250 Years of Risk Management - Steering to capital efficient growth

Transcription

1 50 Years of Risk Management - Steering to capital efficient growth INVESTOR PRESENTATION Q 07 Established in 767

2 Key takeaways A Consistent strategy since 0: Active management of the guaranteed balance sheet and create the new Storebrand through growth within Savings, Insurance and retail bank. B Doubled equity and delivered stable solvency margin above 50%. First dividend payout since 0 and the back book is projected to release capital over time. C Significant cost reductions in the period 0-08 with projected more than NOK 800m in cost savings. D Successful growth platform with occupational pensions as core has strong operational and financial synergies between savings, insurance and bank. Growth with >0% ROE. E Predictable framework for capital management and distribution of increasing dividends.

3 3 Storebrand the world's most sustainable insurer Storebrand was named the world's most sustainable insurance company, and the second most sustainable company in any category, at the World Economic Forum 07. We are proud and humbled. Proud, because sustainability is at the core of our business. Humbled, because we work hard every day to give our.9m pension customers a future to look forward to.

4 Storebrand an Integrated Financial Services Group Life and pensions 40k corporate customers.9m individual customers NOK 408bn of reserves of which approx. 40% Unit Linked Asset management NOK 6bn in AuM of which 6% external assets 00% of investments assessed by sustainability criteria Insurance Health, P&C and group life insurance NOK 4.4bn in portfolio premiums Retail bank Direct retail bank NOK 39bn of net lending 4

5 Storebrand Group Structure (simplified) Legal structure (simplified) Storebrand ASA Storebrand Livsforsikring AS Storebrand Bank ASA Storebrand Asset management AS Storebrand Forsikring AS Reporting structure Storebrand Holding AB Benco Storebrand ASA Savings (nonguaranteed) Insurance Guaranteed pension Other SPP Pension & Försäkring AB 5 Source: Supplementary information Storebrand ASA

6 Our strategy Manage the guaranteed balance sheet Continued growth in Savings and Insurance >50% SII margin Capital-light and profitable growth Cost reductions through automation and outsourcing Market leading asset gatherer with strong Insurance offering Manage for future capital release and increased dividend capacity Continued retail growth with low capital requirements Lower capital requirements and higher quality of earnings 6 We work hard to reach our vision: Recommended by our customers

7 Norway Finland Sweden Denmark Switzerland Poland Germany Netherlands Total OECD Euro area France UK Spain United States Italy Greece Healthy growth in nordic pension market supported by solid macro environment Manage guaranteed balance sheet Growth in Savings and Insurance Norway, NOK bn Sweden, SEK bn 37 3 Unit Linked pension premium growth CAGR 7% CAGR 9% Inverted government net debt ratio as % of GDP Unemployment rates 300% 50% 00% 50% 00% 50% 0% -50% -00% -50% % 0% 8% 6% 4% % Norway Sweden Euro area 7 Norway: Finance Norway statistics - written pension premiums (table b) Unit linked. Sweden: Insurance Sweden statistics - segment Other occupational pensions, includes Unit linked and Depot. OECD Global Interim Economic Outlook March estimated.

8 Interest level stabilised and structurally higher than the euro zone Manage guaranteed balance sheet Growth in Savings and Insurance 4,00 3,50 3,00,50 %,00,50,00 0,50 - ( 0,50) (,00) NOK swap 0y Key policy rate Norway SEK swap 0y Key policy rate Sweden 8

9 Transition Into a Solvency II Based Regime has Required Discipline and Targeted Measures Manage guaranteed balance sheet Growth in Savings and Insurance Transfer out of guaranteed products.. NOK mil 39,886 3,305.. Strong cost reduction.. Operational cost, NOK mil 3... And strengthened reserves for longevity,4 NOK bn -98% 7,79 3,8 3, CAGR -% 4,83 9,955 4,074 0, Sum Operational costs, adjusted for special items.

10 Manage guaranteed balance sheet Growth in Savings and Insurance Storebrand is Well Capitalized for Growth and Dividends Tangible equity near doubled since 00 Strong solvency position NOKbn +96% 3 63% Requirement 00% Q 07 Tangible equity Solvency II margin 0

11 Targeted nominal flat costs 0-08/ NOK 800m cost reduction Manage guaranteed balance sheet Growth in Savings and Insurance Operational cost ,8 3, <3,00 NOKm e Cost reduction completed 0 06 Further Cost Reductions to be Realized by 08 Cost programme target reached (>NOK 400m) Cognizant partnership Transfer of additional ~50FTEs to partner Baltic offshoring 0-06 From 50 to 370 Baltic empl. Cognizant partnership ~60% Market & sales restructuring 05 Reduction of 70 FTEs (NO and SE) 3.7 ~5% ~5% Other key initiatives Closed agent channel New bank platform New IT infrastructure Real cost reduction 0-8 assuming.5% inflation. Operational costs are adjusted for restructuring costs in 0 (NOK 95m).

