Storebrand ASA

Investor Presentation • Oct 26, 2022

Storebrand Q3 2022

26 October 2022

Odd Arild Grefstad – CEO Lars Aa. Løddesøl – CFO

Highlights Q3 2022

Strong operating profit driven by profitable Insurance growth, and underlying growth in Savings

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

Two new members in Storebrand's Executive Management

Continued volume growth despite financial market volatility

Unit Linked

• Stable AUM in the quarter, excluding Danica.
• Danica adds NOK 26bn in AUM.
• 21% increase in quarterly premiums to NOK 6.3bn, of which NOK 0.6bn is from Danica.
• Net inflow in the quarter of NOK 2.5bn.
• Stable fee margins.

Portfolio transfer

▪ St:Erik life portfolio transfer to SPP of NOK 2.3bn in reserves.

Asset management

• Net flows of NOK 7bn YTD.
• Continued net inflow in Storebrand Fonder of SEK 9bn YTD.
• Storebrand Asset Management ranked first in sustainable investments and second place overall by Prospera in Denmark.

Insurance (retail)

▪ 23% growth in P&C & Individual Life with 89% combined ratio. 14% growth excluding Danica.

Bank

• 17% growth in mortgage lending volume.
• 18% growth in fee income.
• Stable net interest income margin.

Danica acquisition completed, integration has started

Timeline integration

2022 H2

• Half a year's profit contribution from Danica standalone.
• Initial integration costs.

2023

• Full year results from Danica.
• Additional integration costs reduce the net contribution from Danica.

2024

▪ Continued realisation of cost, capital and distribution synergies between Storebrand and Danica.

Acquisition of Kron fast tracks our ambitions in the Norwegian retail savings market

Engaging and user-friendly savings application that is the most popular app within the "Finance"-category on Google Play store (4.8/5).

Delivers funds savings and individual pension accounts.

High growth ambitions with strong track record. More than 70,000 customers and NOK 7bn in AUM today.

Established in 2017

About Kron Why Storebrand+Kron

Strategic

• Engaging and user-friendly savings application for mass market that complements the current offering and fits Storebrand's customer base well.
• Fast tracks Storebrand's digital offering today and our combined development of future products and services.
• Adds a highly skilled and motivated team with market leading digital service development capabilities.

Financial

Fuelling profitable growth through product and service synergies generating new income within asset management, retail banking, etc.

Key Figures

Strong operating profit but weaker solvency ratio due to reduced Volatility Adjustment

¹ Result before amortisation and tax. ² Earnings per share after tax adjusted for amortisation of intangible assets.

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³ Excluding Excess values of HTM bonds. ⁴ Own Funds including transitional capital.

BNNOK

Solvency movement from Q2 to Q3 2022 Storebrand Group

Estimated solvency sensitivities

Storebrand Group

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▪ Acquisition of Danica and large decrease in the volatility adjustment reduce the solvency position in the quarter.

¹The estimated Economic solvency position of Storebrand Group is calculated using the current Storebrand implementation of the Solvency II Standard model with the company's interpretation of the transition rules from the NFSA. Output is sensitive to changes in financial markets, development of reserves, changes in assumptions and improvements of the calculation framework in the economic capital model as well as changes in the Solvency II legislation and national interpretation of transition rules.

Reduced Volatility Adjustment from historic drop in spread to EUR rates

Basis spread between NOK and SEK 10yr SWAP to EUR since the introduction of Solvency II, bps

Estimated composition of NOK VA, bps

▪ VA is a spread that is added to the risk-free discount curve in Solvency 2 up to the last liquid point.

Comments

• It is a countercyclical input factor in the solvency calculation to smooth the effect of corporate spread movements on the solvency ratio.
• VA in NOK/SEK is calculated based on:
• Credit spreads for European bonds
• Reference portfolios for Norwegian/Swedish insurance companies
• The interest rate difference between EUR and NOK/SEK
• Significantly reduced NOK-EUR and SEK-EUR spreads in the quarter give a significant fall in NOK and SEK VA and a lower solvency ratio.
• The lower discount factor of Swedish liabilities increases deferred capital contributions with a negative impact of NOK 104m on the P&L in the quarter.
• VA is a regulatory risk. Possibilities to hedge the basis spread component in VA are limited. Any hedge would imply taking on real economic risk instead.

