Company mpany Prese sentatio ntation Storebrand Livsforsikring - PowerPoint PPT Presentation

Company mpany Prese sentatio ntation Storebrand Livsforsikring AS: Compelling combination of self-funded savings growth and capital return from maturing guaranteed back-book 1

Important information: This document speaks only as of its date and 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 future financial condition, performance and results may differ materially from the plans, goals and expectatio ns set forth in these forward-looking statements. Important factors that may cause such a difference for the Storebrand Group include, but are not limited to: (i) the macroeconomic development, (ii) change in the competitive climate, (iii) change in the regulatory environment and other government actions and (iv) market related risks such as changes in equity markets, interest rates and exchange rates, and the performance of financial markets generally. The Storebrand Group assumes no responsibility to update any of the forward looking statements contained in this document or any other forward-looking statements it may make. The distribution of this presentation may be restricted by law, and persons into whose possession this presentation comes should inform themselves about, and observe, any such restrictions. This Presentation is for information purposes only and does not constitute a prospectus or offering memorandum or an offer or solicitation to acquire or invest in or take any action in respect of any securities. 2

Table of contents Overview and strategy 4 1 Capital and solvency 30 2 Group results Q2 2019 3 43 3

– Storebrand group – overview and strategy 4

–  Pension market leader in Norway and strong contender in Sweden  Increasing quality earnings and robust solvency  Transformed business from guaranteed to non- Key Takeaways guaranteed  Well positioned to capture capital light and profitable savings growth  Back book capital consumption has peaked 5

250 years of pioneering in the Nordic financial industry 1767 1847 1861 1917 1995 2006 Foundation Expanded into Pioneered Pioneered Pioneered First - among the first other P&C Life Insurance Occupational sustainable fully digital Norwegian P&C insurance Pensions investments P&C operation companies delivering fire insurance 6

– Sto tore rebra rand nd - An Integrated Financial Service Group Insurance  Health, P&C and Asset Management group life insurance  NOK 752bn in AuM of  NOK 4.5bn in which 33% external assets portfolio  100% of investments premiums Pension & Savings subject to sustainability  40k corporate customers screening  2m individual customers  NOK ~460bn of reserves of which 43% Unit Linked Retail Bank Capital synergies •  Internet Bank Customer synergies •  NOK 46bn of net lending Cost synergies • Data synergies • 7 All numbers as of Q2 2019

Delivered on Financial Targets Target Actual 2018  Return on equity 1 > 10% 8.2%/13.7%  Dividend pay-out ratio 1 > 50% 68%  % Solvency II margin Storebrand Group 2 > 150% 173% 8 1 Finance Norway. Gross premiums defined contribution with and without investment choice. Q4 2018 2 Insurance Sweden. Segment Unit Linked pensions 'Other occupational pensions' (written premiums) Q4 2018

Leading position in Norway and strong contender in Sweden Market share occupational pensions (Defined Contribution) Norway 1 Sweden 2 31% 20% 28% 17% 15% 14% 14% 7% 9% 9% Storebrand DNB Nordea Gjensidige Sparebank 1 LF SEB Skandia SPP Movestic Clear value proposition World leader in corporate sustainability  Best customer satisfaction with all time high score for large Norwegian corporates 2017: #2 overall 2018: #1 insurance  Best customer service in Sweden 9 1 Finance Norway. Gross premiums defined contribution with and without investment choice. Q4 2018 2 Insurance Sweden. Segment Unit Linked pensions 'Other occupational pensions' (written premiums) Q4 2018

Demographic change has driven pension reforms in Norway with opportunities emerging Workers per pensioner Occupational pension coverage 2 1950 Public pension 100 % replacement rate 1 II 60 % 55 % 40 % Before Now Pension I pillar Now Retail savings Before Now III (AuM, bn NOK) 3 1 000 380 2050 Now Soon 10 1 OECD (2005-2017) Pensions at a Glance . Gross pension replacement rates from mandatory public 2 NOU 2005:15 Obligatorisk tjenestepensjon. Utredning nr. 13 fra Banklovkommisjonen. pensions based on average earner. 3 See page 23.

