Storebrand Asa · OSL:STB
Storebrand Asa — Investor Day (December 2023)
116 slides from Storebrand Asa's investor day presentation, December 2023
Slide 1: Invest in the Future
INVEST IN THE FUTURE Leading the way in sustainable value creation Capital Markets Day 2023
Slide 2: Important Information
Important Information This document contains 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 futur
Slide 3: Agenda
Back to content page AGENDA Topic Presenter Page Group Strategy Odd Arild Grefstad Trygve Håkedal 4 Leading the Way in Sustainable Value Creation Group CEO Executive Vice President, Digital Corporate Norway Vivi Gevelt 26 Leading Position in the Norwegian Corporate Pension Market Executive Vice Pres
Slide 4: Group Strategy
Group Strategy Leading the Way in Sustainable Value Creation Odd Arild Grefstad Chief Executive Officer
Slide 5: Executive summary
Executive summary OUR 256 years of pioneering the Nordic financial industry, 28 years of pioneering HERITAGE sustainable investments OUR Largely delivered on commercial guidance from CMD 2020, close on NOK 4bn TRACK result ambition for 2023 despite industry-wide challenges in Insurance RECORD OUR Su
Slide 6: 256 years of pioneering the Nordic financial industry
256 years of pioneering the Nordic financial industry Future Storebrand is a capital light business with material group synergies Future Storebrand ILLUSTRATIVE Retail Asset Management Unit Linked Pensions and Savings Guaranteed Pensions 1767 1847 1861 1917 1995 2023 Foundation: P&C Pioneered Pionee
Slide 7: A Nordic Savings and Insurance group
A Nordic Savings and Insurance group 55,000 Pensions & savings Asset management Corporate Market leader World leader in sustainability customers NOK 588bn AuM NOK 1,131bn AuM 2,200,000 Individuals Retail banking Insurance Fast growing challenger Fast growing challenger NOK 75bn lending NOK 8.4bn pre
Slide 8: Helping our customers invest in the future
Helping our customers invest in the future Close to our Future to look forward to customers Simple and sustainable Security & financial freedom Brave pioneer 8
Slide 9: Strategic and financial milestones reached since the Capital Markets Day in 2020
Strategic and financial milestones reached since the Capital Markets Day in 2020 CMD 2020 Aug 2021 2021 Jul 2022 Sep 2023 CMD 2023 NOK 4bn result Acquisition of Danish Group profit of more Initiation of first share Sale of 50% stake in New financial targets target announced real estate manager than
Slide 10: Track record of strong and consistent growth in core markets
Track record of strong and consistent growth in core markets Unit linked (defined contribution) pensions Asset management UL reserves (NOK billion) YOY AuM (NOK billion) YOY 17%2 13%2 +10%1 +15%1 353 1,131 315 1,097 1,020 308 962 268 831 220 721 707 168 179 577 140 2016 2017 2018 2019 2020 2021 2022
Slide 11: Delivered on guidance from CMD 2020
Delivered on guidance from CMD 2020 Apart from market-driven profitability challenges in Insurance 1 Volume growth Margins CMD 2020 CAGR 2020-23 CMD 2020 Average 2021-23 AuM Fee income Unit linked AuM 8-12% 12% ✓ 0.6-0.8% Fee income 0.7% ✓ Asset management 7-11% Loan balance 7% ✓ 0.18-0.22% Net inte
Slide 12: Higher interest rates will improve result contribution from financial results
Higher interest rates will Lower unemployment rates with stable outlook 2 improve result contribution 10% 9,3 Norway from financial results Sweden 8% 7,1 6% 7,1 Interest rates materially above CMD 2020 levels NOK and SEK 10y SWAP 1 NOK 4% SEK 5% 2% 1,6 0% 4% 2020 2022 2024 2026 2028 3% Market expect
Slide 13: Structural growth in core markets for years to come
Structural growth in core markets for years to come Policyholders UL Storebrand 1 Reserve projection UL Norway 1 Percentage of AuM In workforce Retired Expected AuM growth in the market to remain high for decades 4% 3% >10% 2% 94% 6% 2 2 1% Policyholder 0% age <20 30 40 50 60 70 80 90 >100 2023 2024
Slide 14: Group strategy underpinned by concrete revenue, cost and capital synergies
Group strategy underpinned by concrete revenue, cost and capital synergies Selected group synergies Revenue Synergies Capital Synergies1 Reduced SCR and increased return on GROUP SYNERGIES 21 % Share of pension customers with retail product capital due to diversification effects under SII Significan
Slide 15: 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 16: Strategy enabled by industry-leading employee engagement and growth-oriented culture
