Storebrand ASA — Earnings Release 2020

Apr 30, 2020

STOREBRAND ASA: Results for the 1st Quarter 2020

STOREBRAND ASA: Results for the 1st Quarter 2020

Growth in core business, tax effects and result effects from COVID-19 and

economic turmoil

· Group profit of NOK -334m in the 1st quarter, profit after tax of NOK 264m

· Solvency II ratio 172%

· 19% growth in Unit Linked premiums y/y

· 11% growth in group fee income (7% currency adjusted)

- The measures taken across the globe against the Covid-19 pandemic have been

followed by unprecedented consequences for individuals, business and society.

Storebrand has been fully operational with close to normal productivity, with a

strong focus on supporting customers. We have helped a record number of

customers with their travel insurance claims, refinanced mortgages, adjusted

amortisation schedules, and provided extensive business and investment advice,

says CEO Odd Arild Grefstad.

- The Storebrand Group is financially solid. We have taken preventive measures

and have plans for various economic scenarios. The liquidity in the Group is

robust and there are no refinancing needs in 2020. At the same time, we continue

to grow our core operations. Unit Linked premiums increased by 19% and we

actively look for new opportunities in the form of partnerships, ecosystems and

acquisitions, says CEO Odd Arild Grefstad.

Growth in core business

Storebrand continued to grow its core business. Premiums from Unit Linked

increased by 19% to NOK 5,046 million compared to last year. Storebrand succeeds

well in both the Norwegian and Swedish markets for occupational pensions. Assets

under management was NOK 829 billion, an increase of 14% from last year. The

market turmoil in the quarter is offset by currency effects and strong growth

from the core business. Gross written premiums in the Insurance segment

increased 13% compared to last year.

Group profit affected by insurance reserve strengthening, market turmoil and

positive tax effects

As a result of growth in the core business, group fee income grew by 7% currency

adjusted (11% unadjusted) in the quarter. As announced in a separate stock

exchange release 24 April, Storebrand strengthened the reserves for all

insurance products with disability coverages in the quarter. Group operating

profit was NOK 254 million for the first quarter.

NAV, the Norwegian Labour and Welfare Administration, had as of 22 April 2020

registered 359,197 applications for welfare benefits from workers affected by

temporary layoffs. The insurance results are negatively affected by an increase

in observed and expected jobless claims in Norway. Storebrand has conducted a

forward-looking model review, based on the unfolding of the current economic

situation. The operating profit from the Insurance segment was minus NOK 246

million, corresponding to a combined ratio of 124%.

Financial results are affected by the market turmoil. The Financial results in

the group accounts was minus NOK 588 million for the quarter. The negative

results are primarily related to the company portfolios. The return is

negatively impacted by mark-to-market losses caused mainly by credit spread

widening.  Return in Storebrand Livsforsikring AS' company portfolio was minus

1.25% in the quarter.

A tax income of NOK 717 million booked in the quarter. This a result of new

information and interpretation of the transition rules of 2018 as well as tax

deductible losses from currency hedging of the Swedish subsidiary SPP.

Solvency

The solvency margin was 172% at the end of the 1st quarter 2020. The Solvency

margin without transitional rules was 155%. Lower interest rates, increased

credit spreads and falling equity markets reduced the solvency margin.

Contracyclical measures in the regulatory framework, such as volatility

adjustment and symmetrical equity adjustment combined with risk management

reduced the negative impact on the solvency margin. The transition rules

mitigate the effects of the interest rate movement.

Dividend and Annual General Meeting

The Board of Storebrand ASA has decided to withdraw the proposed dividend for

the financial year of 2019 for the Annual General Meeting.

The Board has recognised the pronounced expectations from the Norwegian Ministry

of Finance, Norwegian FSA and EIOPA to suspend dividends until the great

uncertainty about the economic development has been reduced. The Board maintains

that the company's liquidity, solvency and result prognosis support an ordinary

dividend for 2019. The Board reaffirms its commitment to the dividend policy and

plans an ordinary dividend next year.

The Annual General Meeting will be held on 17 June 2020. To comply with health

and safety advice from the Norwegian Institute of Public Health, Storebrand

encourages shareholders to vote in advance and to participate via webcast.

Questions to the Annual General Meeting can also be submitted in advance.

The Capital Markets Day was originally scheduled for 9 June 2020 in London. The

event will be postponed to Q4 2020.

Key figures in the quarter:

(Q1-2019 in brackets)

·

Solvency ratio 172% (173%)

· Earnings per share, adjusted for amortisation NOK 0.82 (NOK 1.26)

· Equity NOK 34,090m (NOK 33,177m)

· Assets under management NOK 829bn (NOK 729bn)

Activity related to the first 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.

08.30 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, Vibeke Hansen, 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/BySempYBrTqujwyozvjO)

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

SVP Communications, Vibeke Hansen:

vibeke.hansen@storebrand.no or (+47) 990 13 349

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 829 bn and is Norway's largest private asset

manager. 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