Results March 9, Christian Storm Senior Vice President. Analysts-presentation 8 March

Transcription

1 Results 1999 March 9, 2000 Christian Storm Senior Vice President Analysts-presentation 8 March

2 Storebrand Main aspects 1999 Operating result increased by 183% to NOK million Proforma group result NOK million Value adjusted return in Storebrand Life increased from 3,5% to 15,7% If Concession and accounting gain before tax of NOK million on the If transaction Board proposes a dividend of NOK 1,- per share New Storebrand has shown solid improvement in all important business areas in 1999 Analysts-presentation 8 March

3 Storebrand Group Operating result NOK million Premiums for own account - insurance 10,530 9,099 Interests and similar income - banking Financial income - insurance 23,561 15,662 Other income Operating income 35,846 25,609 Insurance benefits, reserve allocations -14,291-11,615 Interests and similar costs - banking Financial expenses - insurance -7,731-12,358 Operating costs -1,624-1,395 Other costs Costs and expenses -24,933-26,189 Net result from non-life insurance To (from) market price adjustment reserve -5,868 2,008 Operating profit 5,347 1,888 Analysts-presentation 8 March

4 Storebrand Group Operating profit by sub-group NOK million Storebrand ASA (exclusive group transfers) Storebrand Life insurance 4,956 1,786 Storebrand Non-life insurance Storebrand Bank 5 11 Finansbanken ASA 96 Storebrand Unit Linked -1-1 Storebrand Funds 11 6 Storebrand Investment Management Storebrand Health insurance (50%) -7-5 Others/eliminations Operating result 5,347 1,888 Provisional allocation to policyholders -4,181-1,286 Group profit 1, Analysts-presentation 8 March

5 Legal Accounting 1999 NOK mill Result to owners life business Operating result non-life business Result banking operations Result other activities (11) (369) Group profit Analysts-presentation 8 March

6 Proforma 1999 NOK mill Result to owners life business Operating result non-life business Result banking operations Result other activities (311) (369) Proforma group result Analysts-presentation 8 March

7 Non-life Business Proforma and legal accounting (NOK mill) Proforma % of If for 12 months Oslo Re for 12 months Remaining Storebrand non-life Goodwill depreciation and deferred gain taken to income regarding If Funding costs Oslo Re (93) (25) Total proforma Legal accounting Operating profit Storebrand non-life full year No effect on operating profit from the If transaction or Oslo Re Analysts-presentation 8 March

8 Banking Operations Proforma and legal accounting (NOK mill) Proforma Finansbanken for 12 months Storebrand Bank Group 5 11 Total proforma Legal accounting Finansbanken from Storebrand Bank Group Total legal accounting Analysts-presentation 8 March

9 Other Businesses Proforma and legal accounting (NOK mill) Proforma Storebrand ASA Storebrand Kapitalforvaltning Storebrand Fondene Result other companies Goodwill depreciation Finansbanken Funding costs Finansbanken (256) (8) (28) (54) (357) (14) 6 (9) - - Proforma operating profit other (311) (369) Legal accounting in addition Sales gain on Nybygg in Storebrand ASA Elimination of interest costs life company Other adjustments Analysts-presentation 8 March Total legal accounting other (11)

10 Storebrand Group Profit for the year NOK million Group profit 1, Changes in security reserve etc. - non life Profit from the sale of the non-life activity 3,230 Result ordinary operations 4, Extraordinary income 82 Profit before tax 4, Tax -1,131 1 Minority interests -2 Profit for the year 3, Analysts-presentation 8 March

11 Storebrand Group Earnings per share NOK million Group result Change in security reserve etc Preference-surplus 0-11 Basis for calculation Special items: - Profit from the sale of the non-life activity Extraordinary income Basis for calculation excl. special items Earnings per share * 12,07 2,14 Earnings per share excl. special items * 3,38 2,14 *) Number of ordinary shares is 277 million Analysts-presentation 8 March

12 Storebrand Capital adequacy Risk weighted Net primary Capital ratio NOK million assets capital Storebrand ASA ,6 % 76,9 % Storebrand Life insurance ,0 % 12,1 % Storebrand Non-life insurance ,2 % 23,3 % Storebrand Bank ,3 % 14,1 % Finansbanken ,3 % 12,2 % Storebrand Group ,0 % 13,4 % Analysts-presentation 8 March

13 Storebrand Group Balance sheet Share of total assets NOK million * Intangible assets % 1 % Real estate 10,235 7 % 8 % Shares in associated companies 5,110 3 % 0 % Loans 22, % 8 % Bonds 60, % 47 % Certificates 3,105 2 % 3 % Shares and other equity investments 38, % 24 % Other financial assets 3,456 2 % 1 % Other assets 5,697 4 % 9 % Total assets 149, % 100 % Equity 10,182 7 % 5 % Minority interests 13 0 % 0 % Subordinated loan capital 4,536 3 % 2 % Market price adjustment reserve 8,596 6 % 2 % Technical reserves - Life 101, % 82 % Liabilities to financial institutions 3,117 2 % 0 % Deposits from and liabilities to customers 10,759 7 % 3 % Securities issued 7,257 5 % 3 % Other allocations and liabilities 3,711 2 % 2 % Total liabilities and equity capital 149, % 100 % * Total assets as at : NOK 126,531 million Analysts-presentation 8 March

