Storebrand ASA

Earnings Release • Feb 8, 2023

STOREBRAND ASA: Results for the 4th Quarter 2022

STOREBRAND ASA: Results for the 4th Quarter 2022

Strong customer growth with a solid solvency position and improved financial

result

Group profit[1] of NOK 841m, operating profit of NOK 624m

· Solvency II ratio 184%

· 39% profit growth in Insurance for 2022

· 23% growth in Unit Linked premiums (y/y)

· NOK 3.70 dividend per share and a NOK 500m share buyback program proposed

"During the past year, Storebrand has once again demonstrated a strong ability

to navigate through market turbulence and manage risk. We have delivered

competitive returns to our customers in challenging markets. And we have seen

strong growth in the number of customers who choose Storebrand - both within

savings and insurance where premiums have grown over 20% in 2022.

The solvency ratio is strengthened to 184%, and we deliver a Group profit of NOK

841 million in the quarter, and 2,716 million in 2022, despite the setback in

financial markets. We are confident in our ability to continue to grow the

business and generate solvency capital. I'm pleased to announce a proposed

increase in the ordinary dividend to NOK 3.70 per share, and the Board plans to

continue the share buyback program with a new tranche of NOK 500 million," says

Group CEO Odd Arild Grefstad.

Strong Growth and Stable Operating Profit

The operating profit amounted to NOK 624m in the quarter, compared to NOK 1,038m

in 2021. The decline is mainly attributed to less performance fee income in

2022. Adjusted for performance related results and one-off items, the operating

profit was NOK 571m in the quarter, compared to NOK 589m previous year.

Strong growth in insurance and an improved combined ratio has led to an increase

in the insurance result by 52% in the 4th quarter and 37% for the full year,

compared to 2021. Written premiums grew 21% in 2022. The combined ratio in the

4th quarter was impacted by seasonal claims in motor and ended at 95%, but

amounted to 91% for the full year - in line with Storebrand's target of 90-92%.

Total assets under management (AUM) amounted to NOK 1,020bn, which is a decrease

of 7% in 2022 compared to previous year due to weak financial market returns,

but it is an increase of 2% in the 4th quarter. Total net inflow amounted to NOK

10bn in the quarter and NOK 17bn for the full year. In Unit Linked, quarterly

premiums increased by 23% to NOK 6.6bn from NOK 5.4bn. The transfer balance has

materially improved in 2022, resulting in a net inflow (of premiums, claims,

payments, and transfers) amounting to NOK 4.7bn in the 4th quarter and NOK

12.4bn for the full year, compared to NOK 2.8bn and NOK 5.1bn respectively in

Improved Financial Result in Q4

The 'financial items and risk result' amounted to NOK 217m in 4th the quarter,

which is an improvement from NOK -225m accumulated in the first three quarters

of 2022. During the year, wider credit spreads have resulted in negative

investment results in the company portfolios. The expected yield has increased

correspondingly and financial markets have shown signs of improvement towards

the end of the year. We thus expect better financial results going forward.

Strong buffer capital levels at the beginning of the year and prudent risk

management have secured sufficient customer returns in the guaranteed products,

despite turbulent markets.

Solvency Ratio Development

The solvency ratio was 184% at the end of the 4th quarter, an increase of 10

percentage points from the previous quarter. Result generation from operations

and positive financial market developments strengthened the solvency ratio, but

the improvement was more than offset by regulatory factors. Active risk

management, including increased levels of reinsurance, reduced foreign currency

exposure, and balance sheet and investment exposure optimisations, added to the

solvency ratio. In addition, a reset of available additional statutory reserves

to absorb stresses at the turn of the year improved the solvency ratio.

Dividend and share buyback

The board proposes an ordinary dividend of NOK 3.70 per share for 2022 to the

Annual General Meeting, equal to a total amount of NOK 1,718m. This represents a

NOK 0.20 nominal increase compared to the previously paid dividend,

corresponding to an increase of 5.7%.

Based on the reported solvency ratio of 184%, the Board intends to continue with

a share buyback program with a tranche amounting to NOK 500m pending approval

from the NFSA. The ambition is to return NOK 10bn of excess capital by the end

of 2030, primarily in the form of share buybacks, as the run-off of the

guaranteed business releases capital.

Capital Update

Storebrand hosted a Capital Update presentation on 8 December 2022. The

presentation mainly focused on Storebrand's capital situation and opportunities

going forward in today's higher interest rate environment. The presentation and

a replay can be found here: www.storebrand.no/en/investor-relations/capital

-update-2022

Key Figures in the Quarter:

(Q4-2021 in brackets)

· Solvency Ratio 184% (178%)

· Earnings per share, adjusted for amortisation NOK 1.85 (NOK 2.25)

· Equity NOK 37,935m (NOK 37,709m)

· Assets under management NOK 1,020bn (NOK 1,097bn)

Activities Related to the 4th Quarter 2022

07:30 CET: Release of stock exchange notification. Press release, quarterly

report and analyst presentation (https://www.storebrand.no/en/investor

-relations/quarterly-reporting/storebrand-asa/2021) will be available

at?www.storebrand.no/ir.

10:00 CET: Live investor and analyst conference in English. A webcast will be

available at www.storebrand.no/en/investor-relations. The presentation will be

available on demand afterwards. Analysts who would like to ask questions at the

end of the presentation must register for and participate in the MS Teams

Webinar.

Link to registration and webcast (https://www.storebrand.no/en/investor

-relations/quarterly-reporting/programme)

For Further Inquiries, Please Contact:

Head of Investor Relations & Rating, Daniel Sundahl:

daniel.sundahl@storebrand.no or (+47) 913 61 899

Group Head of Strategy, Finance and M&A Kjetil Ramberg Krøkje:

kjetil.r.krokje@storebrand.no or (+47) 934 12 155

Media Requests:

Head of Press, Synnøve Hjelle Halkjelsvik:

synnove.hjelle.halkjelsvik@storebrand.no or (+47) 957 45 105

[1] Earnings before amortisation and tax. www.storebrand.no/ir provides an

overview of APMs used in financial reporting

Storebrand is a Nordic financial group, delivering increased security and

financial wellness for people and companies. We offer sustainable solutions and

encourage our customers to take good economic decisions for the future. Our

purpose is clear: we create a brighter future. Storebrand has about 55.000

corporate customers, 2.2 million individual customers and manages NOK 1,020

billion. The Group has its headquarter at Lysaker outside of Oslo, Norway.

Storebrand (STB) is listed on Oslo Stock Exchange.

www.storebrand.no

This is information is pursuant to the EU Market Abuse Regulation and subject to

the disclosure requirements pursuant to Section 5-12 the Norwegian Securities

Trading Act.