Slide 1: Storebrand Q4 2023
Storebrand Q4 2023 7 February 2024 Odd Arild Grefstad – CEO Lars Aa. Løddesøl – CFO
Slide 2: 2023 marks a year of value creation for customers and shareholders
2023 marks a year of value creation for customers and shareholders Provide financial freedom and Value accretive security to our customers M&A and divestments Supported customers in ~150 thousand insurance related cases Helseforsikring Delivered NOK ~100bn in returns to our customers Leading player
Slide 3: Highlights Q4 2023
Highlights Q4 2023 Solid uplift in dividends, continued successful growth execution but weak insurance results Group result 1 NOK 1 212bn in assets under management MNOK supported by strong positive net flow +27% 20% growth in unit linked reserves2 Adjusted for 3 480 integration cost, the result was
Slide 4: Step up in dividend to NOK 4.10 per share
Step up in dividend to NOK 4.10 per share, increase of ~11% from last year Dividends per share 1 Share buybacks NOK per share NOK billion Ambition announced on CMD 2023 12.0 +11% Planned 4.10 Executed or initiated 3.70 3.50 3.25 9.6 3.00 2.50 1.5 1.55 1.1 1.5 0.4 2.4 0.5 2016 2017 2018 2019 2 2020 2
Slide 5: Sustainable Nordic Savings and Insurance Group
Sustainable Nordic Savings and Insurance Group A B C Future Storebrand Growth focus in Leading Provider Nordic Powerhouse in Growing Challenger in capital-light business Occupational Pensions Asset Management Norwegian Retail Market areas in front book Norway & Sweden Strategic enablers D People Fir
Slide 6: Double digit growth continues across the Group
Double digit growth continues across the Group Unit linked (defined contribution) pensions Asset management UL reserves (NOK billion) YOY AuM (NOK billion) YOY 20%2 19%2 +10%1 +15%1 380 1 212 308 315 1 097 1 020 268 962 721 831 220 707 168 179 577 140 2016 2017 2018 2019 2020 2021 2022 2023 2016 201
Slide 7: Strong and consistent net flow in Asset Management
Strong and consistent net flow in Asset Management, best performance among Nordic players in 20231 Net flow Return & Currency Net flows 2020-2023 Billion NOK 1 212 70 1 097 17 43 1 020 122 - 94 962 92 Q4 2020 Q4 2021 Q4 2022 Q4 2023 Share of external funds 43% 46% 46% 49% 7 1. Source: AM Watch Q3 20
Slide 8: Group result increased 27% year on year, despite weak results in Insurance
Group result increased 27% year on year, despite weak results in Insurance Group result 1 Satisfactory margin development except Insurance MNOK CMD 2020 2023 +27% Guidance Actuals Fee income 3 480 Adjusted for integration cost, the result was NOK 3 707m Unit linked 0.6-0.8% 0.63% 2 731 Fee income 13
Slide 9: Mitigating actions to improve insurance results
Mitigating actions to improve insurance results towards the 90-92% combined ratio target by 2025 Claims development Mitigating actions Repricing Challenging weather (e.g. torrential rain) and increased frequency Risk selection Persistently high inflation and unfavourable currency movements Terms and
Slide 10: Strong development in earnings per share
Strong development in earnings per share1, 32% increase year on year driven by earnings growth and buybacks Group result2 Share buybacks effect Group result2 per share Shares outstanding adjusted for own shares Result before tax and amortisation (NOK million) Result before tax and amortisation (NOK
Slide 11: Key Figures
Group Key Figures Improved financial result and a solid solvency position Result development 1 Earnings per share 2 Financial items and risk result life Performance related result 2.16 2.14 Special items Cash equivalent earnings from operations 1.83 1.82 1.73 983 947 841 773 777 378 219 255 264 465
Slide 12: Cash remittance of more than 100% of profit after tax
Group Cash remittance of more than 100% of profit after tax Remittance from subsidiaries of NOK 3 512m Which will strengthen the liquidity in HoldCo NOK billion Illustrative 1.8 3.5 3.7 1.5 1.3 2.4 2.4 0.2 NOK 2 934m – NOK 147m NOK 627m NOK 98m Storebrand Storebrand Storebrand Asset Storebrand Openi