People D First Strategy enabled by industry-leading employee engagement and growth-oriented culture Highly engaged and Attractive and <3% sick leave YTD diverse workforce sustainable employer <8% turnover LTM Employee engagement (0-10) 8.3 8.4 Growth 1 (0-10) 8.0 7.4 7.0 7.8 8.1 7.8 Growth opportuni
Slide 17: 28 years of pioneering sustainable finance
Leadership in D Sustainability 28 years of pioneering sustainable finance Top 10% Of global listed companies' work within sustainability Grade A Part of CDP's A-list for 2022. Leading the way in environmental transparency and performance on climate change Rated #1 Within sustainable investments in N
Slide 18: Maintaining sustainability leadership through product, service and operations focus
Leadership in D Sustainability Maintaining sustainability leadership through product, service and operations focus Storebrand in Sustainability in Sustainability in Society Products and Services Operations Sustainable finance thought leader in the Nordics; Net zero ambition across portfolios by 2050
Slide 19: Digital Frontrunner
Digital D Frontrunner Cloud Cyber Transformation Resilience Future-proofed, stable and secure platform Pro-active defence with zero Digital delivered in-line with business case trust and security by design Frontrunner Artificial Scalable Intelligence Business Building a digital, Proven track record
Slide 20: Cloud pioneer in Financial Services
Digital D Frontrunner Cloud pioneer in Financial Services 1 Cost optimisation Risk Future IT infrastructure mitigation proofing +30% Operational stability +60% OPEX Incidents Fully automated reduction 2 reduction infrastructure as code Modernization and Q3 20 Q3 23 technical debt reduction Cyber res
Slide 21: Cyber Resilience
Digital D Frontrunner Leverage cloud platform Modernised and transparent 10X log sources providing platform with zero trust architecture increased cyber transparency 1 Cyber Storebrand Cyber Defence Centre Pro-active threat hunting and 2X incidents handled while Resilience intelligence with automate
Slide 22: Artificial Intelligence
Digital D Frontrunner External studies indicate high potential of Generative AI Artificial More inquiries managed Time cut in document Increase in output Intelligence by Customer Service writing by business quality using agents 4 professionals 5 generative AI 5 Proven track record and ready to unloc
Slide 23: Digital Product & Scalable Business Platforms
Digital D Frontrunner Enabling growth from a Digital proven foundation Product & Scalable 1 Award-winning digital solutions 2 40% digital sales pension and business for corporate market 1 insurance in SMB Smart Pension – Kron – market leading 3 holistic digital 4 investment app in retail pension adv
Slide 24: Storebrand's strategic direction towards 2025
Storebrand's strategic direction towards 2025 Capturing both structural and market driven growth to transform into a high Return on Equity business in line with long-term Group strategy HIGHLY ILLUSTRATIVE Bubble size illustrates Group Profit contribution Capital Intensity Asset management 2023E 202
Slide 25: Increasing group financial ambitions as the equity story unfolds
Increasing group financial ambitions as the equity story unfolds Value creation increases as equity story unfolds Group ambitions Structural and market driven growth ✓ 5 NOK billion >14% Continued cost discipline ✓ Group profit 2025 Return on Equity Increased Return on Equity ✓ Strong solvency ✓ Inc
Slide 26: Leading Position in the Corporate Market
Leading Position in the Corporate Market Vivi Måhede Gevelt Executive Vice President, Corporate Norway
Slide 27: Key takeaways
Key takeaways Profitable & growing corporate pension market 1 – Market leader Attractive provider in a large public sector market 2 – Challenger Growth in P&C and Corporate Pension Funds 3 – Greenfielding Digitalizing core processes 4 - Scalable 27
Slide 28: Well positioned as a full range provider in the corporate market
Well positioned as a full range provider in the corporate market for Pension and Insurance Solid organization… … with strong customer proposition within occupational pension and insurance in Norway Market Segment Product # of customers share 1 NOK 350 bn AuM & NOK 18 bn ~ 33,000 corporate customers
Slide 29: Occupational pensions in Norway
Occupational pensions in Norway Sticky and growing assets in an immature defined contribution market The Norwegian Product Product Highlights Market AuM pensions system when employed when retired NOK bn 2 Defined Pension capital ▪ Growing and profitable market Contribution certificate ▪ Storebrand i
