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1 Storebrand Result 3 rd Quarter 29 October 29 Analyst presentation Analyst Presentation 3 rd Quarter 29 Storebrand Group Group CEO Idar Kreutzer Page # Slide # Backup: Storebrand Group Storebrand ASA Storebrand Life Group Storebrand Life and Pension Norway Storebrand Life and Pension Sweden Storebrand Investments Storebrand Bank Storebrand NonLife

2 Storebrand Result 3 rd Quarter October 29 Idar Kreutzer CEO Odd Arild Grefstad CFO Highlights 29 RESULT Group profit of NOK 98 million in, NOK 68 million YTD Increased exposure to equities and reduced hedging programme gives a good financial result OPERATIONS Good market development in Life and Pensions Strong growth in AuM for Storebrand Investments Execution of cost reducing programmes according to plan BALANCE SHEET Solvency margin in Life Group increased to 161% Customer buffers strengthened by NO 1.6 billion Robust funding * Group profit before amortisation of intangible assets 4 2

3 Storebrand Group Full year NOK mill Life and Pension Norway Life and Pension Sweden (SPP) Storebrand Investments Storebrand Bank Other Group Profit Writedown of intangible assets Amortisation* Pretax profit *Amortisation of intangible assets 5 Life and Pension Norway strong improvement in results Full year NOK mill Administration result Risk result Administration result shows positive underlying trend Significant improvement in financial result Finance result* Profit from risk and interest rate guarantees Other Profit for Norwegian life insurance Booked return of 1.6% Equity proportions increased in the quarter: ** Careful: 2,7% 3,7% / 6,1% Low: Balanced: High: 4,4% 6,% 6,5% 8,6% / 8,7% / 11,7% 1,1% 12,7% / 15,9% *) Interest result and profit sharing **) Equity proportions including hedge funds and indirect 6 property investments 3

4 Life and Pension Norway the most satisfied customers in a growing market Highest customer satisfaction for the 6th year running Premium income from group pensions grew by 15.6% last 12 months NOK million Storebrand Vital Nordea 29 Market growth total premium income* Ytelse Innskudd +15.6% Ytelse Innskudd Q2 Q2 29 Defined contribution pensions, with lower capital requirements, grew by 4% in the same period Storebrand market leader in defined contribution pensions with 32% market share *) Shows 12 months rolling premium income for group pensions 7 Source: FNH Life and Pension Norway cost efficiency improvements continue No. of policies (thousands) Individual +17% DB fee based +52% Paid up 5% Considerable efficiency and cost measures being implemented Measures with positive effect: LEAN Merger of distribution network for retail and corporate Downsizing in Storebrand Financial Advisory Outsourcing to Storebrand Baltic Downsizing of central staff Downsizing in progress in the organisation 27 Inflation* Cost reductions 12 month rolling costs as of Costs 27 are corrected for deviation from estimate pensions of NOK 223 million, which contributed to higher costs in * Costs weighted for inflation and average wage growth for the period. Source: SSB Operational cost target stands Administration result > in 21 4

5 Life and Pension Sweden (SPP) strong improvement in results Profit for Swedish life insurance Full year NOK mill Administration result Risk result Finance result Other * 831 Administration result shows good underlying trend Positive risk results following dissolution of illness reserves Increased exposure to equities and reduced hedging programmes gives good financial result Improved return results in profit sharing and reversal of charge to equity *Includes currency effects of 14 millions 9 Life and Pension Sweden (SPP) winning market shares Mill SEK % 8 % 6 % 4 % 2 % % APE new sales SPP YTD 829 Trad 54% Fond 46% 914 Fond 1 *) 12 month rolling pr Source: Försäkringsförbundet Trad 44% 56% % 14 % 22 % +1% Sales channels in SPP share of sales 4 % 22 % 38 % 29 Brokers Tickthebox Own sales New sales of APE: Market: 2%* SPP: +1% Running premium income: +2% Successful implementation of new distribution strategy SPP has developed three successful sales channels 5

6 Life and Pension Sweden (SPP) cost programme according to plan The communicated cost measures are developing as expected Target: admin res > 3 mill SEK in 211 Targeted annual cost reductions of SEK 1 mill Headcount being reduced by 26 FTEs in Q4 Total reduction in headcount of 85 FTEs Further measures will be implemented Storebrand Investments good value creation Full year NOK mill Total income Total costs Net financial/other Result asset management Considerable performance fees earned, not recognised in P&L Costs affected by oneoff effects connected with takeon of SPP's assets and preparations for move to Lysaker Negative trend in volume based income has turned during the quarter 12 6

7 Storebrand Investments positive development in assets under management Development mutual funds Assets under management increased by NOK 16 bn in the quarter kv kv kv 29 Storebrand Fondene kv kv kv 29 NOK 3 bn in increased in AuM in mutual funds in the quarter Positive net new sales Increased market values SPP Fonder 13 Storebrand Bank low losses and reduction in defaults Operating expenses Full year NOK mill Net interest income Net fee and commission income Other income Total income Profit before loss Lower net interest. Increase in other income. Temporarily increased funding costs in Q2 and Restructuring programme will reduce costs by NOK 5 million. Restructuring costs of NOK 12 million in the quarter Loan loss provisions Profit from banking activities

8 Storebrand Bank considerable cost measures being implemented Cost base to be reduced by 1 % by 211 NOK 5 million in annual savings Savings through: Reduction in headcount Automation and outsourcing IT month rolling costs per 29 5 Target cost cut 451 Cost base after cuts Distribution Marketing 15 Indepth analysis RESULT Reversal of charge to equity capital Improved financial result BALANCE SHEET Strengthened solvency and increased customer buffers Equity share in customer portfolios significantly increased Increased core capital target in banking 16 8