14 Storebrand ASA Profit for the year NOK million Group contributions and transfers Interest income Realized gains/losses on securities Unrealized gains/losses on securities Interest expense Other financial income/costs 2-8 Net financial items Total operating costs Profit before tax Tax Profit for the year Analysts-presentation 8 March

15 Finansbanken ASA - Group Profit and loss accounts (NOK mill.) Interest income etc ,7 998,6 Interest expenses etc. -702,5-677,3 Net interest and credit commission income 329,2 321,3 Total other operating income 41,7 29,4 Total operating expenses -130,7-107,8 Operating profit before losses and write-downs 240,1 243,0 Losses on loans and guarantees etc. -72,5-99,7 Operating profit 167,6 143,3 Taxes -48,2-39,0 Profit after tax 119,4 104,3 Analysts-presentation 8 March

16 Storebrand Life Group Summary profit and loss account Changes NOK mill in % Premiums written 7,167 6,882 4% Net transferes of premium reserve % Net income of financial investments 15,316 3, % Claims paid -5,591-5,392 3% Change in technical reserves -4,950-4,874 2% Operating expenses SBL AS % Other income/cos ts % Change in market price adjustment reserve -5,868 2, % Operating profit 4,955 1, % Extraordinary items 234 Profit after extraordinary items 5,189 1, % Trans ferred to policyholders -4,333-1, % Profit to owner* 856* % * incl. extraordinary income of NOK 82 million Analysts-presentation 8 March

17 Storebrand Investments Highlights 1999 Outperformance of 175 bps on life portfolio. Discretionary funds increased by NOK 6.3 billion (+119%). Mutual funds market share up from 6.3% to 8.1%*. Private Equity fund - of - funds launched in Norway. Increased focus on Private Banking through acquisition of Finansbanken and of Norwegian equity manager Delphi. Institutional sales offices opened in Stockholm, London and Paris. * Including acquisition of Delphi Fund Management the market share is 9.1% Analysts-presentation 8 March

18 Market development - as of Equity returns Norway and International 8.00% Yield to maturity Norway and International % % % % 5.50% 5.00% 4.50% % % % Dec-97 Feb-98 Apr-98 Jun-98 Aug-98 Oct-98 Dec-98 Feb-99 Apr-99 Jun-99 Aug-99 Oct-99 Dec-99 Dec-97 Feb-98 Apr-98 Jun-98 Aug-98 Oct-98 Dec-98 Feb-99 Apr-99 Jun-99 Aug-99 Okt-99 Dec-99 MSCI World Norway (Totx) MSCI (W) equals Morgan Stanley Capital Index World ex. Nordic ex. Finance currency hedged to Norwegian kroner. Totx. equals Oslo Stock Exchange All Share Index (TOTX) Analysts-presentation 8 March Norway ca. 4,8 y (DNB Stat Benchmark All) International ca. 5,7 y (J.P. Morgan WGBI) Norway 6 m (DNB State Certificate Index 180 d) International 6 m (constructed)

19 ... Equity markets 1999 Index development by country 250 % 200 % 150 % 100 % 50 % 0 % Analysts-presentation 8 March BELGIUM IRELAND AUSTRIA PORTUGAL SWITZERLAND AUSTRALIA NEW ZEALAND UNITED KINGDOM ITALY USA SPAIN NETHERLANDS DENMARK GERMANY CANADA NORWAY JAPAN MALAYSIA MALAYSIA FREE FRANCE HONG KONG SINGAPORE FREE SWEDEN SINGAPORE FINLAND 1999 Desember Source: Morgan Stanley Capital International/Oslo Stock Exchange, return in local currency.

20 Value added Active portfolio management for SBL added value of NOK million in excess of benchmark return. Norway Return vs index 45.6% 45.5% Return Index Equities Fixed Income Norway 2.7% 2.9% Total value added for Storebrand Livsforsikring in 1999 NOK million Equities PAC (+33,9%) Fixed Income (+0,1%) Nordic Europe N-Am. Pacific 35.8% 27.6% 32.0% 24.5% 53.6% 87.4% 109.7% 118.9% International Money market Real Estate 2.4% 2.1% 6.6% 6.3% 9.7% Aksjer NAM (+7,5%) Equities Europe (+8,2%) Allocation (+0,25%) Equities Norway (+0,1%) Other 44.1% 45.5% Mortgages 8.5% Analysts-presentation 8 March

21 Storebrand Livsforsikring AS Asset allocation gave positive contribution in 1999 International securities account for appr. 2/3 in equity and fixed income portfolios. Equity allocation significantly increased through the year. Long in Asia and Norway. Increased credit exposure in international Fixed Income. NOK 5 billion into Norwegian Hold-to-Maturity bonds. 40% 30% 20% 10% 0% Allocation pr. asset class 40% % 29% 24% 23% 19% 9% 9% 5% 3% 3% 3% Equities Fixed Income M Market HTM Real Estate Mortgages Analysts-presentation 8 March