Slide 30: Strong track record in the Norwegian corporate market
Strong track record in the Norwegian corporate market Satisfactory results development Delivered on CMD 2020-targets despite regulatory changes Profits before amortisation and tax 1 CMD 2020 targets Market shares (%), Q3 2023 Corporate Market Norway, NOK million 30% 30% 1 035 1 052 #1 market share p
Slide 31: Attractive customer value proposition supported by leading solutions, client service and brand
Attractive customer value proposition supported by leading solutions, client service and brand Top performing investment Investment return1 funds and leading ESG Market leader (# 1) Nordic UX award 2023 Leading digital solutions Winner Customer satisfaction2 Superior client service Best in class (#
Slide 32: Going forward, continue the structural growth journey
Going forward, continue the structural growth journey within unit linked and through growth initiatives Capitalising on the structural growth and … while utilising group synergies to further grow our results our market leader position…. A B C D Remain #1 provider of Growing challenger in Preferred m
Slide 33: Leverage our leading market position to further grow in unit linked pensions
A B C D Leverage our leading market position to further grow in unit linked pensions Strong historical growth and Solid market growth for the Storebrand aims to maintain the STB is the market leader foreseeable future leading position in a growing market… NOK Market AuM (NOK billion), STB estimates
Slide 34: Excellent track record with 7 out of 7 municipality tenders won
A B C D Excellent track record with 7 out of 7 municipality tenders won Large market currently Storebrand has 100% hit rate Expected high growth going forward dominated by one player of tendered municipalities Market size (AuM) and market shares (%) Number of public customers per Q3 2023 Storebrand'
Slide 35: Preferred manager for closed corporate pension funds in run off
A B C D Preferred manager for closed corporate pension funds in run off Attractive market for Storebrand Storebrand has NOK 7bn in AuM AuM (NOKbn) Continue the strong and profitable growth as a Several closed corporate pension funds are managed as captive by corporations Preferred manager of corpora
Slide 36: Continue growing the P&C business
A B C D Continue growing the P&C business Build on existing operations and The initiative has been delayed due Expected high premium growth synergies in a profitable market to covid, but is now accelerating Premiums from P&C customers (NOK million) Strong Group synergies, e.g. Strong brand 1,700 new
Slide 37: Scalable business with increasing volumes, leading digital solutions and technological efficiency gains
Scalable business with increasing volumes, leading digital solutions and technological efficiency gains Capacity to process an increasing number of customers Growth in business volumes requires without growing the workforce further efficiency measures 3x >90% 2 of 3 increase in number of fully autom
Slide 38: Ambitions towards 2025
Ambitions towards 2025 Market leader in Grow AuM in public 20% growth in private sector sector with cash results p.a. pension +NOK 7bn annually 38
Slide 39: Digital Leader in the Swedish Pension Market
Digital Leader in the Swedish Pension Market Jenny Rundbladh Executive Vice President, Corporate Sweden
Slide 40: Key takeaways
Key takeaways Strong cash result on top of capital release 1 Continued strong value creation from SPP Strong core pension offering 2 Leading the market in new sales last twelve months Growth into adjacent profit pools 3 Ambition to strengthen the footprint in Sweden Scalable digital solutions 4 Digi
Slide 41: SPP: A digital leader in the Swedish life & pension market
SPP: A digital leader in the Swedish life & pension market Core market within occupational Serving clients in Sweden Value proposition and go-to market pensions The Swedish pension system Private B2B2E pension savings 350 Women/Men Occupational 55/45 • Collective • Non-collective Direct & broker sal
Slide 42: Swedish life insurance market continues to grow
Swedish life insurance market continues to grow Strongest growth in the segments driven by individual solutions 10% annual market growth … driven by several attractive characteristics in premiums income… Total premium income, excl. transfers (SEK billion) 8-10% ▪ Large market, amounting to SEK 6,000