9 Life and Pension Norway return above interest guarantee allows writeback of equity capital NOK mill. Finance result 1 Group defined benefit * Defined contribution and unit linked* Administration result Risk result Risk products Profit from risk and interest rate guarantees Other Profit for Norwegian life insurance ) Interest result and profit sharing 37 Individual and paidup policies** 189 Company portfolio 27 Total Invested assets (NOK billion) Change in invested assets (NOK billion) Value adjusted and booked return customer portfolios with interest guarantee: 1.6% in, 3.1% YTD * Fee based ** Profit sharing 17 Rebased to ,5 5 % 4,5 4 3,5 3 2, Life and Pension Sweden (SPP) financial result driven by good return Development in long term interest rates GOV1 SW1 MTG1 Credit SWAP Govt. Development in equities International equities Swedish equities Market development Stable interest rates Reduced credit spreads Positive equity markets Balance sheet effects Stable liabilities Increased customer buffers: 1.3 bn Remaining DCC: 2.2 bn Result effects Profit sharing: 96 mill Reversal of charge to equity (DCC): 36 million Negative hedge result: 119 million OMX MSCI lokal valuta 18 9

10 Life and Pensions good solidity and strengthened customer buffers 4, % 3,5 % 3, % 2,5 % 16 % Norway* 148 % 154 % 161 % 2 % 18 % 16 % 14 % 12 % 2, % 15, % 135 % Sweden 187 % 27 % 2 % 25, % 2, % 15, % 2, % 1,5 % 1 % 8 % 1, % 1, % 1, %,5 % 2,3 % 1,7 % 1,9 % 2,1 % 6 % 4 % 2 % 5, % 9,7 % 7,8 % 9, % 1,4 % 5, %, % Q4 Q1 29 Q % Additional statutory reserves as % of customer funds Solvency margin Storebrand Life Group** ASRs strengthened by NOK 376 million in the quarter 3.4 bn, % Q4 Q1 29 Q Conditinal bonus reserves as % of customer funds** Solvency margin SPP Group CBs strengthened by NOK 1.3 bn in the quarter 8.2 bn, % * Solvency margin shown for Storebrand Life Group, interim figures only include 5% of result 19 ** Shows ASRs and CBs as % of customer funds excl. ASRs and CBs respectively Life and Pension Norway risk adjusted asset allocation in portfolios Asset allocation Defined Benefit Asset allocation all customer portfolios* 1 % 9 % 8 % 7 % 6 % 4,3 % 5, % 6, % 1,3 % 1,8 % 2,2 % 5,5 % 2,4 % 16, % 15,8 % 16,7 % 15,8 % 17,4 % 19,5 % 26,4 % 26,2 % Equity Bonds Money market 2, % 16,3 % 5,4 % 7,3 % 28,1 % 5 % 4 % 3 % 2 % 1 % % 12,9 % 27,7 % 1,9 % 12,9 % 39,1 % 29,2 % 24,4 % 29,7 % 8,6 % 12,7 % 3,7 % 6, % Careful Low Balanced High Bonds at amortised cost Real Estate Alpha 27,2 % 13,5 % *Asset allocation all customer portfolios with interest guarantee 2 1

11 Life and Pension Sweden (SPP) increased equity exposure in customer portfolios Asset allocation per customer portfolio 1 % 9 % 8 % 7 % 6 % 5 % 4 % 3 % 2 % 1 % % 5,1 % 2,4 % 5, % 8, % 52,3 % 74,7 % 71,1 % 87,7 % 39,7 % 2,2 % 9,9 % 23,9 % DB P 52 P 3 P 25 Alternative Investments Fixed Income Equities Discount rate 3.8% 3.9% 3.3% 3.2% Expected return 4.8% 4.% 4.7% 5.8% 21 Storebrand Bank increased core capital New target for capital set: core capital ratio above 1% Active balance sheet management Capital injection from Storebrand ASA Storebrand Eiendomskreditt AS increases funding flexibility 14 % 12 % 1 % 8 % 6 % 4 % Q4 Q1 29 Q2 29 Core capital ratio Capital ratio 29 12,9 % 1, % okt.9* 22 *Pro forma numbers after capital increase 11

12 Summary Strong profit growth in Life and Pensions Strengthened balance Good market development Active cost control 23 Storebrand's objective is to be the leading and most respected institution in the Nordic market for longterm savings and insurance 24 12

13 Storebrand Group IFRS accounting Storebrand ASA s group accounts are presented in accordance with the International Financial Reporting Standards (IFRS) approved by the European Union

14 Storebrand Group group profit by subgroup Full year NOK million Life activities Investment activities Storebrand Bank Other activities Group profit before amortisation and writedowns Writedown intangible assets Amortisation intangible assets Pretax group profit Storebrand Group operating Profit Full year NOK million Net premiums insurance Interests income Financial income company Financial income customers Other income Operating income Insurance benefits, reserve allocations To/from additional staturory reserves life ins Funds allocated to policyholders life insurance Interests costs Loan losses banking Operating expenses Other costs Costs and expenses before amortisation and writedowns Result before amortiation and writedowns Writedown intangible assets Amortisation intangible assets Pretax group profit

