Storebrand ASA — Investor Presentation 2016

Oct 26, 2016

Storebrand 3Q 2016

26 Oct 2016

Odd Arild Grefstad – CEO Lars Aa. Løddesøl – CFO

Highlights 3Q 2016

² Change from 3Q 2015 to 3Q 2016.

2

³ Growth figures are from YTD 2015 to YTD 2016.

⁴ Including transitional rules. Solvency II ratio excluding transitional rules is 131%.

The Storebrand investor story

Continued growth in 2 Savings and Insurance
Capital-light and profitable growth
 Market leading asset gatherer with strong Insurance offering
Continued retail growth with low  capital requirements

Growth in Savings and Insurance continues

Innovating throughout the customer journey

Growth in Savings and Insurance

Medical video consultations on mobile devices launched

We move holistic health management a step further by providing integrated communications with health care professionals

Fee and administration income shifts from Guaranteed to Savings

Operating profit

Fee- and admin income 12 months rolling Savings and Guaranteed pension (NOK mill.)

Key figures

¹Result before amortisation, write-downs and longevity provisions

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

³ Customer buffers in Benco of NOK 1.0 bn not included

⁴Solidity capital/customer buffers does not include provisions for future longevity reservations

SII position Storebrand Group

Key takeaways

• Asset return and results build solvency
• Reinsurance on lapse risks
• Model change reduces transition rule
• Sub debt issued 4Q not included in ratio

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.

Solvency II movement from Q2 2016 to Q3 2016

Storebrand Group

Profit
	3Q		01.01 -	30.09	Full year
NOK million	2016	2015	2016	2015	2015
Fee and administration income	1 040	1 046	3 097	3 157	4 317
Insurance result	238	198	694	677	820
Operational cost	-797	-755	-2 299	-2 357	-3 268
Operating profit	481	489	1 492	1 477	1 869
Financial items and risk result life	209	-217	542	10	-107
Result before amortisation and longevity	690	272	2 034	1 487	1 762
Provision longevity	-	-96	-	-402	-1 764
Amortisation and write-downs of intangible assets	-114	-108	-344	-316	-437
Result before tax	576	67	1 690	768	-438
Tax	-135	-3	-224	-187	1 821
Sold/liquidated business	-	-0	-	-0	-0
Profit after tax	441	64	1 466	581	1 382

Storebrand Group

	3Q		01.01 -	30.09	Full year
NOK million	2016	2015	2016	2015	2015
Fee and administration income	1 040	1 046	3 097	3 157	4 317
Insurance result	238	198	694	677	820
Operational cost	-797	-755	-2 299	-2 357	-3 268
Operating profit	481	489	1 492	1 477	1 869
Financial items and risk result life	209	-217	542	10	-107
Result before amortisation and longevity	690	272	2 034	1 487	1 762

	3Q		01.01 -	Full year
NOK million	2016	2015	2016	2015	2015
Savings - non-guaranteed	246	264	766	720	1 020
Insurance	163	120	438	471	488
Guaranteed pension	126	20	378	439	329
Other result	155	-133	453	-143	-75
Result before amortisation and longevity	690	272	2 034	1 487	1 762

Savings (non-guaranteed) - continued top line growth

Profit
	3Q		01.01 - 30.09	Full year
NOK million	2016	2015	2016	2015	2015
Fee and administration income	681	646	2 014	1 902	2 662
Operational cost	-431	-381	-1 250	-1 183	-1 638
Operating profit	249	266	763	719	1 025
Financial items and risk result life	-3	-2	2	1	-4
Result before amortisation	246	264	766	720	1 020

Profit per product line

	3Q		01.01 -	Full year
NOK million	2016	2015	2016	2015	2015
Unit linked Norway	56	71	178	163	201
Unit linked Sweden	43	41	120	113	139
Asset Management segment	111	116	351	306	485
Retail banking	35	36	117	137	195
Result before amortisation	246	264	766	720	1 020

