Storebrand ASA

Quarterly Report • Oct 25, 2023

Interim report 3rd quarter 2023

Storebrand Group (unaudited)

Storebrand Group3
Savings 6
Insurance 7
Guaranteed pension 9
Other 10
Balance sheet and capital situation 11
Outlook 13

Income statement 15
Statement of comprehensive income 16
Statement of financial position 17
Statement of changes in equity 18
Statement of cash flow 19
Notes 21

Income statement 69
Statement of comprehensive income 69
Statement of financial position 70
Statement of changes in equity 71
Statement of cash flow 72
Notes 73

• Cash equivalent earnings¹ of NOK 983m in the 3rd quarter and NOK 2,533m year to date
• Solvency II ratio 204%, up from 196% at the end of the 2nd quarter
• Strong result development across Savings, Guaranteed and Other segments, weak quarter in Insurance driven by weather related claims

Storebrand's ambition is to provide our customers with financial freedom and security by being the best provider of long-term savings and insurance. The Group offers an integrated product range spanning from life insurance, P&C insurance, asset management and banking to private individuals, companies and public sector entities. The Group is divided into the segments Savings, Insurance, Guaranteed Pension and Other.

Cash equivalent earnings²

	2023		2022				01.01 - 30.09
NOK million	Q3	Q2	Q1	Q4	Q3	2023	2022	2022
Fee and administration income	1,681	1,591	1,552	1,641	1,507	4,824	4,421	6,062
Insurance result	318	382	357	390	475	1,057	1,274	1,664
Operational cost	-1,394	-1,460	-1,391	-1,410	-1,272	-4,245	-3,598	-5,008
Cash equivalent earnings from operations	605	513	518	621	710	1,636	2,097	2,718
Financial items and risk result life	378	264	255	219	-38	897	-206	13
Cash equivalent earnings before amortisation	983	777	773	841	672	2,533	1,891	2,732
Amortisation and write-downs of intangible assets	-146	-56	-62	-62	-61	-265	-140	-202
Cash equivalent earnings before tax	837	720	711	778	611	2,268	1,751	2,530
Tax	-195	222	70	12	-136	97	213	225
Cash equivalent earnings after tax	642	942	781	790	475	2,365	1,964	2,754

Changes in IFRS from 2023 – How to read this report

From 2023, the Storebrand Group reports its official IFRS financial statements in accordance with IFRS 17 and IFRS 9, which replaced IFRS 4 and IAS 39 from 1 January 2023. A short comment on the financial performance under IFRS is given in the subsection below and detailed disclosure is available under the "Financial statements Storebrand Group" section. For the remaining part of the report, Storebrand continues to report and comment on the alternative income statement in parallel with IFRS statements of financial position. The alternative income statement is based on the statutory accounts of all the main subsidiaries and is an approximation of the cash generated in the period, while the IFRS statement includes profit-and-loss effects of updated estimates and assumptions about the timing of future cash flows and insurance services provided³ .

Financial performance (IFRS)

Group profit before amortisation and tax was NOK 928m in the quarter, compared to NOK 499m on a restated basis for the corresponding period last year. The increased result is mainly attributed to the improved financial result. Stronger results in unit linked, asset management and retail banking also contributed positively. Storebrand Group's net insurance service result was NOK 231m in the 3rd quarter (NOK 481m). The reduction is driven by insurance contracts with a coverage period of less than 12 months, where claims increased significantly. On a general basis, higher volatility is expected under IFRS 17 due to measurement models applied.

Financial performance (alternative income statement)

Storebrand Group's cash equivalent earnings before amortisation were NOK 983m (NOK 672m) in the 3rd quarter and NOK 2,533m (NOK 1,891m) year to date. The increased result reflects continued underlying growth across the business and improved financial results driven by increased interest rates. Storebrand has an ambition to achieve cash equivalent earnings before amortisation of NOK 4bn in 2023. External factors such as persistent high inflation, currency effects, weather events and increasing disability levels have had negative implications on the cost and claims development. Whilst these factors represent increased uncertainty, the Group works actively with measures to reach the full year ambition. Measures include repricing and cost initiatives.

In the 3rd quarter 2023, Storebrand announced the divestment of its 50% ownership in Storebrand Helseforsikring AS. The closing of the transaction is expected in the first quarter of 2024, with an estimated positive impact of approximately NOK 1.1bn on Storebrand's Group results.

Total fee and administration income amounted to NOK 1,681m (NOK 1,507m) in the 3rd quarter and NOK 4,824m (NOK 4,421m) year to date, corresponding to an increase of 12% compared to the same quarter last year and an increase of 9% year to date. Income growth is driven by strong growth in Unit Linked Reserves in Norway and increased assets under management. In Retail Banking, the bank continues its strong growth with 15% lending

¹ Cash equivalent earnings before amortisation and tax. www.storebrand.no/ir provides an overview of APMs used in financial reporting.

² The income statement is based on reported IFRS results for the individual group companies. The statement differs from the official accounts layout.

³ Due to the fundamental differences between IFRS 17 and the alternative income statement, it is not possible to reconcile the numbers.

volume growth year over year in parallel with increasing net interest margins.

The Insurance result decreased to NOK 318m (NOK 475m) in the 3rd quarter and NOK 1,057m (NOK 1,274m) year to date due to high claims in P&C and Group life segments. Compared to the corresponding period last year the storm "Hans" and torrential rain in Oslo and the surrounding regions led to an extraordinary quarter in terms of weather related claims in P&C. High claims due to inflation pressure and frequency in motor, and high disability levels are also affecting the results negatively year to date. Measures, including further repricing with full effect from 2024, have been implemented to improve the robustness and profitability in the affected segments. The total combined ratio for the Insurance segment was 99% (88%) in the 3rd quarter and 97% (89%) year to date – above the full year target of 90-92%.

The Group's operational cost amounted to NOK -1,394m (NOK - 1,272m) in the 3rd quarter and NOK -4,245m (NOK -3,598m) year to date. The increase is mainly attributed to acquired business and integration cost. Inflation, currency, performance related costs, growth initiatives and digital investments are also contributing factors. For the acquired business, profitability will increase as synergies are gradually realised.

Storebrand has cost guidance of NOK 5.3bn for the full year. The cost guidance does not include integration cost, currency and performance related cost. Adjusted for these elements, the full year cost guidance remains intact. Storebrand continues to focus on strong cost discipline, as demonstrated over the past decade.

Overall, the cash equivalent earnings from operations amounted to NOK 605m (NOK 710m) in the 3rd quarter and NOK 1,636m (NOK 2,097m) year to date.

The 'financial items and risk result' amounted to NOK 378m (NOK -38m) in the 3rd quarter and NOK 897m (NOK -206m) year to date. The improvement stems from increased return in the company portfolios and a moderate increase in profit sharing. Net profit sharing amounted to NOK 41m (NOK -116m) in the 3rd quarter and NOK 113m (NOK -143m) year to date. In the Norwegian guaranteed portfolio profit sharing is close to zero in the quarter and year to date. In the Swedish guaranteed business profit sharing is positive but moderate in the quarter and year to date driven by development in market returns. The risk result amounted to NOK 69m (NOK 74m) in the 3rd quarter and NOK 218m (NOK 210m) year to date.

Amortisation of intangible assets from acquired business amounted to NOK -146m (NOK -61m) in the 3rd quarter and NOK -265m (NOK -140m) year to date. The increased amortisation compared to the restated figures for 2022 is attributed the Danica acquisition. In addition, a write-down of intangible assets of NOK - 87m associated with distribution agreements that has been cancelled in connection with Danske Bank's sale of the Norwegian retail banking operation was conducted in the 3rd quarter. The write-down has no material effect on Storebrand's earnings as Storebrand no longer will pay commissions to Danske Bank from 3rd quarter 2023. The write-down this quarter will lead to correspondingly lower amortisation going forward.

Tax expenses for the Group amounted to NOK -195m (NOK - 136m) in the 3rd quarter and NOK 97m (NOK 213m) year to date. The tax income year to date is driven by a tax gain of approx. NOK 440m in the 2nd quarter, as the Tax Appeals Committee gave Storebrand full consent in a disputed tax case for the income year 2015. The estimated normal tax rate is 19-22%, depending on each legal entity's contribution to the Group result. Different tax rates in different countries of operations as well as currency fluctuations impact the quarterly tax rate.

The Group reports its cash equivalent earnings by business segment. For a more detailed description, see the sections by segment in the report.

Capital situation

The solvency ratio was 204% at the end of the 3rd quarter, an increase of 8 percentage points from the previous quarter. Reduced equity exposure is the main explanation behind the strengthening. To manage the annual return requirement in the Norwegian guaranteed pension products, risk has been reduced in the quarter in the form of lower equity exposure. Storebrand expects to increase risk and the associated expected customer returns into 2024. Storebrand expects to increase risk and the associated expected customer returns into 2024. Increased interest rates, reduced symmetric adjustment (SA) and a strong post tax result also contributed positively to the solvency position. Write-downs in the real estate portfolio and equity markets softening impacted the solvency ratio negatively. The real estate portfolio has been written down 6% in Norway and 1% in Sweden in the 3rd quarter. The solvency ratio continues to be above the threshold for overcapitalisation of 175%.

Dividend and share buyback

During the quarter Storebrand completed the NOK 500m share buyback program announced on 14 July 2023. Based on the strong solvency position and a forward-looking assessment, the Board initiated a new tranche amounting to NOK 500m on 22 September 2023. The tranche will end no later than 22 December 2022. As previously communicated, the Board of Directors intends to continue with share buybacks when the solvency ratio is above 175%. The ambition is to return NOK 10bn of excess capital by the end of 2030 as the run-off of the guaranteed business releases capital.

Cash equivalent earnings by segment

	2023	2022				01.01 - 30.09	Full year
NOK million	Q3	Q2	Q1	Q4	Q3	2023	2022	2022
Savings - non-guaranteed	487	395	361	456	401	1,243	1,197	1,653
Insurance	100	63	56	92	211	220	504	596
Guaranteed pension	314	293	285	270	148	892	633	903
Other profit	82	25	71	23	-89	178	-443	-420
Cash equivalent earnings before amortisation	983	777	773	841	672	2,533	1,891	2,732

Group - Key figures

	2023	2022					01.01 - 30.09
	Q3	Q2	Q1	Q4	Q3	2023	2022	2022
Cash equivalent EPS	1.73	2.16	1.82	1.83	1.14	5.71	4.48	6.31
Equity	28,940	28,902	30,266	29,519	29,061	28,940	29,061	29,519
Cash ROE, annualised	11.8%	15.3%	12.9%	12.7%	7.8%	12.9%	10.3%	10.6%
Solvency II ratio	204%	196%	179%	184%	174%	204%	174%	184%

Financial targets

Target	Actual
Cash return on equity (after tax)	11.8%
Future Storebrand (Savings & Insurance)*	39%
Back book (Guaranteed & Other)*	6%
Dividend pay-out ratio	72%
Solvency II ratio Storebrand Group > 150%	204%

* The RoE is calculated based on the profit for the last 12 months, after tax and before amortisation of intangible assets, divided on a pro forma distribution of the IFRS equity less hybrid capital per line of business (opening balance). The capital is allocated based on the capital consumption under SII and CRD IV adjusted for positive capital contribution to own funds. The segments Savings, Insurance and Other are calibrated at 150% of the capital requirement (before own funds contribution), while the remainder of the capital is allocated to the Guaranteed segment. The methodology is an estimation of ROE pr. reporting segment.

Savings

• Cash equivalent earnings before amortisation up 21% compared to Q3 2022
• Earned but not booked performance related income of NOK 87m in the quarter and NOK 219m year to date
• 15% growth in the Bank's lending volume and 43% growth in fee income compared to Q3 2022

The Savings segment includes savings products without interest rate guarantees. The segment consists of Defined Contribution pensions in Norway and Sweden under the Unit Linked products, asset management and retail banking products.

Savings – Results

	2023	2022					01.01 - 30.09
NOK million	Q3	Q2	Q1	Q4	Q3	2023	2022	2022
Fee and administration income	1,333	1,269	1,234	1,293	1,174	3,836	3,440	4,733
Operational cost	-852	-898	-861	-848	-763	-2,611	-2,183	-3,031
Cash equivalent earnings from operations	481	371	373	445	410	1,226	1,256	1,701
Financial result	6	24	-12	11	-9	18	-60	-49
Cash equivalent earnings before amortisation	487	395	361	456	401	1,243	1,197	1,653

Financial performance

The Savings segment reported cash equivalent earnings before amortisation of NOK 487m (NOK 401m) in the 3rd quarter and NOK 1,243m (NOK 1,197m) year to date.

The fee and administration income in the Savings segment amounted to NOK 1,333m (NOK 1,174m) in the 3rd quarter and NOK 3,836m (NOK 3,440m) year to date, corresponding to growth of 10% (adjusted for currency effect NOK vs SEK). In Asset Management, fee and administration income grew by 9% compared to the same quarter last year. The development has been flat year to date, mainly explained by lower transaction fees. Earned but not booked performance related income amounted to NOK 87m (NOK 19m) in the quarter, NOK 219m (NOK 66m) year to date and will be booked in December for the full year. In the bank, income grew by 43% from the 3rd quarter last year and 43% year to date, driven by lending growth and a higher net interest margin. In Unit Linked Norway, income grew 3% compared to the same quarter last year and 15% year to date. The development is explained by solid growth in the underlying business, positive market development, as well as margin pressure. In Sweden, income grew 9% compared to the same quarter last year and 6% year to date.

Operational cost amounted to NOK -852m (NOK -763m) in the 3rd quarter and NOK -2,611m (NOK -2,183m) year to date. Performance related costs in funds with performance fees amounted to NOK -37m (NOK -8m) in the quarter and NOK -95m (NOK -25m) year to date.

The financial result was NOK 6m (NOK -9m) in the 3rd quarter and NOK 18m (NOK -60m) year to date.

Balance sheet and market trends

Total assets under management in Unit Linked decreased to NOK 353bn (NOK 302bn) from NOK 357bn last quarter, due to weak financial markets in the quarter. Unit Linked premiums increased to NOK 7.1bn (NOK 6.3bn) in the 3rd quarter.

In the Norwegian Unit Linked business, assets under management increased to NOK 197bn (NOK 170bn). The growth stems from high occupational pension premiums, new sales, asset return and limited pension payments due to the young nature of the product. Net inflow (from premiums, claims and withdrawals, and transfers) amounted to NOK 3.0bn (NOK 1.9bn). In the Swedish Unit Linked business, assets under management decreased during the quarter by SEK 2.3bn and amounted to SEK 160bn. Net inflow amounted to NOK 2.2bn (NOK 0.6bn) in the 3rd quarter.

Assets under management were NOK 1,131 bn at the end of the 3rd quarter compared to NOK 1,143bn at the end of the 2nd quarter. The reduction is explained by somewhat weaker financial markets in the 3rd quarter. The net inflow was NOK 15bn in the quarter and NOK 42bn year to date.

The bank lending portfolio increased by NOK 2.0 bn (3%) to NOK 74.7bn during the quarter and NOK 7.7bn year to date. The growth is attributed to continued strong sales.

Savings - Key figures

	2023		2022
NOK million	Q3	Q2	Q1	Q4	Q3
Unit linked Reserves	353,448	357,150	343,347	314,992	302,337
Unit linked Premiums	7,055	7,024	6,883	6,583	6,278
AuM Asset Management	1,130,687	1,143,232	1,110,733	1,019,988	1,001,100
Retail Lending*	74,749	72,700	69,812	67,061	64,879

*Includes mortgages on the Storebrand Livsforsikring AS balance sheet

Insurance

• 7% overall growth in premiums f.o.a. compared to the corresponding quarter last year
• Combined ratio of 99% in the quarter driven by storm "Hans" and torrential rain in August
• 6.5% market share in Norwegian retail P&C compared to 6.2% in the same quarter last year

The Insurance segment provides health insurance in the Norwegian and Swedish corporate and retail markets, P&C insurance and personal risk products in the Norwegian retail market and employer's liability insurance and pension-related insurance in the Norwegian and Swedish corporate markets.

Insurance – Results

	2023	2022		01.01 - 30.09		Full year
NOK million	Q3	Q2	Q1	Q4	Q3	2023	2022	2022
Insurance premiums f.o.a.	1,734	1,727	1,672	1,630	1,613	5,132	4,459	6,088
Claims f.o.a.	-1,415	-1,345	-1,315	-1,240	-1,138	-4,075	-3,185	-4,424
Operational cost	-305	-308	-310	-318	-284	-923	-794	-1,112
Cash equivalent earnings from operations	13	74	47	72	192	134	480	552
Financial result	86	-11	9	20	20	85	24	43
Contribution from SB Helseforsikring AS	34	-52	-20	0	7	-37	0	-1
Cash equivalent earnings before amortisation	100	63	56	92	211	220	504	596
Claims ratio	82%	78%	79%	76%	71%	79%	71%	73%
Cost ratio	18%	18%	19%	20%	18%	18%	18%	18%
Combined ratio	99%	96%	97%	96%	88%	97%	89%	91%

Financial performance

Insurance premiums f.o.a. amounted to NOK 1,734m (NOK 1,613m) in the 3rd quarter and NOK 5,132m (NOK 4,459m) year to date, corresponding to an increase of 7% compared to the same quarter last year and an increase of 15% year to date.

Cash equivalent earnings before amortisation amounted to NOK 100m (NOK 211m) in the 3rd quarter and NOK 220m (NOK 504m) year to date. The total combined ratio was 99% (88%) in the 3rd quarter and 97% (89%) year to date. The weak combined ratio development was driven by the P&C and Group Life segments. In P&C, the claims ratio deteriorated due to storm "Hans" in Norway and the following torrential rain in Oslo and the surrounding regions in August. These events had a negative effect on the result in the quarter of approximately NOK 60m. High inflation has weakened the result somewhat further. Pricing measures have been implemented and will take full effect in 2024. Storebrand maintains the ambition to deliver on the 90-92% targeted combined ratio. In Group life, the weak development is attributed to challenging disability development. Corresponding price increases will be implemented from 2024 as well as enhanced risk selection.

Within 'P&C & Individual life', strong growth continued with premiums f.o.a. growing 8% in the 3rd quarter compared to last year. The cash equivalent earnings before amortisation was NOK 32m (NOK 112m) in the 3rd quarter and NOK 186m (NOK 318m) year to date. The claims ratio was 79% (68%) in the 3rd quarter and 74% (66%) year to date. Operational cost increased to NOK - 229m (NOK -209m) in the 3rd quarter and NOK -691m (NOK - 575m) year to date due to growth, increased activity, and the establishment of the corporate business. Altogether, the product segment delivered a combined ratio of 101% (90%) in the 3rd quarter and 97% (88%) year to date.

'Health and Group life' reported a cash equivalent earnings before amortisation of NOK 4m (NOK 17m) in the 3rd quarter and NOK - 101m (NOK 26m) year to date. The disability development in the associations segment of the Group life has resulted in negative results and a major re-pricing has been implemented from 2024. The Health insurance business has delivered a weak result year to date, but the result improved significantly in the 3rd quarter. In sum, 'Health and Group life' reported a combined ratio of 113% (97%) in the 3rd quarter and 110% (98%) year to date. In the quarter Storebrand announced the divestment of its 50% ownership in Storebrand Helseforsikring AS. A positive result impact of approx. NOK 1.1bn is expected on Storebrand's Group results in the 1st quarter 2024.