12 Manage guaranteed balance sheet Growth in Savings and Insurance Cost Target on Track Target to reduce costs nominally on track despite strong business growth New investments in fast growing business Increased investments in new digital growth ~ Financial tax in Norway + NOK 60m in increased costs annually 05 cost base Wage Inflation Financial service tax 08 Cost base without cost measures TARGET 08 cost base 3 General inflation Salary growth and general inflation

13 Manage guaranteed balance sheet Growth in Savings and Insurance Balance sheet shifts to capital efficient products Forecast assets under management (NOKbn) Implications for capital : 54% of AuM non guaranteed ILLUSTRATION 07e: >80% of AuM non guaranteed Guaranteed portfolio has reached Solvency II peak capital consumption. New growth in Savings and Insurance need little new capital 3. Will increase free cash flow and dividend capacity Company capital and Other External AuM Non-guaranteed Life Low capital consumptive Guarantees Medium capital consumptive Guarantees High capital consumptive Guarantees 3 Company capital and Other: Company portfolios, buffer capital and BenCo. External AuM: Non-life AuM in Storebrand Asset Management. Non-guaranteed Life: Unit Linked Norway and Sweden. Low capital consumption Guarantees: Capital-light guarantees Sweden. Medium capital consumption Guarantees: Defined Benefit and medium guaranteed Sweden. High capital consumption Guarantees: Paid-up policies, Individual Norway and capital consumptive guarantees Sweden..

14 Defined Contribution Pension Savings - Leading Position in Norway and Strong Contender in Sweden Manage guaranteed balance sheet Growth in Savings and Insurance Norway market leader defined contribution (private sector) Sweden growing in defined contribution (private sector) 34% 8% 7% 7% 4% 3% % 3% 9% 8% Storebrand DNB Nordea Gjensidige Spareb. LF SEB Avanza Skandia SPP 4 Finance Norway. Gross premiums defined contribution with and without investment choice. 4Q 06 Insurance Sweden. Segment Unit Linked pensions 'Other occupational pensions' (written premiums) 4Q 06

15 Norway: Continued growth in Unit Linked reserves driven by premiums and expected market return Manage guaranteed balance sheet Growth in Savings and Insurance Development Unit Linked reserves Drivers net premiums CAGR 5% 0-6 CAGR ~9% 06-8 Majority of premiums come from existing Unit Linked business Underlying growth through salary inflation and increased savings rates Conversion from guaranteed pension and new sales further boost growth E 08E 09E 5 Net premiums Expected market return Historical development Assumed market return defined by Finance Norway industry standard.

16 Storebrand Asset Management Growing share of external assets, Sweden case in point Manage guaranteed balance sheet Growth in Savings and Insurance Mutual funds growth Increased share of earnings Next step: distribution and scale SEK bn (SPP funds only) Sweden AM, % revenues Strengthen distribution capacity in Sweden +0% % 68% (669) 3% (36) Strong inflows H 7 (SEK bn) Mutual funds Real estate* 37 55% 45% 57 53% 47% 86 50% 50% 50% 50% 54% Sweden AM, % AuM 60% 40% Further leverage scalable Nordic asset mgmt. platform through a full range of building blocks in the Swedish market Real Estate Private debt Q 09 Q4 Q4 3 Q4 5 Q 7 Smart beta Private equity Group internal External Sweden Norway Share of revenues in Storebrand Asset Management stemming from Sweden (all asset classes). * Committed external capital accumulated Low carbon Delphi

17 Manage guaranteed balance sheet Growth in Savings and Insurance Sustainability is at the core of our investments Our approach Product innovation Invest Storebrand Global Pluss The world's first global, fossil free index-near equity fund Launched April 07 Divest Engagement Storebrand Trippel Smart Invests in 00 of the most sustainable companies globally Based on our in-house rating methodology "Best Use of ESG"

