Storebrand ASA — Earnings Release 2015

Apr 29, 2015

Storebrand ASA 1st quarter 2015: Top line growth and good customer returns

Storebrand ASA 1st quarter 2015: Top line growth and good customer returns

· Group result of NOK 450 million for 1st quarter

· 13 per cent premium growth in Insurance

· Customers choose paid-up policies with investment choice

- We deliver a result this quarter influenced by growth in the retail market and

strong building of customer buffers. We have welcomed 7,000 new P&C customers

since new year. We have also built reserves worth of NOK 1.2 billion for higher

life expectancy this quarter, says Group CEO Odd Arild Grefstad.

Sustainable investments give better pensions

We have experienced a growing interest in sustainable savings during the last

months, both from companies and retail customers. This month, the Swedish

Söderberg & Partners gave Storebrand and SPP their highest score in their report

on sustainable fund savings. Moreover, the Norwegian NGO Framtiden i våre hender

highlighted Storebrand as a frontrunner in their latest report on sustainable

savings.

- A growing number of our customers are interested in sustainable savings. We

welcome this trend and see sustainable investments as a prerequisite for better

long-term returns. That is why we invest more of our customers' savings in

sustainable companies and less in the least sustainable. We expect that this

will give our customers both better pensions and a better world in which to

enjoy retirement, says Grefstad.

Storebrand's defined contribution customers have received good returns on their

pension savings this quarter. A milestone has also been reached as more than

100,000 customers have chosen our innovative new savings profile called

Recommended pension. In this profile, the equity exposure is adjusted to the age

of each customer.

- During the last three years, the majority of our pension customers have

received an annual average return of 12 per cent. The annual return for the last

ten years has been seven per cent. That means that the customers have received

great returns over a long period with low interest rates and inflation, says

Grefstad.

Growing number of insurance customers

Last Autumn, Storebrand signed a contract with The Federation of Norwegian

Professional Associations (Akademikerne) to deliver insurance to 11 of the

Federation's 13 associations. The agreement covers around 110.000 members and

ensures Storebrand a solid position in the union market.

- We experience a solid top line growth driven by good sales this quarter, with

a 13 per cent increase in premium income in insurance in general and 23 per cent

growth in the P&C business. The agreement with Akademikerne contributes

considerably to the sales growth and shows that we succeed with our new customer

oriented cooperation as well as competitive products, says Grefstad.

Our customers choose paid-up policies with investment choice

- We experience growth in the retail savings market as well. About 2,800

customers have moved their paid-up policy to a paid-up policy with investment

choice in the first quarter. Since October 2015, a total of 9,000 customers have

converted to investment choice. They can now expect a better pension, as saving

with higher equity allocation lead to higher expected returns, says Grefstad.

Solid solvency II margin and longevity reserves strengthening ahead of plan

Storebrand needs to strengthen its reserves for longevity by NOK 12.4 billion.

At year-end 2014, Storebrand had set aside NOK 6.2 billion, and in the first

quarter this year an addition NOK 1.2 billion was set aside, resulting in a

total provision of NOK 7.4 billion.

- We are highly satisfied that we have strengthened our reserves for longevity

with more than NOK 1.2 billion this quarter. We have given priority to this

reserve strengthening at the expense of short term results, but believe this is

the right priority. This means that over 60 per cent of our reserve

strengthening need is already finished, says Grefstad.

In 2016, the new solvency regulation, Solvency II, will be implemented.

Storebrand's ambition is a solvency margin of 130 per cent including transition

rules. At the end of the 1st quarter 2015 the estimated solvency margin under

the Solvency II rules was 152 per cent.

Lysaker, April 29, 2015

Contact persons:

Communications Director Elin M. Myrmel-Johansen: Mobile (+47) 93 48 05 38

Head of IR Kjetil Ramberg Krøkje: kjetil.r.krokje@storebrand.no eller (+47) 934

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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, Guaranteed pension and Other.