15 Storebrand Group earnings per share Full year NOK million Pretax profit Tax Profit for the year Minority interests Earnings Earnings per share 1,82 8,48,88 7,93 4,97 Average number of shares (million shares) 445,6 445, 445,1 29 Storebrand Group balance sheet Share Amount Share NOK million Amount in % in % Assets company portfolio Intangible assets % % Shares in associated companies % 75 % Loans % % Bonds at amortised cost 324 % 384 % Real estate assessed at fair value 1 22 % 1 67 % Financial assets at fair value % % Bank deposits 1 61 % % Other assets % % Assets customer portfolio Bonds at amortised cost % % Loans % % Real estate assessed at fair value % % Financial assets at fair value % % Bank deposits % % Other assets % % Total assets % % Equity % % Subordinated loan capital % % Market value adjustment reserve % % Technical reserves % % Liabilities to financial institutions % % Deposits from and liabilities to customers % % Derivatives % % Other allocations and liabilities % % Total liabilities and equity capital % % 3 15

16 Storebrand Group capital adequacy Minimum Net Primary Net Primary Capital Ratio NOK million Capital Capital Storebrand ASA ,7 % 85,4 % Storebrand Life insurance ,9 % 17,4 % Storebrand Nonlife insurance ,1 % 84, % Storebrand Bank ,2 % 1,8 % Storebrand Group ,1 % 14,3 % 31 Storebrand Group group profit by subgroup NOK million Q2 Q1 Q4 Q2 Q1 Q4 Life activities Investment activities Storebrand Bank Other activities Group profit before amortisation and writedowns Writedown intangible assets Amortisation intangible assets Pretax group profit

17 Storebrand Group other activities Full year NOK million Storebrand ASA Storebrand Skadeforsikring Storebrand helseforsikring Other companies 5 6 Total profit other activities Amortisation intangible assets Profit other activities after amortisation Shareholder structure as at 16 October 29 2 largest shareholders By region Shareholders Acc. Type* Tot. % GJENSIDIGE FORSIKRIN JP MORGAN CHASE BANK ORD KAUPTHING BANK HF UNDER ADM. ORD 5.49 FIDELITY FUNDSEUROP ORD 4.66 FOLKETRYGDFONDET JP MORGAN CHASE BANK ORD 4.47 BANK OF NEW YORK MEL S/A ST OF NEW JERSEY ORD 3.78 STATE STREET BANK & A/C CLIENT FUND NUMB NOM 2.95 JPMORGAN CHASE BANK NORDEA TREATY ACC. NOM 2.37 THE NORTHERN TRUST C TREATY ACCOUNT NOM 1.95 CLEARSTREAM BANKING CID DEPT, FRANKFURT NOM 1.76 JPMORGAN CHASE BANK OMNIBUS LENDING ACC. NOM 1.42 Øvrige 1 aksjonærer 8,93 Totalt 61,89 * NOM = Client account Foreign ownership 47,7 % Luxembourg 9,6 % U.K. 14,5 % Other 7,4 % USA 15,1 % France 1,2 % Norw ay 52,2 % 34 17

18 Storebrand Group rating * Storebrand ASA Moody s: S&P: Baa3 (S) BBB (S) Storebrand Livsforsikring AS Storebrand Bank ASA Moody s: S&P: A3 (S) A (S) Moody s: A3 (N) S&P: BBB+ (S) Storebrand Kredittforetak AS Moody s: Aaa P=positive outlook S=stable outlook N=negative outlook * as at Storebrand Group key figures Full year 29 NOK milion 29 Group Earnings per share 1,82 8,48,88 7,93 4,97 Capital ratio,3 %,4 % 14,1 % 12,3 % 14,3 % Storebrand Livsforsikring AS (excl. SPP) Policyholders' funds Return on customers guaranteed portfolio 1,7 % 1,4 % 3,1 %, 2, % Return on company portfolio 1,3 %,7 % 3,5 %, 3, % Capital base 1) SPP Group Policyholders' funds Return on Defined Benefit 4, %,2 % 2,6 % 4,8 %,6 % Return on Defined Contribution 4,4 %,1 % 3,3 % 5,8 % 2,9 % Adjusted Conditional Bonuses Storebrand Bank Interest margin,1 %,7 %,94 % 1,23 % 1,17 % Cost/income % % 83 % 73 % 77 % Other income in % of total income 3 % 5 % 19 % 23 % Deposits from and due to customers as % of gross lending 2 % 1 % 48 % 47 % Net lending Gross nonperforming and lossexposed loans Storebrand Investments (asset management) Total funds under management Funds under management for external clients Cost/income 73 % 75 % 73 % 63 % 7 % Storebrand Skadeforsikring AS (P&B Insurance) % % Annual premium % 199 % 225 Claims ratio 3 % 3 % 83 % 79 % 82 % Numer of customers ) Consists of equity, subordinated loan capital, market value adjustment reserve, unrealised gains/losses in bonds at amortised cost, additional statutory reserves, contitional bonuses in SPP and period profit 36 18

19 Storebrand ASA Storebrand ASA profit for the year *) Full year NOK million Group contributions and transfers Interest income Interest expense Realised/unrealised gains/losses on securities Other financial income/costs Net financial items Total operating expenses Pretax profit *) Results according to IFRS, official accounts prepared according to NGAAP

20 Storebrand ASA quarterly development NOK million Q2 Q1 Q4 Q2 Q1 Q4 Group contributions and transfers Interest income Interest expense Realised/unrealised gains/losses on securities Other financial income/costs Net financial items Total operating expenses Pretax profit Storebrand ASA balance sheet *) NOK million Amount Share in % Amount Share in % Shares in subsidiaries % % Financial assets at market value % % Other assets % % Total assets % % Equity % % Bond loan and other loans % % Other liabilities % % Total liabilities and equity capital % % *) Balance according to IFRS, official accounts prepared according to NGAAP. 4 2

21 Storebrand Life Group Storebrand Life Group result per line of business Full year NOK Million Life and Pension Norway Life and Pension Sweden Profit life group before amortisation cost Amortisation Impairment Profit before tax life group