22 Back-up Analysts-presentation 8 March

23 Storebrand Group Booked gains and losses on securities 1. KVARTAL Realized gains and losses on securities Urealized gains and losses on securities NOK million Storebrand ASA Storebrand Life insurance 4, ,868-2,008 Other companies Storebrand Group 4, ,972-2,068 Analysts-presentation 8 March

24 Storebrand Group Operating profit by sub-group: 3rd quarter 4th quarter NOK million Storebrand ASA (exclusive group transfers) Storebrand Life insurance Storebrand Non-life insurance Storebrand Bank -3 4 Finansbanken ASA 54 Storebrand Unit Linked -1-0 Storebrand Funds 1-2 Storebrand Investment Management Storebrand Health insurance (50%) -2-5 Others/eliminations Operating result 1,344 1,106 Provisional allocation to policyholders Group profit Analysts-presentation 8 March

25 Storebrand ASA Balance sheet Share of total assets NOK million * Deferred tax assets % 4 % Real estate 59 1 % 1 % Shares in subsidiaries % 59 % Investments % 19 % Other assets % 18 % Total assets % 100 % Equity % 64 % Allocated for dividend % 0 % Bond loan % 22 % Intra-group debt % 7 % Other liabilities % 8 % Total liabilities and equity capital % 100 % * Total assets as at : NOK million Analysts-presentation 8 March

26 Storebrand Bank Group Main aspects The bank group recorded an operating loss of NOK 32 mill., an improvement from a loss of NOK 67 mill. last year. 10 Net interest income is NOK 139 mill., an increase of NOK 48 mill. compared to last year. 10 Net interest margin for Storebrand Bank AS increased from 1.29% to 1.50% in Income from banking services increased NOK 8 mill., while other operating income fell NOK 20 mill. due to a change in fee structure for sale of mutual funds. 10 Non-interest expenses increased NOK 24 mill., principally as a result of increased personnel, establishment of several advisory offices and increased ITexpenses related to development of the bank s IT systems. 10 The growth in total assets is NOK 1,844 mill., is a result of a balanced growth in deposits and loans. 10 Income related to provision for credit losses fell NOK 41 mill., mainly caused by two large recoveries in Storebrand Finans AS in Capital adequacy ratio is 15.3% at the end of 1999 compared to 14.1% at the end of Analysts-presentation 8 March

27 Storebrand Bank Group Income Statement NOK million Interest income Interest expense Net interest income Other operating income Operating expenses Operating income Provision for credit losses Taxes Profit after tax Analysts-presentation 8 March

28 Storebrand Bank Konsern Balance Sheet NOK million Cash and due from banks Net loans 6, ,006.9 Securities available for sale Premises, furniture and equipment, net Miscellaneous assets Total assets 8, ,247.2 Loan from banks Certificate loans 1, ,649.6 Interest-bearing deposits 5, ,519.2 Miscellaneous liabilities Shareholders' equity Total liabilities and shareholders' equity 8, ,247.2 Analysts-presentation 8 March

29 Finansbanken ASA - Group Essential features 1999 The financial activities have increased throughout the year, and the annual report of 1999 shows an improvement in net lending and operating profit The increase in net lending and costumer accounts receivable occurred in the second quarter. NOK 1.3bn or 10.3% from real estate-, shipping- and financial investments In 1999 the bank has worked towards developing a business area of Private Banking- services for costumers of fortune In February % of Finansbanken Index ASA was acquired. The financial activities and operating profit have been more than satisfactory An agreement of acquiring 89% of Delphi Forvaltning ASA has been made. It`s expected to be carried out within the first six months of 2000 Return on equity was 17.1% and 12.2% after tax. Costs as a percentage of operating income was 35.3% Operating profit before tax was NOK million and NOK million after tax Analysts-presentation 8 March

30 Finansbanken ASA - Group Balance sheet (NOK million) Cash and deposits with central banks 521,9 578,5 Net lendings to customers , ,1 Assets acquired 135,3 253,8 Commercial paper, bonds and other securities 778,1 714,1 Fixed/intangible assets and goodwill 27,1 27,7 Prepaid expenses and accrued income 244,0 199,8 Total Assets , ,9 Loans from credit institutions 2.596, ,3 Deposits from and debt to customers 5.603, ,5 Securities issued 3.932, ,0 Other liabilities/acc. exp. and prepaid inc./prov. for exp. and comm. 417,4 417,6 Subordinated loan capital 344,3 422,6 Total Equity 1.034,6 921,9 Total Liabilities and Equity , ,9 Analysts-presentation 8 March

31 Finansbanken ASA - Group Key Figures (NOK mill. and percentage of average total assets) Net interest and credit commission income 2,50 % 2,50 % Total other operating income 0,32 % 0,23 % Total operating expenses -0,99 % -0,84 % Operating profit before losses and write-downs 1,82 % 1,89 % Losses on loans and guarantees etc. -0,55 % -0,77 % Operating profit 1,27 % 1,11 % Taxes -0,37 % -0,30 % Profit after tax 0,91 % 0,81 % Capital adequacy Net capital base 1 374, ,6 Capital ratio 11,37 % 12,21 % Core capital ratio 8,53 % 8,39 % Other key ratios Ratio of expenses to operating income 35,25 % 33,05 % Return on equity after tax 12,21% 12,92% Analysts-presentation 8 March