18 Storebrand Franklin Amundi Ameriprise Prudential Schroders Invesco Pioner Aberdeen Allianz GI Natixis AXA AM UBS Goldman Sachs Legg Mason Manage guaranteed balance sheet Growth in Savings and Insurance Sustainability focused Asset Manager with scalable cost advantage Cost income (%) global asset managers 06 AUM (EUR bn) 6,5 64,5 64,7 64,8 64,8 66,9 69,6 7,9 7,5 76,4 80,4 8,3 47,7 48, 53, , ,03 6, Source: PWC, Asset Management 00: Taking stock report (June 07) in inside Allianz series 4 (June 07)

19 Finally! Pillar III Savings introduced in Norway with sales start November Manage guaranteed balance sheet Growth in Savings and Insurance Pillar I State pensions Pillar II Corporate Pensions Pillar III Individual Savings Savings for pension Locked until retirement Individuals can save NOK 40,000 annually 3 Income tax deduction of 4% (07) 4 No wealth tax in accumulation period 5 No financial gains tax in accumulation period 6 Taxed as ordinary income at withdrawal (4% 07) 9

20 Cross Selling to.9m Individuals through Corporate Clients and External Partners Manage guaranteed balance sheet Growth in Savings and Insurance 60,000 new employees each year 700,000 employees in 40,000 businesses 60,000 new former employees each year,00,000 retirees and holders of pension certificates Pension savings Asset mgmt. Insurance Retail bank External platforms 0

21 Manage guaranteed balance sheet Growth in Savings and Insurance Front book has strong capital synergies Capital synergies Solvency II capital generative Builds >pp of solvency ratio per year Diversification benefits Capital efficient mortgages on life balance sheet Product areas Pension savings Asset mgmt. Insurance Retail bank

22 Manage guaranteed balance sheet Growth in Savings and Insurance Growth in Savings and Insurance Unit Linked Asset management % % UL reserves (NOKbn) AuM (NOKbn) Insurance Retail bank,979 3,308 3,569 +9% 3,699 4,37 4, % Portfolio premiums (NOKm) Balance (NOKbn) Note: All growth figures are Compound Annual Growth Rates (CAGR).

23 Manage guaranteed balance sheet Growth in Savings and Insurance Growth ambitions 08 Unit Linked Asset mgmt. Insurance Retail bank # market position Norway & Sweden # Norwegian asset manager ~0% Long term growth Double Retail loan book NOK 50m Revenue growth 90-9% Combined Ratio >0% ROE 3 NOK 00m Profit growth 3 Within segment 'Other occupational pensions'. Lower growth expected in 06 due to change in distribution. 3 RoE Retail banking only.

24 Manage guaranteed balance sheet Growth in Savings and Insurance Strong returns on IFRS equity in Savings and Insurance ILLUSTRATIVE Savings Insurance Guaranteed Other Group IFRS earnings (NOKm) Allocated Equity (NOKbn) Pro forma RoE adj(%) 6% 33% 5% 9% 9,5% The equity in the Group sits within different legal units. This allocation of equity is done on a pro-forma basis to reflect an approximation to the IFRS equity consumed in the different reporting segments after group diversification. The estimated allocation is based on the capital consumption under SII and CRD IV adjusted for positive capital contribution to own funds. The Insurance segment has been allocated an increased capital level which is more in line with long-term expected diversification effects. 4 Result before amortisation and after tax, Q 06 Q 07 Based on solvency II position pr. Q 07 incl. transitional rules on 59%. IFRS equity allocated on a pro forma basis.

25 Manage guaranteed balance sheet Growth in Savings and Insurance Group capital management policy Solvency II level 80% Consider increased pay out Consider share buy-backs 63% Q Dividend pay out Maintain investment in growth No dividend if solvency ratio without transition rules <0 % 50% 30% Reduced dividend pay out More selective investment in growth Consider risk reducing measures No dividend Risk reducing measures 5

26 Manage guaranteed balance sheet Growth in Savings and Insurance Dividend NOK.55 pr. share [market communication dividend from Q4 06] Payout ratio 35% 7% >35% The Board proposes a dividend of NOK.55 per share for 06 Expected dividend of more than 35 per cent of the result for Expected development in the Solvency II ratio implies a further gradual increase in the dividend pay-out ratio from 08 onwards 6 Result after tax before amortisation

27 Manage guaranteed balance sheet Growth in Savings and Insurance Financial targets Target Status 06 Return on equity > 0% 9.5% Dividend ratio > 35% 7% Solvency II margin Storebrand Group > 50% 57% 7 Before amortisation after tax. Including transitional rules.