22 Storebrand Life Group profit and loss Full year NOK Million Premiums written Net transfers of premium reserve Net income of common portfolio Net income of investment choice portfolio Net income of company portfolio Claims paid Change in technical reserves Operating expenses Other income/costs To/from market value adjustment reserve Profit to policyholders in excess of guaranteed interest Profit to owner Storebrand Life Group profit analysis 3.9 Full year NOK Million Interest result Administration result Risk result Other results Profit before additional statutory allocations Transferred from additional statutory allocations Profit after additional statutory allocations Profit to policyholders in excess of guaranteed interest Result to owner before amortisation cost and impairment Amortisation Impairment Profit before tax

23 Storebrand Livsforsikring per line of business 29 NOK Million Storebrand Livsforsikring AS SPP Group Other Group Total Group Interest result Administration result Risk result Other results Profit before additional statutory allocations From additional statutory allocations Profit after additional statutory allocations Profit to policyholders in excess of guaranteed interest Result to owner before amortisation cost and impairment Amortisation Impairment Result before tax Storebrand Livsforsikring per line of business NOK Million Storebrand Livsforsikring AS SPP Group Other Group Total Group Interest result Administration result Risk result Other results Profit before additional statutory allocations From additional statutory allocations Profit after additional statutory allocations Profit to policyholders in excess of guaranteed interest Result to owner before amortisation cost and impairment Amortisation Impairment Result before tax

24 Storebrand Life Group satisfactory solidity Capital ratio of 15.9% and solvency margin of 16.9% Solidity capital of NOK 33.6 billion, equivalent to 14.5% of insurance fund excl. additional statutory reserves 6 Solidity capital in % of insurance fund excl. additional statutory reserves and conditional bonuses % av insurance fond 48, bn 45 35,8 bn 33,6 bn Profit carried forward Reserves on bonds held to maturity 3 23,3 bn 25, bn Conditional bonus Additional statutory resveres 15 Market value adjustment reserve Risk equalisation reserve Subordinated loans Equity capital /3/9 Storebrand Life Group solvency margin and capital adequacy NOK Million Solvency margin capital Solvency margin requirement Solvency margin Storebrand Life Group ,9 % Storebrand Livsforsikring AS , % SPP Group ,9 % NOK Million Core Capital Eligible subordinated loan capital Risk weighted calculation base Core capital ratio in % Capital ratio in % Storebrand Livsforsikring Group ,2 % 15,9 % Storebrand Livsforsikring AS ,5 % 24, % 48 24

25 Storebrand Life Group details on solvency and capital adequacy Capital Adequacy NOK million Equity (NGAAP) Intangible assets 6.39 Eligible hybrid tier 1 capital securities Conditional bonuses 2.39 Other adjustments and deductions 647 Core capital (tier 1) 12.6 Eligible perpetual subordinated loan capital 5.13 Eligible dated subordinated loan capital Other deductions 116 Supplementary capital (tier 2) Net primary capital Minimum capital requirement Core capital ratio (tier 1) 11,2 % Capital adequacy ratio 15,9 % Solvency Margin NOK million Equity (NGAAP) Intangible assets 6.39 Eligible hybrid tier 1 capital securities Eligible subordinated loan capital 5.13 Additional statutory reserves (5%) Other additional funds 176 Other adjustments and deductions 763 Eligible solvency capital Minimum solvency requirement Solvency margin % Storebrand Life Group balance sheet Share of total assets Share of total assets NOK Million Immaterial assets % % Real estate % % Long term shares and interests from group companies 115 % 48 % Bonds held to maturity % % Mortgage and other loans % % Shares % % Bonds and other fixedincome securities % % Other financial assets*) % % Other assets % % Total assets % % *) Other financial assets includes derivates, bank deposits and mutual investments 5 25

26 Storebrand Life Group balance sheet Share of total assets Share of total assets NOK Million Equity % % Minority interests' share in equity 195 % 23 % Subordinated loan capital % % Market value adjustment reserve % 13 % Insurance related reserves for own account % % Other debts *) % % Total equity and liabilities % % *) Other debts includes repo SPP, short positions and other current liabilities. 51 Storebrand Livsforsikring premium due Full year NOK Million Storebrand Livsforsikring AS SPP BenCo Total Premiums as at 3.9. for BenCo includes 1.651million from Unit Linked activities transferred to Handelsbanken, and for 3 quarter 24 million

27 Storebrand Life Group new premiums APE Full year NOK mill SBL AS (escl. SPP) SPP Group Other (incl. Storebrand Health Insurance) Total New premiums consist of new sales and increased sales on existing contracts with subtraction for contracts where premiums are not paid. Transferred reserves are included in the numbers. The definition deviates from MCEV where the insurance policies must be registered in our production system before taken into consideration. 53 (Page intentionally left blank) 54 27

28 Storebrand Life Group Norwegian Activities Storebrand Livsforsikring profit analysis Full year NOK Million Interest result Administration result Risk result Other results Profit before additional statutory allocations From additional statutory allocations Profit after additional statutory allocations Profit to policyholders in excess of guaranteed interest Profit to owner exclusive subsidiaries Profit subsidiaries Norwegian business Profit before tax Life and Pension Norway

29 Storebrand Livsforsikring profit to owner NOK Million Group pension fee based Group pension and unit linked fee based Risk products Individual polices and paidup polices, profitsharing Company portfolio Total 29 Total Administration result Risk result Financial result *) Profit from risk and interest rate guarantees Other results Profit before tax Storebrand Life and Pension Norway *) Interest result and profit sharing 57 Storebrand Livsforsikring profit to owner NOK Million Group pension fee based Group pension and unit linked fee based Risk products Individual polices and paidup polices, profitsharing Company portfolio Total Total 3.9. Administration result Risk result Financial result *) Profit from risk and interest rate guarantees Other results Profit before tax Storebrand Life and Pension Norway Capital invested (NOK billion) *) Interest result and profit sharing 58 29