32 Storebrand Life Group Main aspects at 1999 Value adjusted investment yield 15.74%. Realized investment income yield 9,97% Operating result increase by nearly three times compared to last year Premium income, including premium reserves transferred to the company, up by 4% compared to last year Cost ratio of 0.96%, an increase from 0.94% in 1998 because of a increase in operating costs Market sales in the Private market has decreased compared to last year Good development in sales to the corporate market Analysts-presentation 8 March

33 Storebrand Livsforsikring AS Profit analysis NOK mill Interest result 5,619 1,655 4,671 Risk result Administration result Change in security and premium reserve Total result 5,232 1,781 4,354 Analysts-presentation 8 March

34 Storebrand Livsforsikring AS Key figures Return on capital *) 9.97% 5.85% Value adjusted return 15.74% 3.50% Value adjusted return -including bonds held to maturity 14.91% 2.93% Solvency margin 208.4% 220.4% Capital ratio (SBL Group) 11.98% 12.10% Operating expenses as % of policyholders funds 0.96% 0.94% *) exc. change in value adjusted allocations Analysts-presentation 8 March

35 Storebrand Livsforsikring AS Unrealized gains NOK mill Change Shares 9,720 2,312 7,408 Fixed interest investments -1, ,539 To market price adjustment reserve 8,596 2,728 5,869 Bonds held to maturity Total 8,417 3,281 5,136 Analysts-presentation 8 March

36 Storebrand Livsforsikring AS Operating costs in % of average policyholders funds 1,2 1,0 1,15% 1,10% 1,02% 0,94% 0,96% 0,90% 0,8 0,6 0,4 0,2 0, Analysts-presentation 8 March

37 Storebrand Life Group Balance sheet Share of Share of total assets total assets NOK mill Immaterial assets 4 0 % 0 % Real estate 10,103 9 % 8 % Long term shares and interests from group companies % 0 % Bonds and other investments - fixed interest 25, % 18 % Mortage and other loans 3,177 3 % 5 % Shares and interests 37, % 28 % Other fixed interest financial investments 33, % 31 % Certificates 1,907 2 % 2 % Other short term financial assets % 1 % Total financial assets 111, % 93 % Other assets 4,002 3 % 7 % Total assets 115, % 100 % Analysts-presentation 8 March

38 Storebrand Life Group Balance sheet Share of Share of total assets total assets NOK mill Equity 2,961 3 % 3 % Subordinated loan capital 4,201 4 % 3 % Market price adjustment reserve 8,596 7 % 3 % Premium reserve for own account 81, % 75 % Additional statutory allocations 5,847 5 % 6 % Premuim/pension adjustment fund 9,160 8 % 8 % Claims reserve for own account % 0 % Insurance fund reserves for own account 96, % 89 % Other insurance reserves 28 0 % 0 % Allocations to security reserves % 1 % Insurance related reserves for own account 97, % 90 % Reserves for other risks and expenses % 0 % Debt 1,538 1 % 1 % Prepaid costs and accured income % 0 % Total equity and liabilities 115, % 100 % Analysts-presentation 8 March

39 Storebrand Life Group Premium (inc. reserves transferred to the Company) NOK mill Collective pensions 6,529 5,779 - of which premium reserves received 2,008 1,880 Group life Individual endowment 1,549 1,839 Individual pension Total premium income 9,264 8,887 - of which preium reserves received 2,098 2,006 Analysts-presentation 8 March

40 Storebrand Livsforsikring AS Real estate fund Geographic allocation Key figures The real estate fund: Gross yield *) 7.5% 7.5% Growth in value **) 9.7% 6.6% The fund's properties: Operating result I ***) 7,0 % 6.6% Cities 2% Rest of Norway 4% Shopping centres 47% Rest of Oslo 14% Total m2 712, ,000 Occupancy level 98.1% 98.1% *) Current rent in % of average market value Vika, Oslo 33% **) Includes revaluations of unrealised gains at as a consequence of the new Companies Act ***) (Sum operating income - sum operating expenses) in % of average market value Analysts-presentation 8 March

41 Storebrand Livsforsikring AS Loan fund Loans with security in real estate by valuation limits Key figures Within 60% of valuation: 91% Portfolio: NOK mill. 3,100 5,000 Number of loans 14,100 20,000 Growth in value 8.5% 7.3% Defaulted loans in % 1.3% 0.8% Change in loss prov. *) 0.04% -0.03% *) % of average loan portefolio Other loans: 6% Above 60% of valuation: 3% Analysts-presentation 8 March

42 Storebrand Livsforsikring AS Investment management 1999 Return on total assets : 15.74% Return on investment assets : 15,78% Return Percent SBL Index Total Equities Fixed Income Money Market HTM Real Estate Mortgages Asset Allocation Risk exposed asset allocation as percent of the on-balance assets Equities Fixed Income Money Market HTM Note: The on-balance equity portfolio and on-balance fixed income portfolio equals 33.38% and 28.66% respectively of the on-balance assets. Real Estate Mortgages Analysts-presentation 8 March

43 Storebrand Livsforsikring AS Equities 1999 Return Percent SBL Index Total Norway Nordic Europe North- America Asia Other Allocation Percent of total equities Norway Nordic Europe North-America Asia Other Analysts-presentation 8 March

