Storebrand ASA — Earnings Release 2013

Feb 12, 2014

Storebrand ASA: 4Q 2013 Historically good result

Storebrand ASA: 4Q 2013 Historically good result

- Group profit of NOK 1,054 million for the fourth

quarter and NOK 2,935 million for 2013

- Earnings growth of 11.5 percent and cost

reductions of 6 percent during 2013

- Strong returns for customers with defined

contribution pensions

- Changes in pension and distribution give

positive result effect of NOK 275 million

The Board of Director's Interim report for Q4 2013,

Q4 2013 result presentation, Supplementary

Information Q4 2013 and 2013 MCEV report are attached

on http://www.newsweb.no

Storebrand will today host a press and analyst

conference in Storebrands head office at Lysaker,

Professor Kohts vei 9, at 10:00 CET (in Norwegian).

An international conference call will be hosted at

14:00 CET. To participate in the conference call

please use link on http://www.storebrand.no/ir, or

call in and register 10 minutes before the

presentation starts. Dial in number: 21 56 33 18 from

Norway and +44 20 3003 2666 for international

participants.

Full press release:

- 4Q 2013: Historically good result

- Group profit of NOK 1,054 million for the

fourth quarter and NOK 2,935 million for 2013

- Earnings growth of 11.5 percent and cost

reductions of 6 percent during 2013

- Strong returns for customers with defined

contribution pensions

- Changes in pension and distribution give positive

result effect of NOK 275 million

- "2013 annual results are the best ever for

Storebrand. This is due to strong growth in revenues

from all our business areas as well as successful

efforts to cut our costs, says Group CEO Odd Arild

Grefstad.

Storebrand's group result was NOK 1,054 million for

the fourth quarter of 2013 and NOK 2,935 million for

the entire year of 2013, up NOK 489 million from the

fourth quarter of 2012 and NOK 1,960 million from

2012. Storebrand's revenues from managing pensions

and savings products increased by 11.5 percent to NOK

4,355 million in 2013, from NOK 3,907 million in

2012. During the same period, operating expenses were

reduced from NOK 3,647 million in 2012 to NOK 2,983

million in 2013. Adjusted for one-off items contained

in the expenses for 2012 and 2013, the nominal cost

reduction comprises 6 percent.

Within the Insurance area, a strong 14 percent growth

in insurance premiums was obtained. The claims ratio

was 76 for the quarter and 73 percent for the year.

The embedded value of Storebrand life and pensions

was NOK 27.7 billion in 2013, an increase of NOK 5.9

billion during 2013. The increased value is due to

good returns in the customer portfolios, higher

interest rates and improved margins. Embedded value

is an actuarial calculation that measures the value

of a life insurance company, excluding the value of

future new sales.

Growth and good returns for defined contribution

pensions

In the life and pensions business, the shift

continues from products with interest rate guarantees

to unit linked products. Storebrand is maintaining

its role as the market leader in defined contribution

pensions in Norway. In Sweden, SPP has a strong

challenger role and during the course of the year has

become the third largest participant in the Swedish

market in terms of new sales. In total, the group's

revenues from premiums for occupational pensions with

no interest rate guarantees increased by 20 percent

during the quarter and 17 percent for the year.

In Norway, an increasing number of our occupational

pension customers are choosing to transfer from

defined benefit to defined contribution pensions,

driven by the need for predictability and increased

cost control. With the Storting's adoption in

December of increased maximum saving rates in defined

contribution, beginning 1 January 2014, we expect

this trend to continue.

- In this regard, I am satisfied to report that the

defined contribution customers experienced very good

returns on their pension funds during 2013. The most

common savings profile, with an equity percentage of

50 percent, provided our customers a return of 16.7

percent last year, says Group CEO Odd Arild Grefstad.

The retail market has also been marked by the

transition from guaranteed to unit linked savings.

- For many pension customers with guaranteed

pensions, a transition to savings with investment

choice will result in higher expected pensions. We

therefore pay special attention to the remaining

clarifications needed for the regulations for paid-up

policies with investment choice being in place soon,

so the law can enter into effect during the first

half of 2014.

Strengthened solvency and build-up of reserves for

increased life expectancy

Expected increases in life expectancy are leading to

a need to strengthen reserves. Returns above the

interest rate guarantee were in 2013 used to

strengthen the reserves for increased life

expectancy. On this basis, the Board of Directors has

decided to propose to the Annual General Meeting that

no dividends be paid for 2013.

The solvency margin for the Storebrand Life Insurance

Group was 176 percent in 2013, a strengthening by 14

percentage points in relation to 2012. In addition to

the annual results, the strengthening of the solvency

margin mainly derives from an increase in long-term

interest rates in Sweden, which reduces the insurance

liabilities.

Lysaker, 12 February 2014

Contact persons:

Communications Director Elin M. Myrmel-Johansen:

Mobile (+47) 93 48 05 38

Head of Investor Relations Trond Finn Eriksen: Mobile

(+47) 99 16 41 35

Storebrand's ambition is to be the best provider of

pension savings. The group offers a broad range of

products within life insurance, property and casualty

insurance, asset management and banking, to

companies, public sector entities and private

individuals. The group is divided into the segments

Savings, Insurance and Guaranteed pension and Other.

This information is subject to disclosure under the

Norwegian Securities Act section §5-12.