Slide 13: High capital generation lifts solvency from 184% to 192%
Group High capital generation lifts solvency from 184% at the start of the year to 192% at year end Solvency II development 2023 ILLUSTRATIVE 13% 26% 192% 5% 184% 2022 Capital Dividend and M&A and 2023 Q4 generation buybacks subordinated capital Q4 13
Slide 14: Solvency position and sensitivities Q4 2023
Group Solvency position and sensitivities Q4 2023 Storebrand Group Solvency position 1 Estimated sensitivities 204 % 192 % SII-margin Q4 192% Interest 185% rates -50bp Interest 196% rates +50 bp Q3 2023 Q4 2023 Equity -25%, 196% VA -10% Key takeaways Q4 2023 Spread +50 bp, 185% VA +15bp ▪ Substantia
Slide 15: Storebrand Group | Profit
Group Storebrand Group | Profit Strong income growth & financial result, but weak insurance results Profit 1 Q4 Full year NOK million 2023 2022 2023 2022 Fee and administration income 1 959 1 641 6 782 6 062 Insurance result 64 390 1 122 1 664 Operational cost -1 542 -1 410 -5 787 -5 008 Cash equiva
Slide 16: Storebrand Group | Profit by line of business
Group Storebrand Group | Profit Profit by line of business Profit 1 Q4 Full year NOK million 2023 2022 2023 2022 Fee and administration income 1 959 1 641 6 782 6 062 Insurance result 64 390 1 122 1 664 Operational cost -1 542 -1 410 -5 787 -5 008 Cash equivalent earnings from operations 481 621 2 1
Slide 17: Savings (non-guaranteed)
Savings Savings (non-guaranteed) Continued growth and satisfactory result development Profit Q4 Full year NOK million 2023 2022 2023 2022 Fee and administration income 1 607 1 293 5 443 4 733 Operational cost -972 -848 -3 582 -3 031 Cash equivalent earnings from operations 635 445 1 861 1 701 Financ
Slide 18: Savings (non-guaranteed)
Savings Savings (non-guaranteed) Positive UL and AuM development (high net flow) Reserves and premiums Unit Linked Retail bank balance and net interest margin (%) Unit Linked Reserves Unit Linked Premiums Life insurance balance sheet Bank balance sheet Interest margin 6.9 7.0 7.1 7.2 6.6 1.39 1.43 1
Slide 19: Insurance
Insurance Insurance Weak insurance results driven by challenging weather and high disability Profit Q4 Full year NOK million 2023 2022 2023 2022 Insurance premiums f.o.a. 1 776 1 630 6 908 6 088 Claims f.o.a. -1 712 -1 240 -5 787 -4 424 Operational cost -328 -318 -1 251 -1 112 Cash equivalent earnin
Slide 20: Insurance
Insurance Insurance Key figures Reserves and premiums Unit Linked Key takeaways combined ratio and results Claims ratio Cost ratio Combined ratio ▪ 115% overall combined ratio in the quarter, driven by challenging 115% 96% 97% 96% 99% weather and persistently high disability ▪ Strengthening of reser
Slide 21: Guaranteed pension
Guaranteed Guaranteed pension Strong growth in profits driven by increased financial results and solid operational performance Profit Q4 Full year NOK million 2023 2022 2023 2022 Fee and administration income 422 413 1 600 1 597 Operational cost -205 -233 -822 -850 Cash equivalent earnings from oper
Slide 22: Guaranteed pension
Guaranteed Guaranteed pension Key figures Reserves guaranteed products Key Takeaways Customer buffers Actively sold Run-off ▪ Increased result from operations 274 283 279 278 284 24 26 25 23 26 ▪ Continued strong risk result 28 30 30 29 30 ▪ Strong profit-sharing result in Swedish business 222 227 2
Slide 23: Other
Other Other 1 Financial result improving from a higher interest rate level Profit Q4 Full year NOK million 2023 2022 2023 2022 Fee and administration income 1 2 18 17 Operational cost -109 -77 -411 -299 Cash equivalent earnings from operations -108 -75 -393 -282 Financial result 196 98 658 -138 Cash
Slide 24: Higher return on equity as the backbook is transforming into a financial asset
Higher return on equity as the backbook is transforming into a financial asset Future Run-off Total Storebrand Business Savings & Insurance Guaranteed 2 Group Cash result 1 1 938 1 632 3 570 (NOK million) IFRS shareholder equity 6.2 21.3 27.5 (NOK billion) Return on IFRS 31% 8% 13% shareholder equit