44 Storebrand Livsforsikring AS Fixed Income 1999 Return Percent SBL Index Total Fixed Inc. Norwa Fixed Inc Int. Money Market HTM Other Allocation Percent of total fixed income Fixed Inc. Norway Fixed Inc Int. Money Market HTM Other Interest rate volatility as of ( ) Total based on market values: NOK millions (2.488) Accounting effect: NOK millions (1.736) Analysts-presentation 8 March

45 Storebrand Skadeforsikring group Operating Result NOK million Written premiums f.o.a ,1 Opptjent premie fer Claims f.o.a Technical operating costs Technical result Financial income Operating profit Key-indicators Effect of run-off result Claims ratio f.o.a. 90,1 % 73,5 % Claims ratio f.o.a. current year 90,9 % 78,8 % Cost ratio f.o.a. 26,6 % 27,0 % Combined ratio f.o.a. 116,6 % 100,4 % Analysts-presentation 8 March

46 Storebrand Skadeforsikring group Profit of the Year NOK million Operating profit Gains of sales Change in security reserves etc. due to If Additional change in security reserves etc Profit before tax Tax Profit of the year Analysts-presentation 8 March

47 Storebrand Skadeforsikring group Summary Balance Sheet Euro- Non-Life Non-Life NOK million Skade AS peiske Oslo Re Group Group Interest in If Interest in subsidiaries Financial assets Group contribution/dividends Receivables Total assets Equity capital Premium and claims reserve Security reserve etc Deferred tax Group contribution/dividends Liabilities Total equity and liabilities Analysts-presentation 8 March

48 Storebrand Skadeforsikring group Interest in If (44%) Interest in If Share of result before tax 295 Goodwilldepreciations -52 Tax -39 Share of result after tax 204 Interest in If The share of result is charged directly to the equity in 1999, because of different point of time of the transaction (1.3.99) and the permission from the authorities ( ). Straight-line deprecations of goodwill over 20 years. Analysts-presentation 8 March

49 Bond markets 1999 Index development 22,00 % In local currency Hedged to NOK 17,00 % 12,00 % 7,00 % 2,00 % -3,00 % France USA Spain Italy Sweden Netherlands Belgium Australia Germany Canada UK Denmark Norway Japan -8,00 % -13,00 % Analysts-presentation 8 March

50 Equity markets 1999 Index development by sector 120 % 100 % YTD December 80 % 60 % 40 % 20 % 0 % -20 % -40 % ENERGY MATERIALS INDUSTRIALS CONSUMER DISCRETIONARY CONSUMER STAPLES HEALTH CARE FINANCIALS INFORMATION TECHNOLOGY TELECOM SERVICES UTILITIES THE WORLD INDEX Source: Morgan Stanley Capital International Analysts-presentation 8 March

51 Storebrand Livsforsikring AS Assets under management and return Development of AuM since Accumulated return and benchmark return 1999 NOK billion Index of return Total Return Dec-98 Feb-99 Apr-99 Jun-99 Aug-99 Oct-99 Dec Capital end of 1996 Capital gains Equity Fixed Income Equity benchm. Fixed Income benchm. Other net flow Analysts-presentation 8 March

52 Return Norwegian life companies Storebrand second best return for the year 1999 Return Norwegian life companies % 19.0% 18% 16% 15.8% 15.5% 15.1% 14% 13.3% 12% 10% 8% 6% 4% 2% 0% KLP Storebrand Vesta Vital Gjensidige Analysts-presentation 8 March

53 Storebrand Investments Assets under management doubled in 4 years, and strong income growth in 1999 yields increased profitability NOK billion , , , , , CAGR + 17% Internal Clients Discretionary accounts Mutual Funds Real Estate Total assets under management increased by NOK 23.5 bn, to NOK bn. Operating income increased by 76% Operating costs up by 31% Total earnings increase of NOK 43.5 million Earnings from mutual funds business up by 88% Analysts-presentation 8 March

54 Storebrand Fondene Mutual Funds Number of clients increased by 29% to Total marketshare increased from 6.3% to 8.1% (Including Delphi the market share is 9.1%). 25% 20% 15% Cumulative market share net new subscriptions 1999 Assets under management increased from NOK 5.4 bn. to NOK 9.9 bn. (Including Delphi of NOK 11.1 bn.). Total of 32 funds, 4 new funds launched in % 5% 0% jan feb mar apr may jun jul aug sep oct nov dec Excess return in 16 of 32 funds. Top ranked funds on the Norwegian market in 1999: Storebrand Teknologi +174% return Storebrand Global + 27% overperformance Analysts-presentation 8 March

55 Storebrand Investments Discretionary accounts Number of institutional clients increased from 29 to 45 Discretionary assets under management increased by NOK 6.3 billion 131 portfolios under management 2.3 Assets under management discretionary accounts NOK billion CAGR + 125% Share of non-storebrand Group assets increased from 11.9% to 15.3% Inflow Outflow Capital gains Note: Figures do not include Delphi with appr. 340 clients and assets of NOK 1.3 billion under management. Analysts-presentation 8 March

56 Private Equity 1999 Return Absolute return target: risk-free interest rate* + 10%. Return Private Equity 44.3% Total of NOK 2.6 billion under management Including committed capital 70% in international partnerships, with emphasis on European funds. 30% in Norway, invested directly or through investment companies. Realised NOK 600 mill., invested NOK 500 mill. Product development Launched NOK 100 mill. fund-of-funds, first of its kind in Norway. Geographic distribution NOK 2.6 billion Nordic 40% Apax Globis Japan 20% 20% Hicks, Muse, Tate, & Furst Europe Europe 40% Private Equity Fund - of - Funds 20% North- Amerika 17% Asia 3% Clayton, Dubilier & Rice 40% Kohlberg, Kravis, Roberts Europe Analysts-presentation 8 March * Observed 12 month Libor at the beginning of the year. For 1999 this was 6.8%.