Storebrand Group

Strong and resilient operating profit, financial result affected by drop in volatility adjustment

Profit¹

	Q 3		YTD
NOK million	2022	2021	2022	2021
Fee and administration income	1 507	1 544	4 421	4 499
Insurance result	482	342	1 277	894
Operational cost	-1 272	-1 124	-3 598	-3 301
Operating profit	717	762	2 099	2 092
Financial items and risk result life	-47	151	-225	1 043
Profit before amortisation	670	912	1 874	3 136
Amortisation and write-downs of intangible assets	-159	-133	-436	-387
Profit before tax	511	779	1 439	2 749
Tax	-125	-181	247	-536
Profit after tax	386	598	1 685	2 213

Storebrand Group

Profit by line of business Group

Profit¹

	Q 3		YTD
NOK million	2022	2021	2022	2021
Fee and administration income	1 507	1 544	4 421	4 499
Insurance result	482	342	1 277	894
Operational cost	-1 272	-1 124	-3 598	-3 301
Operating profit	717	762	2 099	2 092
Financial items and risk result life	-47	151	-225	1 043
Profit before amortisation	670	912	1 874	3 136

Profit per line of business

	Q 3		YTD
NOK million	2022	2021	2022	2021
Savings - non-guaranteed	401	476	1 197	1 438
Insurance	210	162	487	363
Guaranteed pension	148	315	633	946
Other profit	-89	-40	-443	388
Profit before amortisation	670	912	1 874	3 136

Savings (non-guaranteed)

AuM and income affected by financial markets, underlying growth and margins according to plan

Profit

	Q 3		YTD
NOK million	2022	2021	2022	2021
Fee and administration income	1 174	1 182	3 440	3 467
Operational cost	-763	-716	-2 183	-2 089
Operating profit	410	466	1 256	1 378
Financial items and risk result life	-9	9	-60	60
Profit before amortisation	401	476	1 197	1 438

Profit per product line

	Q 3		YTD
NOK million	2022	2021	2022	2021
Unit linked Norway	91	126	291	400
Unit linked Sweden	80	124	253	405
Asset management	144	136	458	418
Retail banking	85	89	194	216
Profit before amortisation	401	476	1 197	1 438

Savings (non-guaranteed) Key figures

Assets under management

Life insurance balance sheet Bank balance sheet

Movement in asset under management YTD¹

Insurance

Strong growth, profitability according to plan

Profit

	Q 3		YTD
NOK million	2022	2021	2022	2021
Insurance premiums f .o.a.	1 613	1 336	4 459	3 809
Claims f .o.a.	-1 131	-995	-3 182	-2 915
Operational cost	-284	-207	-794	-622
Operating profit	198	135	483	272
Financial result	11	27	5	91
Profit before amortisation	210	162	487	363

Profit per product line

	Q 3			YTD
NOK million	2022	2021	2022	2021
P&C & Individual life	110	168	302	339
Health & Group life	17	-24	26	-21
Pension related disability insurance Nordic	82	18	160	44
Profit before amortisation	210	162	487	363

Insurance Key figures

Key Takeaways Combined Ratio and Results

• 88% overall combined ratio (target 90-92%).
• Stable claims and cost ratio.
• Effective price adjustments contribute to profitability.

Portfolio premiums Key Takeaways Premiums and Growth¹

• 22% overall portfolio premium growth.
• 15% overall portfolio premium growth, adjusted for Danica.

Guaranteed pension

Stable operating result, but negative financial impact from lower volatility adjustment.