The cash equivalent earnings before amortisation for 'Pension related disability insurance Nordic' were NOK 65m (NOK 82m) in the 3rd quarter and NOK 135m (NOK 160m) year to date. Disability levels improved in the Norwegian business in the 3rd quarter due to seasonal effects, but the development is being monitored closely as there is an increasing disability trend in society. Price increases will be implemented with full effect from 2024. The Swedish business has improved its claims ratio in the quarter. Altogether the combined ratio was 86% (78%) in the 3rd quarter and 90% (85%) year to date.

The cost ratio was 18% (18%), with cost amounting to NOK -305m (NOK -284m) in the 3rd quarter and NOK -923m (NOK -794m) year to date. The increased cost in absolute terms is driven by growth in the business and the take-over of the Danica Business.

The Insurance investment portfolio is primarily invested in fixed income securities with short to medium duration and achieved a financial return of 0.8% in the 3rd quarter and 2.2% year to date. With higher rates, the return on the insurance investment portfolio is expected to increase in the coming quarters.

Balance sheet and market trends

The Insurance segment offers a broad range of products to the retail market in Norway, as well as to the corporate market in both Norway and Sweden. Storebrand has an ambition to grow the insurance business, particularly within P&C. As of the 3rd quarter, 51% of the insurance portfolio is within 'P&C & Individual Life'. Storebrand is one of the fastest growing companies within Norwegian retail P&C and held a market share of 6.5% as of the 2nd quarter compared to 6.2% in the same quarter last year.

Overall growth in annual portfolio premiums amounted to 10% compared to the same quarter last year. Growth in 'P&C & Individual life' amounted to 10%, driven by strong contribution from sales agents and distribution partnerships. 'Health & Group life' grew by 10%, driven by price adjustments, and 'Pension related disability insurance' grew by 11%, driven by price adjustments and salary increases. Overall, double digit growth is expected to continue within Insurance in the coming years.

Insurance – Portfolio premiums

	2023			2022
NOK million	Q3	Q2	Q1	Q4	Q3
P&C & Individual life	4,293	4,202	4,081	4,013	3,889
Health & Group life*	2,270	2,236	2,150	2,071	2,056
Pension related disability insurance Nordic	1,884	1,856	1,834	1,738	1,703
Total written premiums	8,447	8,294	8,065	7,822	7,648
Investment portfolio**	12,081	12,052	11,413	10,642	10,766

* Includes all written premiums in Storebrand Helseforsikring AS (50/50 joint venture with Ergo International).

** Ca. NOK 3,2bn of the investment portfolio is linked to disability coverages where the investment result goes to the customer reserves and not as a result element in the P&L.

Guaranteed pension

• Solid cash equivalent earnings from operations based on top line growth
• Continued strong risk result
• Improved, but moderate, profit sharing result

The Guaranteed Pension segment includes long-term pension savings products that give customers a guaranteed rate of return, but most products are closed for new business and are in run-off. The area includes defined benefit pensions in Norway and Sweden, paid-up policies, public sector occupational pensions, and individual capital and pension insurance.

Guaranteed pension – Results

	2023			2022		01.01 - 30.09		Full year
NOK million	Q3	Q2	Q1	Q4	Q3	2023	2022	2022
Fee and administration income	413	387	378	413	398	1,179	1,184	1,597
Operational cost	-209	-216	-192	-233	-208	-617	-617	-850
Cash equivalent earnings from operations	204	171	186	180	190	561	567	747
Risk result life & pensions	69	69	81	53	74	218	210	262
Net profit sharing	41	53	18	38	-116	113	-143	-106
Cash equivalent earnings before amortisation	314	293	285	270	148	892	633	903

Financial performance

Guaranteed pension achieved cash equivalent earnings before amortisation of NOK 314m (NOK 148m) in the 3rd quarter and NOK 892m (NOK 633m) year to date.

Fee and administration income amounted to NOK 413m (NOK 398m) in the 3rd quarter and NOK 1,179m (NOK 1,184m) year to date. The increase stems from the Norwegian business where defined benefit income growth and positive inflow of pension funds converted to paid-up policies contributed positively.

Operational cost amounted to NOK -209m (NOK -208m) in the 3rd quarter and NOK -617m (NOK -617m) year to date.

The cash equivalent earnings from operations were satisfactory and amounted to NOK 204m (NOK 190m) in the 3rd quarter and NOK 561m (NOK 567m) year to date.

The risk result was NOK 69m (NOK 74m) in the 3rd quarter and NOK 218m (NOK 210m) year to date. A strong disability and longevity risk result in the Norwegian business and positive longevity result in the Swedish business were the main elements in the result. Net profit sharing amounted to NOK 41m (NOK - 116m) in the 3rd quarter and NOK 113m (NOK -143m) year to date. Profit sharing is generated by the Swedish business while the Norwegian portfolio focuses on rebuilding buffer.

Balance sheet and market trends

The majority of the guaranteed products are in long term run-off. Most customers have switched from guaranteed to nonguaranteed products. As of the 3rd quarter, customer reserves of guaranteed pensions amounted to NOK 278bn. This is an increase of NOK 4bn year to date, primarily from the transfer of a closed pension fund and growth in public sector pensions. Net flow of guaranteed pensions amounted to NOK -2.7bn in 3rd quarter (NOK -2.7bn in 2022).

A growth area for Storebrand is public sector occupational pensions, where Storebrand won its first mandates in 2020. Reserves for public sector mandates were NOK 18bn as of the 3rd quarter reflecting an increase of 2bn year to date due to tender offers won in late 2022. New customers representing 1.0bn have been won as of the 3rd quarter and will be transferred in 2024.

Storebrand's strategy is to have solid buffer capital levels in order to secure customer returns and shield shareholder's equity during turbulent market conditions. Buffer capital (excl. excess value of bonds at amortised cost) was 23.4bn as of the 3rd quarter. As a share of guaranteed reserves, buffer capital levels in Norwegian products amounted to 5.1% (6.2%) and 21.4% (18.2%) in Swedish products. This does not include off-balance sheet excess values of bonds at amortised cost, which at the end of the 3rd quarter amounted to a deficit of NOK -17.1bn (NOK -13.2bn). As bonds at amortised cost mature, their excess values will trend to zero.

Guaranteed pension – Key figures

	2023			2022
NOK million	Q3	Q2	Q1	Q4	Q3
Guaranteed reserves	277,789	279,358	282,559	273,673	275,622
Guaranteed reserves in % of total reserves	44.0%	43.9%	45.1%	46.5%	47.7%
Net flow of premiums and claims	-2,720	-2,486	-2,198	-2,846	-2,720
Buffer capital in % of customer reserves Norway	5.1%	6.0%	6.5%	6.3%	6.2%
Buffer capital in % of customer reserves Sweden	21.4%	21.1%	19.0%	19.0%	18.2%

Other

The result for Storebrand ASA is reported under Other, as well as the financial result for the company portfolios of Storebrand Life Insurance and SPP. Group eliminations are reported in a separate table below.

Results excluding eliminations

	2023			2022		01.01 - 30.09		Full year
NOK million	Q3	Q2	Q1	Q4	Q3	2023	2022	2022
Fee and administration income	5	6	6	2	6	17	15	17
Operational cost	-99	-109	-94	-77	-87	-302	-222	-299
Cash equivalent earnings from operations	-93	-104	-88	-75	-82	-285	-207	-282
Financial result	176	129	159	98	-7	463	-236	-138
Cash equivalent earnings before amortisation	82	25	71	23	-89	178	-443	-420

Eliminations

	2023			2022		01.01 - 30.09		Full year
NOK million	Q3	Q2	Q1	Q4	Q3	2023	2022	2022
Fee and administration income	-71	-71	-66	-66	-70	-208	-218	-284
Operational cost	71	71	66	66	70	208	218	284
Financial result
Cash equivalent earnings before amortisation

Financial performance

The Other segment reported cash equivalent earnings before amortisation of NOK 82m (NOK -89m) in the 3rd quarter and 178m (NOK -443m) year to date. The positive result this year stems primarily from positive returns on investments in company portfolios due to higher interest rates and hence higher running yield in the bond portfolios.

The operational cost amounted to NOK -99m (NOK -87m) in the 3rd quarter and -302m (NOK -222m) year to date.

The financial result for the Other segment amounted to NOK 176m in the 3rd quarter and 463m year to date, reflecting higher yields on fixed income investments at higher interest rates. The result mainly stems from returns in the company portfolios of SPP and Storebrand Life Insurance, and the financial result of Storebrand ASA. The investments in the company portfolios are primarily in interest-bearing securities in Norway and Sweden. The Norwegian company portfolio achieved a return of 1.1% in the 3rd quarter and 2.7% year to date, while the Swedish company portfolio reported a return of 1.4% in the 3rd quarter and 3.2% year to date. The company portfolios in the Norwegian and Swedish life insurance companies and the holding company amounted to NOK 29.9bn at the end of the quarter.

The Storebrand Life Insurance Group is funded by a combination of equity and subordinated loans. Interest expenses in the quarter amounted to NOK -138m. Given the interest rate level at the end of the 3rd quarter, interest expenses of approximately NOK - 200m per quarter are expected going forward.

Balance sheet and capital situation

• Solvency II ratio 204%, up from 196% at the end of the 2nd quarter
• Equity of NOK 28,9bn under IFRS 17, annualised Cash return on equity of 11,8% in the quarter
• Buffer capital at 8.4% of customer reserves with guarantees

Continuous monitoring and active risk management is a core area of Storebrand's business. Risk and solidity are both followed up on at the Group level and in the legal entities. Regulatory requirements for financial strength and risk management follow the legal entities to a large extent. The section is thus divided up by legal entities.

Storebrand Group

Solvency

-10,0 10,0 30,0 50,0 70,0 90,0 110,0 130,0 150,0

Storebrand uses the standard model for the calculation of Solvency II. The Storebrand Group's target is to have a solvency ratio above 150%. Above 175%, the Group is considered to be overcapitalised. The solvency ratio was 204% at the end of the 3rd quarter, an increase of 8 percentage points from the previous quarter. Reduced equity exposure is the main explanation behind the strengthening. Write-downs in the real estate portfolio impacted the solvency ratio negatively. The solvency ratio continues to be above the threshold for overcapitalisation of 175%.

Solvency development - Storebrand Group

Cash equivalent return on equity

The Group's quarterly Cash ROE¹ (annualised) was 11.8% in the 2nd quarter. Storebrand is a blend of fast-growing capital-light business that delivers high returns, and capital-intensive run-off business with low returns. As the business mix continues to shift towards capital light business, the Cash ROE is expected to increase in coming years.

The back book of guaranteed business ties up more than three quarters of the Group's capital, delivered an estimated annualised Cash ROE of 6% for the last 12 months. Whereas the front book, the "future Storebrand", delivered an estimated annualised Cash ROE of 39%¹ for the same period. Large variations in the estimated pro forma return on equity in the front book are expected as earnings are market dependent.

Storebrand ASA

Storebrand ASA held liquid assets of NOK 3,4bn at the end of the 3rd quarter. Liquid assets consist primarily of short-term fixed income securities with a high credit rating and bank deposits. Storebrand ASA's total interest-bearing liabilities were NOK 0.5bn at the end of the 3rd quarter. The next maturity date for bond debt is in September 2025, when NOK 0.5bn matures. In addition, the company has an unused credit facility of EUR 200m.

The company's annual general meeting held on 13 April 2023 decided to reduce the company's share capital by deletion of 6,477,024 shares. The new share capital of Storebrand is NOK 2,327,489,330 divided between 465,497,866 shares of NOK 5.00. Storebrand ASA owned 13,127,409 of the company's own shares at the end of the 3rd quarter, representing 2.82% of the share capital, following repurchases under the share buyback program. The shares repurchased under subsequent buyback programs will be redeemed, subject to permission from the Financial Supervisory Authority and resolution from Storebrand ASA's General Meeting in 2024.

Storebrand Livsforsikring AS Customer buffers (NOR)

Market value adjustment reserve (incl. pub. sector buffer fund) in % of customer funds with guarantee

Additional staturory reserves in % of customer funds with guarantee

The market value adjustment reserve and buffer fund decreased during the 3rd quarter by NOK 0.1bn and increased by NOK 0.8bn year to date. At the end of 3rd quarter 2023 the market value adjustment reserve and buffer fund amounted to NOK 2.6bn, corresponding to 1.5% (1.6% at the end of 2nd quarter 2023) of customer funds with a guarantee. The additional statutory reserves amounted to NOK 7.0bn, corresponding to 4.1% (5.0% at the end of the 2nd quarter 2023) of customer funds with guarantee at the end of the 3rd quarter. Investment returns in

140% 150% 160% 170% 180% 190% 200% 210%

¹ The RoE is calculated based on the profit for the last 12 months, after tax and before amortisation of intangible assets, divided on a pro forma distribution of the IFRS equity less hybrid capital per line of business (opening balance). The capital is allocated based on the capital consumption under SII and CRD IV adjusted for positive capital contribution to own funds. The segments Savings, Insurance and Other are calibrated at 150% of the capital requirement (before own funds contribution), while the remainder of the capital is allocated to the Guaranteed segment. The methodology is an estimation of ROE pr. reporting segment.

customer portfolios lower than the guaranteed interest rate decreased reserves by NOK 1.9bn in the 3rd quarter and NOK 2.6bn year to date.

Together, the customer buffers amounted to 5.6% of customer funds with guarantee at the end of the 3rd quarter 2023. The excess value of bonds and loans valued at amortised cost decreased by NOK 1.5bn in the 3rd quarter and NOK 6.9bn year to date due to increased interest rates and amounted to minus NOK 17.1bn at the end of the 3rd quarter 2023. The excess value of bonds and loans at amortised cost is not included in the financial statements of Storebrand Livsforsikring AS.

Allocation of guaranteed customer assets (NOR)

Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023

Customer assets increased in the 3rd quarter by NOK 2.0bn and by NOK 21.5bn year to date, amounting to NOK 395bn at the end of 3rd quarter 2023. Customer assets within non-guaranteed savings increased by NOK 0.6bn during the 3rd quarter and by NOK 17.2bn year to date, amounting to NOK 197bn at the end of 3rd quarter 2023. Guaranteed customer assets decreased by NOK 1.4bn in the 3rd quarter and increased by NOK 4.3bn year to date, amounting to NOK 199bn at the end of 3rd quarter 2023.

SPP Customer buffers (SWE)

Conditional bonuses in % of customer funds with guarantee

The buffer capital (conditional bonuses) amounted to SEK 14.2bn (SEK 12.4bn) at the end of the 3rd quarter.

Allocation of guaranteed customer assets (SWE)

Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023

Customer assets amounted to SEK 237bn (SEK 213bn) at the end of the 3rd quarter. Customer assets within non-guaranteed savings amounted to SEK 160bn (SEK 135bn) at the end of the 3rd quarter, which is an increase of 18% compared to the same quarter last year. Guaranteed customer assets had a stable development compared to the same quarter last year and amounted to SEK 77bn (SEK 78bn).

Storebrand Bank

Loans outstanding increased by NOK 1.6bn during the 3rd quarter. The home mortgage portfolio managed on behalf of Storebrand Livsforsikring AS increased by NOK 0.5bn during the quarter. The combined portfolio of loans in Storebrand Bank and Storebrand Livsforsikring increased by NOK 2.0bn during the quarter and by NOK 7.7bn year to date.

The bank Group has had an increase in the risk-weighted balance sheet of NOK 3.5bn year to date. The Storebrand Bank Group had own funds of NOK 4.8bn at the end of the 3rd quarter. The capital adequacy ratio was 20.1 per cent and the Core Equity Tier 1 (CET1) ratio was 15.2% at the end of the quarter, compared with 21.3 per cent and 15.7%, respectively, at the end of 2022. The combined requirements for capital and CET1 were 17.3% and 13.8% respectively at the end of the 3rd quarter.

Outlook

Strategy

Storebrand's strategy gives a compelling combination of selffunded growth in the front book, i.e. the growth areas of the "future Storebrand", and capital return from a maturing back book of guaranteed pensions.

Storebrand aims to (a) be the leading provider of Occupational Pensions in both Norway and Sweden, (b) continue a strategy to build a Nordic Powerhouse in Asset Management and (c) ensure fast growth as a challenger in the Norwegian retail market for financial services. The combined capital, customer base, cost and data synergies across the Group provide a solid platform for profitable growth and value creation.

Storebrand continues to manage capital and the back book of guaranteed products for increased shareholder return. This includes both a dividend policy of growing ordinary dividends from earnings as well as managing the legacy products that carry interest guarantees in a capital-efficient and customer centric manner. The ambition is to return NOK 10bn of excess capital by the end of 2030, primarily in the form of share buybacks, while generating additional excess capital which may fund further growth or could be returned to shareholders.

Financial performance

At the capital markets day in December 2020, Storebrand announced an ambition to achieve a profit before amortisation and tax of NOK 4bn in 2023. The profit ambition was reached in 2021, helped by gains from the sale of AS Værdalsbruket and strong performance in funds with performance fees. During the year external factors such as persistent high inflation, currency effects, weather events and increasing disability levels have had negative implications on the cost and claims development. Whilst these factors represent increased uncertainty, the Group works actively with measures to reach the full year ambition. Measures include repricing and cost initiatives.

In Norway, the market for Defined Contribution pensions is growing structurally due to the young nature of the product. High single-digit growth in Defined Contribution premiums and doubledigit growth in assets under management are expected during the next years. Storebrand aims to defend its strong position in the market, while also focusing on cost leadership and improved customer experience through end-to-end digitalisation. In July 2022, Storebrand acquired Danica in Norway, which will strengthen Storebrand's presence in the segment for small and medium sized businesses.

In Sweden, SPP is a leading market challenger within the segment for non-unionised pensions, with an edge in digital and ESGenhanced solutions. SPP has become a significant profit contributor to the Storebrand Group, supported by an ongoing capital release from its guaranteed products in run-off. Growth is expected to continue, driven by new sales and transfers.

As a leading occupational pension provider in the private sector, Storebrand also has a competitive pension offering to the Norwegian public sector. It is a growing market which is larger than the private sector market. It is currently dominated by one monopolist. To succeed in the market, municipalities will need to tender their pension procurements to a larger extent than today.

This represents a potential additional source of revenue for Storebrand. The ambition is to gain 1% market share annually, or approximately NOK 5bn in annual net inflow.

Overall reserves of guaranteed pensions are expected to decrease in the coming years. Guaranteed reserves represent a declining share of the Group's total pension reserves and amounted to 44% of the pension reserves at the end of the quarter, 6 percentage points lower than a year ago. With interest rates having risen to significantly higher levels than the average level of interest rate guarantees, the prospects for future profit sharing with customers has increased. Higher interest rates also allow Storebrand to build customer buffers at a faster pace, which strengthens the Group's solvency position.