57 Storebrand Eiendom Highlights 1999 Concentration of properties in Oslo Geographic value distribution 1999 NOK 10.0 billion Shopping Malls 43% Big cities 2% Total divestment of 10 properties, mainly outside Oslo Life company bought Filipstad brygge 1 og Hoffsveien 1 Other Oslo 14% Other Norway 3% Vika 39% Main rehabilitation project, Vika, completed at the end of m 2 offices and m 2 commercial Operating return of 7.0%, including Vika rehabilitation project Area type distribution m 2 Offices 34% Parking 20% Storage 9% Commercial 37% Analysts-presentation 8 March

58 Analysts-presentation 8 March

59 Storebrand ASA 1999 Annual Accounts Presentation to Analysts 9 March 2000 Espen Klitzing Manager Director Storebrand Livsforsikring AS Analysts-presentation 8 March

60 Strong growth in net household wealth * NOK bn (1999 values) Forecasts from the Norwegian National budget * Household financial wealth (assets) less debt rebased to 1999 prices Source: Norges Bank, Ministry of Finance Analysts-presentation 8 March

61 Mutual funds/life & pensions insurance account for a greater share of household financial wealth Other assets/liabilities Securities 12 % 10 % 9 % 6 % 13 % 20 % Insurance 24 % 31 % 35 % Cash and bank deposits 58 % 46 % 36 % Source: Norges Bank, 2000 Analysts-presentation 8 March

62 1999 in strategic perspective If... established as a competitive platform for P&C For operations For owners Economies of scale Capital optimisation Develop expertise Financial and structural flexibility Focus on Storebrand's growth platforms New group structure New pensions products Unit Linked Investment Management Internet, corporate & retail Private Banking Analysts-presentation 8 March

63 Storebrand - new operational structure paves the way for growth Storebrand Business areas: - Retail distribution - Corporate distribution - Products - Investment management Joint operating company Joint IT company Strategic investments: - If - Finansbanken - Oslo Re - Fair Analysts-presentation 8 March

64 Investment management - positioned for growth Funds under management NOK bn. CAGR = 17% Strong growth in funds under management over the next 3 years Further develop Storebrand's unique investment process ,8 99,3 114,6 123,8 147,3 Build and exploit the brand Focused international expansion based on selected products New products and channels Analysts-presentation 8 March

65 Discretionary management Developments in 1999 External funds under maangment (NOK bn) 2,3 CAGR + 125% 5,2 11,5 Increase in number of external clients from 29 to 45 Majority of portfolios outperformed their benchmark Net inflow of funds in 1999 of NOK 4.7 bn Analysts-presentation 8 March

66 Storebrand Fondene - strong growth in 1999 Market share ,7 22 Winning player in 1999 for net inflows to mutual funds Total new funds invested of NOK 1.9 bn, an increase of NOK 1.5 bn ,1 6,2 6,3 2, Total funds under management of ca. NOK 9.9 bn, of which equity funds represent ca. 78%. Increased in market share from 6.3% to 8.1% Share of funds under management Share of net inflows Analysts-presentation 8 March

67 Private Banking No. of individuals in Norway with financial wealth in excess of NOK 1 million 40,400 66,700 Strong growth in market for managing personal wealth both in Norway and internationally Finansbanken and Delphi are Storebrand's platform in Norway Provides the foundation for Nordic expansion Analysts-presentation 8 March

68 Finansbanken: 1999 performance NOK million 400 Net interest income Ordinary pre-tax profit Acquired Finansbanken, the leading niche bank in Norway The bank continues to perform strongly Finansbanken acquired Delphi Forvaltning ASA in November Analysts-presentation 8 March

69 Life insurance performance Market share of total premiums written (%) + 4 percentage points Improved market share for both individual and collective lines Competitive investment return of 15.74% relative to benchmark comparable of 14.04% Operating profit up by 177% giving 55% improvement in profit to shareholders Risk capital increased by 57% to over NOK 15 bn Analysts-presentation 8 March

70 Corporate market Building on a strong position Market share of premiums written in the corporate market in % 31% Emphasis on defined contribution pension schemes creates growth in a new market 14% 15% Further development of existing traditional defined contribution products (Flex) New and different products with greater emphasis on the individual scheme member Gjensidige Vital KLP Storebrand New concepts for customer service Internationalisation - development and launch of pan-scandinavian products Analysts-presentation 8 March

71 Corporate - an important market Analysis of premiums* Storebrand Liv % 9% 4% 70% Good results from investment management and a leading position in developing new products will further strengthen Storebrand's position in this important market for the group's core activities Collective pension Group life Individual endowment Individual pension * includes transfers Analysts-presentation 8 March

