Storebrand ASA — Earnings Release 2017

Oct 25, 2017

Storebrand 3Q 2017

25 Oct 2017

Odd Arild Grefstad – CEO Lars Aa. Løddesøl – CFO

Storebrand celebrates 250 years in 2017

Highlights 3Q 2017

Operating profit

High organic growth and strong solvency

Storebrand acquires Skagen Fondene and Silver

¹Result before amortisation and write-downs. ² Growth figures are from YTD 2016 to YTD 2017. ³ Including transitional rules.

Our strategy

Manage the guaranteed 1 balance sheet	Continued growth in Savings 2 and Insurance
>150% SII margin	Capital-light and profitable growth
Cost reductions through automation and  outsourcing Manage for future capital release and  increased dividend capacity	Market leading asset gatherer with strong Insurance  offering Continued retail growth with low capital  requirements
	Lower capital requirements and higher quality of earnings

We work hard to reach our vision: Recommended by our customers

Building a well diversified savings business positioned to grow in an attractive market

Storebrand acquires SKAGEN AS

• Scandinavian investment management company, established in 1993
• Around 140.500 unit holders and approx. NOK 80 billion under management
• Diversified client base and international footprint: 11 offices in 5 countries, with marketing permission for an additional 8
• Award winning portfolio managers with world class funds
• An active investor with a value-based investment philosophy that has been applied consistently since start
• ESG factors incorporated in the investment process since 2002 3rd place in Morningstar's Sustainability Rating in 2016

Home markets Offices Marketing approval

AUM by Market Area

Client mix – all Markets

International

Home markets Offices Marketing approval

The transaction has clear strategic and financial benefits

Strategic benefits positioning Storebrand + SKAGEN for continued growth

Complementary strengths and customer base

Combined no. 2 market position in attractive retail market

European institutional distribution

Scalable platform for growth

Financial benefits supporting cash generation and shareholder values

Increased scale in Asset Management

New revenue stream from assets without guarantees

Synergies in operations and administration

Cash generation for increased long term dividend capacity

Storebrand is growing by building a well-diversified savings business

Aging population and reduced state pensions increases savings Individualisation of savings and pension market

Consolidation in European asset management industry

Strengthened position in attractive growth market with long term value creation

Attractive operational and administrative synergies

Strategic benefits

Pension and savings is becoming one market and represent key growth opportunities for the Group

Storebrand's main channels for assets under management (NOK bn)

SKAGEN and Storebrand strong combined no 2 position in fast growing retail savings market

Market share AuM mutual funds Norway Q2 2017 (%)

¹ Market for retail savings: Mutual funds, pension certificates, individual unit linked solutions. Source: Storebrand estimates. Strategic benefits

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Complementary businesses strengthening the customer offering and competitive position

• Product Offering
• meet savings needs of both institutions and individuals

• Holistic advisor approach ensuring client value and long term satisfaction

• philosophy with strong track record

• Focused and independent team

Increased operational leverage by building additional scale

Future of asset management requires sufficient scale and a broad product offering

Strategic benefits

Broad customer offering to meet all saving needs

Beta¹ Factor Funds Alternatives Alpha¹ Smart beta Low carbon ESG Enhanced Nordic ESG index Real Estate SKAGEN World ESG index Emerging ESG index Private Equity Private Debt Storebrand Asset classes cover institutional, wholesale, workplace and retail need for savings ALM Pension Decumulation Risk strategies Preservation Delphi

Independent asset management boutiques

Strategic benefits

Delivering customer value key focus whilst harvesting synergies from new combined cost base

Key focus and principles for integration	• Keep SKAGEN legal set up, brand and investment independence • Key focus to deliver excellent investment performance for clients from day 1 • Offer combined value proposition to relevant clients Group CEO Odd Arild Grefstad Chairman of the Board • Implementation team led by EVP Asset Management Jan Erik Saugestad • • Øyvind Schanke continues as SKAGEN CEO with strong management team
Financial impact	First phase cost synergies to reduce combined cost base by NOK 50 million • • Key areas: leverage administrative and operational scale • Structured approach for development of distribution capabilities