In addition to managing internal pension funds, Storebrand Asset Management is growing its external mandates from institutional and retail investors. Storebrand is a local partner for Nordic investors, and a gateway to the Nordics for international investors. We offer a full product range of index, factor and actively managed funds. Storebrand is also one of the strongest providers of alternative assets (private equity, real estate, private debt and infrastructure) in the Nordic region. Over the past three decades, Storebrand has focused on sustainable investments with a strong track record. The overall ambition is to grow assets under management by NOK 250bn in the period 2021-2023, while maintaining a stable fee margin.

The brand name 'Storebrand' is well recognised in Norway. It facilitates our rapid growth in the Norwegian retail market to leverage capital, customer, and operational synergies. The ambition is to grow more than 10% annually within retail savings, mortgage lending and insurance through digital sales channels and distribution partnerships. P&C insurance is a key area for profitable growth. Storebrand Bank plays an important strategic role in offering a complete range of financial products and services to the retail market. In January 2023, Storebrand also strengthened its retail savings offering by acquiring the fast growing Norwegian fintech company Kron. The acquisition will combine Kron's user experience with Storebrand's customer base, product platform and distribution. Whilst the Kron acquisition is expected to be a negative result contributor for 2023, concrete synergies with other business lines will be realised throughout the year and into 2024.

Storebrand maintains a disciplined cost culture. The Group reported flat nominal costs from 2012-2020, adjusted for acquisitions, currency and performance related cost. Simultaneously, assets under management more than doubled. To accelerate growth and the Group's profit ambitions, investments in profitable growth has gradually increased costs. This includes growth in digital solutions, public occupational pensions and P&C insurance, in addition to acquired business. Should the growth not materialise, management has contingency plans in place to cut costs. Storebrand has cost guidance of NOK 5.3bn for the full year. The cost guidance does not include integration cost, currency and performance related cost. The full year cost guidance remains intact. Storebrand continues to focus on strong cost discipline, as has been demonstrated over the past decade.

Risk

Storebrand is exposed to several risk factors that have previously been elaborated on in the 'Outlook' section. These elements are from now covered by the notes and in the annual report for 2022.

Regulatory changes

Flexible buffer for guaranteed pension products from 1 January 2024

New legislation on flexible buffer fund for private sector guaranteed pension products such as paid-up policies and defined benefit contracts will take effect from 1 January 2024. Similar rules were introduced for municipal occupation pension in 2022.

Market value adjustment reserves will merge with the additional statutory reserves into a more flexible customer buffer fund which can cover negative returns. There is no cap on the size of the new buffer fund. The buffer fund is allocated to contracts and can be subject to profit sharing. Storebrand believes that the new flexible buffer fund will have a positive impact on the investment strategy for guaranteed pension products.

Parliament has asked the Government to consider further changes in the regulation of paid-up polices that could benefit policy holders, in a process involving the different stakeholders. This work has not yet started.

Changes in the National Insurance Pension Scheme

The Government is expected to deliver a proposal for changes in the National Insurance Pension Scheme this autumn, after an evaluation report on the pension reform was delivered last year.

Among the proposals expected is automatic adjustment of age limits in the pension system, such as the earliest age for possible withdrawal of pensions, as longevity expectations increase. Similar changes will likely also be introduced for occupation pensions and individual pension schemes.

The market for municipal occupational pensions

Storebrand has filed two complaints to the EFTA Surveillance Authority (ESA). Storebrand has claimed that municipalities, regional health authorities and hospitals have entered contracts on occupational pension with KLP, in breach of the rules on public procurement. Storebrand has also claimed that

municipalities, regional health authorities and hospitals have granted KLP State aid in violation of EEA Agreement. According to Storebrand, KLP, by withholding earned equity when customers move to other providers, is given access to capital from municipalities and hospitals on more favourable terms than other market participants would receive.

The Norwegian government argues that EEA-legislation does not apply, as KLP is not an economic entity and municipal occupational pension is social security. Storebrand argues that this is an insurance product delivered by life insurance companies in the marketplace. Facilitating competition has been a major goal for Norwegian insurance regulation, also for regulation particular to this product.

Storebrand expects ESA to decide on the complaints before the end of the year or early next year.

Dividend policy

Storebrand has established a framework for capital management that links dividends to the solvency margin. The dividend policy intends to reflect the strong growth in fee-based earnings, the more volatile financial markets related earnings and the future capital release from the guaranteed book. The Board's ambition is to pay a gradually and growing ordinary dividend. When the solvency margin is sustainably above 175%, the Board will conduct share buyback programs. The purpose of buyback programs is to return excess capital released from the guaranteed liabilities that are in long-term run-off.

Due to expected increased volatility in the official financial statements under IFRS 17, Storebrand adjusted the dividend policy as of 10 May 2023. The dividend policy is stated as following:

The Board of Directors' ambition is to pay ordinary dividends per share of at least the same nominal amount as the previous year. Ordinary dividends are subject to a sustainable solvency margin of above 150%. If the solvency margin is above 175%, the Board of Directors intends to propose special dividends or share buy backs.

Lysaker, 24 October 2023 Board of Directors of Storebrand ASA

IFRS

Income statement

		Q3		01.01 - 30.09		Full year
NOK million	Notes	2023	2022 1)	2023	2022 1)	2022 1)
Income from unit linked		496	480	1,528	1,350	1,888
Income from asset management		732	650	2,113	1,998	2,783
Income from banking activities		825	379	2,127	940	1,460
Other income		66	96	263	274	268
Operating income excl. insurance		2,120	1,605	6,032	4,562	6,399
Insurance revenue	8	2,301	2,185	6,822	6,261	8,514
Insurance service expenses	8,9	-2,162	-1,701	-5,492	-4,367	-6,167
Net expenses from reinsurance contracts held	8	92	-3	25	-33	-66
Net insurance service result	8	231	481	1,354	1,861	2,282
Operating income incl. insurance result		2,351	2,086	7,386	6,423	8,680
Operating expenses	9	-1,239	-1,089	-3,785	-3,151	-4,407
Interest expenses banking activities		-568	-184	-1,410	-409	-739
Other expenses		-36	-22	-137	32	28
Total expenses		-1,843	-1,295	-5,333	-3,527	-5,118
Operating profit		509	792	2,053	2,896	3,562
Profit from investment in associates and joint ventures		-288	-173	-409	-18	-334
Net income on financial and property investments		-9,364	-10,352	22,030	-71,430	-36,422
Net change in investment contract liabilities		6,567	5,284	-21,966	37,395	9,833
Finance expenses from insurance contracts issued		3,703	5,057	1,597	33,261	26,637
Interest expenses securities issued and other interest expenses		-199	-109	-604	-331	-594
Net finance result		419	-293	648	-1,123	-881
Profit before amortisation		928	499	2,701	1,773	2,681
Amortisation of intangible assets		-182	-92	-371	-232	-324
Profit before income tax		746	407	2,330	1,540	2,357
Tax expenses		-172	-50	110	351	19
Profit for the year		574	357	2,440	1,892	2,376
Profit/loss for the period attributable to:
Share of profit for the period - shareholders		567	354	2,421	1,883	2,362
Share of profit for the period - hybrid capital investors		7	4	20	9	14
Total		574	357	2,440	1,892	2,376
1) Restated numbers
Earnings per ordinary share (NOK)		1.25	0.76	5.25	4.01	2.25
Average number of shares as basis for calculation (million)				460.8	469.7	464.3

Statement of comprehensive income

		Q3	01.01 - 30.09		Full year
NOK million	2023	2022 1)	2023	2022 1)	2022 1)
Profit/loss for the period	574	357	2,440	1,892	2,376
Actuarial assumptions pensions own employees	-3	-1	-8	-4	-12
Fair value adjustment of properties for own use	-16	19	-48	60	63
Other comprehensive income allocated to customers	16	-19	48	-60	-63
Tax on other comprehensive income elements not to be reclassified to profit/loss	-3
Total other comprehensive income elements not to be reclassified to profit/loss	-5	-1	-8	-5	-12
Exchange rate adjustments	45	136	-143	63	19
Gains/losses from cash flow hedging	-3	-7	-10	-25	-15
Change in unrealised gains on financial instruments available for sale	-33	-146	-221	-722	-576
Tax on other comprehensive income elements that may be reclassified to profit/loss	8	42	58	186	144
Total other comprehensive income elements that may be reclassified to profit/loss	18	26	-316	-497	-428
Total other comprehensive income elements	12	24	-324	-502	-439
Total comprehensive income	587	382	2,116	1,390	1,937
Total comprehensive income attributable to:
Share of total comprehensive income - shareholders	580	378	2,097	1,381	1,923
Share of total comprehensive income - hybrid capital investors	7	4	20	9	14
Total	587	382	2,116	1,390	1,937

1) Restated numbers

Statement of financial position

NOK million Notes	30.09.23	30.09.22 1)	31.12.22 1)
Assets
Deferred tax assets	3,125	3,101	2,979
Intangible assets	6,111	6,177	5,990
Tangible fixed assets	1,143	1,228	1,174
Investments in associated companies and joint ventures	8,467	9,122	8,910
Financial assets:
- Equities and fund units 7	311,154	268,888	270,532
- Bonds and other fixed-income securities 7	271,979	272,334	275,461
- Derivatives 7	14,164	10,995	14,343
- Loans to financial institutions 7	154	170	109
- Loans to customers 7, 11	85,110	76,569	78,310
- Investment properties 7	34,299	35,664	35,171
Bank deposits	15,712	10,271	14,511
Reinsurance contracts assets	298	299	317
Accounts receivables and other short-term receivables	40,085	12,112	4,193
Minority portion of consolidated mutual funds	55,774	52,411	55,005
Total assets	847,575	759,342	767,005
Equity and liabilities
Paid-in capital	13,104	13,169	13,163
Retained earnings	15,483	15,565	16,029
Hybrid capital	353	327	327
Total equity	28,940	29,061	29,519
Insurance contracts liabilities 8	302,061	301,764	303,211
Investment contracts liabilities 8	329,484	281,469	292,931
Reinsurance contracts liabilities 8	1	21	35
Pension liabilities	163	187	162
Deferred tax	1,392	1,353	1,311
Financial liabilities:
- Subordinated loan capital 6	10,455	11,890	10,585
- Loans and deposits from credit institutions 6	203	38	403
- Deposits from banking customers	22,681	19,236	19,478
- Debt raised by issuance of securities 6	38,155	31,416	32,791
- Derivatives	13,520	19,127	12,629
- Other non-current liabilities	1,082	1,159	1,106
Other current liabilities	43,665	10,209	7,840
Minority portion of consolidated mutual funds	55,774	52,411	55,005
Total liabilities	818,635	730,280	737,486
Total equity and liabilities	847,575	759,342	767,005

1) Restated numbers

Statement of changes in equity

	Majority's share of equity
NOK million	Share capital 1)	Own shares	Share premium	Total paid in equity	Currency translation differences	Other equity	Total retained earnings	Hybrid capital 2)	Total equity
Equity 31.12.21	2,360	-9	10,842	13,192	1,041	23,249	24,291	226	37,709
Changes in accounting principles						-8,103	-8,103		-8,103
Adjusted equity 01.01.22	2,360	-9	10,842	13,192	1,041	15,147	16,188	226	29,606
Profit for the period						2,362	2,362	14	2,376
Total other comprehensive income elements						-439	-439		-439
Total comprehensive income for the period						1,923	1,923	14	1,937
Equity transactions with owners:
Own shares		-30		-30		-431	-431		-460
Hybrid capital classified as equity						4	4	100	104
Paid out interest hybrid capital								-13	-13
Dividend paid						-1,646	-1,646		-1,646
Other						-8	-8		-8
Equity 31.12.22	2,360	-39	10,842	13,163	1,041	14,988	16,029	327	29,519
Profit for the period						2,421	2,421	20	2,440
Total other comprehensive income elements					-143	-181	-324		-324
Total comprehensive income for the period					-143	2,240	2,097	20	2,116
Equity transactions with owners:
Own shares	-32	-27		-59		-940	-940		-999
Hybrid capital classified as equity						5	5	25	30
Paid out interest hybrid capital								-18	-18
Dividend paid						-1,715	-1,715		-1,715
Other						7	7		7
Equity 30.09.23	2,327	-66	10,842	13,104	898	14,585	15,483	353	28,939

1) 465 497 866 shares with a nominal value of NOK 5.

2) Perpetual hybrid tier 1 capital classified as equity.

Equity 31.12.21	2,360	-9	10,842	13,192	1,041	23,249	24,291	226	37,709
Changes in accounting principles						-8,103	-8,103		-8,103
Adjusted equity 01.01.22	2,360	-9	10,842	13,192	1,041	15,147	16,188	226	29,606
Profit for the period						1,883	1,883	9	1,892
Total other comprehensive income elements					63	-565	-502		-502
Total comprehensive income for the period					63	1,318	1,381	9	1,390
Equity transactions with owners:
Own shares		-23		-23		-340	-340		-363
Hybrid capital classified as equity						2	2	100	102
Paid out interest hybrid capital								-8	-8
Dividend paid						-1,646	-1,646		-1,646
Other						-20	-20		-20
Equity 30.09.22	2,360	-32	10,842	13,169	1,104	14,461	15,565	327	29,061

Statement of cash flow

	01.01 - 30.09
NOK million	2023	2022
Cash flow from operating activities
Net receipts premium - insurance	24,734	25,338
Net payments claims and insurance benefits	-17,148	-17,414
Net receipts/payments - transfers	-378	-1,518
Other receipts/payments - insurance liabilities	27,064	29,836
Receipts - interest, commission and fees from customers	2,080	972
Payments - interest, commission and fees to customers	-107	-30
Taxes paid	-687	-1,036
Payments relating to operations	-2,579	-4,739
Net receipts/payments - other operating activities	6,804	3,407
Net cash flow from operations before financial assets and banking customers	39,782	34,816
Net receipts/payments - loans to customers	-4,368	-7,054
Net receipts/payments - deposits bank customers	2,961	1,937
Net receipts/payments - securities	-37,299	-26,696
Net receipts/payments - investment properties	928	658
Receipts - sale of investment properties	2	633
Payments - purchase of investment properties	-277	-1,022
Net cash flow from financial assets and banking customers	-38,053	-31,544
Net cash flow from operating activities	1,728	3,272
Cash flow from investing activities
Payments - purchase of subsidiaries	-345	-2,402
Net receipts/payments - sale/purchase of fixed assets	-128	-98
Net receipts/payments - sale/purchase of associated companies and joint ventures	-149	-631
Net cash flow from investing activities	-622	-3,131
Cash flow from financing activities
Receipts - new loans	10,043	7,950
Payments - repayments of loans	-4,750	-5,413
Payments - interest on loans	-1,015	-373
Receipts - subordinated loans	-7	1,048
Payments - repayment of subordinated loans	-432	-249
Payments - interest on subordinated loans	-235	-356
Receipts - loans to financial institutions	10,890	8,684
Payments - repayments of loans from financial institutions	-11,089	-9,148
Receipts - issuing of share capital / sale of shares to employees	49	44
Payments - repayment of share capital	-1,043	-403
Payments - dividends	-1,715	-1,646
Receipts - hybrid capital	125	100
Payments - repayment of hybrid capital	-100
Payments - interest on hybrid capital	-18	-8
Net cash flow from financing activities	703	231
Net cash flow for the period	1,809	372
Cash and cash equivalents at the start of the period	13,991	10,054
Currency translation cash/cash equivalents in foreign currency	66	-4
Cash and cash equivalents at the end of the period 1)	15,866	10,422

	01.01 - 30.09
NOK million	2023	2022
1) Consists of:
Loans to financial institutions	154	170
Bank deposits	15,712	10,251
Total	15,866	10,422

Notes to the interim accounts Storebrand Group

Note Accounting policies

1

The Group's interim financial statements include Storebrand ASA, subsidiaries, associated companies and joint ventures. The financial statements are prepared in accordance with IAS 34 Interim Financial Reporting. The interim financial statements do not contain all the information that is required in the full annual financial statements.

This is the first set of the Group's interim financial statements in which IFRS 17 Insurance contracts and IFRS 9 Financial Instruments have been applied. The changes in significant accounting policies are described below.

The remainder of the accounting policies applied in the preparation of the financial statements are described in the 2022 annual report, and the interim financial statements are prepared in accordance with these accounting policies. Accounting policies that relate to IFRS 4 Insurance contracts and IAS 39 Financial Instruments are no longer applicable.

1.1 New standards and changes to the accounting policies applied

IFRS 9

IFRS 9 Financial Instruments replaced IAS 39, and was generally applicable from 1 January 2018. However, for insurancedominated groups and companies, IFRS 4 allowed for the implementation of IFRS 9 to be deferred until implementation of IFRS 17. The Storebrand Group qualified for temporary deferral of IFRS 9 because over 90 per cent of the Group's total liabilities as at 31 December 2015 were linked to the insurance businesses. For the Storebrand Group, IFRS 9 was implemented together with IFRS 17 from 1 January 2023. Storebrand has restated the 2022-figures according to IFRS 9.

The Storebrand Group did conduct a provisional analysis of the classification and measurement of financial instruments in accordance with IAS 39 for the transition to IFRS 9, based on the business model for the individual instruments. For debt instruments that were expected to be classified and measured at amortised cost or fair value through total comprehensive income upon transition to IFRS 9, a SPPI ("Solely payment of principal and interest") test was carried out. A significant majority of the financial assets has been measured at fair value (the fair value option was used).

The Ministry of Finance has stipulated regulatory provisions that permit pension providers to recognise investments that are measured at fair value through total comprehensive income in accordance with IFRS 9 at amortised cost in the customer and company accounts. For the consolidated financial statements, the financial assets are measured at fair value through profit or loss, where the fair value option is used because the insurance liabilities are measured at fair value.