Slide 43: Growing transfer market driven by regulatory changes
Growing transfer market driven by regulatory changes Focus on unlocking potential with maintained profitability Successful turnaround of SPPs Rotation of old pension policies brings both negative net transfer balances opportunities and risks for SPP SPPs net transfer balances (SEK billion) 4% >> 0.8
Slide 44: Looking back, SPP has delivered scalable growth
Looking back, SPP has delivered scalable growth Strong cost discipline and improved efficiency Strong premium growth… … along with cost discipline Premium income (SEK billion) Collective Non-collective Cost excl. commissions (SEK billion) +119% 15 -17% 1.00 4 0.83 7 1 11 6 2015 2022 2015 2022 44
Slide 45: Back book in run off has led to capital release of SEK 5.5bn
Back book in run off has led to capital release of SEK 5.5bn on top of increasing cash results Capital release 2015-2022 Aggregated dividends 2015-2022 (SEK billion) Dividend Repayment loan 5.5 9.6 0.7 4.8 4.1 Result after tax Additional capital release Dividend 45
Slide 46: Accelerated SPP to a leading position in new sales within core market
Accelerated SPP to a leading position in new sales within core market Strong development in new sales Accelerating 2nd position in terms of premium income Market shares measured by new sales (SEK) 1 Market shares measured by premium income (SEK) 1, 2 24% 22% 16% 13% 14% 13% Competitor 3 2021 2022 20
Slide 47: Looking ahead: Strategic priorities towards 2025
Looking ahead Strategic priorities towards 2025 SPP is a preferred partner based on our position as a trusted advisor and a sustainable pioneer We pave the way as a digital leader, offering a smooth customer journey and reduced time to market We target double-digit growth by expanding our business i
Slide 48: Additional growth fuelled by key success capabilities and strong group synergies
Additional growth fuelled by key success capabilities and strong group synergies… Modern scalable platform and an internal workforce transformation Strong market position with a #1 rate by external partners SPPs business & profit pool Well positioned sustainable investment brand, strong synergies wi
Slide 49: Commercial initiatives expanding SPP's profit pool
… visualised in commercial initiatives expanding SPP's profit pool Repackaged products into new segments: A → Growth in the SME segment SPP's Added value propositions and distribution: business & profit pool B → Growth in capital light guaranteed savings Provide a scalable operation model: C → Conso
Slide 50: Growth in SME segment, the journey has started
A B C Growth in SME segment, the journey has started SPP's capabilities Large and fast-growing market Customer needs ✓ Strong B2B position ✓ Access to distribution >> SPPs growing ✓ Relevant value proposition to market share expand from Strong initial market response Number of existing SME clients 1
Slide 51: Growth in capital light guaranteed savings
A B C Growth in capital light guaranteed savings SPP's capabilities High interest rate environment Customer needs creates potential ✓ Strong risk management ✓ Well-known brand ✓ Scalable operating model The win of ITP* opens new doors * Largest white collar collective agreement ▪ Few peers with rele
Slide 52: Expand through consolidation & portfolio transfers
A B C Expand through consolidation & portfolio transfers Fragmented market in potential transformation SPP's capabilities ✓ Proven experience with successful Premium previous portfolio transfers ▪ A large number of providers in the total income life insurance market ~350 SEK billion ▪ Regulation and
Slide 53: SPP's key ambitions
SPP's key ambitions Strengthen footprint > 10% annual growth the Swedish market 53
Slide 54: Nordic Powerhouse in Asset Management
Nordic Powerhouse in Asset Management Jan Erik Saugestad Executive Vice President, Asset Management
Slide 55: Key takeaways
Key takeaways Growth track record 1 Successful transformation, three successful acquisitions and consistent net inflow Strong strategic enablers 2 Attract and keep talent, modern and AI read platform, thought leader in sustainable investments Clear long-term strategic positions 3 ✓ Local Nordic Part
Slide 56: Recognized as a front runner in the Nordic asset management industry
Recognized as a front runner in the Nordic asset management industry Transformation Modern and Future growth as a and rise of Asset sustainable multi- Nordic Asset Management boutique manager Manager AuM 1,131 NOK billion 1 #1 AuM Norway #4 AuM Nordics World Leader Sustainability 56 1. As of Q3 2023