28 8 Results Q 07

29 Key figures Group Result development Earnings per share Financial items and risk result life Special items MNOK Operating result Q 06-7 Q Q4 06 Q 07 Q 07 Q 06 Q3 06 Q4 06 Q 07 Q 07 Solidity capital Storebrand Solidity capital Life Group Customer buffers development 6,439 6,490 57,60 58,844 6,640 MNOK Customer buffers Norway 4 Customer buffers Sweden 6.3% 6.3% 6.7% 5.6% % of customer funds 3 7.9% 6.7% 5.7% 5.4% 5.3% 8.9% Q 06 Q3 06 Q4 06 Q 07 Q 07 Q 06 Q3 06 Q4 06 Q 07 Q 07 9 Result before amortisation, write-downs. Earnings per share after tax adjusted for amortisation of intangible assets. 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. 4 Solidity capital/customer buffers does not include provisions for future longevity reserves.

30 Storebrand Group Group Profit Q Full year NOK million Fee and administration income Insurance result Operational cost Operating profit Financial items and risk result life Result before amortisation Amortisation and write-downs of intangible assets Result before tax Tax Profit after tax The result includes special items. Please see storebrand.com/ir for a complete overview. Cost Q 06 affected by positive effect from change in own pension scheme. Adjusted for this effect costs are nominally flat Q-O-Q.

31 Storebrand Group Group Profit Q Full year NOK million Fee and administration income Insurance result Operational cost Operating profit Financial items and risk result life Profit before amortisation Profit per line of business Q Full year NOK million Savings - non-guaranteed Insurance Guaranteed pension Other profit Profit before amortisation

32 Savings (non-guaranteed) - continued growth Savings Profit Q Full year NOK million Fee and administration income Operational cost Operating profit Financial items and risk result life Profit before amortisation Profit per product line Q Full year NOK million Unit linked Norway Unit linked Sweden Asset Management segment Retail banking Profit before amortisation

33 BNOK BNOK MNOK BNOK Savings (non-guaranteed) - strong growth in assets and retail lending Savings Reserves and premiums Unit Linked 3,5 3,4 3,5 3,7 3,6 Comments 3% premium growth in UL premiums % retail lending growth 8 3 9% growth asset management Q 06 Q3 06 Q4 06 Q 07 Q 07 Assets Under Management Retail bank balance and Net Interest margin (%),6,5,03,09, Life insurance balance sheet Banking balance sheet Q 06 Q3 06 Q4 06 Q 07 Q 07 Q 06 Q3 06 Q4 06 Q 07 Q Excluding transfers. Growth from YTD 06 to YTD 07. Growth figures from YTD 06 to YTD 07.

34 Insurance Insurance Profit Q Full year NOK million Insurance premiums f.o.a Claims f.o.a Operational cost Operating profit Financial result Profit before amortisation Profit per product line Q Full year NOK million P&C & Individual life Health & Group life Pension related disability insurance Nordic Profit before amortisation

35 MNOK Insurance - Lagging growth, strong combined ratio Insurance Combined ratio Claims ratio Combined ratio Cost ratio 90% 9% 9% 89% 88% Comments Combined ratio and results Combined Ratio 88% 75% 75% 74% 7% 70% Reduced premiums due to on-going shift to more cost-effective distribution and new disability product 4% 6% 8% Q 06 3Q 06 4Q 06 8% Q 07 8% Q 07 Portfolio premiums Comments premiums and growth P&C & Individual life Health & Group life Disability Insurance % premium growth within P&C & Individual life % premium growth within Health & Group life % premium growth in Pension related disability Nordic Q 06 3Q 06 4Q 06 Q 07 Q Growth figures show development from 06 to 07 YTD.

36 Guaranteed pension - strong quarter but long term run off Guaranteed Profit Q Full year NOK million Fee and administration income Operational cost Operating profit Risk result life & pensions Net profit sharing and loan losses Profit before amortisation Profit per product line Q Full year NOK million Defined benefit (fee based) Paid-up policies, Norway Individual life and pension, Norway Guaranteed products, Sweden Profit before amortisation

37 BNOK Guaranteed pension - reserves in decline and robust buffer situation Guaranteed Reserves guaranteed products Q 06 Q3 06 Q4 06 Q 07 Q 07 Comments 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 profit sharing results in the quarter Defined Benefit NO Paid up policies NO Individual NO Guaranteed products SE Buffer capital Guaranteed reserves in % of total reserves NOK million Q Q Change Market value adjustment reserve ,0% 67,5% 66,5% Excess value of bonds at amortised cost Additional statutory reserve Conditional bonuses Sweden ,9% 63,8% 63,% Total Q 06 Q 06 Q3 06 Q4 06 Q 07 Q 07 ) The term Buffer capital in this table is not consistent with the definition of buffer capital made in the IFRS accounting. 37