IFRS9 - Financial instruments to amortised cost and FVOCI

			Booked value	Fair value
	IAS 39	IFRS 9	after IAS 39	after IFRS 9
NOK million	classification	classification	1.1.2022	1.1.2022
Financial assets
Bank deposits	A C	A C	9 986	9 986
Bonds and other fixed-income securities	A C	FVOCI	12 955	12 981
Loans to financial institutions	A C	A C	67	67
Loans to customers	A C	FVOCI	38 086	38 086
Loans to customers	A C	A C	416	416
Accounts receivable and other short-term receivables	A C	A C	11 661	11 661
Total financial assets			73 172	73 199
Financial liabilities
Deposits from banking customers	A C	A C	17 239	17 239
Liabilities to financial institutions	A C	A C	502	502
Debt raised by issuance of securities	A C	A C	24 924	25 000
Subordinatd loan capital	A C	A C	11 441	11 441
Other current liabilities	A C	A C	14 643	14 643
Total financial liabilities			68 749	68 824

IFRS9 - Financial instruments at fair value

	IAS 39	IFRS 9	Booked value after IAS 39	Fair value after IFRS 9
NOK million	classification	classification	1.1.2022	1.1.2022
Financial assets
Shares and fund units	FVP&L (FVO)	FVP&L	278 326	278 326
Bonds and other fixed-income securities	FVP&L (FVO)	FVP&L	168 516	168 516
Bonds and other fixed-income securities	A C	FVP&L	113 416	116 745
Loans to customers	FVP&L (FVO)	FVP&L	7 931	7 931
Loans to customers	A C	FVP&L	23 052	23 060
	FVP&L/ Hedge	FVP&L/ Hedge
Derivatives	accounting	accounting	4 912	3 816
Total financial assets			596 153	598 395
Financial liabilities
	FVP&L/ Hedge	FVP&L/ Hedge
Derivatives	accounting	accounting	3 144	2 048
Total financial liabilities			3 144	2 048

An assessment of the effects for the Group from IAS 39 to IFRS 9 shows that the most significant changes in the transition from IAS 39 to IFRS 9 will be linked to hedge accounting and new calculation of expected losses. According to IFRS 9, provisions for losses must be calculated based on expected credit losses when establishing a commitment and must be continuously assessed for impairment in subsequent periods. At year-end 2022, expected credit loss (ECL) was calculated at NOK 60.4 million for the Storebrand Group. The expected credit loss has not changed significantly when compared with the loss provision under IAS 39. The most important changes in hedge accounting for the Storebrand Group is that IFRS 9 sets different criteria than IAS 39 for the use of hedge accounting. It is no longer a requirement under IFRS 9 that the hedging arrangement needs to be within a specific interval, and it is now possible to rebalance the hedge under existing hedging arrangements and it is also possible to use multiple hedging instruments for the same hedge item. The transition to IFRS 9 has no accounting effects for existing hedging.

IFRS 17

The Storebrand Group and Storebrand Livsforsikring Group have implemented IFRS 17 in the consolidated financial statements. IFRS 17 is also incorporated in the statutory reporting of Storebrand Forsikring AS (P&C insurance business). For the remaining companies within the Storebrand Group, including life insurance, the statutory reporting remains unchanged. Storebrand has chosen not to apply the OCI option for contracts measured under IFRS 17. The OCI option involves recognizing impacts of changes in financial assumptions for products measured under GMM or PAA over the other comprehensive income, rather than in the profit and loss.

1.1.1 Scope:

An insurance contract pursuant to IFRS 17 is a contract in which Storebrand accepts significant insurance risk from a policyholder by consenting to pay compensation to the policyholder if an insured event adversely affects the policyholder.

Certain investment contracts that have a legal form of an insurance contract, but do not expose the Group to significant insurance risk, are classified as investment contracts under IFRS 9. Unit link for Storebrand and unit link at SPP are not considered to satisfy the definition of an insurance contract pursuant to IFRS 17 due to the insurance risk being considered immaterial. The contracts are therefore recognised in accordance with IFRS 9.

Storebrand uses reinsurance to limit insurance risk. Reinsurance contracts are covered by IFRS 17, but since the reinsurance programme is relatively limited, the new accounting policies have a minor impact on the accounts.

1.2 Accounting policies

1.2.1 Measurement model

IFRS 17 introduces measurement models in which insurance revenue is recognised through profit and loss over time as the entity provides insurance related services. The model is based on the present value of expected future cash flows that are expected to arise when the entity fulfils contracts (FCF), an explicit risk adjustment for non-financial risk (RA) and the unearned profit the entity expects to earn as it provides services, the contractual service margin (CSM).

Insurance contracts are subject to different requirements for measurement models based on whether the insurance contracts are classified as contracts with or without direct participation features, meaning whether the policyholder is expected to receive an amount equal to a substantial share of the returns on the underlying items, the contractual terms specify that the policyholder participates in a share of a clearly identified pool of underlying items, and the entity expects to pay a substantial proportion of any change in the amounts paid to the policyholder to vary with the change in fair value of the underlying items. Contracts with direct participation features are measured according to the variable fee approach (VFA), and contracts without direct participation features are measured according to the general measurement model (GMM). For short-term contracts with a coverage period up to 12 months, the simplified premium allocation approach (PAA) is applied.

Storebrand determines whether a contract meets the definition of a contract with direct participation features at inception. There is no new classification of the contract unless the contract is modified by amending the contract terms in such a manner that they no longer meet the mentioned conditions. Storebrand issues a number of insurance contracts which are essentially investment-related service contracts, for which the company promises a return on investment based on underlying items. These satisfy the definition of insurance contracts with direct participation features and include a substantial proportion of the Group's guaranteed products. Insurance contracts with direct participation features are measured using the variable fee approach. Other insurance contracts with a short coverage period up to 12 months are measured according to the premium allocation approach. The group disability pensions is measured according to the general measurement model.

Company	Product category	Measurement model
Storebrand Livsforsikring	Group pension, paid-up policy and paid-up policy with investment choice (Private)	Variable fee approach
	Individual endowment and pension insurance	Variable fee approach
	Group pension (Public)	Variable fee approach
	Hybrid pension	Variable fee approach
	Group pension related disability	General measurement model
	Group life and individual life	Premium allocation approach
SPP Pension & Försäkring	Individual pension insurance	Variable fee approach
	Group pension (Private)	Variable fee approach
	Individual pension related	Premium allocation approach
Storebrand Forsikring	Non-life	Premium allocation approach

1.2.2 Contracts measured according to variable fee approach and general measurement method.

At initial recognition, the carrying value of the insurance contract liability is measured as the sum of:

1. An explicit, unbiased and probability-weighted estimate of all cash flows within the contract's boundary.

2. An adjustment for the time value of money based on a risk-free discount rate that is adjusted to reflect the liquidity of the cash flows.

3. An explicit risk adjustment for non-financial risk.

4. Contractual service margin which represents the unearned profit the entity will recognise as it provides insurance contract services in accordance with the insurance contracts in the Group.

Storebrand classifies a contract as onerous at initial recognition if the fulfilment cash flows that are allocated to the contracts, plus any cash flows previously recognised upon acquisition or at initial recognition, are expected to be a net outflow. This does not apply to contracts measured at transition based on the fair value.

The contractual service margin is included in the insurance liability for contracts that are not onerous and is systematically recognised in the income statement over the coverage period based on the pattern of transferred insurance contract services. Determining the release pattern is subject to significant use of judgement and is determined by:

• Identifying the coverage units (CU) in the Group based on the quantity of the insurance contract services that are provided under the contracts in the Group and the expected coverage period.

• Allocating the contractual service margin to each coverage unit provided in the current period and expected to be provided in the future.

• Recognising in profit or loss the amount allocated to coverage units provided in the period.

If an insurance contracts' cash flows is negative, Storebrand recognises a loss component (LC) in profit or loss equivalent to the net outflow for the group of onerous contracts. The determination of a loss component entails that the carrying value of the liability for the contract group is equal to the fulfilment cash flows, and that the contract group's contractual service margin is equal to zero after the loss recognition.

Upon subsequent measurement, the carrying value of a group of insurance contracts at the reporting date corresponds to the total sum of the liability for remaining coverage (LRC) and the liability for incurred claims (LIC). Liability for remaining coverage period corresponds to the present value of future fulfilment cash flows that relate to future services and the remaining contractual service margin. The liability for incurred claims includes fulfilment cash flows that relate to incurred claims, including events that have occurred but for which claims have not been reported, and other incurred insurance expenses.

The present value of expected future cash flows is updated at the end of each period based on updated estimates of future cash flows, discount rate and risk adjustment for non-financial risk. The change in fulfilment cash flows is recognised as follows for contracts measured using the variable fee approach:

Changes that relate to future services, such as changes in	Adjusted in relation to contractual service margin
assumptions relating to long life expectancy, disability and
mortality.
Differences between any investment component expected to	Adjusted in relation to contractual service margin
become payable in the period and the actual investment
component that becomes payable.
Changes that relate to current or previous services, for example	Recognised in profit and loss from insurance
difference between estimated and actual insurance service	services
expenses.
The entity's share of the effects that result from the time value of	Adjusted in relation to contractual service margin
money, financial risk and the effect of these on the cash flows.

In the subsequent measurement, the contractual service margin is only adjusted for changes that apply to future services. This entails that changes in cash flows for future services are recognised as profit or loss as Storebrand provides services. At the end of each reporting period, the contractual service margin represents the profit that is not recognised in the income statement as profit or loss since it relates to future services.

One of the primary differences between the variable fee approach and general measurement model is that when using the variable fee approach, the contractual service margin must be adjusted for the entity's share of any effects resulting from market variables and their effect on the cash flows. The purpose of the adjustment is to reduce mismatch and volatility by recognising Storebrand's share of changes in the value of the underlying items in the contractual service margin. When applying general measurement model, the entity is not permitted to make such an adjustment. The change in fulfilment cash flows is thereby recognised as follows for contracts measured using general measurement model:

Changes that relate to future services, such as changes in assumptions relating to long life expectancy, disability and mortality.	Adjusted in relation to contractual service margin.
Differences between any investment component expected to become payable in the period and the actual investment component that becomes payable.	Not applicable for Storebrand contracts measured under the general measurement model.
Changes that relate to current or previous services, for example difference between estimated and actual insurance service expenses.	Recognised in profit and loss from insurance services.
Effects that result from time value of money, financial risk and the effect of these on the cash flows.	Recognised as financial insurance income or expenses.

CONSEQUENCES OF TRANSITION TO IFRS 17 IN THE FINANCIAL STATEMENT:

Change from IFRS 4	Net effect on equity upon transition to IFRS 17
The present value of fulfilment cash flows increases in total as a result of a reduction in discounting, since IFRS 17 requires the use of market values.	Reduction
IFRS 17 requires the calculation of a risk adjustment for non-financial risk that increases the present value of FCF.	Reduction
The contractual service margin upon transition is determined using the fair value method.	Reduction
Reclassification of risk equalisation reserve from equity to liability.	Reduction
Under IFRS 4, the value-of-in-force (VIF) that arises in connection with acquisitions is classified as intangible assets and amortized on an ongoing basis. With the introduction of IFRS 17, VIF is included as part of contractual service margin and thus the total intangible assets will be reduced upon the transition to IFRS 17.	Reduction

1.2.3 Contracts measured according to premium allocation approach

The premium allocation approach is an optional, simplified measurement model for insurance and reinsurance contracts with a short coverage period that is a maximum of 12 months, or when the entity reasonably expects that applying the premium allocation approach would produce a measurement of the liability for remaining coverage for the Group that would not differ materially from the one that would be produced applying the general measurement model. The coverage period is defined as the period during which the entity provides insurance contract services, which includes the insurance contract services that apply to all premiums within the limits of the contract. The premium allocation approach measures the liability for the remaining coverage period based on premiums received, rather than the present value of expected future fulfilment cash flows as under variable fee approach and general measurement model. Storebrand applies premium allocation approach to all P&C insurance and risk products in the Norwegian and Swedish markets.

Upon initial recognition of each group of insurance contracts, the carrying value of the liability for the remaining coverage period is measured as the total of premiums received as of the recognition date. Storebrand has chosen to recognise cash flows for the acquisition of insurance costs in the income statement when these are incurred. In the subsequent measurement, the carrying value of the liability for the remaining coverage period is increased by new premiums received and reduced by the share of premiums recognised for services provided. Insurance income for the period is equal to the amount of expected premium payments allocated to the period. The expected premium payments are allocated over each period based on the passage of time unless the expected pattern for release of risk during the coverage period differs significantly from the passage of time. Since Storebrand provides insurance services within one year of receiving the premiums, there will be no need to adjust the liability for the remaining coverage period for the time value of money in accordance with IFRS 17. If, at any time during the coverage period, facts and circumstances indicate that a group of insurance contracts is onerous, Storebrand recognises a loss in the income statement and correspondingly increase the liability for the remaining coverage period.

Storebrand recognises a liability for incurred claims for claims that are incurred as of the reporting date. The cash flows for incurred claims are adjusted for non-financial risk (RA) and discounted using the current discount rate if cash flows are expected to be paid out more than 12 months from the claim date. The premium allocation approach applies correspondingly to reinsurance contracts, with some adjustments which reflect that the reinsurance contracts entail that Storebrand has a net asset and that the risk adjustment is negative.

Change from IFRS 4	Effect on equity upon transition to IFRS 17
The present value of fulfilment cash flows related to claims incurred is discounted if the cash flows are paid more than 12 months from the date of the claim.	Increase
IFRS 17 requires the calculation of risk adjustment for non financial risk that increases the present value of fulfilment cash flows.	Reduction
IFRS 17 requires adjustment of the income profile/liability for remaining coverage if the expected pattern of release of risk during the coverage period differs significantly from the passage of time.	Increase/decrease

1.2.4 Aggregation level for insurance contracts

Under IFRS 17, insurance contracts are measured at group level. Groups of insurance contracts are determined by identifying portfolios of insurance contracts that include contracts that are subject to similar risk and are managed together. Storebrand identifies groups of insurance contracts by assessing the underlying insurance risk in the contracts and how changes in underlying assumptions influence the contracts. The insurance risks are described in more detail in Note 5. Furthermore, managed together is assessed based on, among other things, how the business areas manage the insurance contracts internally, the levels used when reporting to management and in risk management. Contracts within different product lines, or that are issued by different Group companies, are included in different portfolios of contracts. At initial recognition, contracts within a portfolio are further divided into groups of onerous contracts, groups that have no significant possibility of becoming onerous if any and groups of the remaining contracts in the portfolio.

The standard prohibits the grouping of contracts issued more than one year apart in the same group. This involves requirements for further division into annual cohorts based on the year of issue. In adopting IFRS 17, the EU has introduced an optional exemption from annual cohorts for contracts with direct participation features measured under variable fee approach. This means that portfolios of contracts with direct participation features are grouped solely based on profitability, irrespective of the year of issue. Storebrand has chosen to make use of the EU exemption from annual cohorts.

1.2.5 Cash flows within the boundaries of a contract

When measuring a group of insurance contracts under IFRS 17, all future cash flows within the boundaries of an existing insurance contract are included. Cash flows are within the boundary of an insurance contract if they arise from substantive rights and obligations that exist during the reporting period in which the entity can compel the policyholder to pay the premiums or in which the entity has a substantive obligation to provide the policyholder with insurance contract services.

Such an obligation to provide insurance contract services ends when:

• Storebrand has the practical ability to reassess the risks of the particular policyholder and, as a result, can set a price or level of benefits that fully reflects those risks; or
• Storebrand has the practical ability to set a price or level of benefits that fully reflects the risk in the portfolio until the date when the risks are reassessed and does not take into account the risks that relate to periods after the reassessment date.

For guaranteed products measured under the variable fee approach, the boundaries of the contract generally include future premiums, as well as the associated fulfilment cash flows. This is because Storebrand is unable to reassess the policyholder's risk and thus cannot set a new price or level of benefits that fully reflects these risks. This applies both to the individual contracts and at portfolio level.

The estimated cash flows for a group of contracts include all ingoing and outgoing payments that are directly related to the fulfilment of insurance contract services. This includes benefits and compensation to policyholders including, but not limited to:

• Premiums and any additional cash flows resulting from these premiums.

• Claims and benefits to or on behalf of a policyholder.

• Costs associated with handling compensation claims.

• Costs associated with handling and maintaining policies.
• Lapse from Storebrand.

• Transaction-based taxes and fees for SPP.

• An allocation of fixed and variable joint expenses that are directly attributable to fulfilling insurance contracts (for example, costs of accounting, HR and IT). Allocation takes place at group level using systematic and rational methods that are applied consistently.

In addition, cash flows arising from expenses relating to the sale, subscription and establishment of a group of insurance contracts will be included in the measurement of an insurance contract. This applies to cash flows that are directly attributable to the portfolio of insurance contracts to which the group belongs.

1.2.6 Risk adjustment

The risk adjustment for non-financial risk (RA) represents the compensation that Storebrand requires for bearing the uncertainty about the amount and timing of cash flows that arise from non-financial risk. The risks covered by the risk adjustment for non-financial risk are insurance risk and other non-financial risks such as:

• Mortality
• Long life expectancy
• Disability/reactivation
• P&C insurance risk
• Expenses
• Carastrophe
• Lapse

The risk adjustment is calculated separately from the estimates of future cash flows and included in the measurement of insurance contracts in an explicit way. This ensures that the estimates of future cash flows do not account for any additional risk adjustment beyond the explicitly calculated risk adjustment. The method used to calculate the risk adjustment for nonfinancial risks is described in Note 2.

1.2.7 Discount rate

To calculate a present value of future expected cash flows, a discount rate must be defined that reflects the time value of money and the financial risks associated with those cash flows. The discount curve is determined for the first time at the transition date and then updated continuously at each reporting date. Storebrand has chosen to use a bottom-up approach for determining the discount rate, whereby a risk-free yield curve is used that is adjusted for liquidity premium to reflect the liquidity characteristics of insurance contracts. The risk-free yield curve is derived using the Norwegian and Swedish ten year swap rate, and the credit risk adjustment is determined by using EIOPAs credit risk adjustment. After ten years, the yield curve is extrapolated to a forward rate using EIOPAs ultimate forward rate (UFR). An illiquidity premium is added to reflect the assumption that the fulfilment cash flows is illiquid during the period.

1.3 Transition to IFRS 17

According to IFRS 17 a retrospective transition method must be applied for the opening balance sheet. However, a modified retrospective transition method or fair value approach is permitted if retrospective application is impracticable. Storebrand has decided to use the fair value approach at the transition date when transitioning to IFRS 17, since the retrospective transition method is not considered to be practicable. This applies to contracts with a coverage period of more than one year. For contracts with a coverage period of less than one year the full retrospective approach has been applied, as there is concluded that only current and prospective information is required to reflect circumstances at the transition date. Storebrand uses the fair value hierarchy in accordance with IFRS 13, where fair value reflects the market price that well-informed parties would agree on as a fair transaction price. For products for which there is an active transfer market, the transfer value is used as an estimate of fair value. For contracts where there are no active market, Storebrand uses relevant transactions as a reference point to determine the fair value. By using the fair value approach at the transition date of 1 January 2022, the difference between the fair value of a group of contracts and the fulfilment cash flows, with the addition of risk adjustment in accordance with IFRS 17, will form the basis for the contractual service margin. For all contracts measured under the fair value approach, Storebrand has used reasonable and documentable information available at the transition date to make assessments related to the recognition and measurement of the contracts, including:

• Determining the level of aggregation based on portfolios and profitability groups.

• Determining risk adjustment.

• Determining measurement method, including assessment of criteria for the use of premium allocation approach for contracts with a short coverage period and variable fee approach for contracts that satisfy the definition of contracts with direct participation features.

• How to identify discretionary cash flows for insurance contracts without direct participation features.

1.3.1 Changes in equity at transition

The following table shows changes in equity during the transition to IFRS 17. In the transition to IFRS 17, the equity is decreased by approximately 21%. The decrease in equity will mainly be offset by the creation of the contractual service margin. Under IFRS 4, Value-of-in-force (VIF) which arises in connection with acquisitions were classified as intangible assets and are amortized on an ongoing basis. With the introduction of IFRS 17, VIF is included as part of contractual service margin and thus total intangible assets will be reduced by the transition to IFRS 17.

