Slide 1: Storebrand Q3 2022
Storebrand Q3 2022 26 October 2022 Odd Arild Grefstad – CEO Lars Aa. Løddesøl – CFO 1
Slide 2: Highlights Q3 2022
Highlights Q3 2022 Strong operating profit driven by profitable Insurance growth, and underlying growth in Savings 1 001 bn NOK in assets under management Group result1 1 874 22% growth in Insurance2 MNOK 670 2 099 21% growth in Unit Linked premiums2 717 -47 -225 Q3 2022 YTD 2022 174% Solvency ratio
Slide 3: Pursuing our Group Strategy: Leading The Way In Sustainable Value Creation
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 4: Two new members in Storebrand's Executive Management
Two new members in Storebrand's Executive Management Jenny Rundbladh CEO SPP Pension & Försäkring AB and Executive Vice President, Commercial Sweden Vivi Måhede Gevelt CEO Storebrand Livsforsikring AS and Executive Vice President, Commercial Norway 4
Slide 5: Continued volume growth despite financial market volatility
Continued volume growth despite financial market volatility A B C Leading Provider Occupational Pensions Nordic Powerhouse in Growing Challenger in Norwegian Retail Norway & Sweden Asset Management Market DC pensions (Unit Linked) Insurance Portfolio AuM (BNOK) Mortgage lending reserves (BNOK) Premi
Slide 6: Danica acquisition completed, integration has started
Danica acquisition completed, integration has started Expected contribution from Danica to Group Result Timeline integration Illustrati ve 2022 H2 ▪ Half a year's profit contribution from Danica standalone. NOK 151m ▪ Initial integration costs. 2023 Profit before ▪ Full year results from Danica. amo
Slide 7: Acquisition of Kron fast tracks our ambitions in the Norwegian retail savings market
Acquisition of Kron fast tracks our ambitions in the Norwegian retail savings market About Kron Why Storebrand+Kron Strategic Engaging and user-friendly savings Engaging and user-friendly savings application for mass application that is the most popular market that complements the current offering a
Slide 8: Key Figures
Key Figures Strong operating profit but weaker solvency ratio due to reduced Volatility Adjustment Group Result development1 Earnings per share2 Financial items and risk result life Performance related result MNOK Special items Operating profit 2.25 2.18 1,367 329 1.56 913 151 454 628 576 670 1.16 1
Slide 9: Solvency movement from Q2 to Q3 2022
Solvency movement from Q2 to Q3 2022 Storebrand Group 195% 188% 0% -6% -10% 2% 174% -5% -2% Q2 2022 Danica Q2 2022 Model and Updated Market returns Group result Dividend Q3 2022 incl. Danica assumption VA and SA changes 9
Slide 10: Estimated solvency sensitivities
Estimated solvency sensitivities Storebrand Group Solvency position(%)1 Estimated sensitivities Target SII margin 150% 195 174 SII-margin Q3 174 Interest rates -50bp 172 Q2 2022 Q3 2022 Interest rates +50 bp 176 Key takeaways Equity -25% 160 ▪ Acquisition of Danica and large decrease in the volatili
Slide 11: Reduced Volatility Adjustment from historic drop in spread to EUR rates
Reduced Volatility Adjustment from historic drop in spread to EUR rates Basis spread between NOK and SEK 10yr SWAP Estimated composition of NOK VA, bps Comments to EUR since the introduction of Solvency II, bps ▪ VA is a spread that is added to the risk-free discount NOK-EUR spread SEK-EUR spread NO
Slide 12: Storebrand Group
Storebrand Group Strong and resilient operating profit, financial result affected by drop in volatility adjustment Group Profit1 Q3 YTD NOK million 2022 2021 2022 2021 Fee and administration income 1 507 1 544 4 421 4 499 Insurance result 482 342 1 277 894 Operational cost -1 272 -1 124 -3 598 -3 30
Slide 13: Storebrand Group: Profit by line of business