Transaction structure – acquisition of 91% of outstanding shares

1) Net profit and net revenue excluding contribution from fees paid out based on fund performing above their respective benchmarks ("Performance fees")

Storebrand welcomes new customers from Silver

Using own web-based solutions and existing product infrastructure

Key focus on customer service in onboarding process

Non guaranteed pension savings builds scale in strategic core

AuM (NOKbn)

Storebrand acquires Silvers insurance portfolio

Customers & portfolio	• 21 000 policies to be transferred to Storebrand Livsforsikring AS • NOK 8,5bn paid up polices with investment choice (no financial guarantees) • NOK 1,5bn risk products
Purchase price	• NOK 520m financed by liquidity in Storebrand Livsforsikring AS Total liquidity in Storebrand Livsforsikring as of 3Q 2017 NOK 18.1bn •
Financial effects	• NOK ~60m in annual pre tax administration results expected • NOK ~45m negative non recurring result effect in 2018 • NOK 300m deferred tax asset expected in 2018 due to tax loss carried forward in Silver AS 1 percentage point initial reduction in solvency •
Other terms	• Closing expected in January 2018 The agreement with the administration board presupposes that no more than 20% • of Silver's customers object to the solution by the deadline set by Silver and public approvals.

Key figures

5.2% 5.4% 5.3%

Q1 2017

Q2 2017

Q3 2016

Q4 2016

¹Result before amortisation, write-downs.

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²Earnings per share after tax adjusted for amortisation of intangible assets.

³ Customer buffers in Benco not included. In addition there are unallocated investment results of NOK 4.3 billion in Norwegian guaranteed that will be allocated at year end. ⁴Solidity capital/customer buffers does not include provisions for future longevity reserves.

Q3 2017

Storebrand Group Solvency movement from Q2 2017 to Q3 2017

SII position and sensitivities Storebrand Group

Small changes in value of transitional measures

¹The estimated 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.

Storebrand Group

	3Q		01.01-30.09		Full year
NOK million	2017	2016	2017	2016	2016
Fee and administration income	1 103	1 040	3 201	3 097	4 235
Insurance result	320	238	885	694	945
Operational cost	-826	-811	-2 462	-2 330	-3 191
Operating profit	596	468	1 624	1 461	1 989
Financial items and risk result life	177	209	698	540	924
Result before amortisation	773	676	2 322	2 001	2 913
Amortisation and write-downs of intangible assets	-101	-101	-299	-311	-406
Result before tax	672	576	2 023	1 690	2 506
Tax	27	-135	-111	-224	-364
Profit after tax	698	441	1 912	1 466	2 143

¹ The result includes special items. Please see storebrand.com/ir for a complete overview.

Storebrand Group

		3Q	01.01-30.09		Full year
NOK million	2017	2016	2017	2016	2016
Fee and administration income	1 103	1 040	3 201	3 097	4 235
Insurance result	320	238	885	694	945
Operational cost	-826	-8112	-2 462	-2 330	-3 191
Operating profit	596	468	1 624	1 461	1 989
Financial items and risk result life	177	209	698	540	924
Profit before amortisation	773	676	2 322	2 001	2 913

Profit per line of business

	3Q		01.01-30.09		Full year
NOK million	2017	2016	2017	2016	2016
Savings - non-guaranteed	314	236	872	742	1 063
Insurance	221	161	576	432	575
Guaranteed pension	244	126	735	378	870
Other profit	-5	154	140	449	405
Profit before amortisation	773	676	2 322	2 001	2 913

Savings (non-guaranteed) - continued growth

NOK million		3Q		01.01-30.09	Full year
	2017	2016	2017	2016	2016
Fee and administration income	763	681	2 210	2 014	2 758
Operational cost	-445	-442	-1 342	-1 274	-1 700
Operating profit	318	239	868	739	1 058
Financial items and risk result life	-4	-3	4	2	5
Profit before amortisation	314	236	872	742	1 063

Profit per product line

	3Q		01.01-30.09		Full year
NOK million	2017	2016	2017	2016	2016
Unit linked Norway	82	56	220	178	242
Unit linked Sweden	53	43	182	120	175
Asset Management segment	132	107	353	340	518
Retail banking	46	29	117	103	127
Profit before amortisation	314	236	872	742	1 063

Savings (non-guaranteed) - strong growth in assets and retail lending

¹Excluding transfers. Growth from YTD 2016 to YTD 2017.

