Storebrand ASA — Earnings Release 2020

Jul 15, 2020

STOREBRAND ASA: Results for the 2nd Quarter 2020

STOREBRAND ASA: Results for the 2nd Quarter 2020

Growth in Core Business and Assets under Management, Solvency Affected by low

Interest Rates

· Group profit of NOK 808m in the 2nd quarter, 40% growth y/y

· 23% growth in Unit Linked premiums y/y

· 15% growth in insurance portfolio premiums y/y, Combined Ratio 92%

· Assets under management (AuM) NOK 880 billion, 17% growth y/y

· Solvency II ratio 163% (167% Q2 2019)

- The situation in the Norwegian and Swedish society and markets following the

COVID-19 pandemic has started to normalise after a turbulent first quarter.

Group profit is strong, we experience strong growth in our core business, our

cost control is good, and we have a solid increase in assets under management.

We are particularly pleased to see that our Swedish business is continuing to

capture market shares, says CEO Odd Arild Grefstad.

Growth in Core Business

Storebrand continued to grow its core business in Savings and Insurance.

Gross written premiums in the Insurance segment increased by 15% compared to

same period last year.

Premiums from Unit linked increased by 23% compared to second quarter last year,

to NOK 5,1 billion. Storebrand succeeds well in the Norwegian and Swedish

markets for occupational pensions. Assets under management (AuM) increased by

17% from same period last year and is now NOK 880 billion.

In Sweden, strong growth in sales, positive net transfers and portfolio

transfers led to NOK 6.7 billion net flow in the first half of 2020. SPP is the

fastest growing provider of occupational pensions in Sweden (excluding unionised

pension schemes), with a market share of 14%. All SPP funds are fossil free,

driven partly by strong customer demand.

Storebrand's position as a leading player in the field of sustainable

investments was recognised by our customers this quarter. Storebrand was ranked

as number one in performance of sustainable investments by Prospera, an annual

survey among institutional investors.

Strong Cost Control

The Group's operational costs for the quarter were NOK 975 million (compared to

NOK 1,030m in second quarter 2019). Storebrand has a strong cost discipline, in

line with the Group's targeted cost level. Storebrand maintains the target of

flat nominal costs in 2020 compared to 2018.

Solvency Affected by Lower Interest Rates

The solvency margin was 163% at the end of the second quarter. The reduction in

the quarter is due to historical low interest rate levels, reduced regulatory

volatility adjustments, as well as a higher allocation to bonds and equites.

The Board of Storebrand ASA expects to pay normal dividends for 2020.

- The COVID-19 situation has led to record low interest rates and volatile

financial markets. Customer buffer capital is at nearly 10% in both Norway and

Sweden and we have seen the volatility in the markets as an opportunity to

increase expected returns and increase our share of bonds with amortised cost.

However, the solvency margin is still well within our target range of 150-180%,

says CEO Odd Arild Grefstad.

Capital Markets Day - Save the Date

Storebrand plans to host a capital markets day 10 December 2020. More

information and a formal invitation will follow.

Key Figures in the Quarter:

(Q2-2019 in brackets)

· Solvency ratio 163% (167%)

· Earnings per share, adjusted for amortisation NOK 1.23 (NOK 1.21)

· Equity NOK 34,396m (NOK 32,242 m)

· Assets under management NOK 880bn (NOK 752bn)

Activities Related to the 2nd Quarter 2020

07:30 CEST: Release of stock exchange notification. Press release, quarterly

report and analyst presentation will be available at www.storebrand.no/ir.

10.00 CEST: Live press and analyst conference in English in a combined webcast

and conference call. The presentation will be available on demand afterwards.

Participants who would like to ask questions at the end of the presentation must

dial-in to the conference call, or alternatively submit their written questions

in the provided form in the webcast. We kindly ask media with separate interview

requests to e-mail SVP Communications, Margrethe Assev, in advance. Reporters

will be contacted after the conference.

To join the call, please click the link below to pre-register. Once registered,

you'll receive dial in number(s) and your conference and user PINs ready for the

call.

Link to webcast (https://events.webcast.no/storebrand-asa/quarterly

-reports/2gCp7Z8XK23DvIDH7ciM)

Link to conference call

registration (https://event.loopup.com/SelfRegistration/registration.aspx?booking

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-9efec2c17aac)

For further inquiries, please contact:

Group Head of Strategy, Finance and M&A Kjetil Ramberg Krøkje:

kjetil.r.krokje@storebrand.no or (+47) 934 12 155

Head of Investor Relations and Rating Daniel Sundahl:

daniel.sundahl@storebrand.no or (+47) 913 61 899

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, so that each person receives a better pension in a more

sustainable world. 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 880 bn and is one of the largest asset managers

in the Nordics. We work hard to fulfil our mission: A future to look forward to.

Storebrand (STB) is listed on Oslo Stock Exchange. Visit us at www.storebrand.no

and follow us on Twitter: @Storebrand_no This announcement is subject to

information pursuant to the Securities Trading Act § 5-12.