72 Unit linked - market leader in % Market shares in terms of premiums written 42% % 29% 28% 27% 23% Storebrand was the winning company in the unit linked market in 1999 The company sold NOK 1.26 bn of unit linked products Storebrand Vital Skandia Analysts-presentation 8 March

73 Storebrand Bank performance Proportion of customers using internet banking 42% 71% Further growth in number of internet banking customers in 1999 No. of transactions 60 % 50 % 40 % 30 % 20 % 10 % 0 % Payment methods % Storebrand Bank Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Analysts-presentation 8 March Month Manual giro Letter Direct Debit Telegiro Internet 48 % 27 % 15 % 9 % 0,5 % Storebrand Bank voted best internet bank in Norway several times Storebrand Bank upgraded its internet-bank in Autumn 1999 NOK 35 million improvement in operating profit for Storebrand Bank Part of a multi-channel strategy for the retail market

74 Internet Systematic development of new Storebrand's internet bank - voted best in Norway for several years - was upgraded in Mutual funds 'on the Life insurance products 'on the Net based service concept for the corporate market INTERNET TECHNOLOGY - Priority tool in creating growth and improving profitability - Sales & service functionality for the corporate market particularly important - Net technology paves the way for work place distribution - Platform for cross selling Analysts-presentation 8 March

75 New Internet initiatives Target group Retail market Employees of corporate customers Corporate and public sectors HNWI Internal organisation Initiative Financial portal for the retail market Employee services External net and 'cafeteria' choice Finansbanken e - enabling Focus Service, new sales, repeat sales Advice and sales Customer service and flexible systems Service, new sales, repeat sales Internal processes Analysts-presentation 8 March

76 Goals of Storebrand s internet strategy Attract new customers Further improve level of service for existing customers - in both retail and corporate markets Increase sales to existing customers Improve efficiency and reduce costs Storebrand's centralised group structure, a clear internal separation between products and their distribution and the systematic application of new technology provide a sound basis for success Analysts-presentation 8 March

77 Capital situation Equity* Market cap.* Current price Storebrand has a strong capital position at end 1999 Partial sale of If will provide a good injection of liquidity for Storebrand Storebrand will continually strive to maintain the most efficient capital structure possible * Excludes preference share capital Analysts-presentation 8 March

78 Dividend for 1999 Board proposes a dividend of NOK 1,- per share for 1999 Dividend represents approx 25% of the group's underlying profit after tax for 1999 Storebrand's dividend policy targets a dividend of 15% to 30% of profit after tax Storebrand will strive to maintain relatively stable annual growth in dividend per share Analysts-presentation 8 March

79 Financial targets New Storebrand will aim to produce return on book equity (ROE) of 15 % and return on value-adjusted book equity (RONAV) of 13 % Target to be achieved within three years, i.e. by the end of 2002 Analysts-presentation 8 March

80 Shareholder value model for setting business unit targets Conceptual BU base case reports After tax earnings 10% MO 1 Economic profit Group base case CAGR =X% Total earnings MO 2 CoE MO 3 MO Target Growth ROE Gap ROE Value/stock price implications Target setting MO MO Sum Aspirations Base case CoE Growth Return Capital Value added Growth in earnings Value gap relative to Analysts-presentation 8 March 2000 aspirations 80

81 Maintain strategic freedom of manoeuvre Six platforms which can be developed as stand-alone businesses in various combinations, or as a single entity Investment management Private banking Retail distribution Life insurance products and corproate distribution Health insurance P&C insurance Analysts-presentation 8 March

82 Summary Proforma profit NOK million + 127% ,370 New Storebrand made good progress in terms of many crucial success factors in 1999 Storebrand's multi-channel distribution strategy and advisory concept is producing results Storebrand is well placed to win a major share of the growing savings market The group is strongly capitalised Storebrand has been an active developer of internet systems since 1996 and will continue to develop new intranet and internet functionality Storebrand intends to be the leading savings company with a focus on growth through distribution efficiency, market leading product development and high quality investment management Analysts-presentation 8 March

83 Life insurance Main features of 1999 Premium volume maintained with further increases in market share Very strong investment return - both absolute and relative Sharp increase in risk bearing capacity Market leader unit linked products Marginal increase in cost ratio Well positioned for future growth and profitability Analysts-presentation 8 March

84 Sales performance Net transfer of business to Storebrand continues Strong growth in premium income in corporate market Increased market share in both corporate and retail markets Analysts-presentation 8 March

85 Net transfers - Storebrand Life (book values) * Unit link NOK mill % of policyholders' funds (inc. conditional reserves) Policyholders' funds NOK bn (exc. conditional reserves) -1.1% -3.3% -3.8% -0.9% 0.1% -1.8% -0.9% 1.1% 1.2% Analysts-presentation 8 March

86 Storebrand Livsforsikring & Fondsforsikring Premium income (including transfers received) NOK. mill Collective 6,529 5,779 -of which transfers 2,008 1,880 Group life Individual endowment 1,549 1,839 Individual pension Unit Linked 1, Total 10,526 9,098 - of which reserves transferred* 2,098 2,006 * Excludes Unit Linked Analysts-presentation 8 March