Effect on equity upon transition to IFRS 9 and IFRS 17

NOK million
Equity 31.12.21	37,709
Changes in accounting principles (IFRS 9 and IFRS 17):
Contractual Service Margin (CSM)	-11,810
Risk Adjustment	-4,685
Present value of future cash flows	5,480
Risk equalization fund	-547
Deferred acquistion fund	-119
Value of business in force (VIF) acquired insurance business	-1,607
Deferred tax assets	1,823
IFRS 9 - reclassificiation from amortised cost to fair value	3,363
Adjusted equity 1.1.22	29,606

The table below shows a consolidated statement of the financial position in accordance with IFRS 9 and IFRS 17 for the transition on 1 January 2022 compared to the balance sheet in the annual accounts on 31 December 2021.

Opening balance

NOK million	31.12.21	Reclassification	01.01.22
Assets
Deferred tax assets	1,513	1,827	3,340
Other assets	8,715	-1,607	7,108
Financial assets	690,114	3,372	693,486
Insurance contracts assets	32	1	33
Bank deposit	9,986		9,986
Receivable	9,816	-1,178	8,637
Minority portion of consolidated mutual funds	54,912		54,912
Total assets	775,088	2,415	777,502
Equity and liabilities
Equity	37,709	-8,103	29,606
Insurance liabilities (excl CSM)	300,819	-5,879	294,939
Contractual Service Margin (CSM)		11,810	11,810
Risk Adjustment (RA)		4,685	4,685
Investment contracts liabilities	309,330		309,330
Reinsurance contracts liabilities	14		14
Financial liabilities	57,565	9	57,573
Other liabilities	14,740	-108	14,632
Minority portion of consolidated mutual funds	54,912		54,912
Total liabilities	737,379	10,517	747,896

Deferred tax assets

The increase in deferred tax asset is due to effects on deferred tax as a result of changes in equity when implementing IFRS 9 and 17.

Total equity and liabilities 775,088 2,415 777,502

Other assets

Under previous reporting framework, IFRS 4, the value-of-in-force (VIF) that arises in connection with acquisitions was classified as intangible assets and amortized on an ongoing basis. With the introduction of IFRS 17, VIF is included as part of CSM and thus the total intangible assets is reduced.

Financial assets

The increase in financial assets is due to transition to IFRS 9 and is mainly related to an increase in the valuation of debt instruments which is measured at fair value through profit or loss. These instruments were previously measured at amortised cost under IFRS 4.

Receivable

The decrease in receivables is mainly related to reclassification effects where the receivables related to direct operations in the P&C business is reclassified to insurance liabilities. The decrease is related to deferred acquisition cost from the Swedish insurance business, SPP. With the introduction of IFRS 17, deferred acquisition costs is reduced, which impacts both receivables and other liabilities.

Equity

The decrease in equity is explained in the equity reconciliation above.

Insurance liabilities

The insurance liabilities excluding CSM and risk adjustment decrease with the introduction of IFRS 17. The decrease is due to reclassification effects as explained under Receivable, new measurement models and discounting effects. According to IFRS 17, the CSM and risk adjustment is a part of the insurance contract liability and will be presented collectively in the financial statement.

Contractual service margin

The contractual service margin is introduced with the transition to IFRS 17 and represents expected future profits. The contractual service margin is derived at transition from the difference between the fair value of a group of contracts and insurance liabilities including risk adjustment.

Risk adjustment

The risk adjustment is introduced with the transition to IFRS 17 and represents the non-financial risk arising from insurance contracts.

Other liabilities

The decrease is related to deferred acquisition cost from the Swedish insurance business, SPP. With the introduction of IFRS 17, deferred acquisition cost is reduced, which impacts both receivables and other liabilities.

Note 2 Important accounting estimates and judgements

In preparing the consolidated financial statements the management is required to apply estimates, make discretionary assessments, and apply assumptions for uncertain amounts. The estimates and underlying assumptions are reviewed on an ongoing basis and are based on historical experience and expectations of future events and represent the management's best judgement at the time the financial statements were prepared.

A full description of the most important areas in which the Group use accounting estimates and applies significant judgement is provided in the 2022 annual reports. A description of the use of significant judgement and accounting estimates related to the new accounting policies introduced by IFRS 17 Insurance contracts and IFRS 9 Financial instruments is provided below.

2.1 Insurance contracts

2.1.1 Definition and classification:

Significance of insurance risk: Storebrand applies judgement to assess the significance of insurance risk. The assessment is performed at initial recognition on a contract-by-contract basis. When classifying contracts under IFRS 17, Storebrand takes into consideration its substantive rights and obligations, irrespective of whether these stem from a contract, a law, or a regulation. Storebrand considers possible elements that have commercial substance when assessing the significance of insurance risk, including events that are extremely unlikely.

Contracts that have a legal form of an insurance contract are considered to have insignificant insurance risk if the additional amounts paid upon the occurrence of an insured event make up 5% or less of the amount payable to the policyholder in all other circumstances. Contracts that fall marginally above or below this threshold are subject to closer assessment from a specialized unit to insure consistency across all group companies. The application of judgement in this area excludes unit-link contracts with investment choice in Storebrand and SPP from the scope of IFRS 17.

Investment component: Storebrand considers all the contractual terms to determine whether an investment component exists. The amount an insurance contract requires the group to repay to a policyholder in all circumstances, regardless of whether an insured event occurs, are classified as non-distinct investment components. For collective group insurance contracts with mutualization features, amounts repayable to "a policyholder" include amounts the group is required to repay to any current or future policyholder within the collective group of policyholders.

All contracts measured under the variable fee approach feature investment components that the group is required to repay to current or future policyholders under all possible circumstances. Payouts that relate to such amounts are not part of the insurance service expenses. The effect of any deviation or changes in the expected pattern or timing of such repayments adjusts the CSM.

2.1.2 The methods and assumptions used to measure insurance contracts:

Storebrand uses a combination of deterministic and stochastic projection methods to estimate the future cash flows for a group of insurance contracts. The estimates of future cash flows reflect the Group's best estimates given current conditions at the reporting date and take into account any relevant market variables in accordance with observable market data.

Expenses: The estimated future expenses that are directly attributed to the fulfilment of existing insurance contracts are taken into account. The expenses are estimated according to the Group's own cost analyses and are based on the current level of operating costs during the most recent periods combined with assumptions about future inflationary trends and wage developments that reflect the management's best estimate. Only immediate cost-rationalization measures are taken into account when estimating future expenses.

The cash flows within the contract boundary include an allocation of fixed and variable overhead costs directly attributable to the fulfilment of insurance contracts. To reflect such overhead costs, Storebrand uses systematic and rational allocation methods that reflect the products driving the costs. The allocation method is applied consistently for cost categories that share similar characteristics.

Biometric assumptions: Contracts measured under the general measurement model and the variable fee approach expose Storebrand to biometric risks such as longevity, mortality and disability. This means that a key source of estimation uncertainty when measuring the fulfilment cash flows for non-PAA contracts is related to assumptions and estimates concerning biometric variables.

Storebrand applies widely recognized actuarial models to make best estimate assumptions related to biometric variables. When estimating biometric variables, the Group incorporates measures to reflect recent historical data and the characteristics of the underlying populations, including gender, age, disability and other relevant policyholder data. The best estimate assumptions used under IFRS 17 are consistent with those applied under Solvency II.

Adverse development in biometric risks may result in a reduction in the insurance service result or the contractual service margin. However, due to mutualisation, Storebrand's exposure to biometric risk is often limited by existing buffers.

Lapse rates: Lapse rates are determined using statistical measures based on the Group's own experience and vary by product category and external market conditions. For large parts of the guaranteed pension segment, the lapse rate is assumed to be close to zero percent. This is due to an inactive market for group and individual defined benefit plans in a low interest rate environment in recent years. Changes in the expected lapse rates affects mainly the contractual service margin.

Investment returns: Storebrand applies a stochastic modelling technique to project asset returns for all contracts measured under the variable fee approach or the general measurement model. Using this model, the Group generates a range of potential economic scenarios based on a probability distribution that reflects the investment strategy and other relevant market variables. The random variations are therefore based on the volatility of asset portfolios backing a specific category of insurance contracts.

Applying IFRS 17 standard, the expected return on assets equals on average the discount rate applied in the measurement of the fulfilment cash flows.

Discount rates: The discount rate is determined as the risk-free rate, plus an illiquidity premium to reflect the liquidity characteristics of the insurance contracts. The key sources of estimation uncertainty relate to determining the yield curve beyond the observable data points at which interest rate swaps in Norway and Sweden are traded and adjusting for any inherent credit risk in the underlying reference rates. Storebrand addresses this uncertainty by using well established methodologies set out by EIOPA to determine the ultimate forward rate and credit risk adjustment. The methodology used is described in Note 1. This method maximizes the use of observable market variables and ensures that the estimates reflect the current market conditions and other reasonably available information. Other sources of estimation uncertainty relate to the estimation of the liquidity characteristics of the insurance contracts and the underlying financial instruments.

Q3 2023	1 year	5 years	10 years	15 years	20 years
NOK	5,13 %	4,54 %	4,33 %	4,21 %	4,11 %
SEK	4,05 %	3,46 %	3,33 %	3,34 %	3,37 %

The yield curves that were applied for discounting the estimated future cash flows are listed below:

Risk adjustment for non-financial risk: The risk adjustment is calculated based on cost of capital. The basis for the calculation is the capital charge under Solvency II standard model for the relevant risks for the entire coverage period and a cost of capital of 6 percent p.a., discounted by the discount rate. This shares similarities with the risk margin under Solvency II, but with some adjustments which primarily are the exclusion of operational risk and counterparty risk.

The corresponding confidence level is based on the distribution of the one-year value at risk for the solvency capital due to losses from the included risks. The risk calibration is based on the partial internal model, including a simplified approach for non-life risks which are outside of scope for the partial internal model. The confidence level is >95 percent.

The main source of uncertainty when determining the risk adjustment for non-financial risk is related to the non-financial risk factors listed in note 5 Insurance risks.

Amortization of the contractual service margin: Storebrand applies judgement to identify the quantity of benefits provided in a group of insurance contracts and allocate the contractual service margin based on coverage units. The coverage units are determined based on the expected duration linked to the group of insurance contracts, this is applied consistently over time and across contracts that share similar characteristics:

Contracts with direct participation (VFA): Storebrand Livsforsikring uses the policyholder's reserves as a basis for determining the level of benefits provided when calculating the coverage unit per group of insurance contracts measured under the variable fee approach. For SPP, policyholder funds, including the deferred capital contribution (DCC), are used as a basis for the assessment of coverage unit. This insures a relatively stable amortization and serves as a scaling factor for variable fee approach contracts providing both insurance coverage and investment-related services.

Non-participating contracts (GMM): For group disability insurance in Norway, Storebrand uses insurance premiums as a basis to determine the quantity of benefits during the first coverage year (accumulation phase), as opposed to the policyholder reserves during the pay-out phase. At the end of each reporting period, the total coverage units are reassessed to reflect the expected pattern of service, contract cancellations and lapse when applicable. Storebrand provides no investment-return services under the group disability insurance, as the contract does not feature any investment components.

For contracts measured under the variable fee approach, Storebrand makes further adjustments to the coverage units to ensure that the contractual service margin release reflects the insurance services provided in the reporting period. These adjustments are made to account for the fact that the expected financial return on average exceeds the discount

rate used to project future assets under IFRS 17. This creates a state in which the contractual service margin release must be adjusted to avoid an artificial delay in the recognition of such excess earnings for variable fee approach contracts. The contractual service margin is discounted using the discount rates provided above.

Note 3 Acquisition

Kron AS

Storebrand ASA has purchased Kron AS. Kron offers its clients a wide range of funds through engaging digital tools and digital advisory services. The company was established in 2017 as a spin-off from the Nordic financial advisory firm, Formue. Approximately NOK 7 billion is managed on behalf of 67,000 retail customers who have established an investment account on Kron's platform. Kron has also quickly become a popular alternative among people who want to manage their pension account with a provider of their choice.

The transaction was completed on 3 January 2023.

Acquisition analysis Kron AS

NOK million	Book values in the company	Excess value upon acquisition	Book values
Assets
- Brand name		22	22
- Customer relationships		25	25
- IT systems	15	37	52
Total intangible assets	15	83	99
Other assets	5		5
Bank deposits	66		66
Total assets	87	83	170
Liabilities
Current liabilities	14		14
Deferred tax		21	21
Net identifiable assets and liabilities	73	63	135
Goodwill			286
Fair value at acquisition date			422
Conditional payment			23
Cash payment			399

Danica Pensjonsforsikring AS

A final purchase price allocation (PPA) analysis has been completed within the measurement period of 12 months in accordance with IFRS 3. The final PPA of Danica Pensjonsforsikring is shown in the table below.

NOK million	Book values in the company	Excess value upon acquisition	Book values
Assets
- Distribution		106	106
- Customer relationships		809	809
- IT systems	21	-21
Total intangible assets	21	894	915
Financial assets	28,479		28,479
Other assets	309		309
Bank deposits	362		362
Total assets	29,170	894	30,064
Liabilities
Insurance liabilities	27,724	68	27,792
Current liabilities	282	18	300
Deffered tax	24	202	226
Net identifiable assets and liabilities	1,140	606	1,746
Goodwill			302
Fair value at acquisition date			2,048
Cash payment			2,048

Note 4

Profit by segments

Storebrand's operation includes the segments Savings, Insurance, Guaranteed Pension and Other.

Savings

The savings segment includes products for retirement savings with no interest rate guarantees. The segment consists of defined contribution pensions in Norway and Sweden, asset management and retail banking products. In addition, certain other subsidiaries in Storebrand Livsforsikring and SPP are included in Savings.

Insurance

The insurance segment provides health insurance in the Norwegian and Swedish corporate and retail markets, P&C insurance and personal risk products in the Norwegian retail market in addition to employer's liability insurance and pension-related insurance in the Norwegian and Swedish corporate markets.

Guaranteed pension

The guaranteed pension segment includes long-term pension saving products which provides customers a guaranteed rate of return. The area includes defined benefit pensions in Norway and Sweden, paid-up policies and individual capital and pension insurances.

Other

The result for Storebrand ASA is reported under Other, as well as the result for the company portfolios of Storebrand Livsforsikring and SPP. The elimination of intra-group transactions is also included in the Other segment.

Reconciliation between the profit and loss statement and alternative statement of the result (segment)

The alternative income statement is based on the statutory accounts of the legal entities in the Group, adjusted for intercompany transactions. The statutory accounts in the legal entities is primarily similar to IFRS with the exception of IFRS 17 for Storebrand Livsforsikring AS and SPP Pension & Forsäkring AB where the local GAAP is more aligned with the historical IFRS 4 reporting. Since the alternative income statement is based on the statutory accounts of the legal entities, the group adjustments related to amortisation and tax effects on acquired business is not included in the alternative income statement. The results in the segments are reconciled against the statutory income statement of each legal entity in the Group.

Due to the fundamental differences between the alternative income statement and IFRS 17, it is not possible to reconcile the numbers for most IFRS 17 products since the underlying drivers for the profit and loss recognition is based on different principles. The exception is products in Storebrand Forsikring AS, whom statutory accounts will be subject to IFRS 17, causing some non-material adjustments to the alternative income statement. Storebrand has communicated that it will continue to report its alternative income statement post IFRS 17, as this cash-equivalent reporting provides useful information about the value creation in the business.

Differences between the alternative income statement and statutory financial statements for the legal entities in the Group.

The statutory income statements includes gross income and costs linked to both the insurance customers and owners (shareholders). The alternative statement of the result only includes result elements relating to owners (shareholders) which are the result elements that the Group has performance measures and follow-up for. The result lines that are used in segment reporting will therefore not be identical with the result lines in the statutory profit and loss accounts. Below is an overall description of the most important differences.

Fee and administration income consists of fees and fixed administrative income. Storebrand Livsforsikring charges a fee for interest rate guarantee and profit risk. The interest rate guarantees in group pension insurance with a interest guarantee must be priced upfront. The level of the interest rate guarantee, the size of the buffer capital (additional statutory reserves and market value adjustment reserve), and the investment risk of the portfolio in which the pensions assets are invested determine the fee that the customer pays for the interest rate guarantee.

There are also fee's for asset management, net interest income from bank and other administration fees for both savings and guaranteed products.

The insurance result consists of insurance premiums and claims

Insurance premiums consist of premium income relating to risk products (insurance segment) that are classified as premium income in the statutory income statements.

Claims consist of paid-out claims and changes in provisions for claims incurred but not reported (IBNR) and claims reported but not settled (RBNS) relating to risk products that are classified as claims in the statutory income statements.

Administration costs consist of the Group's operating costs in the statutory income statements minus operating costs allocated to traditional individual products with profit sharing.

Financial items and risk result life and pensions include risk result life and pensions and financial result includes net profit sharing and Loan Losses.

Risk result life and pensions consists of the difference between risk premium and claims for products relating to definedcontribution pension, unit linked insurance contracts (savings segment) and defined-benefit pension (guaranteed pension segment). Risk premium is classified as premium income in the statutory income statements.

The financial result consists of the return for the company portfolios of Storebrand ASA, Storebrand Livsforsikring AS and SPP Pension & Försäkring AB (Other segment), while returns for the other company portfolios in the Group are a financial result within the segment which the business is associated with. Returns on company portfolios are classified as net income from financial assets and property for companies in the statutory income statements. The financial result also includes returns on customer assets relating to products within the insurance segment, and in the statutory income statements this item will be entered under net income from financial assets and property for customers.

Net profit sharing

Storebrand Livsforsikring AS

A modified profit-sharing regime was introduced for old and new individual contracts that have left group pension insurance policies (paid-up policies), which allows the company to retain up to 20 per cent of the profit from returns after any allocations to additional statutory reserves. The modified profit-sharing model means that any negative risk result can be deducted from the customers' interest profit before sharing, if it is not covered by the risk equalisation fund. Individual endowment insurance and pensions written by the Group prior to 1 January 2008 will continue to apply the profit rules effective prior to 2008. New contracts may not be established in this portfolio. The Group can retain up to 35 per cent of the total result after allocations to additional statutory reserves. Any negative returns on customer portfolios and returns lower than the interest guarantee that cannot be covered by additional statutory reserves/buffer reserves must be covered by the company's equity and will be included in the net profit-sharing and losses line.

SPP Pension & Försäkring AB

For premiums paid from and including 2016, previous profit sharing is replaced by a guarantee fee for premiumdetermined insurance (IF portfolio). The guarantee fee is annual and is calculated as 0.2 per cent of the capital. This goes to the company. For contributions agreed to prior to 2016, the profit sharing is maintained, i.e. that if the total return on assets in one calendar year for a premium-determined insurance (IF portfolio) exceeds the guaranteed interest, profit sharing will be triggered. When profit sharing is triggered, 90 per cent of the total return on assets passes to the policyholder and 10 per cent to the company. The company's share of the total return on assets is included in the financial result. In the case of defined-benefit insurance (KF portfolio), the company is entitled to charge an indexing fee if the group profit allows the indexing of the insurance. Indexing is allowed up to a maximum equalling the change in the consumer price index (CPI) between the previous two Septembers. Pensions that are paid out are indexed if the ratio between assets and guaranteed insurance liabilities in the portfolio as at 30 September exceeds 107 per cent, and half of the fee is charged. The entire fee will be charged if the ratio between assets and guaranteed insurance liabilities in the portfolio as at 30 September exceeds 120 per cent, in which case paid-up policies can also be included. The total fee equals 0.8 per cent of the insurance capital. The guaranteed liability is continuously monitored. If the guaranteed liability is higher than the value of the assets, a provision must be made in the form of a deferred capital contribution. If the assets are lower than the guaranteed liability when the insurance payments start, the company supplies capital up to the guaranteed liability in the form of a realised capital contribution. Changes in the deferred capital contribution are included in the financial result.