Storebrand Group Profit by line of business Group Profit1 Q3 YTD NOK million 2022 2021 2022 2021 Fee and administration income 1 507 1 544 4 421 4 499 Insurance result 482 342 1 277 894 Operational cost -1 272 -1 124 -3 598 -3 301 Operating profit 717 762 2 099 2 092 Financial items and risk result
Slide 14: Savings (non-guaranteed)
Savings (non-guaranteed) AuM and income affected by financial markets, underlying growth and margins according to plan Savings Profit Q3 YTD NOK million 2022 2021 2022 2021 Fee and administration income 1 174 1 182 3 440 3 467 Operational cost -763 -716 -2 183 -2 089 Operating profit 410 466 1 256 1
Slide 15: Savings (non-guaranteed): Key figures
Savings (non-guaranteed) Key figures Savings Reserves and premiums Unit Linked Retail bank balance and net interest margin (%) Life insurance balance sheet Bank balance sheet 5.2 5.4 5.3 5.3 6.3 1.22 1.19 1.22 1.16 1.20 308 302 296 63 65 291 56 57 59 MNOK 276 BNOK 39 40 46 48 39 17 18 19 16 17 Q3 20
Slide 16: Insurance
Insurance Strong growth, profitability according to plan Insurance Profit Q3 YTD NOK million 2022 2021 2022 2021 Insurance premiums f.o.a. 1 613 1 336 4 459 3 809 Claims f.o.a. -1 131 -995 -3 182 -2 915 Operational cost -284 -207 -794 -622 Operating profit 198 135 483 272 Financial result 11 27 5 91
Slide 17: Insurance: Key figures
Insurance Key figures Insurance Combined ratio Key Takeaways Combined Ratio and Results Claims ratio Cost ratio Combined ratio 96% 92% 90% 88% 88% ▪ 88% overall combined ratio (target 90-92%). ▪ Stable claims and cost ratio. ▪ Effective price adjustments contribute to profitability. 74% 78% 74% 70%
Slide 18: Guaranteed pension
Guaranteed pension Stable operating result, but negative financial impact from lower volatility adjustment. Guaranteed Profit Q3 YTD NOK million 2022 2021 2022 2021 Fee and administration income 398 423 1 184 1 213 Operational cost -208 -217 -617 -641 Operating profit 190 206 567 572 Risk result lif
Slide 19: Guaranteed pension: Key figures
Guaranteed pension Key figures Guaranteed Reserves guaranteed products Key Takeaways 292 291 281 275 276 32 34 ▪ Continued run-off of guaranteed reserves. 28 25 24 Customer buffers 25 26 28 29 28 Actively sold ▪ St:Erik life portfolio transfer to SPP of NOK 2.3bn in reserves. BNOK ▪ Higher interest
Slide 20: Other
Other1 Financial result improving from higher yield on fixed income investments Other Profit Q3 YTD NOK million 2022 2021 2022 2021 Fee and administration income 6 6 15 13 Operational cost -87 -52 -222 -142 Operating profit -82 -46 -207 -129 Financial items and risk result life -7 6 -236 518 Profit
Slide 21: Capital Update Presentation
Capital Update Presentation 8 December 2022 09:00-11:00 CET @ Storebrand, Lysaker NOR and storebrand.no/ir 21
Slide 22: Q&A
Q&A Please join the MS Teams Webinar to participate in the Q&A session. Group CFO Group CEO Group Head of Head of Strategy & Finance Investor Relations & Rating Lars Aa. Løddesøl Odd Arild Grefstad Kjetil R. Krøkje Daniel Sundahl 22
Slide 23: Appendix
Appendix 23 G2 storebrand
Slide 24: Asset allocation – Guaranteed products
Asset allocation – Guaranteed products Storebrand Livsforsikring AS (Norway) SPP (Sweden) 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 30.09.2021 11% 11% 10% 13% 55% 30.09
Slide 25: Danica Financials
Danica Financials Group Savings Insurance Guaranteed Other NOK million Q3 2022 FY 2021 Q3 2022 FY 2021 Q3 2022 FY 2021* Q3 2022 FY 2021 Q3 2022 FY 2021 Fee and administration income 63 277 62 273 1 5 0 0 Insurance result 60 174 60 174 Insurance premiums f.o.a. 95 344 Claims f.o.a. -35 -170 Operation
Slide 26: 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 Kjetil R. Krøkje kjetil.r.krokje@storebrand.no Group Head of +47 9341 2155 Finance & Strategy Daniel Sundahl daniel.sundahl@storebrand.no Group Head of +47 9