q	3	YTD
NOK million	2023	2022	2023	2022
Fee and administration income	5	6	17	15
Operational cost	-99	-87	-302	-222
Cash from equivalent earnings operations	-93	-82	-285	-207
Financial result	176	-7	463	-236
Cash equivalent earnings before amortisation	82	-89	178	-443

Virtual Capital Markets Day

13 December 2023 10:00-13:00 CET

The presentation will be held by Storebrand's executive management with a focus on the company's growth strategy and ambitions.

An update on the implications from higher interest rates, the balance sheet and solvency position, and capital and cash generation will also be provided.

Registration is open at storebrand.no/ir

Q&A

Please join the MS Teams Webinar to participate in the Q&A session.

Appendix

Simplified¹ P&L under IFRS – Key takeaways

		Q3		YTD
	Profit & Loss IFRS (MNOK)	2023	20222	2023	20222
	Income from unit linked	496	480	1 528	1 350
	Income from asset management	732	650	2 113	1 998
	Income from banking activities	825	379	2 127	940
	Other income	66	96	263	274
	Operating income excl. Insurance	2 120	1 605	6 032	4 562
[3]	Insurance revenue	2 301	2 185	6 822	6 261
	Insurance services expense	-2 162	-1 701	-5 492	-4 367
	Net income from reinsurance contracts	92	-3	25	-33
[2]	Insurance service result	231	481	1 354	1 861
	Operating income incl. insurance result	2 351	2 086	7 386	6 423
	Operating expenses	-1 239	-1 089	-3 785	-3 151
	Interest expenses from banking activities	-568	-184	-1 410	-409
	Other expenses	-36	-22	-137	32
	Total expenses	-1 843	-1 295	-5 333	-3 527
	Operating profit	509	792	2 053	2 896
	Net financial result1	419	-293	648	-1 123
[1]	Profit/loss before amortisation and tax	928	499	2 701	1 773
	Amortisation of intangible assets	-182	-92	-371	-232
	Tax expenses	-172	-50	110	351
	Profit/loss for the period	574	357	2 440	1 892

Comments

[1] Group's profit before amortisation and tax was NOK 928m in quarter, compared to NOK 499m in 2022²

▪ Higher volatility is expected on a general basis under IFRS 17 due to measurement models applied

[2] Insurance service result under IFRS was NOK 231m in the 3rd quarter (NOK 481m)

▪ The decrease is related to mainly IFRS 17 contracts with a coverage period on less than 12 months and is driven by an increase in reported claims and inflation

[3] CSM release of NOK 459m in the quarter, CSM sensitivities shown in the appendix

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CSM movement from Q2 2023 to Q3 2023 mill. NOK

Real estate portfolio – Norway ¹

Weighted average unexpired lease term (WAULT): 5,2 years

Allocation and distribution - real estate portfolio Fair value adjustments and change in rental income by year

WAULT and expired rental income Sub-portfolio yield distribution Q2 2023

Real estate portfolio – Sweden ¹

Weighted average unexpired lease term (WAULT): 7,5 years

WAULT and expired rental income Sub-portfolio yield² distribution Q3 2023

¹ Vacancy rate on the portfolio: 0.6%

27 ² The graph shows exit-yield for the different categories

Asset allocation – Guaranteed products

Equities Real estate Bonds & Money market Loans Bonds at amortised cost 30.09.2022 6% 12% 13% 14% 54% 31.12.2022 5% 12% 15% 14% 54% 31.03.2023 8% 12% 4% 14% 61% 30.06.2023 9% 12% 5% 14% 61% 30.09.2023 6% 11% 9% 14% 60% 0% 10% 20% 30% 40% 50% 60% 70%

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.

Leading the way in sustainable value creation

Investor Relations contacts

Lars Aa Løddesøl Group CFO

lars.loddesol@storebrand.no +47 9348 0151

Kjetil R. Krøkje Group Head of Finance & Strategy kjetil.r.krokje@storebrand.no +47 9341 2155

Johannes Narum Group Head of IR

johannes.narum@storebrand.no +47 993 33 569

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.