Loan losses

Loan losses consist of individual and group write-downs on lending activities that are on the balance sheet of Storebrand

Bank Group. In the Group's income statement, the item is classified under loan losses. With regard to loan losses that are on the balance sheet of the Storebrand Livforsikring Group, these will not be included on this line in either the alternative income statement or in the Group's income statement, but in the Group's income statement will be included in the item, net income from financial assets and property for customers. Amortisation of intangible assets includes depreciation and possible write-downs of intangible assets established through acquisitions of enterprises.

Segment information as of Q3

	Savings Q3		Insurance Q3		Guaranteed pension Q3
NOK million	2023	2022	2023	2022	2023	2022
Fee and administration income	1,333	1,174			413	398
Insurance result			318	475
- Insurance premiums for own account			1,734	1,613
- Claims for own account			-1,415	-1,138
Operating expense	-852	-763	-305	-284	-209	-208
Cash equivalent earnings from operations	481	410	13	192	204	190
Financial items and risk result life & pension	6	-9	86	20	110	-42
Cash equivalent earnings before amortisation	487	401	100	211	314	148
Amortisation of intangible assets 1)
Cash equivalent earnings before tax

	Other		Storebrand Group
	Q3		Q3
NOK million	2023	2022	2023	2022
Fee and administration income	-66	-64	1,681	1,507
Insurance result			318	475
- Insurance premiums for own account			1,734	1,613
- Claims for own account			-1,415	-1,138
Operating expense	-28	-17	-1,394	-1,272
Cash equivalent earnings from operations	-93	-82	605	710
Financial items and risk result life & pension	176	-7	378	-38
Cash equivalent earnings before amortisation	82	-89	983	672
Amortisation of intangible assets 1)			-146	-61
Cash equivalent earnings before tax			837	611

Segment information as of 01.01 - 30.09	Savings		Insurance		Guaranteed pension
	01.01 - 30.09		01.01 - 30.09		01.01 - 30.09
NOK million	2023	2022	2023	2022	2023	2022
Fee and administration income	3,836	3,440			1,179	1,184
Insurance result			1,057	1,274
- Insurance premiums for own account			5,132	4,459
- Claims for own account			-4,075	-3,185
Operating expense	-2,611	-2,183	-923	-794	-617	-617
Cash equivalent earnings from operations	1,226	1,256	134	480	561	567
Financial items and risk result life & pension	18	-60	85	24	331	66
Cash equivalent earnings before amortisation	1,243	1,197	220	504	892	633
Amortisation of intangible assets 1)
Cash equivalent earnings before tax

	Other		Storebrand Group
		01.01 - 30.09		01.01 - 30.09
NOK million	2023	2022	2023	2022
Fee and administration income	-191	-203	4,824	4,421
Insurance result			1,057	1,274
- Insurance premiums for own account			5,132	4,459
- Claims for own account			-4,075	-3,185
Operating expense	-94	-4	-4,245	-3,598
Cash equivalent earnings from operations	-285	-207	1,636	2,097
Financial items and risk result life & pension	463	-236	897	-206
Cash equivalent earnings before amortisation	178	-443	2,533	1,891
Amortisation of intangible assets 1)			-265	-140
Cash equivalent earnings before tax			2,268	1,751

1) Amortisation of intangible assets are included in Storebrand Group

Note 5

Financial market risk and insurance risk

Risks are described in the annual report for 2022 in note 7 (Insurance risk), note 8 (Financial market risks), note 9 (Liquidity risk), note 10 (Credit risk), note 11 (Concentration of risk) and note 12 (Climate risk).

The group accounts for Storebrand Livsforsikring AS and Storebrand ASA is prepared in accordance with IFRS. From 2023, new accounting standards for financial instruments (IFRS 9) and insurance contracts (IFRS 17) applies. The corporate account for Storebrand Livsforsikring AS (Storebrand Livsforsikring) continue to be prepared in accordance with Norwegian GAAP, consistent with the customer accounts. The corporate account for SPP Pension & Försäkring AB (SPP) continues to be prepared in accordance with Swedish GAAP.

The risk management of the investments is still aimed at controlling the risk based on the customer accounts and GAAP corporate account for Storebrand Livsforsikring and SPP. The description of financial market risk below, mainly reflect the risk measured by these principles.

The new IFRS-standards change the dynamics of the reported group results. The effect of changes in financial market for the IFRS result is reported below under Sensitivities.

Financial market risk

Market risk means changes in the value of assets due to unexpected volatility or price changes in the financial markets. It also refers to the risk that the value of the insurance liability develops differently than the assets due to interest rate changes. The most significant market risks are interest rate risk, equity market risk, property price risk, credit risk and currency exchange rate risk.

The financial assets are invested in a variety of sub-portfolios. Market risk affects Storebrand's income and profit differently in the different portfolios. There are three main types of sub-portfolios: company portfolios, customer portfolios without a guarantee (unit linked insurance) and customer portfolios with a guarantee.

The market risk in the company portfolios has a direct impact on the profit. Storebrand aims to take low financial risk for the company portfolios, and most of the funds are invested in short and medium-term fixed income securities with low credit risk.

The market risk in unit linked insurance is borne by the customers, meaning Storebrand is not directly affected by changes in value. Nevertheless, changes in value do affect Storebrand's profit indirectly. Income is based mainly on the size of the portfolios, while the costs tend to be fixed. Lower returns from the financial market than expected will therefore have a negative effect on Storebrand's income and profit.

For customer portfolios with a guarantee, the net risk for Storebrand will be lower than the gross market risk. The extent of risk sharing with customers depends on several factors, the most important being the size and flexibility of the customer buffers, and the level and duration of the interest rate guarantee. If the investment return is not sufficiently high to meet the guaranteed interest rate, the shortfall will be met by using customer buffers in the form of risk capital built up from previous years' surpluses. The buffers primarily consist of unrealised gains, additional statutory reserves, and conditional bonuses. Storebrand is responsible for meeting any shortfall that cannot be covered by the customer buffers. The risk is affected by changes in the interest rate level. Rising interest rates are negative in the short term because resulting price depreciation for bonds and interest rate swaps reduce investment return and buffers. But long term, rising interest rates are positive due to higher probability of achieving a return above the guarantee.

During the first three quarters of 2023, high inflation and rising interest rates continued to impact the economic news flow. Economic activity has held up better than many expected, but global growth is now slowing. Inflation has fallen from elevated levels, particularly due to falling energy prices, but the underlying price and wage-pressure is still considerable. Central banks have continued to rise interest rates to combat inflation. During the first three quarters of 2023, Bank of Norway raised the policy rate by 150bp to 4.25 percent and the Swedish Riksbank raised the policy rate by 150bp to 4.0 percent. Both banks signal one further increase later in 2023 and the rates to stay almost unchanged during 2024.

The equity market was positive in the first half of 2023 but have been more mixed in the third quarter. Global equities fell 3 percent in the third quarter but are still up 12 percent year to date. Norwegian equities rose 6 percent in the third quarter and 9 percent year to date. The credit market was temporarily negatively affected by the closure of two regional banks in the US and the forced merger of Credit Suisse with UBS, but credit spreads generally have fallen slightly during the first three quarters of the year.

Short-term interest rates continued to increase in the first three quarters of 2023, in line with increased policy-rates from the central banks. Long-term interest rates have also increased, as the market now expect a plateau for policy-rates, rather than a near-term peak. The Norwegian 10-year swap-rate rose to 4.2 percent, an increase of 0.3 percentage

Interim Report Storebrand Group 40

points in the third quarter and 0.9 percentage points year to date. The Swedish 10-year swap-rate rose to 3.5 percent, an increase of 0.4 percentage points in the third quarter and 0.3 percentage points year to date.

For the customer accounts and the corporate accounts for Storebrand Livsforsikring AS, most of the interest rate investments in the Norwegian guaranteed customer portfolios are valued at amortized cost. This dampens the effect from interest rate changes on booked returns. The amortized cost portfolio valuation in the accounts is now higher than fair value. For SPP, both investments and liabilities are valued at fair value. Since SPP has a similar interest rate sensitivity on assets and liabilities, changes in interest rates have a quite limited net effect on SPP's financial result under Swedish GAAP.

For the group accounts for Storebrand Livsforsikring AS and Storebrand ASA, all interest rate investments are valued at fair value. The value of these investments is negatively affected by rising interest rates and positively affected by falling interest rates. For the group accounts, the value of the insurance liabilities is also interest rate sensitive with value moving in the opposite direction of the investments. This dampens the risk, but net the risk is falling interest rates.

The Norwegian krone strengthened somewhat in the third quarter, but still weakened 4 percent against the Swedish krone, 8 percent against the euro and 9 percent against the US dollar in the first three quarters of 2023. A high degree of currency hedging in the portfolio means that the exchange rate fluctuations have a modest effect on results and Storebrand's market risk.

There is an elevated risk associated with the valuation of financial instruments. There is thus greater uncertainty than normal related to pricing of financial instruments that are priced based on models, and it must be assumed that, when concerning illiquid assets, there is a difference between the estimated value and the price achieved when sold in the market. Valuations related to investment properties are considered to have particularly increased uncertainty because of macroeconomic developments, and the total transaction volume for investment properties was significantly lower in 2022 and in the first three quarters of 2023 when compared to 2021. Furthermore, the valuation of investment properties is sensitive to changes in input factors such as inflation and interest rates. There is a wide spectrum of possible outcomes for these input factors and thus for the modelled valuations. The values therefore reflect management's best estimate, however, contain greater uncertainty than what would be the case in a normal year.

The market-based return for guaranteed customer portfolios in Norway in general was positive in the first three quarters of 2023. The booked return was also positive but was lower than accrued interest rate guarantee for some of the portfolios. Based on expected investment returns for the rest of the year and the possibility of utilising customer buffers, the effect on the financial result was limited.

The return for guaranteed customer portfolios in Sweden was positive and higher than the change in the value of the liabilities. The effect on the financial result was limited.

The return for the unit linked portfolios was generally positive in the first three quarters of 2023 due to positive equity markets.

During the first quarter, the investment allocation to equities was increased for the guaranteed customer portfolios in Norway. The allocation to equities was reduced during the summer. Other than that, investment allocation has not been materially changed during the first three quarters of 2023.

Sensitivity analyses for the group IFRS result

The sensitivities show the effect for the IFRS result from changes in financial market variables. The effect is disclosed for Fulfillment cash-flows and Contractual Service Margin (CSM) or Loss component (LC) for the main products reported under the Variable Fee-approach (VFA) under IFRS17.

Changes in Fulfillment cash-flows does not affect the result directly but impact the result through changes in CSM or LC. The CSM is transformed to result as the contractual service is performed. A lower CSM will correspond to a proportionate fall in future results. The CSM can't be negative, so further falls will lead to a LC with an immediate negative result effect. Similarly, an increase in LC will correspond to an immediate negative result effect.

For SPP the effect on CSM from interest rate movements should be limited as the interest rate sensitivity on the asset side closely matches the liability side. The interest rate hedge is however constructed to minimize volatility in the financial result according to Swedish GAAP and there could hence be some volatility in CSM due to the differences between the two accounting standards (IFRS and Swedish GAAP).

Part of SPP's investment strategy is to take investments risk via investments in credits, equities and real assets and the financial result is hence affected by movements in these types of assets. The asset allocation is however individualized, and the investment risk is adjusted according to the risk capacity on the different policies.

Because it is the immediate market changes that are calculated, dynamic risk management will not affect the outcome. If it is assumed that the market changes occur over a period, then dynamic risk management would reduce the effect of the negative outcomes and reinforce the positive outcomes to some extent.

Insurance risk

Insurance risk is the risk of higher-than-expected payments and/or an unfavourable change in the value of an insurance liability due to actual developments deviating from what was expected when premiums or provisions were calculated. Most of the insurance risk for the group is related to life insurance. Changes in longevity is the greatest insurance risk for Storebrand because higher longevity means that the guaranteed benefits must be paid over a longer period. There are also risks related to disability and early death.

The development of the insurance reserves is dependent on future scenarios and are currently more uncertain than normal. Storebrand will continue to monitor the development of Covid-19 and effects for the economy. A prolonged situation with high unemployment could lead to higher disability levels and increased reserves. However, the current insurance reserves represent Storebrand's best estimate of the insurance liabilities.

Storebrand Livsforsikring AS acquired Danica Pensjonsforsikring Norge AS in 2022 and renamed the company to Storebrand Danica Pensjonsforsikring AS. The companies merged on the 2 January 2023. The insurance risk from Storebrand Danica Pensjonsforsikring is mainly related to disability risk. Other insurance risk was not materially changed during the first three quarters of 2023.

Sensitivities

The following sensitivities are calculated:

Financial sensitivities:

• Interest rates up 50bp: The interest rate curve is parallel shifted up 50 basis points for the first 10 years, which constitutes the liquid part of the curve. After 10 years the curve is extrapolated towards the long-run ultimate forward rate (UFR).
• Interest rates down 50bp: The interest rate curve is parallel shifted down 50 basis points for the first 10 years, which constitutes the liquid part of the curve. After 10 years the curve is extrapolated towards the long-run ultimate forward rate (UFR).
• Equity -25%: The value of all equities is reduced by 25 % Spread +50bp: The credit spreads are increased by 50 basis points. The liquidity premium of the discount curve is increased by 15 basis points.
• Reals estate -10 %: The value of all real estate is reduced by 10 %.

Non-financial sensitivities:

• Expenses +5 %: All administration and overhead expenses are increased by 5 % for all the years of the projection.
• Disability +5 %, reactivation -5 %: Best estimate for disability is increased by 5 % for all the years of the projection, while the reactivation is reduced by 5 %.
• Mortality -5 %: The level of the best estimate for mortality is reduced by 5 %, reducing the mortality intensity for all the years of the projection. The trend is kept unchanged.

The insurance risk and financial market risk affect the CSM volatility and consequently the profit and loss. The sensitivities indicate the uncertainty of the mentioned risks. Storebrand's products hold different insurance- and financial

market risk, but the sensitivity calculation is based on the same sensitivities for each product as it is assumed that any changes in assumptions are distributed evenly between the products. The sensitivities are calculated separately for SPP and SBL.

The sensitivities are chosen based on the assumption that they are expected to have the highest impact on the results.

• Non-financial: Expenses, mortality, disability, and reactivation
• Financial: Risk free interest rate curve up and down, real estate, credit spread and equity

The table presents the CSM impact per 30.09.2023 for the mentioned sensitivities.

The sensitivity calculations indicate that the financial market risk has the largest impact on CSM. A fall inequities, real estate and interest rates reduce the CSM as it reduces the probability of achieving returns according to the guarantee. In addition, Storebrand's revenue decreases in line with the lower market value of the portfolio. CSM is also impacted negatively with the increase of credit spreads and VA. Changes in non-financial factors give a lower impact on the CSM.

NOK million	CSM as at end of	Impact on CSM
Sensitivities	period
	12 632
Equity down		-1 801
Property down		-1 296
Interest rate up		542
Interest rate down		-688
Spread up		-930
Mortality down		-349
Disability up		-22
Expenses up		-302

Note

6

Liquidity risk

Specification of subordinated loans 1)

						Book value
NOK million	Nominal	value Currency	Interest rate	Call date	30.09.23	30.09.22	31.12.22
Issuer
Perpetual subordinated loans 2)
Storebrand Livsforsikring AS	1,100	NOK	Variable	2024	1,100	1,101	1,101
Storebrand Livsforsikring AS 3)	900	SEK	Variable	2026	885	886	856
Dated subordinated loans
Storebrand Livsforsikring AS 3,4)	899	SEK	Variable	2022		886
Storebrand Livsforsikring AS 3)	900	SEK	Variable	2025	881	883	851
Storebrand Livsforsikring AS 3)	1,000	SEK	Variable	2024	981	983	947
Storebrand Livsforsikring AS	500	NOK	Variable	2025	500	500	500
Storebrand Livsforsikring AS 5)	650	NOK	Variable	2027	652	651	651
Storebrand Livsforsikring AS 3,5)	750	NOK	Fixed	2027	782		773
Storebrand Livsforsikring AS 5)	1,250	NOK	Variable	2027	1,259		1,261
Storebrand Livsforsikring AS 3,6)	38	EUR	Fixed	2023	0	2,754	421
Storebrand Livsforsikring AS 3,5)	300	EUR	Fixed	2031	2,584	2,420	2,397
Storebrand Bank ASA	125	NOK	Variable	2025	126	126	126
Storebrand Bank ASA	300	NOK	Variable	2026	300	300	300
Storebrand Bank ASA	400	NOK	Variable	2027	403	402	402
Total subordinated loans and hybrid tier 1 capital					10,455	11,890	10,585

1) Storebrand Bank ASA has issued hybrid tier 1 capital bonds/hybrid capital that is classified as equity. See the statement of changes in equity.

2) In the case of perpetual subordinated loans, the cash flow is calculated through to the first call date

3) The loans are subject to hedge accounting

4) The loan has been repaid November 2022

5) Green bonds

6) The loan has been repaid April 2023

Specification of loans and deposits from credit institutions

Total loans and deposits from credit institutions	203	38	403
2023	203		403
2022		38
Call date
NOK million	30.09.23	30.09.22	31.12.22
	Book value

Specification of securities issued

	Book value
NOK million	30.09.23	30.09.22	31.12.22
Call date
2022		112
2023		4,761	4,321
2024	6,115	6,107	6,110
2025	8,301	8,342	8,326
2026	8,973	5,844	7,375
2027	8,130	5,513	5,907
2028	5,401
2031	1,236	738	752
Total securities issued	38,155	31,416	32,791

The loan agreements contain standard covenants.

Covered bonds

For issued covered bonds (OMF) that are allocated to Storebrand Boligkreditt's collateral pool, regulatory requirement for over-collateralisation of 5 per cent applies.

Credit facilities

Storebrand ASA has an unused credit facility of EUR 200 million, expiration December 2025.

Valuation of financial instruments and investment properties

Storebrand classify financial instruments valued at fair value in three different levels. The criteria for the classification and processes associated with valuating are described in more detail in note 13 in the annual report for 2022.

The Group has established valuation models and gathers information from a wide range of well-informed sources with a view to minimize any uncertainty in the valuations.

