Storebrand ASA

Earnings Release • Jul 14, 2022

Storebrand Q2 2022

14 July 2022

Odd Arild Grefstad – CEO Lars Aa. Løddesøl – CFO

Resilient business model in a historic interest rate and inflationary environment

Increase in NOK 10y swap rate H1 2022

Increase in SEK 10y swap rate H1 2022

2 ¹Consumer price index (CPI), June 2022. Source: SSB Norway. ² Consumer price index (CPI), May 2022. Source: SCB Sweden.

Highlights Q2 2022

Strengthened solvency position and stable operating result in a year with turbulent financial markets

The acquisitions of Danica strengthens our position in Norwegian occupational pensions and retail insurance

Impact on Storebrand Group
∼20% premium and AUM growth ∼8% premium growth in retail insurance Norwegian UL pensions
New distribution partnership Significant capital and cost synergies
Key figures Danica
NOK 151m Pre-tax profit 2021	NOK 1,134m Shareholder's equity	~250k #individual customers		NOK 31bn Total assets	~96 FTEs

Pursuing our Group Strategy: Leading The Way In Sustainable Value Creation to be a leading Sustainable Nordic Savings and Insurance Group

Volume growth in Q2 2022 paused by weak financial markets

Unit Linked

• Premiums stable at NOK 5.3bn in the quarter.
• Net inflow in the quarter 1.6bn.
• AUM reduced by 6% in the quarter from asset returns and FX.
• Stable fee margins.

New legislation increases mandatory saving in Norway

▪ Savings expected to increase with ~NOK 800m annually.

Asset management

• Net flows of NOK 9bn YTD, negative NOK 2bn in the quarter due to dividend and acquisition payments from company portfolios.
• Positive flow in higher margin products.
• SPP Fonder rebranded to Storebrand Fonder Swedish market leader in net inflows YTD² with SEK 5.1bn.
• AUM reduced by 3% in the quarter from asset returns and FX.

Insurance (retail)

▪ 15% growth in P&C & Individual Life with 85% combined ratio.

Bank

• 15% growth in lending volume.
• 17% growth in fee income.

Key Figures

Strengthened solvency position, stable operating result and strong buffer capital levels

Customer buffers development³ SII Own funds⁴ and SCR 184% SII Own Funds SII Capital Requirement SII ratio

¹ Result before amortisation and tax. ² Earnings per share after tax adjusted for amortisation of intangible assets. ³ Excluding excess values of HTM bonds.

7

BNNOK

195%

Solvency movement from Q1 to Q2 2022 Storebrand Group

Estimated solvency sensitivities

Storebrand Group

Key takeaways

• Increased volatility adjustment and reduced symmetrical adjustment lifts the solvency position
• Closing of Danica transaction expected to reduce solvency ratio ∼5pp in Q3 2022

Storebrand Group

Strong and resilient operating profit, financial result affected by markets

Profit¹

	Q 2		YTD
NOK million	2022	2021	2022	2021
Fee and administration income	1 456	1 473	2 914	2 954
Insurance result	430	332	795	552
Operational cost	-1 181	-1 119	-2 326	-2 176
Operating profit	705	686	1 383	1 331
Financial items and risk result life	-129	667	-178	893
Profit before amortisation	577	1 353	1 204	2 223
Amortisation and write-downs of intangible assets	-138	-129	-276	-254
Profit before tax	439	1 225	928	1 970
Tax	-26	-52	372	-354
Profit after tax	413	1 173	1 300	1 615

Storebrand Group

Profit by line of business

Group

Profit¹

	Q 2		YTD
NOK million	2022	2021	2022	2021
Fee and administration income	1 456	1 473	2 914	2 954
Insurance result	430	332	795	552
Operational cost	-1 181	-1 119	-2 326	-2 176
Operating profit	705	686	1 383	1 331
Financial items and risk result life	-129	667	-178	893
Profit before amortisation	577	1 353	1 204	2 223

Profit per line of business

	Q 2		YTD
NOK million	2022	2021	2022	2021
Savings - non-guaranteed	392	435	796	963
Insurance	169	145	278	201
Guaranteed pension	254	310	485	631
Other profit	-238	464	-354	428
Profit before amortisation	577	1 353	1 204	2 223

Savings (non-guaranteed)

AuM affected by financial markets, underlying growth and margins according to plan

Profit

	Q 2		YTD
NOK million	2022	2021	2022	2021
Fee and administration income	1 130	1 129	2 266	2 285
Operational cost	-718	-703	-1 420	-1 373
Operating profit	412	427	846	911
Financial items and risk result life	-20	8	-50	51
Profit before amortisation	392	435	796	963