38 Other Other Profit Q Full year NOK million Fee and administration income Operational cost Operating profit Financial items and risk result life Profit before amortisation Profit per product line Q Full year NOK million Corporate Banking BenCo Holding company costs and net financial results in company portfolios Profit before amortisation Excluding eliminations. For more information on eliminations, see Supplementary Information. Includes NOK 88m from sale of Formuesforvaltning AS.

39 39 Solvency II and capital structure

40 Long History of Economic Capital Modelling in Storebrand Today Embedded Value introduced Adoption to Solvency II modelling since QIS3 Storebrand is using the Solvency II standard model Market consistent Embedded Value "In house" better and faster Solvency II models from 0: Frequent calculations Model output used as an decision making tool by management Integrated part of CFO data management Established economic capital modelling team within the CFO area Discontinued use of models delivered by external providers Risk and business performance is measured by economic capital Economic models continuously evaluated by external partners 40

41 The Solvency Calculation moving to a market consistent balance sheet and risk sensitive capital requirements IFRS balance sheet Solvency II balance sheet Solvency II Balance Sheet under /00 years shock SCR Equity Own Funds Own Funds after shock Moving to economic balance sheet in 00 years shock Assets Liabilities Market value of assets Market value of liabilities Assets after shock Liabilities after shock Solvency II ratio = Own Funds SCR = NOK 43bn NOK 7bn = 59% (Q 07) 4 Including transitional rules.

42 Calculating Market Value of Liabilities under Solvency II Solvency II balance sheet Market value of liabilities Both assets and liabilities are mark to market For assets this means using observable market prices Own Funds Own Funds 43 bn Risk Margin 7 bn Consist of both traditional IFRS tangible capital, subordinated debt and NPV of future profits Cost of non-hedgeable risk. 6% of cost of SCR coming from non-market risks For insurance liabilities there is a standardised methodology for estimating the value of insurance customers contracts Own funds is the difference between the market value of assets and liabilities Market value of assets Market value of liabilities Valuing liabilities using stochastic models in a risk neutral calculation Discretionary benefits 6 bn Value of liabilities 39 bn Expected future benefits for the customers, that reduces impact from stress to own funds Guaranteed liabilities discounted using market rates, including time value of options and guarantees (TVOG) 4

43 Manage guaranteed balance sheet Growth in Savings and Insurance Solvency movement from Q 07 to Q 07 63% 47% -% 3% 4% 5% % Q 07 ex. transitionals Model and assumptions changes Operating earnings Economic variance 3 Q 07 ex. transitionals Transitional rules Q 07 Solvency ratio 43 Treatment of swap in stresses (+), Treatment of new paid-up policies (-), Cost allocation (-), Reduced equity stress (+) 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 (-)

44 Manage guaranteed balance sheet Growth in Savings and Insurance SII position Storebrand Group Solvency position(%) Estimated sensitivities Target SII margin 50% Estimated economic 5 SII-margin Q Interest rates -50bp Interest 60 rates +50 bp 3 63 Q 07 Transitional rules Q 07 SII standard model Equity -5% Key takeaways Group results strengthens the Solvency ratio Strong asset return allow for increased buffer capital Increased interest rate levels in the forward rates Spread +50 bp, VA +5bp UFR = 4.05% 49 6 UFR = 3.65% The 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. 44

45 Solvency Capital Requirements (SCR) SCR calculation Q 07 SCR dominated by financial market risk NOKbn Operational P&C & Health 4% 3% Concentration 0% Currency 4% 3% Interest Rate Down SCR before diversification 36.6 Life 5% Spread 6% Diversification -6.6 Risk absorbing capacity of tax -5. Counterparty % 67% Financial market Property 4% 3% Equity CRD IV from subsidiaries.5 SCR 7.3 SCR includes effect of transitionals on equity of NOK -63m. which is the risk with the lowest diversification factor. 50% 67% 0% 4% Operational Financial market Life Counterpaty 67% Health 76% P&C 45 E.g. a NOK 00m increase of Market SCR leads to a NOK 96m increase of Basic SCR, because 4% are absorbed by diversification benefit.