Slide 57: Strong growth in non-captive assets has transformed the revenue composition
Strong growth in non-captive assets has transformed the revenue composition and boosted revenues from captive Strong growth in AuM and >70% from non-captive... ... has driven high revenue growth AuM (NOK million) Revenues 1 (NOK million) +209 2,212 Non-captive Captive 1,904 1,131 42 Wealth and direc
Slide 58: Highly regarded by clients and ranked as a leader in sustainable investments
Highly regarded by clients and ranked as a leader in sustainable investments Highest net inflow among No. 1 within sustainable investments Key highlights Nordic Asset Managers in 2023 AuM (EUR billion) 1 Sustainability score 2 3.8 4.45 High recognition by institutional clients 1 Company 2 1.8 Compan
Slide 59: Three clear long-term strategic positions supported by strong enablers
Three clear long-term strategic positions supported by strong enablers Strategic positions Local Nordic Partner Gateway to the Nordic Sustainability Pioneer Strategic People first Digital frontrunner Sustainability leadership enablers 59
Slide 60: Ability to attract and keep talent and a modern and AI read platform
Ability to attract and keep talent and a modern and AI read platform, is key to support growth People Digital Sustainability first frontrunner leadership Efficient operation Offices in Norway, Sweden, Common policies & principles Acknowledged for our leadership in Denmark, Finland, UK sustainable in
Slide 61: Perspectives on key trends and value drivers for clients and the business
Perspectives on key trends and value drivers for clients and the business are well anchored Key trends Value drivers ▪ Active management adds client value executed well Private markets & alternatives are increasingly important ▪ Sound integration of ESG in investment processes improves long term ris
Slide 62: Present in all Nordic countries to be an attractive partner
Local Nordic Gateway to the Sustainability Partner Nordic Pioneer Present in all Nordic countries to be an attractive partner in all the local markets The Nordic profit pool We are well positioned with … and with relevant solutions and is sizable strong performance and scale... physical presence Hig
Slide 63: Hold a strong Nordic position and relevant solutions to capture flow
Local Nordic Gateway to the Sustainability Partner Nordic Pioneer Hold a strong Nordic position and relevant solutions to capture flow into the Nordic investment region Growth enabled by dedicated The Nordic region is an We have all relevant solutions sales, int. domiciles and attractive investment
Slide 64: Able to lever our leadership in sustainable investments to drive revenue growth
Local Nordic Gateway to the Sustainability Partner Nordic Pioneer Able to lever our leadership in sustainable investments to drive revenue growth Track record of solutions and Both support and market for We have a competive offering of ability to innovate, secure sustainable investments 1 sustainabl
Slide 65: Asset Management's key ambitions
Asset Management's key ambitions Strategic positions Growth and flow Cash result ▪ Local Nordic Partner Continued growth driven by Double digit growth in ▪ Gateway to the Nordic positive net inflow cashflow from operations ▪ Sustainability Pioneer 65
Slide 66: Growing Challenger in the Retail Market
Growing Challenger in the Retail Market Camilla Leikvoll Executive Vice President, Retail
Slide 67: Key takeaways
Key takeaways Attractive retail market 1 Gained market shares in all product areas Proven track record 2 Delivered on ambitious double-digit growth targets Raising the bar towards 2025 3 Through boosting customer experiences, unleashing cross-sales and scalable growth 67
Slide 68: Storebrand Norwegian retail market at a glance
Storebrand Norwegian retail market at a glance ~ 500 ~ 570,000 Efficient go-to A challenger in employees customers market strategy the retail market … utilising a profitable business model while Broad product offering… capitalising on group synergies Savings Insurance • Leveraging a large customer b
Slide 69: Growing market share in attractive Norwegian retail market
Growing market share in attractive Norwegian retail market Market size and market growth Banking Savings Insurance Retail mortgages (NOK billion) AuM retail market (NOK billion) Retail premiums (NOK billion) +13% +6% +9% 3,740 409 51.3 383 48.2 3,206 45.4 3,076 345 42.9 2,914 285 2020 2021 2022 Q3 2
