Storebrand ASA

Earnings Release • Feb 9, 2022

STOREBRAND ASA: Results for the 4th Quarter 2021

STOREBRAND ASA: Results for the 4th Quarter 2021

Leading the Way in Sustainable Value Creation - Record Strong Growth and Group

Profit in 2021. The Board Proposes NOK 3.50 in Dividend per Share.

· Group profit[1] of NOK 1,367m in the 4th quarter, NOK 4,503m in 2021

· Total assets under management amounting to NOK 1,097bn, up 14% in 2021

· 22% growth in overall insurance portfolio premiums, 54% growth in retail

insurance in 2021

· Solvency II ratio of 175%

"The Storebrand Group's profitable growth continues, with a Group profit of NOK

1,367 million in the fourth quarter and NOK 4,503 million in 2021. Total assets

under management increased by 14% from last year to NOK 1,097 billion. All

business units contributed to the solid Group profit", says CEO Odd Arild

Grefstad.

"Storebrand aims to create a brighter future for our customers. We deliver by

achieving the best return on pension portfolios[2] in the Norwegian Defined

Contribution market last year, as well as over the last 3 and 5 years. This year

more than 1 million employees will benefit, as new regulations make pension

contributions mandatory for all employees regardless of income level, age or

hours worked. This is an important step towards a more equal system. Low-income

groups will notice the greatest improvement", Grefstad says.

Strong Result Growth Across all Business Units

The Storebrand Group delivers a Group profit of NOK 1,367m in the 4th quarter

and NOK 4,503m in 2021, an increase of 12% for the quarterly result and 66% for

the full year result. The corresponding figures for same period last year were

NOK 1,225 million and NOK 2,711 million, respectively. Adjusted for the

divestment of AS Værdalsbruket in the 2nd quarter 2021, the Group profit

amounted to NOK 3,957 million for the full year.

Three out of four business units contributed with over NOK 1 billion to the

Group profit, led by SPP (Occupational Pensions Sweden) which generated a result

of 1,286 million in 2021. The corresponding figure for Asset Management was NOK

1,078 million and for Norwegian Occupational Pensions it was NOK 1,035 million.

The retail business generated a result of NOK 824 million, corresponding to 42%

growth in 2021.

Investment Returns Benefit Customers and Yield Profit Sharing

Among the main investment portfolios for Defined Contribution clients in the

Norwegian market, Storebrand delivers the highest returns in the market  in

2021, as well as over the past 3 and 5 years. The moderate risk portfolio,

Storebrand Balansert Pensjon, achieved a return of 13,4% and the portfolio with

the highest allocation to equities achieved a return of 20,6%.

In the guaranteed segment, excess returns above the guaranteed rate led to

profit sharing with customers generating NOK 253 million in results in the 4th

quarter and NOK 504 million in 2021. Simultaneously, the buffer capital

strengthened to 11.2% (11.0%) of customer reserves in Norway and 17.8% (11.4%)

in Sweden.

Continued Growth

P&C and Individual life insurance grew 54% compared to last year, partly due to

strong contribution from distribution partnerships and the acquisition of

customer portfolios from Insr, which has contributed with a total of NOK 740

million in portfolio premiums.

Storebrand also continued its growth within occupational pensions. Unit Linked

Pension premiums grew 5% in 2021, and reserves grew 15%.

Within the growth area public occupational pensions, new mandates were won which

will add NOK 5.5 billion in assets under management in 2022.

In the Norwegian retail market, lending volume in the bank amounted to NOK 57

billion - an increase of 15% compared to last year.

Solvency Ratio Development

Storebrand's solvency ratio was reduced with 3 percentage points from last

quarter to 175%. The decrease is due to slightly lower long-term interest rates,

as well as a lower regulatory volatility adjustment and a higher equity stress

in the solvency calculation. Group profit in the quarter, before dividend,

contributed positively with 4 percentage points. The transformation towards a

more capital light Group progresses according to plan. Defined contribution

pensions now amounts to 51,5% of the balance sheet and the run-off of guaranteed

business is releasing capital.

Proposed Dividend

The Board proposes an ordinary dividend of NOK 3.50 per share for 2021 to the

Annual General Meeting. This represents a NOK 0.25 nominal increase in ordinary

dividends compared to the previously paid dividend, corresponding to an increase

of 8% and a pay-out ratio of 52% of Group profit after tax. The Board intends to

apply for share buy backs if solvency ratio is sustainably above 180%.

Key Figures in the Quarter:

(Q4-2020 in brackets)

· Solvency Ratio 175% (178%)

· Earnings per share, adjusted for amortisation

Q4: NOK 2.25 (NOK 2.13)

2021: NOK 7.81 (NOK 6.07)

· Equity NOK 37,709m (NOK 35,923m)

· Assets under management NOK 1,097bn (NOK 962bn)

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

overview of APMs used in financial reporting.

[2] Applies to the moderate risk portfolio, Storebrand Balansert Pensjon,

according to Norsk Pensjon.

Activities related to the 4th Quarter 2021

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

on storebrand.no/ir (https://www.storebrand.no/en/investor-relations/quarterly

-reporting/storebrand-asa/2021).

10:00 CET: Live analyst conference in English. A webcast will be available for

everyone to view on storebrand.no/ir (https://www.storebrand.no/en/investor

-relations). The presentation will be available on demand afterwards. Link to

webcast (https://video.qbrick.com/play2/embed/qbrick

-player?accountId=AccujIIs0CtSUqiinjokvSg4A&mediaId=2faeba2a-c2b4-4aac-a724

-f67c26a0d6e7&configId=qbrick

-player&pageStyling=adaptive&autoplay=true&repeat=true&sharing=true&volume)

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 (https://teams.microsoft.com/registration/Pzi1RO2uWUmmdCTZB7k5Zg,

-W9gZprlg0a9tatr21-CxA,uBqipUyRvUetlOdlA2p0VQ,VumaLiHTaUKxE

-HpReS1PA,qmG1jxCV4EmrxupiH8tLdw,aF3CUtbxKE

-2IWebdWPUyA?mode=read&tenantId=44b5383f-aeed-4959-a674

-24d907b93966&skipauthstrap=1)

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:

SVP Communications, Margrethe Assev:

margrethe.assev@storebrand.no or (+47) 951 55 056

Storebrand's ambition is to provide our customers with financial freedom and

security by being the best provider of long-term savings and insurance.

Storebrand will deliver sustainable solutions adapted to the customer's

individual situation. Storebrand has about 40.000 corporate customers and 2

million individual customers, and has its headquarter at Lysaker outside of

Oslo, Norway. Storebrand manages NOK 1 097 bn and is one of the largest asset

managers in the Nordics. Storebrand (STB) is listed on Oslo Stock Exchange.