Slide 1: Storebrand Q2 2023
Storebrand Q2 2023 14 July 2023 Odd Arild Grefstad – CEO Lars Aa. Løddesøl – CFO 1
Slide 2: Strongly rising interest rates in the quarter; Storebrand well positioned
Strongly rising interest rates in the quarter. Storebrand is well positioned through its diversified and robust business model Shift in the forward NOK1 rate in the quarter Currency exchange development1 5.0% 13,0 12,5 4.5% 12,0 11,5 +~1.32% 4.0% 11,0 10,5 3.5% 10,0 9,5 3.0% 9,0 8,5 2.5% 8,0 7,5 2.0
Slide 3: Highlights Q2 2023
Highlights Q2 2023 Record-high solvency and AUM, weak insurance results year to date. Share buyback amounting to NOK 1bn approved for H2 2023 NOK 1 143bn in assets under management Group result 1 19% growth in insurance premiums f.o.a. 2 1 550 519 MNOK 777 16% growth in retail bank's lending volume
Slide 4: Strong commitment to deliver capital returns via share buybacks and dividends
Strong commitment to deliver capital returns in terms of share buybacks on top of ordinary increasing dividends Capital returns of NOK ∼10bn in share buybacks by YE 2030 well underway NOK billion • STB applied to the FSA for buybacks amounting to max. NOK 1 billion, to be divided into two tranches t
Slide 5: Increased claims in the insurance business
Increased claims in the insurance business Development Combined ratio 12 months trailing Key take-aways Combined ratio Group Target Combined Ratio Claims inflation, increased claims frequency in motor and disability insurance products are the main drivers to the increased combined ratio 94% 93% Stor
Slide 6: Sustainable Nordic Savings and Insurance Group
Pursuing our Group Strategy: Leading The Way In Sustainable Value Creation to be a leading Sustainable Nordic Savings and Insurance Group A B C Future Storebrand Leading Provider Growth focus in Nordic Powerhouse in Growing Challenger in Occupational Pensions capital-light business Asset Management
Slide 7: Strong growth in the Occupational Pension businesses
Strong growth in the Occupational Pension businesses, A Leading Provider Occupational Pensions several new customers taken on during the quarter Norway & Sweden Commercial success in occupational pension High double digit premium growth in Norway and Sweden Norway Numbers in BNOK +35% Important mand
Slide 8: Several new mandates won during the quarter
Several new mandates won during the quarter. B Nordic Powerhouse in Strong flow and AUM at all time high Asset Management AUM growth driven by strong markets and 27bn flow YTD. Strong value proposition drives growth and strengthens Flow at 10bn in Q2. High performance-based fees year to date footpri
Slide 9: Continued growth in retail market with bank delivering historically strong quarter
C Continued growth in retail market with bank delivering Growing Challenger in Norwegian Retail Market historically strong quarter Strong earnings growth year on year Strong earnings growth Cash equivalent earnings before amortization (mNOK) 16% mortgage volume growth year on year, in combination wi
Slide 10: Recognized for our Leadership in Sustainability
Recognized for our Leadership in Sustainability D Leadership in Sustainability across various dimensions Leading sustainability position in Recognised for the work and results on Green Bond fully allocated recent Prospera rankings2 equality in the group #1 in Sustainable investments- Fund distributo
Slide 11: Digital transformation in corporate market through E2E digitalization
Digital transformation in corporate market through E2E E Digital Frontrunner digitalization enabling cost efficient SMB growth Digital acceleration of SMB growth * #1 Digital Frontrunner • 40% of Life & Pension sales digital for Life & Pension • 45% of digital sales fully automated All-time high • 5