Slide 70: Strong results due to outperformance of ambitious CMD targets from 2020
Strong results due to outperformance of ambitious CMD targets from 2020 Strong profit development since last CMD2… ... and achieved volume growth targets Profit before amortisation and tax (NOK billion) Segment Volume CAGR 2020 CMD ambition '20 – '23 1 Double digit growth +19% 824 822 Insurance Reta
Slide 71: Success supported by strong customer offering and group synergies
Success supported by strong customer offering and group synergies Key success Well-known and Combining advisors with Increased Accretive factors respected brand digital distribution distribution power M&A Group Leading asset B2B2C Capital synergies in In-house Synergies manager customer base mortgag
Slide 72: Strategic priorities towards 2025
Strategic priorities towards 2025 A B C Boost customer experience Unleash cross-sales potential Continue scalable growth 72
Slide 73: Boost customer experiences to attract and retain customers
A B C Boost customer experiences to attract and retain customers Omnichannel customer experience... … solving customer needs... … to increase number of customers Number of customers ('000) Kron Leading digital solutions Holistic and frictionless user experience #1 +13% 570 Customer satisfaction 1 48
Slide 74: Systematically broaden customer relationships to increase share of wallet
A B C Systematically broaden customer relationships to increase share of wallet Systematically broaden the relationship… … and new concepts and services Development of the portfolio over time Pilot 2023 Storebrand Fram Retail Retail insurance banking Affluent customer program Pension & Savings Utili
Slide 75: Utilise technology and efficiency measures to drive scalable growth
A B C Utilise technology and efficiency measures to drive scalable growth Continue operational Optimise Support climate adaption and excellence distribution mix circular economy By advanced use of data and By increasing distribution power By managing climate risk and ensuring technology to increase
Slide 76: Raising the bar towards 2025
Raising the bar towards 2025 Volume growth Profitability Double digit growth across product lines Double digit < 92% combined ratio retail mortgages, retail savings (AuM) and growth in in insurance retail insurance premiums cash results (P&C and individual life) 76
Slide 77: Accelerated Value Creation in a Higher Interest Rate Environment
Accelerated Value Creation in a Higher Interest Rate Environment Lars Aa. Løddesøl Group CFO & Executive Vice President
Slide 78: Improvement in the business reflected in shareholder returns
Improvement in the business reflected in shareholder returns 800 Total Return Index (incl. Dividends) 1 700 Storebrand STOXX Europe 600 Insurance Index 600 Peer Group Range 500 400 300 200 100 0 Jun-16 Dec-23 Nov-12 Nov-13 Dec-14 Jul-15 Nov-15 Nov-16 Dec-17 Nov-18 Sep-12 Jun-13 Jun-19 Dec-20 Nov-21
Slide 79: Strong capital generation and improved balance sheet composition
Strong capital generation and improved balance sheet composition 20% annual solvency generation since Balance sheet composition significantly initiation of solvency back in 2016 improved, in line with group strategy ILLUSTRATIVE Composition of the solvency capital requirement (SCR) Insurance Bank &
Slide 80: 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 the growth of people dependent on disability benefits NOK 13bn of green Current bonds issued an
Slide 81: Accelerated value creation supported by a higher interest rate environment
Accelerated value creation supported by a higher interest rate environment 1 2Higher 3 Increased capital Increasing capital generation and returns to cash-results return on capital shareholders 81
Slide 82: Increasing cash-results
Increasing cash-results 82 1
Slide 83: Delivered on the guidance from the Capital Markets Day in 2020
Delivered on the guidance from the Capital Markets Day in 2020 Asset Guaranteed Unit Linked Bank Insurance Management Backbook Volume Stable AuM / Double digit High single digit Double digit Double digit continued capital AuM growth AuM growth lending growth premium growth release Margin Fee income
Slide 84: Satisfactory result development apart from Insurance, cash result target of NOK ~5bn
Satisfactory result development apart from Insurance, cash result target of NOK ~5bn set for 2025 Group result before amortisation and tax (NOK billion) 2025 ambition Current ambition 1 ~5.0 4.0 3.0 2.0 2012 2019 2023 Ambition 2025E 84 1. Weak insurance results YTD 2023 implies that it is not likely