Valuation of financial instruments at amortised cost

NOK Million	Fair value 30.09.23	Book value 30.09.23	Fair value 31.12.22	Book value 31.12.22
Financial assets
Loans to and due from financial institutions	154	154	109	109
Loans to customers - retail	397	397	452	452
Bonds classified as loans and receivables	5,078	5,089	4,266	4,281
Total financial assets 30.09.23	5,629	5,640
Total financial assets 31.12.22			4,826	4,841
Financial liabilities
Debt raised by issuance of securities	38,098	38,155	32,777	32,791
Loans and deposits from credit institutions	203	203	403	403
Deposits from banking customers	22,681	22,681	19,478	19,478
Subordinated loan capital	10,473	10,455	10,513	10,585
Total financial liabilities 30.09.23	71,455	71,494
Total financial liabilities 31.12.22			63,171	63,256

Valuation of financial instruments at fair value over OCI (FVOCI)

	Level 1	Level 2	Level 3	Total fair value
NOK Million	Quoted prices	Observable assumptions	Non-observable assumptions	30.09.23	31.12.22
Assets
Loans to customers
- Loans to customers - corporate					3
- Loans to customers - retail			56,853	56,853	49,153
Total loans to customers 30.09.23			56,853	56,853
Total loans to customers 31.12.22			49,156		49,156
Bonds and other fixed-income securities
- Government bonds					1,863
- Corporate bonds		1,772		1,772	4,567
- Structured notes		4,009		4,009	479
- Collateralised securities		473		473
Total bonds and other fixed-income securities
30.09.23		6,254		6,254
Total bonds and other fixed-income securities 31.12.22		6,909			6,909

Note 7

Financial instruments at fair value over OCI - level 3

Book value 30.09.23	56,853
Sales	-12,854
Additions	20,541
Net gains/losses on financial instruments	9
Book value 01.01.23	49,156
NOK million	Loans to customers

Valuation of financial instruments and real estate at fair value

	Level 1	Level 2	Level 3	Total Fair Value
		Observable	Non-observable
NOK Million	Quoted prices	assumptions	assumptions	30.09.23	31.12.22
Assets:
Equities and fund units
- Equities	38,059	3,498	190	41,746	47,728
- Fund units		247,754	21,654	269,408	222,804
Total equities and fund units 30.09.23	38,059	251,251	21,844	311,154
Total equities and fund units 31.12.22	30,690	221,334	18,507		270,532
Loans to customers
- Loans to customers - corporate			10,790	10,790	11,534
- Loans to customers - retail			17,070	17,070	17,169
Total loans to customers 30.09.23			27,860	27,860
Total loans to customers 31.12.22			28,703		28,703
Bonds and other fixed-income securities
- Government bonds	23,315	30,934		54,249	54,717
- Corporate bonds		102,771	8	102,778	105,635
- Collateralised securities		4,621		4,621	4,506
- Bond funds		70,931	14,871	85,802	85,122
Total bonds and other fixed-income securities 30.09.23	23,315	222,443	14,879	260,636
Total bonds and other fixed-income securities 31.12.22	16,824	233,630	13,818		264,271
Derivatives:
- Interest derivatives	9,310	-9,462		-152	-680
- Currency derivatives		796		796	2,394
Total derivatives 30.09.23	9,310	-8,666		644
- of which derivatives with a positive market value	9,310	4,854		14,164	14,343
- of which derivatives with a negative market value		-13,520		-13,520	-12,629
Total derivatives 31.12.22	7,761	-6,046			1,714
Properties:
Investment properties			32,609	32,609	33,481
Properties for own use			1,689	1,689	1,689
Total properties 30.09.23			34,299	34,299
Total properties 31.12.22			35,171		35,171

There is no significant movements between level 1 and level 2 in this quarter.

Financial instruments and real estate at fair value - level 3

NOK million	Equities	Fund units	Loans to customers	Corporate bonds	Bond funds	Investment properties	Properties for own use
Book value 01.01.23	402	18,105	7,076	8	13,810	33,481	1,689
Change in principle IFRS9/IFRS17 Net gains/losses on financial	-7		21,032
instruments	-7	3,863	37		407	-354	-57
Additions		332	98		1,350	697	38
Sales	-197	-797	-621		-1,117		-2
Exchange rate adjustments		120	239		420	439	24
Other		31				-1,654	-3
Book value 30.09.23	190	21,654	27,860	8	14,871	32,609	1,689

As at 30.09.23, Storebrand Livsforisikring had NOK 7.685 million invested in Storebrand Eiendomsfond Norge KS and VIA, Oslo. The investments are classified as "Investment in associated companies and joint ventures" in the Consolidated Financial Statements.

Sensitivity assessments

Sensitivity assessments of investments on level 3 are described in note 13 in the 2022 annual report. There is no significant changes in sensitivity in this quarter.

Note 8

Insurance contracts

Insurance revenue and expenses

	30.09.23						30.09.22	31.12.22
		Guaranteed pension		Insurance
NOK Million	Guaranteed products - Norway	Guaranteed products - Sweden	Pension related disability insurance - Norway	P&C and Individual Life	Group Life and Disability Insurance	Total	Total	Total
Contracts measured under VFA and GMM
Amounts relating to changes in LRC
Expected incurred claims and other insurance service expenses
Expected incurred claims			446			446	349	482
Expected incurred expenses	387	150	82			618	570	773
Change in the risk adjustment for non financial risk for risk expired	135	74	41			251	259	344
CSM recognised in P&L for services
provided	836	336	267			1,438	1,548	2,056
Recovery of insurance acquisition cash
flows	1	3	4			9	78	7
Insurance revenue from contracts measured under VFA and GMM	1,359	563	840			2,762	2,804	3,662
Insurance revenue from contracts
measured under the PAA				3,083	977	4,060	3,457	4,852
Total insurance revenue	1,359	563	840	3,083	977	6,822	6,261	8,514
Incurred claims and other directly
attributable expenses
Incurred claims	1		-414	-2,362	-902	-3,678	-2,645	-3,561
Incurred expenses	-451	-155	-71	-606	-133	-1,416	-1,270	-1,892
Changes that relate to past service -
Adjustment to the LIC				-120	44	-77	-112	-240
Losses on onerous contracts and
reversal on those losses	132	-8	-432		-4	-313	-337	-467
Insurance acquisition cash flows
amortisation	-1	-3	-4			-9	-4	-7
Total insurance service expenses	-320	-166	-922	-3,088	-995	-5,492	-4,367	-6,167
Net income (expenses) from
reinsurance contracts he	-1		-1	35	-8	24	-33	-66
Total insurance service result	1,038	397	-83	30	-27	1,354	1,861	2,281

Composition of the balance sheet

	Guaranteed pension			Insurance
NOK Million	SBL Guaranteed products	SPP Guaranteed products	SBL Pension related disability insurance	Total Guaranteed pension	P&C and Individual Life	Group Life and Disability Insurance	Total Insurance	Total
30.09.23
Insurance contract liabilities	206,706	79,223	8,491	294,420	3,989	3,652	7,641	302,061
Reinsurance contract assets				1	291	5	297	297
Reinsurance contract liabilities					-8	9	1	1
30.09.22
Insurance contract liabilities	205,265	81,949	7,436	294,650	3,568	3,546	7,115	301,764
Reinsurance contract assets	-1			-1	283	14	297	297
Reinsurance contract liabilities					21		21	21
31.12.22
Insurance contract liabilities	209,311	79,168	7,692	296,171	3,689	3,350	7,039	303,210
Reinsurance contract assets					309	9	317	317
Reinsurance contract liabilities		4		4	34		34	38

GUARANTEED PENSION

Reconciliation of the liability for remaining coverage (LRC) and the liability for incurred claims (LIC)

	30.09.23
	LRC
NOK Million	Excluding loss component	Loss component	LIC	Total
Opening insurance contract liabilities	295,235	937		296,171
Net opening balance	295,235	937		296,171
Insurance revenue	-2,762			-2,762
Insurance service expenses Incurred claims and other directly attributable expenses		-13	1,105	1,092
Losses on onerous contracts and reversal of those losses		309		309
Insurance acquisition cash flows amortisation	9			9
Insurance service expenses	9	296	1,105	1,410
Insurance service result	-2,753	296	1,105	-1,352
Finance expenses from insurance contracts issued recognised in profit or loss	-1,568	-14		-1,582
Finance expenses from insurance contracts issued	-1,568	-14		-1,582
Total amounts recognised in comprehensive income	-4,322	282	1,105	-2,935
Investment components	-12,057	-14	12,071
Other changes	57			57
Effect of changes in foreign exchange rates	2,875			2,875
Cash flows
Premiums recieved	11,666			11,666
Claims and other directly attributable expenses paid	-202		-13,176	-13,378
Insurance acquisition cash flows	-38			-38
Total cash flows	11,427		-13,176	-1,749
Net closing balance	293,215	1,205		294,420
Closing insurance contract liabilities	293,215	1,205		294,420
Net closing balance	293,215	1,205		294,420

LRC
Excluding loss component	Loss component	LIC	Total
327,380	480		327,860
327,380	480		327,860
-2,731			-2,731
			965
	325		325
4			4
4	325	965	1,293
-2,727	325	965	-1,438
-33,244			-33,244
-33,244			-33,244
			-34,682
			-225
			358
9,871			9,871
3,882		-12,370	-8,488
-44			-44
13,709		-12,370	1,339
293,846	805	-1	294,650
293,846	805		294,651
293,846	805		294,651
	-35,971 -11,404 -225 358	325	30.09.22 965 965 11,404

LRC
Excluding loss component	Loss component	LIC	Total
327,380	480		327,860
327,380	480		327,860
-3,662			-3,662
			1,331
	457		457
7			7
7	457	1,331	1,795
-3,655	457	1,331	-1,867
-26,624			-26,624
-26,624			-26,624
			-28,492
-15,216		15,216
-285			-285
-2,693			-2,693
			17,227
-843		-16,546	-17,390
-56			-56
16,328		-16,546	-218
295,235	937		296,172
295,235	937		296,172
295,235	937		296,172
	-30,279 17,227	457	31.12.22 1,331 1,331

Reconciliation of the measurement component of insurance contract balances

	30.09.23
NOK Million	Present value of future cash flows	Risk adjustment for non-financial risk	CSM	Total
Opening insurance contract liabilities	283,085	3,557	9,530	296,171
Net opening balance	283,085	3,557	9,530	296,171
Changes that relate to current service CSM recognised in profit or loss for the services provided Change in the risk adjustment for non-financial risk for the risk expired		-252	-1,438	-1,438 -252
Experience adjustments	29			29
Total changes that relate to current service	29	-252	-1,438	-1,661
Change that relate to future service
Changes in estimates that adjust the CSM Changes in estimates that results in onerous	-3,821	209	3,612
contract losses or reversal of losses	-34	144		109
Contracts initially recognised in the period	-739	134	804	199
Total changes that relate to future service	-4,594	487	4,416	309
Insurance service result	-4,565	235	2,978	-1,352
Finance expenses from insurance contracts issued recognised in profit or loss Finance expenses from insurance contracts	-1,610		27	-1,582
issued	-1,610		27	-1,582
Total amount recognised in comprehensive income	-6,175	235	3,006	-2,935
Other changes	57			39
Effect of changes in foreign exchange rates	2,741	37	97	3,888
Cash flows
Premiums received Claims and other directly attributable expenses	11,666			11,666
paid	-13,378			-13,378
Insurance acquisition cash flows	-38			-38
Total cash flows	-1,749			-1,749
Net closing balance	277,959	3,828	12,632	294,419
Closing insurance contract liabilities	277,959	3,829	12,632	294,420
Net closing balance	277,959	3,829	12,632	294,420

	30.09.22
NOK Million	Present value of future cash flows	Risk adjustment for non-financial risk	CSM	Total
Opening insurance contract liabilities	311,531	4,517	11,810	327,859
Net opening balance	311,531	4,517	11,810	327,859
Changes that relate to current service CSM recognised in profit or loss for the services provided			-1,547	-1,547
Change in the risk adjustment for non-financial risk for the risk expired		-259		-259
Experience adjustments	47			47
Total changes that relate to current service	47	-259	-1,547	-1,760
Change that relate to future service
Changes in estimates that adjust the CSM Changes in estimates that results in onerous	-284	-668	952
contract losses or reversal of losses	78	-35		44
Contracts initially recognised in the period	-200	92	388	280
Total changes that relate to future service	-406	-610	1,339	324
Insurance service result	-359	-870	-208	-1,436
Finance expenses from insurance contracts issued recognised in profit or loss	-32,920		-325	-33,245
Finance expenses from insurance contracts issued	-32,920		-325	-33,245
Total amount recognised in comprehensive
income	-33,279	-870	-533	-34,681
Other changes	-225			-225
Effect of changes in foreign exchange rates	357	1		358
Cash flows
Premiums received	9,871			9,871
Claims and other directly attributable expenses paid	-8,487			-8,487
Insurance acquisition cash flows	-44			-44
Total cash flows	1,340			1,340
Net closing balance	279,725	3,648	11,277	294,650
Closing insurance contract liabilities	279,725	3,648	11,277	294,650
Net closing balance	279,725	3,648	11,277	294,650

	31.12.22
NOK Million	Present value of future cash flows	Risk adjustment for non-financial risk	CSM	Total
Opening insurance contract liabilities	311,532	4,517	11,810	327,860
Net opening balance	311,532	4,517	11,810	327,860
Changes that relate to current service
CSM recognised in profit or loss for the services provided			-2,056	-2,056
Change in the risk adjustment for non-financial risk for the risk expired		-344		-344
Experience adjustments	75			75
Total changes that relate to current service	75	-344	-2,056	-2,325
Change that relate to future service
Changes in estimates that adjust the CSM	900	-660	-240
Changes in estimates that results in onerous contract losses or reversal of losses	193	-21		172
Contracts initially recognised in the period	-288	101	472	286
Total changes that relate to future service	805	-580	232	458
Insurance service result	880	-923	-1,824	-1,867
Finance expenses from insurance contracts
issued recognised in profit or loss	-26,276		-349	-26,624
Finance expenses from insurance contracts issued	-26,276		-349	-26,624
Total amount recognised in comprehensive
income	-25,396	-923	-2,173	-28,492
Other changes	-285			-285
Effect of changes in foreign exchange rates	-2,548	-38	-107	-2,693
Cash flows
Premiums received	17,227			17,227
Claims and other directly attributable expenses paid	-17,390			-17,390
Insurance acquisition cash flows	-56			-56
Total cash flows	-218			-218
Net closing balance	283,085	3,556	9,530	296,171
Closing insurance contract liabilities	283,085	3,556	9,530	296,171
Net closing balance	283,085	3,556	9,530	296,171

Impact of contracts recognised in the year

	30.09.23
	Contracts originated		Contracts aquired		Total
NOK Million	Non-onerous contracts originated	Onerous contracts originated	Non-onerous contracts aquired	Onerous contracts aquired	Non-onerous contracts total	Onerous contracts total	Total
Estimates of the present value of future cash outflows
Insurance acquisition cash flows	18	20			18	20	38
Claims and other directly attributable
expenses	1,233	2,436	4,354		5,587	2,436	8,023
Estimates of the present value of cash
flows	1,250	2,456	4,354		5,605	2,456	8,060
Estimates of the present value of future
cash inflows	-1,616	-2,320	-4,863		-6,479	-2,320	-8,799
Risk adjustment for non-financial risk	44	54	36		80	54	134
CSM	332		472		804		804
Increase in insurance contract liabilities
from contracts recognised in the period	10	189			10	189	199

INSURANCE

Reconciliation of the liability for remaining coverage and the liability for incurred claims

	30.09.23
	LRC		LIC for contracts under the PAA	Risk adjustment
NOK Million	Excluding loss component	Loss component	Present value of future cash flows	for non-financial risk	Total
Opening insurance contract liabilities	275	10	6,584	171	7,040
Net opening balance	275	10	6,584	171	7,040
Insurance revenue	-4,060				-4,060
Insurance service expenses
Incurred claims and other directly attributable expenses			3,997		3,997
Adjustment to liabilities for incurred claims	355		-277	6	84
Losses on onerous contracts and reversal of those losses		4			4
Insurance service expenses	355	4	3,720	6	4,085
Insurance service result	-3,705	4	3,720	6	25
Finance expenses from insurance contracts
issued recognised in profit or loss Finance expenses from insurance contracts			14		14
issued			14		14
Total amounts recognised in comprehensive income	-3,705	4	3,735	6	40
Effect of changes in foreign exchange rates			35	2	37
Cash flows
Premiums recieved	4,029				4,029
Claims and other directly attributable expenses paid			-3,460		-3,460
Insurance acquisition cash flows			-45		-45
Total cash flows	4,029		-3,505		524
Net closing balance	599	14	6,849	179	7,641
Closing insurance contract liabilities	599	14	6,849	179	7,641
Net closing balance	599	14	6,849	179	7,641

	30.09.22
	LRC		LIC for contracts under the PAA
NOK Million	Excluding loss component	Loss component	Present value of future cash flows	Risk adjustment for non-financial risk	Total
Opening insurance contract liabilities	169		6,037	167	6,373
Net opening balance	169		6,037	167	6,373
Insurance revenue	-3,531				-3,531
Insurance service expenses Incurred claims and other directly attributable expenses			2,946		2,946
Adjustment to liabilities for incurred claims			135	-20	115
Losses on onerous contracts and reversal of those losses		12			12
Insurance service expenses		12	3,081	-20	3,074
Insurance service result	-3,531	12	3,081	-20	-457
Finance expenses from insurance contracts issued recognised in profit or loss			16		16
Finance expenses from insurance contracts issued			16		16
Total amounts recognised in comprehensive income	-3,531	12	3,097	-20	-442
Effect of changes in foreign exchange rates			6		6
Cash flows
Premiums recieved Claims and other directly attributable expenses	4,186				4,186
paid			-3,010		-3,010
Total cash flows	4,186		-3,010		1,176
Net closing balance	825	12	6,129	148	7,114
Closing insurance contract liabilities	825	12	6,129	148	7,114
Net closing balance	825	12	6,129	148	7,114

	31.12.22
	LRC		LIC for contracts under the PAA
NOK Million	Excluding loss component	Loss component	Present value of future cash flows	Risk adjustment for non-financial risk	Total
Opening insurance contract liabilities	169		6,037	167	6,373
Net opening balance	169		6,037	167	6,373
Insurance revenue	-4,852				-4,852
Insurance service expenses Incurred claims and other directly attributable expenses			4,122		4,122
Adjustment to liabilities for incurred claims			262	-21	240
Losses on onerous contracts and reversal of those losses		10			10
Insurance service expenses		10	4,384	-21	4,372
Insurance service result	-4,852	10	4,384	-21	-480
Finance expenses from insurance contracts issued recognised in profit or loss			13		13
Finance expenses from insurance contracts issued			13		13
Total amounts recognised in comprehensive income	-4,852	10	4,397	-21	-467
Effect of changes in foreign exchange rates			-33	-2	-35
Cash flows
Premiums recieved Claims and other directly attributable expenses	5,368				5,368
paid			-4,201		-4,201
Total cash flows	5,368		-4,201		1,167
Net closing balance	685	10	6,200	144	7,039
Closing insurance contract liabilities	685	10	6,200	144	7,039
Net closing balance	685	10	6,200	144	7,039

Underlying items

	30.09.23		30.09.22		31.12.22
NOK million	Garanteed products - Norway	Garanteed products - Sweden	Garanteed products - Norway	Garanteed products - Sweden	Garanteed products - Norway	Garanteed products - Sweden
Assets
Shares and fund units	34,306	9,235	32,808	8,587	29,862	9,092
Bonds and other fixed-income securities	125,312	45,173	126,143	45,484	128,209	46,406
Loans to customers	15,222	6,357	15,664	7,100	15,729	6,636
Derivatives	-410	1,113	-3,054	-877	-563	767
Investment properties	22,449	13,985	24,414	14,036	23,337	13,893
Cash and other underlying items	9,827	3,359	9,290	7,619	12,736	2,374
Total underlying items	206,706	79,223	205,265	81,950	209,311	79,168
Insurance contract liabilities	206,706	79,223	205,265	81,950	209,311	79,168

Note 9 Operating expenses

	Q3		01.01 - 30.09		Full year
NOK million	2023	2022	2023	2022	2022
Personnel expenses	-814	-742	-2,442	-2,098	-2,871
Amortisation/write-downs	-111	-97	-321	-261	-360
Other operating expenses	-800	-718	-2,454	-2,088	-2,910
Total operating expenses 1)	-1,725	-1,557	-5,217	-4,447	-6,142

1) Total operating expenses are in the income statement on the lines "operating expenses" and "insurance service expenses"

Note 10

Tax

The effective tax rate is influenced by the fact that the Group has operations in countries with tax rates that are different from Norway and differences from currency hedging of the Swedish subsidiary SPP. For the Norwegian entities, the tax rate for companies' subject to the financial tax is 25 per cent. The Storebrand Group includes companies that are both subject to and not subject to the financial tax. Therefore, when capitalising deferred tax/deferred tax assets in the consolidated financial statements, the company tax rate that applies for the individual companies is used (22 or 25 per cent).