Continued shift from Guaranteed to Non-guaranteed pension Historic premium income 1 Current share of reserves 2 Expected flow of reserves 3 Guaranteed premiums Non-guaranteed premiums Guaranteed Non-guaranteed Claims NOKm Guaranteed Non-guaranteed NOKbn 16,000 5% 3 3 2 2 2 14,000 4% 12,000 Share of reserves 10,000 3% -13 -13 -13 -13 -13 8,000 2019E 2020E 2021E 2022E 2023E 2% 6,000 18 17 17 16 15 4,000 1% 2,000 0% 0 2012 2018 2012 2018 10 20 30 40 50 60 70 80 90 100 -3 -4 -4 -5 -6 Policyholder age 1 OECD (2018), Household disposable income (indicator). Gross adjusted, USD 2016. 3 Bank Deposits: SSB (2016) Formuesrekneskap for hushald – Bankinnskot. Mutual funds: VFF (2017) 11 2 OECD (2017), Pensions at a Glance 2017: OECD and G20 Indicators. Net mandatory public Norske personkunder – Forvaltningskapital. Stocks: VPS ASA (2017) Eierfordeling i børsnoterte selskap and private pension replacement rates, average earner. – Aksjer – Lønnstakere o.a., Ind. Life & Pensoin: see next page

Successful transition – with more to come Premiums Storebrand 1 Profit Storebrand 2 Shift in total Storebrand AUM 3 25 140 3 158 707 24 584 21% 33% 36% 49% 15% 1 960 442 5% 18% 24% 9% 37% 15% 64% NOK bn NOK m NOK m 64% 59% 40% 36% 21% 25% 15% 14% 2012 2018 2012 2018 2012 2018 External Guaranteed Guaranteed Insurance Savings Guaranteed Insurance Savings Other/internal Savings 1 Guaranteed: Defined Benefit Norway and Guaranteed pension Sweden. Non-guaranteed: Unit Linked (occupational pension) Norway and Sweden, excl. transfers. 2 Guaranteed: Defined Benefit and Paid-up policies Norway and Guaranteed pension Sweden. Non-guaranteed: Unit Linked (occupational pension) Norway and Sweden. As of 2018. 12 3 Aggregated numbers from Norwegian and Swedish pension products. Acquired premiums from Silver excluded.

Operating earnings are stable and increasing Group result 1 Comments 1,952 3,158 2,940 473 86 Operating earnings driven by AuM x 2,914  117 493 625 Margin and insurance combined ratio 919 854 1,762 Insurance profits diversify earnings m NOK  2,579 2,416 2,032 2,066 1,943 Increased profit sharing over time  -101 -291 -13 2014 2015 2016 2017 2018 Special items Operating profit Financial items and risk result life 13 1 Result before amortisation and longevity reserve strengthening.

A holistic sustainable strategy… Tangible and intangible input factors material for Storebrand - creating value for shareholders and society Financial capital and our Customers and community Our people and systems investment universe relations Financial targets Customer solutions People first.. Sustainable returns Corporate citizen ..Digital always Linked to UN's sustainable development goals 14

… creates the backdrop for our financial strategy 1 A B C D Asset manager with Uniquely positioned in Build a world class Leading position strong competitive growing retail savings Bolt-on M&A Savings business Occupational Pension position and clear market - supported by growth opportunities Insurance A. Cost discipline B. SII capital management framework C. Increased return 2 0% 180% 167% Manage balance Q2 2019 sheet and capital 150% Manage for capital release and increased dividend pay-out ratio 2018 2020 Compelling combination of self-funding growth and capital return from maturing guaranteed back-book 15

1 Growth in Savings and Insurance Unit Linked Asset management +8% +19% 179 721 707 168 140 577 128 571 535 105 487 442 85 64 2012 2013 2014 2015 2016 2017 2018 2012 2013 2014 2015 2016 2017 2018 UL reserves (NOKbn) AuM (NOKbn) Insurance Retail bank +5% 46.5 +12% 42.1 4 502 4 462 4 455 35.4 4 327 3 699 3 569 3 308 26.9 23.7 23.9 23.9 2012 2013 2014 2015 2016 2017 2018 2012 2013 2014 2015 2016 2017 2018 Portfolio premiums (NOKm) Balance (NOKbn) 16 Note: All growth figures are Compound Annual Growth Rates (CAGR).

A Occupational Pension Net premiums and market return drive AuM growth AuM development Unit Linked NOK bn Drivers of expected net premiums 12-15% 240 Majority of premiums generated by  220 active policies 200 Growth driven by:  180 160 ─ Increased salaries and savings rates 19% Population growth 140 ─ Age distribution of policyholders ─ 120 Expected market return DB conversions ─ 100 New sales ─ ─ New retail savings products 80 Positive transfer balance ─ 60 Market returns ─ 40 2012 2012 2013 2014 2015 2016 2017 2018 2019E 2020E 17 1 Premiums net of claims. Includes Silver in 2018