87 Market shares - premiums written * total including unit linked products NOK mill. Vesta/Skandia % 6 % 7 % 6 % 8 % Gjensidige NOR 22 % 24 % 20 % 18 % 17 % Sparebank 1 KLP Norske Liv Vital Vår 1 % 19 % 4 % 19 % 3 % 2 % 1 % 1 % 1 % 16 % 19 % 19 % 19 % 10 % 7 % 4 % 5 % 17 % 17 % 19 % 17 % 3 % 3 % 3 % 2 % Storebrand 28 % 25 % 26 % 27 % 31 % * Inc. reserves transferred Source: Association of Norwegian Insurance Companies (ANIC) and company information Analysts-presentation 8 March

88 Market shares - premium written * total retail lines including unit linked products NOK mill. Vesta/Skandia % 1 % 3 % 5 % 10 % Gjensidige NOR 31 % 31 % 25 % 27 % 22 % Sparebank 1 Norske Liv 4 % 3 % 9 % 11 % 4 % 3 % 4 % 22 % 17 % 9 % Vital Vår 21 % 21 % 4 % 3 % 18 % 19 % 2 % 2 % 22 % 2 % Storebrand 29 % 29 % 26 % 27 % 32 % * Inc. reserves transferred Source: Association of Norwegian Insurance Companies (ANIC) and Skandia Analysts-presentation 8 March

89 Market shares - premiums written * total corporate market NOK mill Vesta Liv/Skade 6 % 8 % 9 % 7 % 6 % Gjensidige NOR 18 % 22 % 16 % 13 % 14 % KLP Norske Liv Vital Vår 27 % 1 % 18 % 3 % 26 % 2 % 15 % 3 % 27 % 3 % 16 % 4 % 28 % 28 % 2 % 2 % 19 % 15 % 3 % 3 % Storebrand 28 % 24 % 25 % 28 % 31 % * Inc. Reserves transferred N.B.: Sparebank 1 has 0% market share and is excluded from this chart Source: Association of Norwegian Insurance Companies (ANIC). Analysts-presentation 8 March

90 Storebrand Livsforsikring AS: Investment return 16 % 14 % 12 % 10 % 9.9 % 10.0 % % 8 % 8.5 % 8.5 % 6 % 6.9 % 5.9 % 4 % 2 % 2.4 % 3.5 % 0 % % 10.0 % Book Value adjusted Analysts-presentation 8 March

91 Sharp increase in risk bearing capacity 15.4 bn. 9.8 bn bn. 9.7 bn. 7.3 bn Addn. Stat. Res. Mkt.ValueAdj.Res. Core Capital Margin Analysts-presentation 8 March

92 Market share - premiums written * unit linked NOK mill. Other*** Handelsbanken** 860 1,685 4,398 20% 06 % 3 % Skandia** 30 % 26 % 23 % Gjensidige NOR K-Fondsforsikring** 8 % 2 % 7 % 6 % 6 % 7 % Vital 34 % 42 % 28 % 1 % Vår 10 % 2 % 29 % Storebrand 13 % 13 % * Inc. Reserves transferred ** Company does not provide statistics to ANIC. Our figures taken from company information. K-Fondsforsikring and Spb 1 figures provided to ANIC only from *** Sparebank 1, SEB and Commercial Union Analysts-presentation 8 March

93 Cost performance Higher total costs due to increased distribution capacity, IT investments and higher investment management charges. Average cost ratio slightly higher in collective lines, but strong competitive position maintained in all segments Cost ratio higher for retail lines, but cost ratio and cost increase relative to administration premium are still very competitive relative to other life companies and competing savings products. Investment management fees are determined in part by investment performance relative to an index portfolio. Good investment results in 1999 triggered an additional fee of NOK 34 million. Analysts-presentation 8 March

94 Total costs as % of average policyholders' funds 1.02 % 0.90 % 0.86 % 0.94 % 0.96 % Analysts-presentation 8 March

95 Well positioned for further growth and profitability Expect to see growth in all markets - but particularly in the corporate market New technology offers more efficient access to private individuals, both as private customers and as employees of corporate customers Storebrand will launch the next generation of pension products for the corporate market during 2000 All distribution channels for the retail market are now concentrated into one strong unit Analysts-presentation 8 March

96 Occupational pensions - market penetration Illustrative Pension funds Public sector Private companies with occupational pension schemes Private companies with no occupational pension scheme Analysts-presentation 8 March

97 Work place distribution Personal advice at the work place Customer centres - long opening hours The employee Staff meetings and themed seminars Information on employer's pension scheme and the life company's role Simulation tools and comprehensive overview on the Internet Analysts-presentation 8 March

98 Complete range of group based products Products Format Defined benefit Defined contribution Yes Yes 1 Jan 2001 Yes Life company Pension fund Bank Mutual funds Pay as you go Tax qualifying Non tax qualifying Analysts-presentation 8 March

99 Combined strength in distribution for the retail market Staff numbers Internet Work place distribution External channels Financial advisers Cust. centres Franchise Co. agents Bank Total Analysts-presentation 8 March

100 Increasing share of the retail market Per cent Traditional insurance Unit Links Mutual funds Delphi Analysts-presentation 8 March