30 Storebrand Livsforsikring AS insurance fund reserves 3.9 Full year NOK Million 29 Premium reserve, premium fund etc. for own account Additional statutory allocations Total Storebrand Livsforsikring AS asset allocation 3.9 Full year NOK Million 29 Equity Norwegian *) Equity Foreign *) Real Estate Money market Bonds held to maturity Bonds Loans Other financial assets Total investments *)Incl. Investments in equity funds and subsidiaries Real exposure to current bonds is approx. 26 % with the difference in money market 6 3

31 Storebrand Livsforsikring AS policyholders solidity capital 3.9 Full year NOK Million 29 Additional statutory allocations Market value adjustment reserve Total NOK Million Group pension Individual policies and paidup policies Total Additional statutory allocations Market value adjustment reserve Total Change from Q2 29: NOK Million Group pension Individual policies and paidup policies Total Additional statutory allocations Market value adjustment reserve Total Storebrand Livsforsikring AS Norwegian operations Defined Benefit portfolio Paidup policies Individual 2% 6% 8% 2% 5% 6% 2% 5% 7% 17% 16% 19% 17% Equity Bonds Money market Bonds at amortised cost Real estate Alpha 25% 11% 31% 38% 14% 19% 11% 39% Other Value adjusted return (YTD): 1,6 % 1,6 % 1,6 % Booked return (YTD): 1,6 % 1,6 % 1,6 % Interest rate guarantee p.a.: 3,5 % 3,8 % 3,8 % AuM: NOK 78 bn NOK 53 bn NOK 24 bn ASR: NOK 2, bn NOK,6 bn NOK,7 bn Expected return: 4,6 % 4,9 % 4,5 % 62 31

32 Storebrand Livsforsikring AS company portfolio Other Bonds at amortised cost 2,9% 3,2% Real estate 12,6% Money market 81,2% Value adjusted return (YTD): 3.5 % AuM: NOK 1,4 bn 63 Storebrand Livsforsikring AS unrealised gains NOK Million Change Change 29 Shares Fixed interest investments Short term investments Bonds held to maturity Total

33 Storebrand Livsforsikring AS premiums excl. reserves transferred to the company Full year NOK million Group pension Paidup policies Group pension defined contribution Individual endowment and pension Individual Unit linked Risk products without profit sharing Total Storebrand Livsforsikring AS net transfers of premium reserves Full year NOK Million Premium reserves received Group pensions Individual life insurance Unit Linked Total Premium reserves transferred Group pensions Individual life insurance Unit Linked Total Net transfers

34 Storebrand Livsforsikring AS Net transfers of premium reserves in NOK million Storebrand Livsforsikring AS new premiums APE Full year Nok million Guaranteed products of which annual premiums of which single premiums 32 (14) Defined Contribution and Unit Linked of which annual premiums of which single premiums Risk business of which annual premiums of which single premiums Total New premiums consist of new sales and increased sales on existing contracts with subtraction for contracts where premiums are not paid. Transferred reserves are included in the numbers. The definition deviates from MCEV where the insurance policies must be registered in our production system before taken into consideration

35 Storebrand Livsforsikring bond portfolio (1) A BBB AAA AA BB CCC/C Grand Total Agency.2 %.2 % Asset Backed.3 %. %. %.4 % Banking 11.7 % 11. % 3. % 4.9 % 3.6 % Basic Industry.3 %.4 %.7 % Capital Goods.1 %.2 %.3 % Collateralized Loan Obligation. %.2 %. %. %.3 % Commercial Mortgage Backed.2 %.2 % Marktomarket portfolio Communications Consumer cyclical Consumer noncyclical Energy Finance & Investment Government Guaranteed Insurance LocalAuthority Phandbriefe.3 %.3 %.2 %.4 %.3 %.1 % 1.5 %.7 %.1 %.1 %.1 %.9 %.2 %.5 % 1.4 % 2.4 % 2.7 % 5.2 %.1 % 1.5 % 2.7 %.4 %.2 %.2 %. %.1 %.1 % 1. %.6 %.3 %.6 % 4.3 % 5. %.3 % 3.2 % 7.4 % Real Estate.2 %.2 % Residental Mortgage Backed.1 %. %.8 %.1 %.9 % Services noncyclical.1 %.1 % Sovereign 2.9 % 36.4 % 3.3 % 42.5 % Technology.1 %.1 % Utility.5 %.5 %. % 1. % Grand Total 18.5 % 14.9 % 52.6 % 13.7 %.4 %. % 1. % 69 Storebrand Livsforsikring bond portfolio (2) A AA AAA B BB BBB CCC/C Total Agency 1.7 % 1.7 % Asset Backed 1.3 % 1.3 % Banking 8. % 5. % 2.3 %. %.6 % 15.9 % Basic Industry 2.2 %.7 %.1 %. %.1 %. % 3.2 % Capital Goods 1.1 % 1.1 % Commercial Mortgage Backed.1 % 1.5 % 1.7 % Communications 1.2 % 1.2 % Bonds at amortised cost Consumer cyclical Consumer noncyclical Energy Finance & Investment Government Guaranteed Insurance LocalAuthority LocalAuthority Guaranteed 1.1 %.5 %.6 % 1.8 % 3.6 %.2 %.1 % 31.8 % 1.9 % 2.9 %. %.1 %.5 %.5 %.1 %.1 % 1.1 %.5 %.8 % 2.7 % 35.4 %.1 % 2.1 % 3. % Phandbriefe 3.2 % 1.6 % 3.5 % 8.3 % Real Estate. %.1 %.1 % Residental Mortgage Backed.2 % 3.5 %. % 3.7 % Services noncyclical. %. % Sovereign 6.6 % 6.6 % Supranational 3.3 % 3.3 % Utility 6.3 % 6.3 % Grand Total 28.9 % 14.9 % 53.8 %.2 %.3 % 1.8 %.1 % 1. % 7 35