Profit

	Q 3			YTD
NOK million	2022	2021	2022	2021
Fee and administration income	398	423	1 184	1 213
Operational cost	-208	-217	-617	-641
Operating profit	190	206	567	572
life & Risk result pensions	74	70	210	124
Net profit sharing	-116	38	-143	251
Profit before amortisation	148	315	633	946

Profit per product line

	Q	3	YTD
NOK million	2022	2021	2022	2021
Defined benefit (private & public sector) Norway ,	55	51	207	85
Paid-up policies Norway ,	149	140	365	355
life Individual and pension Norway ,	11	7	20	27
Guaranteed products Sweden ,	-68	118	41	480
Profit before amortisation	148	315	633	946

Guaranteed pension

Key figures

NOK million	Q3 2022	Q2 2022	Change
Market value adjustment reserve**	1 408	2 027	- 619
Excess value of bonds amortised at cost	-13 247	-9 613	- 3 634
Additional statutory reserve	9 971	10 470	- 499
Conditional SPP bonuses	12 193	12 006	187 +
Total	10 326	14 891	- 4 565

• Continued run-off of guaranteed reserves.
• St:Erik life portfolio transfer to SPP of NOK 2.3bn in reserves.
• Higher interest rates give attractive reinvestment levels.
• Customers buffers reduced due to rising interest rates and market turbulence.

Buffer capital* Guaranteed reserves in % of total reserves

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

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Other¹

Financial result improving from higher yield on fixed income investments

Profit

	Q 3		YTD
NOK million	2022	2021	2022	2021
Fee and administration income	6	6	15	13
Operational cost	-87	-52	-222	-142
Operating profit	-82	-46	-207	-129
Financial items and risk result life	-7	6	-236	518
Profit before amortisation	-89	-40	-443	388

Capital Update Presentation

8 December 2022 09:00-11:00 CET

@ Storebrand, Lysaker NOR and storebrand.no/ir

Q&A

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

Appendix

Asset allocation – Guaranteed products

Equities Real estate Bonds & Money market Loans Bonds at amortised cost 30.09.2021 11% 11% 10% 13% 55% 31.12.2021 10% 11% 13% 14% 52% 31.03.2022 9% 12% 15% 15% 50% 30.06.2022 6% 12% 14% 14% 54% 30.09.2022 6% 12% 13% 14% 54% 0% 10% 20% 30% 40% 50% 60%

Danica Financials

		Group		Savings		Insurance		Guaranteed		Other
NOK million	Q3 2022	FY 2021	Q3 2022	FY 2021	Q3 2022	FY 2021*	Q3 2022	FY 2021	Q3 2022	FY 2021
Fee and administration income	63	277	62	273			1	5	0	0
Insurance result	60	174			60	174
Insurance premiums f.o.a.					95	344
Claims f.o.a.					-35	-170
Operational cost	-77	-309	-50	-205	-25	-96	-2	-8	0	0
Operating profit	46	142	11	68	35	78	-1	-4	0	0
Financial items and risk result life	-14	10	0	-7	-5	7	-10	3	2	6
Profit before amortisation	31	151	11	61	29	85	-11	0	2	6

Savings Key Figures	Q3 2022	FY 2021
Unit linked Reserves	25 891	29 361
Unit linked Premiums	637	2 188
Guaranteed Reserves	Q3 2022	FY 2021
Defined Benefit (private & public sector) Norway ,	461	413
Paid-up policies Norway	216	190
,

Insurance Portfolio Premiums	Q3 2022	FY 2021
P&C & life Individual	285	291
& Group life Health	7	7
Pension related disability insurance Nordic	155	135
Total written premiums	447	432

Leading the way in sustainable value creation

Investor Relations contacts

Lars Aa Løddesøl Group CFO

lars.loddesol@storebrand.no +47 9348 0151

Kjetil R. Krøkje Group Head of Finance & Strategy

Daniel Sundahl Group Head of IR & Rating

kjetil.r.krokje@storebrand.no +47 9341 2155

daniel.sundahl@storebrand.no +47 9136 1899

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