Savings (non-guaranteed) - strong growth in retail lending

14

Insurance - result growth

Profit
	3Q		01.01 -	Full year
NOK million	2016	2015	2016	2015	2015
Insurance premiums f.o.a.	962	894	2 871	2 708	3 642
Claims f.o.a.	-724	-697	-2 177	-2 031	-2 822
Operational cost	-150	-122	-429	-387	-538
Operating profit	89	76	265	290	282
Financial result	74	45	173	181	206
Result before amortisation	163	120	438	471	488

Profit per product line

	3Q		01.01 -	30.09	Full year
NOK million	2016	2015	2016	2015	2015
P&C & Individual life	65	62	251	255	327
Health & Group life	41	41	96	148	165
Pension related disability insurance Nordic	57	18	91	69	-3
Result before amortisation	163	120	438	471	488

Insurance - combined ratio on target level

Comments Combined ratio and results

• Combined Ratio 91%
• On-going shift to more cost-effective distribution gives temporary lower growth

Comments premiums and growth¹

• 5% premium growth within P&C & Individual life
• 2% premium growth within Health & Group life
• 11% premium growth in Pension related disability Nordic

¹ Growth figures show development from 3Q 2015 to 3Q 2016.

Guaranteed pension - reduced income according to plan

Profit
	3Q		01.01 -	30.09	Full year
NOK million	2016	2015	2016	2015	2015
Fee and administration income	403	428	1 190	1 317	1 777
Insurance result	-	-	-	-	-
Operational cost	-257	-266	-721	-824	-1 156
Operating profit	146	162	469	493	621
Financial items and risk result life	-20	-142	-91	-55	-292
Result before amortisation and longevity	126	20	378	439	329
Provision longevity	-	-96	-	-402	-1 764

Profit per product line

	3Q		01.01 -	Full year
NOK million	2016	2015	2016	2015	2015
Defined benefit (fee based)	82	106	278	388	512
Paid-up policies, Norway	9	29	33	28	1
Individual life and pension, Norway	2	2	6	5	45
Guaranteed products, Sweden	32	-117	60	18	-230
Result before amortisation and longevity	126	20	378	439	329

Guaranteed pension - conversion to DC schemes continues

	2016
NOK million	3Q	2Q	Change
Market value adjustment reserve	4 220	5 244	-1 025
Excess value of bonds at amortised cost	11 562	12 420	-858
Additional statutory reserve	5 190	5 198	-8
Unallocated results	3 546	1 481	2 065
Conditional bonuses Sweden	5 258	5 300	-43
Total	32 816	33 142	-326

Guaranteed reserves in % of total reserves Buffer capital ¹ As companies convert to DC schemes, the migration from DB to lower-margin paid up policies continues to reduce fee income in Guaranteed pensions Strong returns drive overall AuM development Comments Q2 2016 Q3 2016 67,5% Q2 2015 68.8% 66,5% Q1 2016 68,0% Q4 2015 67,6% Q3 2015 68.9%

Other¹

		01.01 -		Full year
2016	2015	2016	2015	2015
31	31	102	111	129
-	-	-	-	-
-35	-46	-107	-137	-188
-3	-15	-5	-26	-59
159	-118	457	-117	-16
155	-133	453	-143	-75
		3Q		30.09

Profit per product line

	3Q		01.01 -	Full year
NOK million	2016	2015	2016	2015	2015
Corporate Banking	35	-34	71	-51	-84
BenCo	7	33	43	60	34
Holding company costs and net financial results in company portfolios	114	-131	339	-152	-26
Result before amortisation	155	-133	453	-143	-75

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

Outlook

Operations

• On track to deliver capital-efficient growth and cost reductions
• Balance sheet shift continues, 54% of AuM non-guaranteed

Market factors

§

• Low interest rate environment
• Continued individualisation of pensions

Regulatory

• New 'finance payroll tax' proposed in Norway
• Still no new private pension saving incentives

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.

Investor Relations contacts

Lars Aa Løddesøl Sigbjørn Birkeland Kjetil R. Krøkje Group CFO Finance Director Head of IR

lars.loddesol@storebrand.no sigbjorn.birkeland@storebrand.no kjetil.r.krokje@storebrand.no

+47 9348 0151 +47 9348 0893 +47 9341 2155