Storebrand ASA — Interim / Quarterly Report 2020

Feb 10, 2021

Storebrand Q4 2020

10 February 2021

Odd Arild Grefstad – CEO Lars Aa. Løddesøl – CFO

Highlights Q4 2020

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3 Including transitional rules. ⁴ Corporate Knights Global 100, 2021 ranking. ⁵ Subject to AGM approval 8 April 2021

Group Strategy Sustainable Nordic Savings and Insurance Group

Strong growth

Successful sales to external asset management clients drive asset growth

Storebrand delivers strong returns in its investment offering

Norwegian Defined Contribution Pensions: Average return last 5 years compared to peers

Annualised return (%) for the balanced pension savings profile

2020 return for selected active funds in the Storebrand Group

Full year 2020 return (%)

Storebrand has defined intermediate targets towards net zero emissions in 2050, starting with 2025 targets

-32%	reduction in scope 1-2 GHG emissions of Storebrand's
	total equity, corporate bond and real estate investments by
20251

Solution targets 15% of our total investments to be invested in solution companies² by 2025.

Active ownership Special emphasis will be placed on the 20 largest emitters

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Customer engagement

Asset class targets

Make it easy for clients to understand and contribute to a low carbon future

Key figures

Customer buffers development³ SII Own funds⁴ and SCR

³ Excluding customer buffers Euroben and Excess values of HTM bonds. ⁴ Own Funds including transitional capital.

Movement from Q3 2020 to Q4 2020

Storebrand ASA, with transitional rules

Movement from Q4 2019 to Q4 2020

Storebrand ASA, with transitional rules

Solvency II position and sensitivities Storebrand ASA

• Tighter spreads, higher interest rates and increased equity prices boost the solvency position
• Regulatory assumptions dampen the position

Storebrand Group

	Q 4		Full year
NOK million	2020	2019	2020	2019
Fee and administration income	1 674	1 561	676 5	308 5
Insurance result	338	223	825	1 005
Operational cost	-1 086	-1 077	-4 068	-4 015
Operating profit	926	707	2 433	2 298
Financial items and risk result life	298	319	278	739
Profit before amortisation	1 225	1 026	2 711	3 037
Amortisation and write-downs of intangible assets	-125	-117	-492	-444
Profit before tax	1 099	909	2 219	2 593
Tax	-227	-234	136	-511
Profit after tax	872	675	2 355	2 082

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Storebrand Group

	Q 4		Full year
NOK million	2020	2019	2020	2019
Fee and administration income	1 674	1 561	5 676	5 308
Insurance result	338	223	825	1 005
Operational cost	-1 086	-1 077	-4 068	-4 015
Operating profit	926	707	2 433	2 298
Financial items and risk result life	298	319	278	739
Profit before amortisation	1 225	1 026	2 711	3 037

Profit per line of business

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	Q 4		Full year
NOK million	2020	2019	2020	2019
Savings - non-guaranteed	664	547	1 730	1 364
Insurance	175	70	204	439
Guaranteed pension	387	332	775	1 029
Other profit	-2	77	1	205
Profit before amortisation	1 225	1 026	2 711	3 037

Group

Savings (non-guaranteed)

	Q 4		Full year
NOK million	2020	2019	2020	2019
Fee and administration income	1 336	1 233	392 4	3 996
Operational cost	-704	-692	-2 611	-2 621
Operating profit	633	541	1 781	1 375
Financial items and risk result life	31	6	-51	-11
Profit before amortisation	664	547	1 730	1 364

Profit per product line

	Q 4		Full year
NOK million	2020	2019	2020	2019
Unit linked Norway	105	57	413	275
Unit linked Sweden	107	89	369	291
Asset management	384	329	757	526
Retail banking	68	72	191	272
Profit before amortisation	664	547	1 730	1 364

Savings (non-guaranteed)

Comments¹

• 13% growth in Unit Linked premiums.
• 22% growth in Unit Linked reserves.
• 16% growth in overall assets under management
• Lending growth increasing and net interest margin improving in the

Assets under management

Retail bank balance and net interest margin (%)

Insurance

Profit
	Q 4		Full year
NOK million	2020	2019	2020	2019
f Insurance premiums .o.a.	1 136	1 014	4 331	3 909
Claims f .o.a.	-799	-792	-3 506	-2 904
Operational cost	-194	-177	-712	-648
Operating profit	143	45	113	357
Financial result	32	25	91	83
Profit before amortisation	175	70	204	439

Profit per product line

		Q 4		Full year
NOK million	2020	2019	2020	2019
P&C & Individual life	108	87	263	335
Health & Group life	24	-34	-171	-41
Pension related disability insurance Nordic	43	16	112	145
Profit before amortisation	175	70	204	439

Insurance

Comments Combined ratio and results

• 12% growth in premiums f.o.a.
• 87% combined ratio, better than target (90-92%).
• Strong cost control maintained with stable cost ratio at 17%. Cost increase from newly hired FTEs related to Insr portfolio acquisition.

• Reserve strengthening in Q1 2020 is satisfactory.

• 22% growth in P&C & Individual life portfolio premium.

• 15% growth in Health & Group life portfolio premium.
• 17% growth in Disability insurance portfolio premium.
• Growth is attributed to both underlying volume growth and price increases.
• Insr. portfolios to be gradually transferred to Storebrand.

Guaranteed pension

	Q 4		Full year
NOK million	2020	2019	2020	2019
Fee and administration income	375	368	1 455	1 475
Operational cost	-214	-225	-842	-819
Operating profit	161	143	614	657
life & Risk result pensions	15	71	17	215
Net profit sharing	211	118	144	157
Profit before amortisation	387	332	775	1 029

Profit per product line

	Q 4		Full year
NOK million	2020	2019	2020	2019
Defined benefit (fee based)	8	63	2	287
Paid-up policies Norway ,	129	91	401	409
Individual life and pension Norway ,	25	11	46	21
Guaranteed Sweden products ,	224	167	327	312
Profit before amortisation	387	332	775	1 029

Guaranteed pension

NOK million	Q4 2020	Q3 2020	Change
Market value adjustment reserve	7 170	8 092	- 922
Excess value of bonds at amortised cost	8 832	10 476	- 1 644
Additional statutory reserve	11 380	9 689	1 690 +
Conditional bonuses Sweden	9 504	8 431	1 073 +
Total	36 886	36 689	197 +

• Profit sharing in both Norwegian and Swedish products
• Flat development in overall level of reserves in the quarter
• Increased buffer capital level to >11% in both Norway and Sweden
• Guaranteed reserves as a share of total reserves continue to decline
• NOK 9bn of mandates won for Public Occupational Pensions in 2020, to be transferred to Storebrand in 2021

Buffer capital Guaranteed reserves in % of total reserves

Other¹

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Profit
	Q 4		Full year
NOK million	2020	2019	2020	2019
Fee and administration income	23	13	65	51
Operational cost	-34	-35	-139	-143
Operating profit	-11	-22	-75	-91
Financial items and risk result life	9	99	76	296
Profit before amortisation	-2	77	1	205

Profit per product line

	Q 4		Full year
NOK million	2020	2019	2020	2019
Euroben	8	26	29	33
Holding and financial results in costs net company portfolios company	-10	52	-28	173
Profit before amortisation	-2	77	1	205

Q&A

Please follow the operator's instructions to ask questions in the conference call

Group CFO

Lars Aa. Løddesøl

Odd Arild Grefstad

Group Head of Strategy & Finance Kjetil R. Krøkje

Head of Investor Relations & Rating

Daniel Sundahl

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.

SPP asset allocation

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

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.