Slide 85: Ambition to reach NOK 5bn assumes strong growth and satisfactory margin development
Group income Ambition to reach NOK 5bn assumes strong growth and satisfactory margin development Future Run-off Storebrand Business Savings Insurance Guaranteed Asset Unit Linked Bank Management Volume (NOK) AuM AuM Lending Premiums f.o.a.1 AuM Q3 2023 NOK 353bn NOK 1,131bn NOK 75bn NOK 7.2bn NOK 27
Slide 86: Commitment to cost control amid persistent inflation
Group cost Commitment to cost control amid persistent inflation Manage cost for Operational cost development Group (NOK billion) profit growth Cost is increasing due to growth, investments and inflation ▪ Cost managed for strong 5.9 growth, significant investment in AI, technology and innovation 5.7
Slide 87: Growing financial result driven by increased profit sharing from Guaranteed business
Group financial items and risk result life Growing financial result driven by increased profit sharing from Guaranteed business ILLUSTRATIVE Financial items and risk result life Profit sharing Sweden + Profit sharing Norway Group, NOK million NOK million NOK million ~ 300 ~ 300 2 ~ 1,400-1,500 ~ 200
Slide 88: Higher capital generation and return on capital
Higher capital generation and return on capital 88 2
Slide 89: Transitioned from capital consumptive Guaranteed business to capital light
Transitioned from capital consumptive Guaranteed business to capital light Savings and Insurance business Premiums Storebrand Shift in total Storebrand AuM NOK million NOK billion 40,150 1,131 17% 48% 24,584 15% 69% 442 36% 27% 27% 14% 49% 25% 59% 15% 2012 LTM Q3 2023 2012 Q3 2023 Guaranteed Savings
Slide 90: 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 ILLUSTRATIVE Savings & Insurance Guaranteed 2 Group Cash result 1 2,083 1,411 3,494 (NOK million) IFRS shareholder equity 5.0 22.4 27.5 (NOK billion) Return on IFRS 41% 6% 13% shar
Slide 91: Capital generation will be higher than cash earnings
Capital generation will be higher than cash earnings due to contribution from capital release in the backbook Average annual solvency generation medium term 1 %-points Cash earnings Increasing solvency generation from earnings ~16% pre-dividend as transformation to capital-light continues Changes in
Slide 92: Higher capital returns to shareholders
Increased capital generation converted to cash Higher capital returns to shareholders 92 3
Slide 93: History of growing capital distribution
History of growing capital distribution Dividends per share 1 Share buybacks NOK per share NOK billion Ambition announced on Capital Update 2022 10 +16% 3.70 3.50 3.25 3.00 2.50 2.0 1.55 1.5 0.5 2016 2017 2018 2019 2 2020 2021 2022 2022 2023 YE 2023E 2030 accumulated ambition 1. Based on current sha
Slide 94: Historical remittance has been close to cash results
Historical remittance has been close to cash results INCREASED REMITTANCE EXPECTED Storebrand ASA Holding company ✓ Cash remitted to Hold co. for maximum fungibility across the group ✓ Remittance expected to increase Storebrand Storebrand Storebrand Storebrand from growing cash results and Asset Liv
Slide 95: Reaffirming our commitment to grow capital distribution to shareholders
Reaffirming our commitment to grow capital distribution to shareholders Average annual solvency generation medium term 1 Growing ordinary dividends from earnings %-points NOK per share 3.50 3.70 3.25 3.00 Capital generation ~18% 2.50 1.55 Growing ordinary ~7% dividends from earnings 2016 2017 2018 2
Slide 96: Disciplined allocation of available excess capital to maximise shareholder value
Disciplined allocation of available excess capital to maximise shareholder value Average annual solvency generation medium term 1 Additional capital allocation %-points Organic Further Capital generation ~18% growth organic growth Bolt-on If accretive Growing ordinary M&A opportunities arise ~7% div
Slide 97: Track-record of accretive M&A well aligned with the Group Strategy
Track-record of accretive M&A well aligned with the Group Strategy Acquired 7 and divested 2 companies … which has resulted in M&A-PRIORITIES since 2017… significant value creation GOING FORWARD Considerations and capital synergies, NOK billion Profit before amortisation and tax, NOK billion ✓ Disci
Slide 98: Earnings per share growth strengthened by ongoing buybacks
Earnings per share growth strengthened by ongoing buybacks ILLUSTRATIVE Earnings ambition Share buybacks Earnings per share (EPS) Shares outstanding1 adjusted for own shares Result before tax and amortisation (NOK million) Result before tax and amortisation (NOK per share) (million, opening balance)