36 Storebrand Life and Pension Sweden Exchange rates used Exchange rate NOK/SEK Q4 Exchange rate NOK/SEK 29 Q1 Exchange rate NOK/SEK 29 Q2 Exchange rate NOK/SEK 29 Exchange rate NOK/SEK P&L statement figures Balance sheet statement figures SPP Group* result Full year NOK million Adm. result Risk result Financial result Other Currency result 14 Profit SPP group before amortisation Amortisation intangible assets Writedown intangible assets 2,5 2,5 2,5 Profit SPP Group before tax 394 3, ,476 2,145 * Including SPP, Storebrand Holding AB and BenCo 72 36

37 SPP Group* result per line of business NOK million Guaranteed products Unit Linked BenCo Company portfolio' Total Adm. result Risk result Financial result Other Result SPP * Including SPP, Storebrand Holding AB and BenCo ** BenCo = Euroben until Nordben until BenCo from 1/6. *** The company portfolio includes results from SPP Liv Pensjonstjänst AB, SPP Konsult AB, SPP Kundecenter AB and SPP Varumärker AB 73 SPP Group* administration result Full year NOK million Fee income Other income Net fee and commission Total income Provision cost Operating expense Total cost Administration result * Including SPP, Storebrand Holding AB and BenCo 74 37

38 SPP Group* risk result Full year NOK million Premiums written Change in security reserves Claims paid Result of reinsurance Other Risk result * Including SPP, Storebrand Holding AB and BenCo 75 SPP Group* financial result Full year NOK million Profit sharing Change in deferred capital contribution 359 1, ,5 1,642 Hedge result ,116 1,743 Other Financial result * Including SPP, Storebrand Holding AB and BenCo 76 38

39 SPP Group* financial result from line of business NOK million Guaranteed products Unit Linked BenCo** Company portfolio*** Sum Sum Profit sharing Change in deferred capital contribution Hedge result Other Financial result * Including SPP, Storebrand Holding AB and BenCo ** BenCo = Euroben until Nordben until BenCo from 1/6. *** The company portfolio includes results from SPP Liv Pensjonstjänst 77 AB, SPP Konsult AB, SPP Kundecenter AB and SPP Varumärkes AB SPP Group* other result Full year NOK million Return on company portfolio Interest cost subordinated debt Other result * Including SPP, Storebrand Holding AB and BenCo 78 39

40 SPP Group incl. BenCo insurance reserves Full year NOK million 29 Claims reserves 14,78 89,138 98,565 Conditional bonuses 8,234 8,15 7,499 Other 52 1,43 62 Total claims reserves 112,363 98,691 16,127 NOK million Guaranteed products Unit Linked BenCo* Total Claims reserves 66,266 24,547 13,265 14,78 Conditional bonuses 6,42 1,832 8,234 Other Total claims reserves 72,717 24,547 15,99 112, SPP incl. BenCo company portfolio 29 (full year) NOK million SPP* BenCo** SPP group SPP* Euroben SPP Group Equity 5, ,78 5, ,169 Subordinated debt 1,328 1,328 1,417 1,417 Other Sum 6, ,46 7, 586 7,586 * SPP Group BenCo ** BenCo = Euroben until Nordben until BenCo from 1/6. 8 4

41 SPP incl. BenCo asset allocation per line of business NOK million Guaranteed products Unit Linked BenCo* Sum Swedish Equity 4,169 1,62 5,231 International Equity 1,448 1,544 11,992 Nominal Bonds 46,545 8,323 54,868 Real interest Bonds 4, ,956 Real estate Other 2,638 24,547 3,365 3,549 Total 68,683 24,547 15,67 18,297 * BenCo = Euroben until Nordben until BenCo from 1/6. 81 SPP incl. BenCo allocation portfolios with guarantee (1) Defined Benefit 5% 2% BenCo* % 22% Interest bearing Alternative Investments Equity 75% 78% Investment return (YTD) Interest rate guarantee p.a Prospective reserve Conditional bonuses (including deferred capital contribution) Deferred capital contribution Expected return Duration liabilities** 2.56 % 3.5 % NOK 28.2 bn NOK 2.6 bn NOK.1 bn 4.8 % 6.5 NA NA NOK 6.4 bn NOK 1.6 bn NOK bn NA NA * BenCo = Euroben until Nordben until BenCo from 1/6. ** Duration is the interest rate sensitivity, not the underlying maturity from liabilities 82 41

42 SPP allocation portfolios with guarantee (2) P25 P3 P52 Swedish equity International equity 19% 8% 11% 19% 5% 7% 2% 3% 7% 17% 32% Government bonds Index linked Swedish mortage 9% 29% 12% 42% Other Alternative investments 2% 22% 4% 36% 14% % Investment return (YTD) 7.6 % 3.8 % 1.69 % Interest rate guarantee p.a 1,252,5% 2,75%4,% 4,5%5,2% Prospective reserve NOK 6.7 bn NOK 14.8 bn NOK 14.8 bn Conditional bonuses (including deferred capital contribution) NOK 1.7 bn NOK 1.9 bn NOK.3 bn Deferred capital contribution NOK.1 bn NOK.7 bn NOK 1.3 bn Expected return 5.8% 4.7% 4.% Duration liabilities** 4, *Duration is the interest rate sensitivity, not the underlying maturity from liabilities 83 SPP Group * balance sheet NOK millions Share of total assets Share of total assets Intangible assets 6,316 5.% 7,11 5.5% Longterm shares an interest from group companies 21.2% 145.1% Shares 15, % 11,345 9.% Bonds 73, % 73, % Assets Unit link 27, % 2, % Other financial assets 2, % 12, % Other assets 811.6% 399.3% Total assets 127,38 1.% 126,555 1.% *Includes SPP, Storebrand Holding AB and BenCo 84 42