46 High quality capital base SCR and own funds Q 07 (NOK bn) Own funds in % of SCR (excluding CRD IV subsidiaries) Regulatory limit OF % of SCR OF % of total CRD IV capital requirements Tier 3 5% SCR 0.5% 0.3% Tier 50% SCR T+T3 8% % SCR SII regulated entities Tier Restricted 0% T 0% 6% Tier Unrestricted 50% SCR All T 35% 83% SCR Own funds CRD IV capital Tier 3 Tier Tier restricted Tier unrestricted 46

47 Solvency Capital allocation pr segment most of the capital allocated to the guaranteed segment ILLUSTRATIVE PRO FORMA ALLOCATION BASED ON 59% SOLVENCY RATIO PR Q 07 Savings Insurance Guaranteed Other Group Solvency II: Unit Linked reserves 47bn CRR/CRD IV: Retail mortgage lending 6bn Asset management 599bn Solvency II: Insurance portfolio premiums 4.bn Solvency II: Guaranteed reserves 6bn Solvency II: Company portfolios 5bn Reserves in BenCo 7bn CRR/CRD IV: Corporate banking,5bn Solvency II group calculation OWN FUNDS SCR OWN FUNDS SCR OWN FUNDS SCR OWN FUNDS SCR OWN FUNDS SCR Transitional technical provisions Products contribution to own funds Hard capital Solvency capital requirement The equity and debt in the Group sits within different legal units. This allocation of solvency capital is done on a pro-forma basis to reflect an approximation to the solvency II capital consumed in the different reporting segments after group diversification. The estimated allocation is based on the capital consumption under SII and CRD IV adjusted for positive capital contribution to own funds. Storebrand has a target of a solvency ratio above 50%. The pro forma allocation of capital is based on the actual solvency ratio pr. Q 07 of 59%. Hard capital is defined as paid in and earned equity, subordinated debt and other tangible capital elements. Products contribution to own funds in Guaranteed includes positive contribution from deferred capital contribution (DCC) in the Swedish business. 47

48 Group equity and capital structure reduced financial leverage Group equity Group capital structure Tangible equity increased by 86% 0-06, intangible equity amortised according to plan Improved leverage ratio 34,7 35,58 3,567 30,84 4,74 6,946 7,637 6,73 7,50,775 8,777,54 (65%) 0,75 4,079 (70%) 6,788 (74%) 9,03 (77%),36 (78%),779 (8%) 8,777 (7%) 0,75 (74%),775 (75%) 4,74 (76%) 6,946 (78%) 7,637 (78%) 6,53 (35%) 6,096 (30%) 5,987 (6%) 5,70 (3%) 5,80 (%) 4,858 (8%) 7,496 (9%),6 7,075 (6%),693 7,409 (5%),68 7,86 (4%),46 7,766 (%) 869 7,6 (%) Tangible equity Intangible equity Equity Subordinated liabilities Net debt STB ASA (Holding) Intangible equity: Brand names, IT systems, customer lists and Value of business-in-force (VIF), and goodwill. VIF and goodwill mainly from acquisition of SPP. Specification of subordinated liabilities: - Hybrid tier capital, Storebrand Bank ASA and Storebrand Livsforsikring AS - Perpetual subordinated loan capital, Storebrand Livsforsikring AS - Dated subordinated loan capital, Storebrand Bank ASA and Storebrand Livsforsikring AS 3 (Senior debt liquidity portfolio) in holding company shown in separate column as it is not part of group capital.

49 Term structure debt Term structure senior bond debt Storebrand ASA (MNOK) Senior unsecured Term structure debt Storebrand Livsforsikring (MNOK) Hybrid T Dated Subordinated T Perp. Subordinated T Call dates EUR 300 Million (EURNOK 9.37) 3 SEK 750 Million (NOKSEK 0.96) 49

50 Storebrand Life Insurance asset allocation 60% 50% 40% 30% 0% 0% 0% Equities Bonds Money market Bonds at amortized cost Real estate % 9% 5% 49% % % % 8% 6% 50% % % % 7% 4% 5% % % % 5% 4% 53% % % % 5% 5% 5% % % Other 50 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.

51 SPP asset allocation 00% 90% 80% 70% 60% 50% 40% 30% 0% 0% 0% Alternative investments Bonds Equities % 87% 5% % 87% 5% % 86% 6% % 85% 6% % 85% 6% Note: The graph shows the asset allocation for all products with an interest rate guarantee in SPP. 5

52 Investor Relations contacts Lars Aa Løddesøl Kjetil R. Krøkje Group CFO Head of IR 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.