² Growth figures from YTD 2016 to YTD 2017.

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Insurance

		3Q	01.01-30.09		Full year
NOK million	2017	2016	2017	2016	2016
Insurance premiums f.o.a.	993	962	2 904	2 871	3 828
Claims f.o.a.	-674	-724	-2 019	-2 177	-2 883
Operational cost	-175	-152	-519	-435	-602
Operating profit	145	87	366	259	342
Financial result	76	74	209	173	233
Profit before amortisation	221	161	576	432	575

Profit per product line

		3Q		01.01-30.09
NOK million	2017	2016	2017	2016	2016
P&C & Individual life	80	63	247	245	293
Health & Group life	116	41	263	96	149
Pension related disability insurance Nordic	24	57	66	91	133
Profit before amortisation	221	161	576	432	575

Insurance - Lagging growth, strong combined ratio

Guaranteed pension - strong quarter but long term run off

3Q			01.01-30.09	Full year
2017	2016	2017	2016	2016
380	403	1 108	1 190	1 566
-212	-257	-649	-721	-981
169	146	459	469	585
9	-18	49	-24	-37
66	-2	227	-67	322
244	126	735	378	870

Profit per product line

	3Q			01.01-30.09
NOK million	2017	2016	2017	2016	2016
Defined benefit (fee based)	83	82	222	278	340
Paid-up policies, Norway	38	9	94	33	46
Individual life and pension, Norway	20	2	36	6	147
Guaranteed products, Sweden	104	32	383	60	336
Profit before amortisation	244	126	735	378	870

Guaranteed pension - reserves in long term decline and robust buffer situation

Other¹

		3Q		01.01-30.09	Full year
NOK million	2017	2016	2017	2016	2016
Fee and administration income	19	31	63	102	145
Operational cost	-53	-35	-132	-108	-141
Operating profit	-35	-4	-69	-6	4
Financial items and risk result life	30	158	209	456	401
Profit before amortisation	-5	154	140	449	405

Profit per product line

	3Q		01.01-30.09		Full year
NOK million	2017	2016	2017	2016	2016
Corporate Banking	20	34	38	69	76
BenCo	8	7	18	43	44
Holding company costs and net financial results in company portfolios	-33	113	84	337	285
Profit before amortisation	-5	154	140	449	405

¹Excluding eliminations. For more information on eliminations, see Supplementary Information.

Appendix

Storebrand Life Insurance asset allocation

Note: The graph shows the asset allocation for all products with an interest rate guarantee in Storebrand Life Insurance Norwegian operations. Category bonds includes loans on life insurance balance sheet.

SPP asset allocation

Note: The graph shows the asset allocation for all products with an interest rate guarantee in SPP.

Key figures SKAGEN and Storebrand Asset Management

Key figures 2016 (NOKm)
			Combined
AUM (NOKbn)	577	83	660
AUM external (NOKbn)	136	83	219
Revenue	1,082	1,000	2,082
Distribution cost	-98	-229	-327
Personnel cost	-217	-381	-598
Other Operating expenses	-223	-183	-406
EBITDA	545	207	752
Net profit	349	148	497
Employees	162	169	331

Growth in Savings continues, Insurance growth paused by changes in distribution

Investor Relations contacts

Lars Aa Løddesøl Kjetil R. Krøkje Group CFO Head of IR

lars.loddesol@storebrand.no kjetil.r.krokje@storebrand.no +47 9348 0151 +47 9341 2155

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.