43 SPP Group * balance sheet (cont.) NOK millions Share of total assets Share of total assets Equity 4,87 3.8% 4,18 3.2% Minority interests' share in equity.% Subordinated loan capital 7, % 8, % Premium reserve for own account 75, % 77, % Insurance fund reservesdefined contribution and UL 36, % 28, % Other assets 2,564 2.% 7, % Total equity and liabilities 127,38 1.% 126,555 1.% *Includes SPP, Storebrand Holding AB and BenCo 85 SPP incl. BenCo premium income NOK mill Full year Guaranteed products ,654 2,789 3,69 of which annual premiums ,191 2,159 2,726 of which single premiums Unit Link ,586 2,267 3,1 of which annual premiums ,186 1,948 2,454 of which single premiums BenCo* of which annual premiums of which single premiums Sum 1,695 1,626 5,79 5,534 7,296 Premium income Full Year for SPP Group includes activities which are transferred to Handelsbanken * BenCo = Euroben until Nordben until BenCo from 1/

44 SPP incl. BenCo new subscription APE NOK Million Full Year Guaranteed products of which annual premiums of which single premiums Unit Link of which annual premiums of which single premiums BenCo* of which annual premiums of which single premiums Storebrand Sweden branch of which annual premiums of which single premiums Total Premium income Full Year for SPP Group includes activities which are transferred to Handelsbanken * BenCo = Euroben until Nordben until BenCo from 1/6. 87 SPP bond portfolio A AA AAA BBB Unrated Total Agency.1 %.1 % Banking 1.9 % 4.4 %.2 % 6.4 % Basic Industry 2.1 % 2.1 %.6 % 4.8 % Communications.3 %.2 %.5 % Consumer cyclical.6 %.6 % Energy.3 %.3 % Finance & Investment.3 % 1.7 % 2.1 % Government Guaranteed 2.3 % 2.3 % Insurance.2 %.2 % LocalAuthority.9 % 4. % 4.8 % LocalAuthority Guaranteed 1.2 % 1.2 % Phandbriefe 7.1 % 12.5 % 7. % 26.6 % Real Estate.7 %.7 % Sovereign 27.4 % 27.4 % Supranational 3. % 3. % Utility 1. % 1. % Grand Total 13.7 % 2.2 % 63. % 2.5 %.6 % 1. % 88 44

45 Storebrand Investments Storebrand Investments highlights Profit before tax NOK 34 million compared to NOK 2 million 3th quarter last year. Positive development in volume based income, considerable performance fees earned but not recognised as income NOK 352 billion in assets under management as of, increase of 16 billion compared to 2nd quarter. Good performance results in 3th quarter

46 Storebrand Investments profit before tax Full year NOK million Total income Total costs Net finance/other Result before amortisation Amortisation intangible assets Pretax profit/loss Positive development in volume based fees, but still lagging due to the financial turmoil in. Income exclusive variable management fees in mutual funds, earned, but not recognised Considerable performance fees earned, but not recognised 91 Storebrand Investments profit development NOK million Q2 Q1 Q4 Q2 Q1 Q4 Total income Total costs* Net financial income/other Profit before tax * Incl. amortisation 92 46

47 Storebrand Investments stable margin development as of NOK million , % 8, % 6, % 4, % Cost/income ratio 64 percent* as of (63 percent as of ) , % 25 Q Q Q1 Q , % Rolling 12 months income* Rolling 12 months costs Rolling Cost/income *) Includes net financial income and profit before tax from Storebrand Eiendom (12 months rolling). 93 Storebrand Investments contribution to Storebrand Life portfolio YTD Relative performance Intern mandates 42,5 % Equities Norway 4,1% 3,5 % Equities Global Quant 2,3% 6,1 %,7 % Equities Europe L/S** 5,4% 1,7 % 5,8 %,3 % Equities Energy L/S** 1,4% 4,7 % 3,4 % Money market Norway 1,3 % 2,1 % Bonds Norway 1,6 %,6% 46,6 % Money market OECD 4,4 % 1,8% Bonds foreign 2,1 % 1,1% 7,6 % 3,2 % 6,2 % AGFIX** 1,7 % 6,% External mandates SB Selecta 6,5%,3 % 7,3 % SB Multi Strategy 7,%,3 % BelAir Sustain 2,2 % 2,%,3 % 6,8 % Portfolio Index * Return in international equity portfolios are measured against fxunhedged index in NOK ** Shares in hedge funds 94 47

48 Storebrand Investments assets under management Total assets under management NOK billion , , , ,6 29,7 22,7 2,3 29,4 3,3 28, 35,7 15,8 14,6 2, 25,6 28,2 9,7 12,9 221,1 126,6 14,6 142,1 144,1 142, billion increase in assets under management in 29 3 billion increase in mutual funds 1,8 billion increase in SPP Fonder 1,2 billion increase in Storebrand Fondene 5 billion increase in the group internal assets 8 billion increase in the external discretionary portfolio Mutual funds External discretionary Real estate (group internal) Group internal 95 (Page intentionally left blank) 96 48