Slide 12: Key Figures
Key Figures Improved financial result and a solid solvency position Group Result development1 Cash Earnings per share2 Financial items and risk result life Performance related result MNOK Special items Cash equivalent earnings from operations 2.16 841 773 777 1.83 1.82 583 672 219 255 264 105 1.16 1
Slide 13: Solvency movement from Q1 2023 to Q2 2023
Solvency movement from Q1 2023 to Q2 2023 Storebrand Group 4% 4% 196% 5% -2% -2% 7% 179% 1% Q1 2023 Model & Updated Interest rate Market returns Cash earnings Dividend Restriction Q2 2023 assumption regulatory & business mix Tier 2 changes VA and SA 13
Slide 14: SII position Storebrand Group
SII position Storebrand Group Solvency position(%)1 Estimated sensitivities 196 Target SII margin 150% 179 SII-margin Q2 196 196 Interest rates -50bp 191 191 Q1 2023 Q2 2023 Interest rates +50 bp 198 198 Key takeaways Equity -25% 187 187 ▪ Strong post tax result Spread +50 bp, VA +15bp 187 187 ▪ Inc
Slide 15: Storebrand Group
Storebrand Group Solid result development driven by higher financial results Group Profit1 Q2 YTD NOK million 2023 2022 2023 2022 Fee and administration income 1 591 1 456 3 143 2 914 Insurance result 382 427 739 799 Operational cost -1 460 -1 181 -2 851 -2 326 Cash equivalent earnings from operatio
Slide 16: Full consent for Storebrand in ruling from Tax Appeals Committee
Full consent1 for Storebrand in ruling from Tax Appeals Committee Important milestone that eliminates downside for the uncertain tax position – NOK 440m tax income booked in the quarter Q1 2022 Q4 2022 Q2 2023 P&L tax case effect P&L tax case effect P&L tax case effect 568m 440m 202m Tax income from
Slide 17: Profit by line of business
Storebrand Group Profit by line of business Group Profit1 Q2 YTD NOK million 2023 2022 2023 2022 Fee and administration income 1 591 1 456 3 143 2 914 Insurance result 382 427 739 799 Operational cost -1 460 -1 181 -2 851 -2 326 Cash equivalent earnings from operations 513 703 1 031 1 387 Financial
Slide 18: Savings (non-guaranteed)
Savings (non-guaranteed) Stable profit development despite high performance related cost and fewer transaction fees in Asset management. Savings Strong result in Retail banking business Profit Q2 YTD NOK million 2023 2022 2023 2022 Fee and administration income 1 269 1 130 2 503 2 266 Operational co
Slide 19: Savings (non-guaranteed)
Savings (non-guaranteed) Stable profit development despite high performance related cost and fewer transaction fees in Asset management. Savings Strong result in Retail banking business Reserves and premiums Unit Linked Retail bank balance and net interest margin (%) 6.9 7.0 Life insurance balance s
Slide 20: Insurance
Insurance Continued high growth, but weak results due to high claims in P&C (motor related) and Health & Group life Insurance Profit Q2 YTD NOK million 2023 2022 2023 2022 Insurance premiums f.o.a. 1 727 1 449 3 399 2 846 Claims f.o.a. -1 345 -1 021 -2 660 -2 047 Operational cost -308 -260 -618 -510
Slide 21: Insurance
Insurance Continued high growth, but weak results due to high claims in P&C (motor related) and Health & Group life Insurance Combined ratio Key Takeaways Combined Ratio and Results Claims ratio Cost ratio Combined ratio ▪ 96% overall combined ratio in the quarter and 94% trailing for the last 12 96
Slide 22: Guaranteed pension
Guaranteed pension Result development driven by an improved financial results Guaranteed Profit Q2 YTD NOK million 2023 2022 2023 2022 Fee and administration income 387 395 765 786 Operational cost -216 -206 -408 -409 Cash equivalent earnings from operations 171 189 357 377 Risk result life & pensio
