Storebrand ASA — Interim / Quarterly Report 2017

Jul 13, 2017

Storebrand 2Q 2017

13 Jul 2017

Odd Arild Grefstad – CEO Lars Aa. Løddesøl – CFO

Storebrand celebrates 250 years in 2017

Highlights 2Q 2017

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

Solvency movement from Q1 2017 to Q2 2017

¹Treatment of swap in stresses (+), Treatment of new paid-up policies (-), Cost allocation (-), Reduced equity stress (+)

² Operating earnings refers to increased own funds from operations (+) and expected normalised return (+), and implementation of investment strategy (+)

³ Increased interest rates (+), Investments return above normal risk premiums (+), Changes in liabilities (-), Reduced Volatility Adjustment (-)

SII position Storebrand Group

¹The estimated Economic 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.

Cost Target on Track

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

• Changes in distribution and new disability product temporarily dampens growth
• New product launches and partnerships to boost growth

Sustainability focused Asset Manager with scalable cost advantage

Cost income (%) global asset managers 2016

8

Source: PWC, Asset Management 2020: Taking stock report (June 2017) in inside Allianz series 4 (June 2017)

Storebrand Asset Management Growing share of external assets, Sweden case in point

¹ Share of revenues in Storebrand Asset Management stemming from Sweden (all asset classes).

* Committed external capital accumulated

Finally! Pillar III Savings introduced in Norway with sales start 1 November

Innovating the customer journey

Key figures

¹Result before amortisation, write-downs.

Q2 2016

12

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

Q3 2016 Q4 2016

³ Customer buffers in Benco not included. In addition there are unallocated investment results of NOK 3.7 billion in Norwegian guaranteed that will be allocated at year end. ⁴Solidity capital/customer buffers does not include provisions for future longevity reserves.

Q1 2017

Q2 2017

Storebrand Group

	2Q			01.01-30.06	Full year
NOK million	2017	2016	2017	2016	2016
Fee and administration income	1 079	1 005	2 098	2 058	4 235
Insurance result	290	237	565	455	945
Operational cost2	-805	-7072	-1 636	-1 519	-3 191
Operating profit	565	535	1 028	994	1 989
Financial items and risk result life	313	254	521	331	924
Result before amortisation	878	788	1 549	1 325	2 913
Amortisation and write-downs of intangible assets	-100	-104	-198	-210	-406
Result before tax	778	684	1351	1114	2 506
Tax	-29	31	-138	-89	-364
Profit after tax	749	715	1 213	1 025	2 143

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

²Cost 2Q 2016 affected by positive effect from change in own pension scheme. Adjusted for this effect costs are nominally flat Q-O-Q.

Storebrand Group

		2Q		01.01-30.06	Full year
NOK million	2017	2016	2017	2016	2016
Fee and administration income	1 079	1 005	2 098	2 058	4 235
Insurance result	290	237	565	455	945
Operational cost	-805	-707	-1 636	-1 519	-3 191
Operating profit	565	535	1 028	994	1 989
Financial items and risk result life	313	254	521	331	924
Profit before amortisation	878	788	1 549	1 325	2 913

Profit per line of business

		2Q		01.01-30.06
NOK million	2017	2016	2017	2016	2016
Savings - non-guaranteed	319	234	558	506	1 063
Insurance	184	152	355	272	575
Guaranteed pension	290	237	491	252	870
Other profit	85	166	144	295	405
Profit before amortisation	878	788	1 549	1 325	2 913

Savings (non-guaranteed) - continued growth

		2Q		01.01-30.06	Full year
NOK million	2017	2016	2017	2016	2016
Fee and administration income	747	636	1447	1333	2 758
Operational cost	-438	-414	-897	-833	-1 700
Operating profit	309	222	551	500	1 058
Financial items and risk result life	10	12	8	6	5
Profit before amortisation	319	234	558	506	1 063

Profit per product line

	2Q		01.01-30.06		Full year
NOK million	2017	2016	2017	2016	2016
Unit linked Norway	69	38	138	122	242
Unit linked Sweden	83	49	129	77	175
Asset Management segment	123	106	221	233	518
Retail banking	45	41	71	75	127
Profit before amortisation	319	234	558	506	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.

16

Insurance

		2Q	01.01-30.06		Full year
NOK million	2017	2016	2017	2016	2016
Insurance premiums f.o.a.	971	962	1911	1909	3 828
Claims f.o.a.	-681	-726	-1346	-1453	-2 883
Operational cost	-171	-137	-344	-283	-602
Operating profit	119	99	222	173	342
Financial result	65	52	133	99	233
Profit before amortisation	184	152	355	272	575

Profit per product line

2Q		01.01-30.06		Full year
2017	2016	2017	2016	2016
70	78	167	182	293
81	16	146	56	149
32	58	42	34	133
184	152	355	272	575

Insurance - Lagging growth, strong combined ratio

Guaranteed pension - strong quarter but long term run off

	2Q			01.01-30.06	Full year
NOK million	2017	2016	2017	2016	2016
Fee and administration income	369	383	727	787	1 566
Operational cost	-216	-192	-437	-464	-981
Operating profit	153	191	290	323	585
Risk result life & pensions	6	-10	40	-6	-37
Net profit sharing and loan losses	131	57	161	-65	322
Profit before amortisation	290	237	491	252	870

Profit per product line

	2Q		01.01-30.06	Full year
NOK million	2017	2016	2017	2016	2016
Defined benefit (fee based)	71	107	139	196	340
Paid-up policies, Norway	29	30	56	24	46
Individual life and pension, Norway	15	2	17	4	147
Guaranteed products, Sweden	175	98	280	28	336
Profit before amortisation	290	237	491	252	870

Guaranteed pension - reserves in decline and robust buffer situation

Other¹

		2Q		01.01-30.06
NOK million	2017	2016	2017	2016	2016
Fee and administration income	23	53	44	70	145
Operational cost	-39	-30	-79	-72	-141
Operating profit	-16	23	-34	-2	4
Financial items and risk result life	102	143	179	298	401
Profit before amortisation	85	166	145	295	405

Profit per product line

	2Q		01.01-30.06		Full year
NOK million	2017	2016	2017	2016	2016
Corporate Banking	4	48	17	35	76
BenCo	5	6	10	36	44
Holding company costs and net financial results in company portfolios	772	111	117	224	285
Profit before amortisation	85	166	144	305	405

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

² Includes NOK 88m from sale of Formuesforvaltning AS.

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.

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.