Profit per product line

	Q 2		YTD
NOK million	2022	2021	2022	2021
Unit linked Norway	83	129	200	274
Unit linked Sweden	79	121	173	281
Asset management	166	132	314	282
Retail banking	64	53	109	126
Profit before amortisation	392	435	796	963

Savings (non-guaranteed) Key figures

Assets under management

Movement in asset under management YTD¹

Insurance

Strong growth, profitability according to plan

Profit

	Q 2		YTD
NOK million	2022	2021	2022	2021
f Insurance premiums .o.a.	1 449	1 279	2 846	2 473
Claims f .o.a.	-1 019	-946	-2 051	-1 920
Operational cost	-260	-214	-510	-416
Operating profit	170	119	284	137
Financial result	-1	27	-7	64
Profit before amortisation	169	145	278	201

Profit per product line

	Q 2		YTD
NOK million	2022	2021	2022	2021
P&C & Individual life	121	110	192	172
& Group life Health	14	-7	8	4
Pension related disability insurance Nordic	34	42	78	26
Profit before amortisation	169	145	278	201

Insurance Key figures

Key Takeaways Combined Ratio and Results

• 88% overall combined ratio (target 90-92%)
• Improved claims ratio

Portfolio premiums Key Takeaways Premiums and Growth¹

• 14% overall portfolio premium growth
• 15% growth in P&C & Individual Life
• Growth due to both price increases and new sales

Guaranteed pension

Strong buffers and proven risk management shield shareholders in turbulent markets

Profit

	Q 2		YTD
NOK million	2022	2021	2022	2021
Fee and administration income	395	407	786	790
Operational cost	-206	-227	-409	-424
Operating profit	189	180	377	366
Risk result life & pensions	54	21	135	54
profit Net sharing	11	108	-28	212
Profit before amortisation	254	310	485	631

Profit per product line

	Q 2		YTD
NOK million	2022	2021	2022	2021
Defined benefit (private & public sector) Norway ,	84	36	152	34
Paid-up policies Norway ,	94	122	216	215
life Individual and pension Norway ,	5	11	8	20
Guaranteed products Sweden ,	70	142	108	362
Profit before amortisation	254	310	485	631

Guaranteed pension

Key figures

17

NOK million	Q2 2022	Q1 2022	Change
reserve** Market value adjustment	2 027	3 938	- 1 911
Excess value of bonds at amortised cost	-9 613	-4 781	- 4 832
Additional statutory reserve	10 470	11 745	- 1 275
Conditional bonuses SPP	12 006	12 804	- 798
Total	14 891	23 706	- 8 816

• Continued run-off of guaranteed reserves.
• Temporary increase in guaranteed reserves as % of total due to fall in Unit Linked reserves under turbulent financial markets.
• Higher interest rates give attractive reinvestment levels.
• Customers buffers reduced due to rising interest rates and market turbulence.

Buffer capital* Guaranteed reserves in % of total reserves

* The term Buffer capital in this table is not consistent with the definition of buffer capital made in the IFRS accounting. ** Includes Public Occupational Pensions buffer fund.

Other¹ Financial result affected by markets

Profit

	Q 2		YTD
NOK million	2022	2021	2022	2021
Fee and administration income	4	4	9	7
Operational cost	-70	-43	-134	-90
Operating profit	-66	-39	-125	-83
life Financial items and risk result	-172	503	-230	511
Profit before amortisation	-238	464	-354	428

Q&A

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Appendix

Asset allocation – Guaranteed products

Equities Real estate Bonds & Money market Loans Bonds at amortised cost 30.06.2021 11% 10% 11% 14% 54% 30.09.2021 11% 11% 10% 13% 55% 31.12.2021 10% 11% 13% 14% 52% 31.03.2022 9% 12% 15% 15% 50% 30.06.2022 6% 12% 14% 14% 54% 0% 10% 20% 30% 40% 50% 60%

Danica Financials

NOK million	Q1 2022	FY 2021
Fee and administration income	84	339
Insurance result	20	88
Operational cost	-76	-294
Operating profit	28	133
Financial items and risk result life	-4	9
Non-recurring items	5	9
Profit before amortisation	30	151
Amortisation and write-downs of intangible assets	-	-
Profit before tax	30	151
Tax	-7	-38
Profit after tax	22	114

Leading the way in sustainable value creation

Investor Relations contacts

Lars Aa Løddesøl Group CFO

lars.loddesol@storebrand.no +47 9348 0151

Kjetil R. Krøkje Group Head of Finance & Strategy

Daniel Sundahl Group Head of IR & Rating

kjetil.r.krokje@storebrand.no +47 9341 2155

daniel.sundahl@storebrand.no +47 9136 1899

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.