Slide 23: Guaranteed pension
Guaranteed pension Result development driven by an improved financial results Guaranteed Reserves guaranteed products Key Takeaways 275 276 274 283 279 26 25 Customer buffers ▪ Continued run-off of guaranteed reserves with net flow of premiums 25 24 24 28 and pension payments of NOK -2.5bn in the 2n
Slide 24: Other
Other1 Financial result improving from a higher interest rate level. Operational costs includes integration cost Other Profit Q2 YTD NOK million 2023 2022 2023 2022 Fee and administration income 6 4 11 9 Operational cost -109 -70 -203 -134 Cash equivalent earnings from operations -104 -66 -192 -125
Slide 25: Simplified P&L under IFRS – Key takeaways
Simplified1 P&L under IFRS – Key takeaways Q2 YTD Comments Profit & Loss IFRS (MNOK) 2023 20221 2023 20221 Income from unit linked 523 419 1 032 870 Income from asset management 712 689 1 381 1 348 Income from banking activities 686 305 1 302 561 [1] Group’s profit before amortisation and tax was Ot
Slide 26: CSM movement from Q1 2023 to Q2 2023
CSM movement fra Q1 2023 to Q2 2023 mill. NOK 121 -87 -466 10.634 2.898 8.455 -286 Q1 2023 Model and Interest rates Market developement Risk adjustment Income recognition Q2 2023 assumption changes and business mix 26
Slide 27: Virtual Capital Markets Day December 2023
Virtual Capital Markets Day 14 December 2023 09:00-12:00 CET Presentation will be held by Storebrand's executive management with a focus on the company's growth strategy and ambitions Registration will open at storebrand.no/ir 27
Slide 28: Q&A
Q&A Please join the MS Teams Webinar to participate in the Q&A session. Group CFO Group CEO Group CIO & Investor relations Interim Lars Aa. Løddesøl Odd Arild Grefstad Trond Finn Eriksen 28
Slide 29: Appendix
Appendix 29 G2 storebrand
Slide 30: Real estate portfolio – Norway
Real estate portfolio – Norway* Allocation and distribution - real estate portfolio Fair value adjustments and change in rental income by year Unit linked Guaranteed Fair value adjustments by year Change in rental income Logistics Hotel 31 bn NOK 3% Retail 5% 7 10 25% 7% 7% 5 4% 4% 5% 4% 2% 1% 0 -2%
Slide 31: Real estate portfolio – Sweden
Real estate portfolio – Sweden1 Allocation and distribution - real estate portfolio Fair value adjustments and change in rental income by year Fair value adjustments by year Change in rental income Guaranteed Hotel 15 14.8% 11 bn SEK Residential 16% 26% 10 6.9% 5 21% Public Use 2.9% 2.0% 3.3% 2.1% 0
Slide 32: Asset allocation – Guaranteed products
Asset allocation – Guaranteed products Storebrand Livsforsikring AS (Norway) SPP (Sweden) 70% 50% 45% 60% 40% 50% 35% 40% 30% 25% 30% 20% 20% 15% 10% 10% 5% 0% 0% Bonds & Bonds at Bonds & Real Equities Money Loans amortised Equities Real estate Money Loans estate market cost market 30.06.2022 6% 12%
Slide 33: IFRS sensitivities Q2 2023
IFRS sensitivities Q2 2023 CSM - 30.06.2023 in MNOK Estimated sensitivities in MNOK 10.634 Interest rates -50bp -1.256 Interest rates +50 bp 622 Equity -25% -2.411 Q2 2023 Spread +50 bp, VA +15bp -1.230 Key takeaways Real Estate -10% -1.320 ▪ CSM is most sensitive to changes in market conditions, wh
Slide 34: Leading the way in sustainable value creation
Leading the way in sustainable value creation Investor Relations contacts Lars Aa Løddesøl lars.loddesol@storebrand.no Group CFO +47 9348 0151 Trond Finn Eriksen trond.finn.eriksen@storebrand.no Investor Relations +47 99164 135 (Interim) This document contains Alternative Performance Measures 34 as