Storebrand ASA

M&A Activity • Dec 20, 2021

Storebrand ASA: Storebrand acquires Danica Pension Norway

Storebrand ASA: Storebrand acquires Danica Pension Norway

Storebrand Livsforsikring AS has entered into an agreement to buy 100% of the

shares in Danica Pensjonsforsikring AS, Norway ("Danica").

"With Danica on board, we strengthen our presence in the occupational pensions

market for small and medium-sized enterprises and our personal risk offering.

These are strategically prioritised growth areas for Storebrand. We look forward

to combining our own expertise and technical solutions with Danica's partners

and Danske Bank's professional distribution platform. This combination helps

customers gain access to market leading products and services, and we look

forward to being able to welcome all of Danica's customers to Storebrand", says

CEO of Storebrand Odd Arild Grefstad.

The Norwegian market for Defined Contribution pensions amounts to approximately

NOK 420 billion in assets under management and NOK 36 billion in annual

premiums, according to Finance Norway. Market growth has been strong over the

last 10 years and Storebrand expects the market to continue to grow by more than

10% annually in the coming years.

Danica, a subsidiary of Danske Bank, is the 6th largest provider of Defined

Contribution pensions in Norway with 5% market share. In addition to managing

NOK 22 billion of Defined Contribution pensions for 14,000 companies and 98,000

active members, Danica manages NOK 6 billion of retail savings and a small back

book of guaranteed products of NOK 1 billion. Total assets under management

amount to approximately NOK 30 billion. Danica also offers commercial and

personal risk products, totalling approximately NOK 300 million in annual

premiums for own account. Profit before tax amounted to NOK 127 million in 2020.

Most of the distribution is through Danske Bank, which will continue to

distribute the products from Storebrand.

"We look forward to the long experience, the business development and digital

capabilities, as well as the solid products and solutions that Storebrand will

add to our offering. Both parties are very committed to taking the steps

necessary to make this a success which will benefit our customers", says Country

Manager of Danske Bank Norway Trond Mellingsæter.

Storebrand Livsforsikring AS will pay NOK 2.01 billion for the shares of Danica

(adjusted for the change in the net asset value of Danica in the period from 30

September 2021 to 31 December 2021). The transaction will be funded by available

funds in the company portfolio, which amounts to NOK 24 billion. The immediate

effect on the solvency ratio for Storebrand Group is expected to be minus 5

percentage points. It is expected that the transaction will strengthen the

Group's solvency generation and dividend capacity going forward - supported by

capital, cost and distribution synergies - and that it will be accretive for the

Group's return on equity. The acquisition will not impact Storebrand's ordinary

dividend capacity for the financial year 2021.

The conclusion of the transaction is expected in the first half of 2022 and is

subject to approval from the Norwegian Financial Supervisory Authority and the

Norwegian Competition Authority as well as certain other customary transaction

conditions.

ABG Sundal Collier acts as the financial and transaction adviser, Thommessen as

the legal adviser, and Deloitte as the Financial Due Diligence advisor, for

Storebrand.

Lysaker, 20 December 2021

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 1,058 bn and is one of the largest asset

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

Visit us at http://www.storebrand.no

Danske Bank is a Nordic universal bank with strong local roots and bridges to

the rest of the world. Today, our approximately 22,000 employees continue to

help our 3.3 million personal and business customers in 10 countries release

their potential through sustainable choices, specialised advisory and digital

convenience. The latest annual report showed a total income of DKK 42.4 billion

and assets under management totalled DKK 1.8 trillion. In Norway, Danske Bank is

the third largest bank with approximately 1,200 employees. Visit us at

http://www.danskebank.com

This announcement is subject to information pursuant to the Securities Trading

Act § 5-12