Slide 99: Concluding remarks
Concluding remarks 99
Slide 100: Key takeaways from today
Key takeaways from today ✓ Supportive macro From historically low, to higher interest rates environment From Norwegian market leader in occupational pension to ✓ Strong market position diversified Nordic capital-light growth business ✓ From growing frontbook to structural and market driven earnings
Slide 101: Consistent group capital management and dividend policy
Consistent group capital management and dividend policy Capital management and dividend policy 204% ▪ Intention to return excess capital through share buybacks when Q3 2022 the solvency ratio is above 175% 175% ▪ Ambition is to pay nominally growing dividends per share Solvency II ratio ▪ Maintain i
Slide 102: Leading the way in sustainable value creation
Leading the way in sustainable value creation 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 1.5 billion per year 50/50 Science
Slide 103: Appendix
Appendix 103
Slide 104: Key assumptions
Key assumptions Numbers presented today are subject to external factors outside of Storebrand's control such as; Macroeconomic Change in Market related Regulatory development competitive climate risk changes 104 104
Slide 105: Continued shift to Non-Guaranteed pension
Continued shift to Non-Guaranteed pension Policyholders Unit Linked Norway & Sweden Policyholders Guaranteed Norway & Sweden In workforce Average policyholder age In workforce Average policyholder age Retired 52 years Retired 65 years AuM AuM 4% 4% 3% 3% 2% 2% 1% 1% 93%1 7%1 Policy 60%1 40%1 Policy
Slide 106: Implications from new buffer capital rules
Implications from new buffer capital rules New rules Implications for Storebrand Portfolio management: Increase allocation to risky ▪ The new rules entail the introduction of a pooled and fully assets due to increased risk-absorbing capacity from customer-distributed buffer fund for private guarante
Slide 107: Paid-up policy portfolio profit sharing illustration
1/2: Paid-up policy portfolio profit sharing illustration ILLUSTRATIVE Profit sharing Strategy dynamics for paid- Buffer capital Profit sharing from 2024E up policies level Strategy 3 portfolios The number of paid-up sub- High Build buffers and 11% portfolios increased from 5 to take profit sharing
Slide 108: Expected return for paid-up policies is significantly above guaranteed interest rate
2/2: Expected return for paid-up policies is significantly above guaranteed interest rate 3+3 ILLUSTRATIVE portfolios Profit sharing 2 portfolios No profit sharing 132 136 133 132 131 129 127 125 Reserves NOK billion Q3 2020 Q3 2023 2024E 2025E 2026E 2027E 2028E 2029E Interest rate guarantee 3.3% 3.
Slide 109: Future Storebrand solvency capital allocation main products
Solvency Capital allocation main products ILLUSTRATIVE PRO FORMA ALLOCATION BASED ON 175% SOLVENCY RATIO Hard capital to Contribution to Solvency ratio Reserves have target Run off/ Own Funds SCR – before use of (NOK billion) Solvency ratio1 Growth ('VIF') hard capital (NOK billion) Paid up policies
Slide 110: High quality assets, with fixed income as the backbone
High quality assets, with fixed income as the backbone, provide secure returns for guaranteed pensions and company capital Invested assets 1 on Storebrand's balance sheet Bonds Bonds and at amortised cost Money Market NOK billion Equities Real estate Average rating Book yield Average rating 199 6% 1
Slide 111: Guaranteed portfolio Norway
Guaranteed portfolio Norway Interest rate sensitivity 1,2 Rating distribution (%) Duration gap (years) Solvency II Unrated/Other BBB Duration gap 17% AAA Asset duration 0% 2.6 35% 1.4 0.8 22% A 6.3 4.8 4.4 26% 2020 2022 2023 Q3 AA Duration of bonds at amortised cost 3 Sector distribution (%) Time to
Slide 112: 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 5% Retail 9% 6 25% 4% 4% 5% 4% 2% 3% 1% 23 -4% 68% -3% -8
Slide 113: Real estate portfolio – Sweden
Real estate portfolio – Sweden 1 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% 11% 21% 7% 3% 2% 3% 21% Supermarket 1% 1% 16% Hotel 2% -1% -3% 26%
Slide 114: 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 30.09.2022 6% 12% 13% 14% 54
Slide 115: 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 116: Thank you
Thank you Financial calendar 7 February 2024 Results Q4 2023 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 116