49 Storebrand Bank Group Storebrand Bank Group highlights 3rd quarter 29 The result developed positively due to increased net interest income in for. The balance sheet strengthened due to a more robust financing structure. In October 29, Storebrand Eiendomskreditt AS issued covered bonds secured by mortgages for commercial properties amounting to NOK 1.6 billion. It is decided to carry out a NOK 2 million injection from Storebrand ASA to increase core capital ratio up to 1% pursuant to new internal target Good portfolio quality and development in losses and defaults. Costs programme established with target of annual cost savings of NOK 5 million with full effect from 211. Key Figures 29 Gross lending (NOK million) Customer deposits (NOK million) Net int. income / avg. total assets,95 %,94 % 1,17 % Cost / Income 82,9 % 82,8 % 76,6 % Cost as % of avg. total assets 1,2 % 1,2 % 1,2 % Deposits from customers as % of gross lending 51, % 46,9 % Note: Storebrand Bank Group 49

50 Storebrand Bank Group profit and loss Full year NOK million Net interest income Net fee and commission income Other operating income Total income Operating expenses Operating profit before losses Loan loss provisions / loss on investment properties Profit before amortisation Amortisation of intangible assets 1) Result after amortisation ) In the consolidated accounts for Storebrand Bank Group amortisation is included under the item "operating expenses". Note: Storebrand Bank Group 99 Storebrand Bank Group quarterly development in profit and loss NOK million Q2 Q1 Q4 Q2 Q1 Q4 Net interest income Net fee and commission income Other operating income Total income Operating expenses Operating profit before losses Loan loss provisions / loss on investment properties Profit before amortisation Amortisation of intangible assets 1) Result after amortisation ) In the consolidated accounts for Storebrand Bank Group amortisation is included under the item "operating expenses". Note: Storebrand Bank Group 1 5

51 Storebrand Bank Group balance sheet Share Share Nok million Cash and deposits with central banks 226,5 % 672 1,5 % Loans to and deposits with credit institutions 42 1, % 334,7 % Financial assets designated at fair value through p&l ,2 % ,5 % Net lending to customers , % ,7 % Deferred taxs assets 172,4 % 167,4 % Other assets 348,8 % 556 1,2 % Total Assets , % , % Liabilities to credit institutions ,6 % ,3 % Deposits from and due to customers ,4 % ,1 % Other financial liabilities ,7 % ,8 % Provision for accrued expenses and liabilities 11,2 % 1,2 % Subordinated loan capital 96 2,2 % 962 2,1 % Equity 2 7 4,8 % ,5 % Total Equity and liabilities , % , % Note: Storebrand Bank Group 11 Storebrand Bank Group development in loan portfolio Lending portfolio Gross lending by sector NOK bn 3 % (2 %) Residential mortgages Other retail 25 % (27 %) 68 % (66 %) Real estate Other corporate 4 % (5 %) Q1 7 Q2 7 7 Q4 7 Q1 8 Q2 8 8 Q4 8 Q1 9 Q2 9 9 Total loans including corporate loans administered by Storebrand Bank on behalf of Storebrand Life is NOK 4.9 bn Note: Storebrand Bank Group Figures for shown in brackets 12 51

52 Storebrand Bank Group development in customer deposits Customer deposits have decreased by NOK 1.2 bn in but increased by NOK.7 bn since Q4 Deposits/gross lending was 51.% at the end of Q2 Increased competition and falling interest rates have lead to decreasing deposit margins NOK million Q4 Q1 Q2 Q4 Q1 Q2 Q4 Q1 Q Customer deposits Deposits/gross lending 6 % 5 % 4 % 3 % 2 % 1 % % Note: Storebrand Bank Group 13 Storebrand Bank Group development in losses 1) Good quality in retail lending portfolio, low losses Good quality also in corporate lending portfolio Diversified tenants Low exposure to most loss exposed segments High completion ratio for remaining development portfolio NOK million Losses as % of gross lending,4 %,2 %, %,2 %,4 %,6 %,8 % 1 1, % Q2 7 7Q4 7Q1 8Q2 8 8Q4 8Q1 9Q2 9 9 Loan losses Loan losse as % of gross lending 1) Loan losses including write downs on real estate 14 52

53 Storebrand Bank Group development in nonperforming loans NOK million Nonperforming loans without evidence of impairment has decreased by NOK 17 million in and NOK 24 million since Q4 8 Loans with evidence of impairment has decreased by NOK 35 million in and NOK 164 million since Q4 8 Storebrand Bank Group has taken into possession two development projects (collateral). Loans with evidence of impairment in parent bank is reduced from NOK 557 million to NOK 518 million in Close followup of all loss exposed engagements Q2 7 7 Q4 7 Q1 8 Q2 8 8 Q4 8 Q1 9 Q2 9 9 Nonperforming loans without evidence of impairment Nonperforming loans with evidence of impairment Loss provisions/defaulted loans 9 % 8 % 7 % 6 % 5 % 4 % 3 % 2 % 1 % % Note: Storebrand Bank Group *): Loss provisions to defaulted loans is calculated as individual impairment loss provisions / gross defaulted loans with identified loss of value. Amortised cost is the present value of the cash flow of the portfolio of NPLs. Depreciation is the expected loss. 15 Storebrand Bank Group development in operating expenses New cost efficiency programme introduced Target to reduce cost by NOK 5 million with full effect from 211 Writeoff of NOK 12 million in relating to reduction in headcount Write downs on accounts receivables in Ring Eiendomsmegling NOK 2.5 million NOK million , % Q2 7 7 Q4 7 Q1 8 Q2 8 8 Q4 8 Q1 9 Q Operating expenses other Operating expenses Banking Cost as % of total assets Banking Cost as % of total assets ,4 % 1,2 % 1, %,8 %,6 %,4 %,2 % Note: Operating expenses before amortisation and write downs on real estate 16 53