The tax rate for companies in Sweden is 20.6 per cent, but a majority of Storebrand's business related to occupational pension is subject to a standardized return tax on the assets managed on behalf of policyholders and not company tax. The expected tax rate from Storebrand's Swedish business is therefore lower than the company tax rate.

Storebrand has hedged part of the currency risk from the investment in the Swedish subsidiaries. Gains/losses on currency derivatives are taxable/deductible, while agio/disagio on the shares in the subsidiaries falls under the exemption method. Hence, large SEK/NOK movements will affect the Group tax cost.

Uncertain tax positions

The tax rules for the insurance industry have undergone changes in recent years. In some cases, Storebrand and the Norwegian Tax Administration have had different interpretations of the tax rules and associated transitional rules. As a result of this, uncertain tax positions arise in connection with the recognised tax expenses. Whether or not the uncertain tax positions have to be recognised in the financial statements is assessed in accordance with IAS 12 and IFRIC 23. Uncertain tax positions will only be recognised in the financial statements if the company considers it to be probable that the Norwegian Tax Administration's interpretation will be accepted in a court of law. Any paid tax related to the uncertain tax positions not recognised in the financial statements is classified as receivables. Significant uncertain tax positions are described in the Annual report for 2022.

During the second quarter, Storebrand received a ruling from the Tax Appeals Committee which gives Storebrand full consent in previous uncertain tax positions. Based on the decision from the Tax Appeals Committee, Storebrand has recognized a tax gain of approx. NOK 440 million in the second quarter. The tax case in question is described in more detail in note 27 in the annual accounts for 2022 as "case A" and "case C". Case B is still an uncertain tax position as of third quarter 2023.

Storebrand has reviewed the uncertain tax positions as part of the reporting process. The review has not reduced the company's assessment of the probability that Storebrand's interpretation will be accepted in a court of law. The timeline for the continued process with the Norwegian Tax Appeals Committee is unclear, but Storebrand will, if necessary, seek clarification from the court of law for the aforementioned uncertain tax positions.

Note 11

Loans

Loan portfolio and guarantees

NOK million	Book value 30.09.23	Book value 31.12.22
Loans to customers at amortised cost	439	484
Loans to customers at fair value through profit and loss	27,860	28,704
Loans to customers at fair value through other comprehensive income (OCI)	56,878	49,191
Total gross loans to customers	85,178	78,379
Provision for expected loss stage 1	-7	-10
Provision for expected loss stage 2	-18	-19
Provision for expected loss stage 3	-42	-40
Net loans to customers	85,110	78,310

Loan loss provisions

	30.09.23
	Stage 1	Stage 2	Stage 3
NOK million	12-month ECL	Lifetime ECL - no objective evidence of impairment	Lifetime ECL - objective evidence of impairment	Total
Loan loss provisions 01.01.2023	-1			-1
Transfer to stage 1 (12-month ECL)	13	24	40	77
Transfer to stage 2 (lifetime ECL - no objective evidence of impairment)	3	-2	-1
Transfer to stage 3 (lifetime ECL - objective evidence of impairment)	-1	1
Net remeasurement of loan losses		-2	2
New financial assets originated or purchased	-3	7	12	16
Financial assets that have been derecognised	4	4	10	18
ECL changes of balances on financial assets without changes in stage in the period	-3	-4	-1	-8
Changes due to modification without any effect in derecognition	-2	-2	-1	-5
ECL allowance on written-off (financial) assets
Changes in models/risk parameters			-20	-20
Loan loss provisions 30.09.23	10	25	42	76
Loan loss provisions on loans to customers valued at amortised cost	3	6	31	41
Loan loss provisions on loans to customers valued at fair value through other comprehensive income (OCI)	2	12	10	25
Loan loss provisions on guarantees and unused credit limits	4	7		11
Total loan loss provisions	10	25	42	76

Loan loss provisions

NOK million	30.09.23	30.09.22	31.12.22
Non-performing and loss-exposed loans without identified
impairment	277	63	73
Non-performing and loss-exposed loans with identified impairment	13	26	25
Gross non-performing loans	289	88	98
Write-downs stage 3	-42	-37	-40
Net non-performing loans 1)	248	51	58

1) The figures apply in their entirety Storebrand Bank

Note 12

Contingent assets and liabilities

NOK million	30.09.23	30.09.22	31.12.22
Unused credit facilities	4,701	3,636	3,737
Loan commitment retail market	4,386	4,277	3,246
Uncalled residual liabilities re limited partnership	3,861	4,179	4,087
Undrawn capital in alternative investment funds	11,644	10,690	12,238
Total contingent liabilities	24,592	22,782	23,309

Unused credit facilities encompass granted and any unused credit accounts and credit cards, as well as, any unused flexible mortgage facilities.

Storebrand has received a letter from the Norwegian FSA (Finanstilsynet) regarding the fee structure on paid up policies. The fee element in question amounts to approximately NOK 100 million in annual fees. Storebrand is of the opinion that the fee is legitimate and hence that the company is entitled to it. Storebrand has however chosen not to recognize it as income for the current year until the case is settled/awaiting further proceedings.

Storebrand Group companies are engaged in extensive activities in Norway and abroad, and are subject for client complaints and may become a party in legal disputes, see note 44 in the 2022 annual report.

Note 13 Solidity and capital management

The Storebrand Group is an insurance-dominated, cross-sectoral financial group with capital requirements in accordance with Solvency II. Storebrand calculates Solvency II according to the standard method as defined in the Solvency II Regulations.

Consolidation is carried out in accordance with Section 18-2 of the Norwegian Act relating to Financial Undertakings and Financial Groups. The solvency capital requirement and minimum capital requirement for the Group are calculated in accordance with Section 46 (1)-(3) of the Solvency II Regulations using the standard method.

Capital management

Storebrand places particular emphasis on continually and systematically adapting the levels of equity in the Group. The level is adapted to the financial risk and capital requirements in the business, where growth and the composition of segments are important motivating factors for the need for capital. The purpose of capital management is to ensure an efficient capital structure and provide for an appropriate balance between in-house goals and regulatory and rating company requirements. If there is a need for new capital, this is raised by the holding company Storebrand ASA, which is listed on the stock exchange and is the ultimate parent company.

The Storebrand companies are subject to various capital requirements depending on the type of business. In addition to the capital requirements for the Storebrand Group and insurance companies, the banking and asset management businesses have capital requirements in accordance with CRD IV. The companies in the Group governed by CRD IV are included in the group's solvency capital and solvency capital requirements with their respective primary capital and capital requirements.

Storebrand has the goal of paying a dividend of more than 50% of the Group profit after tax. The board has the ambition of ordinary dividends per share being, at a minimum, at the same nominal level as the previous year. The normal dividend is paid with a sustainable solvency margin of more than 150%. If there is a solvency margin of more than 175%, the board's intention is to propose extraordinary dividends or share buy-backs. In general, equity in the Group can be controlled without material limitations if the capital requirement is met and the respective legal entities have sufficient solvency.

Solvency capital	30.09.23				31.12.22
NOK million	Total	Group 1 unlimited	Group 1 limited	Group 2	Group 3	Total
Share capital	2,327	2,327				2,360
Share premium	10,842	10,842				10,842
Reconciliation reserve1)	30,105	30,105				25,877
Including the effect of the transitional arrangement
Counting subordinated loans	8,825		1,967	6,858		9,661
Deferred tax assets	71				71	540
Not-counting tier 3 capital						-231
Risk equalisation reserve	1,064			1,064		905
Deductions for CRD IV subsidiaries	-5,451	-5,451				-4,804
Expected dividend	-1,286	-1,286				-1,718
Total basic solvency capital	46,496	36,536	1,967	7,922	71	43,431
Subordinated capital for subsidiaries regulated in accordance with CRD IV	5,451					4,804
Total solvency capital	51,947					48,236
Total solvency capital available to cover the minimum capital requirement	40,347	36,536	1,967	1,844		36,381

1) Deduction of buy-back of own shares of NOK 457 million

Solvency capital requirement and -margin

NOK million	30.09.23	31.12.22
Market risk	17,748	21,267
Counterparty risk	817	1,119
Life insurance risk	11,108	9,004
Health insurance risk	959	971
P&C insurance risk	703	620
Operational risk	1,432	1,485
Diversification	-7,421	-7,075
Loss-absorbing ability deferred tax	-4,357	-4,954
Total solvency capital requirement - insurance company		22,438
Capital requirements for subsidiaries regulated in accordance with CRD IV	4,472	3,837
Total solvency capital requirement	25,460	26,276
Solvency margin	204%	184%
Minimum capital requirement	9,219	9,647
Minimum margin	438%	377%

The Storebrand Group has also a requirement to report capital adequacy in a multi-sectoral financial group (conglomerate directive). The calculation in accordance with the Solvency II regulations and capital adequacy calculation in accordance with the conglomerate directive give the same primary capital and essentially the same capital requirements.

Capital- and capital requirement in accordance with the conglomerate directive

NOK million	30.09.23	31.12.22
Capital requirements for CRD IV companies	4,852	4,079
Solvency capital requirements for insurance	20,988	22,438
Total capital requirements	25,841	26,517
Net primary capital for companies included in the CRD IV report	5,451	4,804
Net primary capital for insurance	46,496	43,431
Total net primary capital	51,947	48,236
Overfulfilment	26,107	21,719

Under Solvency II, the capital requirement from the CRD IV companies in the Group is included in accordance with their respective capital requirements. In a multi-sectoral financial group, all the capital requirements of the CRD IV companies are calculated based on their respective applicable requirements, including buffer requirement for the largest company in the Group (Storebrand Bank). This increases the total requirement from the CRD IV companies in relation to what is included in the Solvency II calculation. As at 30 September 2023, the difference amounted to NOK 380 million.

Note 14 Information about related parties

Storebrand conducts transactions with related parties as part of its normal business activities. These transactions take place on commercial terms. The terms for transactions with management and related parties are stipulated in notes 23 and 46 in the 2022 annual report.

Storebrand has not carried out any material transactions other than normal business transactions with related parties at the close of the 3rd quarter 2023.

Note Divestment of company

15

Storebrand Storebrand ASA has entered into an agreement with ERGO International AG, a wholly-owned subsidiary of ERGO Group AG to sell its 50 per cent stake in Storebrand Helseforsikring AS. Storebrand Helseforsikring is a health insurance joint-venture in which ERGO International AG and Storebrand ASA each previously held a 50 per cent stake. The Company is headquartered at Lysaker in Norway and offers medical expense insurance in the corporate and retail markets in Norway and Sweden.

The closing of the transaction is expected in the first quarter of 2024, with an estimated positive impact of approximately NOK 1.1 billion on Storebrand's Group results. Completion of the transaction is subject to approval from the Norwegian Financial Supervisory Authority (NFSA) and the Norwegian Competition Authority.

Income statement

		Q3		01.01 - 30.09
NOK million	2023	2022	2023	2022	2022
Operating income
Income from investments in subsidiaries				9	3,187
Net income and gains from financial instruments:
- equities and other units		-7	-7	-22	-25
- bonds and other fixed-income securities	53	9	133	-12	51
Other financial instruments	1		6	1	2
Operating income	54	2	131	-24	3,215
Interest expenses	-7	-4	-19	-18	-23
Other financial expenses	-2	-2	-5	93	110
Operating expenses
Personnel expenses	-14	-13	-39	-38	-50
Other operating expenses	-39	-46	-144	-124	-170
Total operating expenses	-52	-58	-182	-161	-220
Total expenses	-61	-64	-206	-87	-133
Pre-tax profit	-7	-62	-74	-111	3,082
Tax	2	14	16	49	-143
Profit for the period	-5	-48	-58	-62	2,939

Statement of total comprehensive income

Q3		01.01 - 30.09		Full year
NOK million	2023	2022	2023	2022	2022
Profit for the period	-5	-48	-58	-62	2,939
Other total comprehensive income elements not to be classified to profit/loss
Change in estimate deviation pension					14
Tax on other comprehensive elements					-3
Total other comprehensive income elements					10
Total comprehensive income	-5	-48	-58	-62	2,949

Statement of financial position

NOK million	30.09.23	30.09.22	31.12.22
Fixed assets
Deferred tax assets	53	94	36
Tangible fixed assets	28	28	28
Shares in subsidiaries and associated companies	25,257	23,236	24,100
Total fixed assets	25,338	23,358	24,164
Current assets
Owed within group	22	135	3,178
Other current receivables	27	15	14
Investments in trading portfolio:
- equities and other units	33	43	40
- bonds and other fixed-income securities	3,241	4,978	4,629
Bank deposits	118	121	433
Total current assets	3,441	5,292	8,294
Total assets	28,779	28,650	32,458
Equity and liabilities
Share capital	2,327	2,360	2,360
Own shares	-66	-32	-39
Share premium reserve	10,842	10,842	10,842
Total paid in equity	13,104	13,169	13,163
Other equity	14,942	14,731	15,932
Total equity	28,045	27,900	29,095
Non-current liabilities
Pension liabilities	118	142	118
Securities issued	501	501	501
Total non-current liabilities	619	642	618
Current liabilities
Debt within group		4	1,002
Provision for dividend			1,718
Other current liabilities	115	103	25
Total current liabilities	115	107	2,745
Total equity and liabilities	28,779	28,650	32,458

Statement of changes in equity

NOK million	Share capital	Own shares	Share premium	Other equity	Total equity
Equity at 31. December 2021	2,360	-9	10,842	15,128	28,321
Profit for the period				2,939	2,939
Total other result elements				10	10
Total comprehensive income				2,949	2,949
Provision for dividend				-1,718	-1,718
Own shares bought back 2)		-32		-468	-500
Own shares sold2)		3		37	40
Employee share2)				4	4
Equity at 31. December 2022	2,360	-39	10,842	15,932	29,095
Profit for the period				-58	-58
Total comprehensive income				-58	-58
Provision for dividend				2	2
Own shares bought back 2)		-62		-981	-1,043
Own shares sold2)		3		41	44
Cancellation of own shares1)	-32	32
Employee share2)				5	5
Equity at 30. September 2023	2,327	-66	10,842	14,942	28,045

1) 465 497 866 shares with a nominal value of NOK 5. Share capital reduced in August by NOK 32 million by cancellation of 6.477.024 shares.

2) In 2023, Storebrand ASA has bought 12.453.999 own shares. In 2023, 613.792 shares were sold to our own employees. Holding of own shares 30. September 2023 was 13.127.409.

Equity at 31. December 2021	2,360	-9	10,842	15,128	28,321
Profit for the period				-62	-62
Total comprehensive income				-62	-62
Own shares bought back		-26		-377	-403
Own shares sold		3		37	40
Employee share				5	5
Equity at 30. September 2022	2,360	-32	10,842	14,731	27,900

Statement of cash flow

		01.01 - 30.09
NOK million	2023	2022
Cash flow from operational activities
Net receipts/payments - securities at fair value	1,565	-123
Payments relating to operations	-189	-165
Net receipts/payments - other operational activities	3,181	4,414
Net cash flow from operational activities	4,557	4,126
Cash flow from investment activities
Payments - purchase/capitalisation of subsidiaries	-2,143	-1,510
Net cash flow from investment activities	-2,143	-1,510
Cash flow from financing activities
Payments - repayments of loans		-500
Payments - interest on loans	-19	-18
Receipts - sold own shares to employees	50	44
Payments - buy own shares	-1,043	-403
Payments - dividends	-1,715	-1,646
Net cash flow from financing activities	-2,728	-2,522
Net cash flow for the period	-314	93
Net movement in cash and cash equivalents	-314	93
Cash and cash equivalents at start of the period	433	28
Cash and cash equivalents at the end of the period	118	121

Notes to the financial statements Storebrand ASA

Accounting policies

The financial statements are presented in accordance with the accounting policies applied in the annual financial statements for 2022. The accounting policies are described in the 2022 annual report. The financial statements are presented in accordance with the accounting policies applied in the annual financial statements for 2022. The accounting policies are described in the 2022 annual report.

Storebrand ASA does not apply IFRS to the parent company's financial statements.

Note 2 Estimates

3

Note 1

In preparing the interim accounts, Storebrand has used assumptions and estimates that affect reported amounts of assets, liabilities, revenues, and costs, and information in the notes to the financial statements. The final values realised may differ from these estimates.

Note Bond and bank loan

Total 1)				501	501	501
Bond loan 2020/2025	Variable	NOK	500	501	501	501
NOK million	Interest rate	Currency	Net nomial value	2023	2022	2022
				01.01 - 30.09		Full year

1) Loans are booked at amortised cost and include earned not due interest.

Signed loan agreements have covenant requirements.

Storebrand ASA has an unused drawing facility for EUR 200 million, expiration December 2025.

Financial calendar

13 December 2023 Capital Markets Day (virtual)

Investor Relations contacts

Lars Aa. Løddesøl	Group CFO	lars.loddesol@storebrand.no	+47 934 80 151
Kjetil R. Krøkje	Group Head of Finance, Strategy and M&A	kjetil.r.krokje@storebrand.no	+47 934 12 155
Johannes Narum	Head of Investor Relations	johannes.narum@storebrand.no	+47 993 33 569

Interim Report Storebrand Group 74

Storebrand ASA Professor Kohtsvei 9, P.O. Box 500, N-1327 Lysaker, Norway Phone +47 22 31 50 50

www.storebrand.com/ir