Slide 25: 2023 concludes the first year of IFRS 17 reporting
2023 concludes the first year of IFRS 17 reporting IFRS result before amortisation and tax Comments • Group’s profit before amortisation and tax was NOK 3 759m in 2023, compared to NOK 2 681m in 20222 +40% • Higher volatility is expected on a general basis under 3 759 IFRS 17 due to measurement mode
Slide 26: On track to reach sustainability targets
On track to reach sustainability targets Science Solution Greenhouse gas emissions Other highlights based targets investments Stocks and bonds Real estate Developing products & services that aim to reduce growth in disability benefit dependent population NOK 13bn of green Status bonds issued and Q4
Slide 27: We maintain focus on the longer term despite short term challenges in Insurance
We maintain focus on the longer term despite short term challenges in Insurance Group financial ambitions Group sustainability ambitions 5 NOK billion >14% Net-zero investments Workforce participation Group profit 2025 Return on Equity Group-level by 2050 Reduce disability NOK Increasing every year
Slide 28: Q&A
Q&A Please join the MS Teams Webinar to participate in the Q&A session Lars Aa. Løddesøl Odd Arild Grefstad Kjetil R. Krøkje Johannes Narum Group CFO & Group CEO Group Head of Head of Executive Vice Strategy & Finance Investor Relations President 28
Slide 29: Appendix
@&S Storebrand Appendix SS
Slide 30: Underlying operational cost development, NOK 5.9bn expected for 2024
Underlying operational cost development in line with previous guiding, NOK 5.9bn expected for 2024 Operational cost development in line with Operational cost guiding of NOK 5.9bn for 2024 NOK 5.3bn guiding for full year 2023 announced on the CMD in December reiterated Approximation 5.9 5 787 5.8 -4%
Slide 31: Solvency movement from Q3 2023 to Q4 2023
Solvency movement from Q3 2023 to Q4 2023 Storebrand Group 204 % 0% 5% 1% 6% 2% 192 % 4% 2023 Q3 Model & Interest Market returns Updated Cash Dividend 2023 Q4 assumption rates & business mix regulatory earnings & loan changes VA and SA 31
Slide 32: Real estate portfolio – Norway
Real estate portfolio – Norway 1 Allocation and distribution - real estate portfolio Fair value adjustments and change in rental income Unit Linked Guaranteed Logistics Hotel Fair value adjustments by year Change in rental income 3% 29 bn NOK Retail 5% 10% 6 25% 4% 4% 5% 4% 2% 3% 1% 23 -4% 68% -4% -
Slide 33: Real estate portfolio - Sweden
Real estate portfolio - Sweden Allocation and distribution - real estate portfolio Fair value adjustments and change in rental income Guaranteed Office Fair value adjustments by year Change in rental income Public Use 11 bn SEK 16% 10% 21% 7% 3% 2% 3% 21% Supermarket 1% 1% 16% Hotel 2% -1% 26% -4% A
Slide 34: Asset allocation – Guaranteed products
Asset allocation – Guaranteed products Storebrand Livsforsikring AS (Norway) SPP (Sweden) 70% 70% 60% 60% 50% 50% 40% 40% 30% 30% 20% 20% 10% 10% 0% 0% Bonds & Bonds at Bonds & Real Equities Money Loans amortised Equities Real estate Money Loans estate market cost market 31.12.2022 5% 12% 15% 14% 54
Slide 35: For further information
For further information Contact us Information Lars Aa Løddesøl lars.loddesol@storebrand.no Group CFO +47 9348 0151 Kjetil R. Krøkje kjetil.r.krokje@storebrand.no Group Head of +47 9341 2155 Finance & Strategy Investor relations website Financial reports and information Johannes Narum johannes.narum
Slide 36: Important information
Important information This document may contain forward-looking statements. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances that may be beyond the Storebrand Group’s control. As a result, the Storebrand Group’s actual fu
Slide 37: Thank you
Thank you Financial calendar 14 Mars 2024 Annual Report 2023 4 April 2024 Annual General Meeting 24 April 2024 Results Q1 2024 12 July 2024 Results Q2 2024 23 October 2024 Results Q3 2024 37