Investor r Presenta tatio tion Q4 2019 Compelling combination of self-funded savings growth and capital return from maturing guaranteed back-book 1
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 future financial condition, performance and results may differ materially from the plans, goals and expectations 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. 2
▪ Transformed business from guaranteed to non- guaranteed ▪ Well positioned to capture capital light and Key Takeaways profitable savings growth ▪ Back book capital consumption has peaked: increased capital return to shareholders ▪ Delivering on financial targets 3
Strategy 4
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 5
Storebran and - An Integrated Financial Service Group Insurance ▪ Health, P&C and Asset Management group life insurance ▪ NOK 831bn in AuM of ▪ NOK 4.7bn in which 40% external clients portfolio ▪ 100% of investments premiums Pension & Savings subject to sustainability ▪ 40k corporate customers screening ▪ 2m individual customers ▪ NOK ~480bn of reserves of which 45% Unit Linked Retail Bank Capital synergies • ▪ Internet Bank Customer synergies • ▪ NOK 48bn of net lending Cost synergies • Data synergies • 6 All numbers as of Q4 2019
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 World's most sustainable insurance company 2020 ✓ Best customer service in Sweden 1 Finance Norway. Gross premiums defined contribution with and without investment choice. Q4 2018 7 2 Insurance Sweden. Segment Non-unionised pensions labelled '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 Public pension 1950 100 % replacement rate 1 II 60 % 55 % 40 % Before Now Pension I Now pillar Retail savings (AuM, bn NOK) 3 Before Now III 1 000 380 2050 Now Soon 8 1 OECD (2005-2017) Pensions at a Glance . Gross pension replacement rates from mandatory public pensions based on 2 NOU 2005:15 Obligatorisk tjenestepensjon. Utredning nr. 13 fra Banklovkommisjonen. average earner. 3 See page 20.
Moderate replacement rates and a wealthy population with an overweight in bank deposits fuel growth potential in retail market for savings Household disposable income 1 Net replacement rate 2 Household financial assets Norway 3 NOK 1 600 bn Switzerland Netherlands 6% 37 554 Norway Italy 9% Germany Spain France France 15% 31 947 55% Sweden Sweden Netherlands Greece 70% United Kingdom Germany 49% Italy Norway Spain Switzerland Bank deposits Ind. Life & pension Greece United Kingdom Mutual funds Stocks 1 OECD (2018), Household disposable income (indicator). Gross adjusted, USD 2016. 3 Bank Deposits: SSB (2016) Formuesrekneskap for hushald – Bankinnskot. Mutual funds: VFF (2017) Norske 9 2 OECD (2017), Pensions at a Glance 2017: OECD and G20 Indicators. Net mandatory public personkunder – Forvaltningskapital. Stocks: VPS ASA (2017) Eierfordeling i børsnoterte selskap – Aksjer – Lønnstakere and private pension replacement rates, average earner. o.a., Ind. Life & Pensoin: see next page
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 18 000 5% 3 2 2 2 16 000 4% 14 000 Share of reserves 12 000 3% 10 000 -13 -13 -13 -13 8 000 2020E 2021E 2022E 2023E 2% 6 000 18 17 17 16 4 000 1% 2 000 0% 0 2012 2019 2012 2019 10 20 30 40 50 60 70 80 90 100 -4 -4 -5 -6 Policyholder age 1 Guaranteed: Defined Benefit Norway and Guaranteed npension Swede, excl. transfers. Non-guaranteed: Unit Linked (occupational pension) Norway and Sweden, excl. transfers. 10 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. 3 Aggregated numbers from Norwegian and Swedish pension products. Acquired premiums from Silver excluded.
Successful transition from Guaranteed to non-guaranteed Savings Premiums Storebrand 1 Profit Storebrand 2 Shift in total Storebrand AUM 3 26 278 3 037 831 24 584 20% 41% 40% 15% 49% 1 960 2% 442 14% 18% 64% 32% 9% 15% NOK bn NOK m NOK m 65% 59% 45% 21% 36% 26% 15% 14% 2012 2019 2012 2018 2012 2019 External Guaranteed Guaranteed Insurance Savings Guaranteed Insurance Savings Other/internal Savings 11 1 Pension premiums in Guaranteed products, Insurance and Unit Linked products, Storebrand Group. 3 Savings: Unit linked reserves, Guaranteed: Guaranteed reserves, External: External AUM in Storebrand Asset 2 Profit before amortisation. "Guaranteed" includes "Other" segment. Managment, Other/internal: residual group internal AUM including company portfolio.
Our strategy: A compelling combination of self-funding growth and capital return from maturing guaranteed back-book 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% 176% Manage balance Q4 2019 sheet and capital 150% Manage for capital release and increased dividend pay-out ratio 2018 2020 12
1 Growth in Savings and Insurance Unit Linked Asset management +9% +19% 220 831 721 707 179 168 577 571 140 535 128 487 442 105 85 64 2012 2013 2014 2015 2016 2017 2018 2019 2012 2013 2014 2015 2016 2017 2018 2019 UL reserves (NOKbn) AuM (NOKbn) Insurance Retail bank +5% +11% 48.2 46.5 42.1 4 698 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 2019 2012 2013 2014 2015 2016 2017 2018 2019 Portfolio premiums (NOKm) Balance (NOKbn) 13
A Occupational Pension Net premiums and market return drive AuM growth AuM development Unit Linked NOK bn Drivers of expected net premiums 12-15% 280 Majority of premiums generated by ▪ 260 active policies 240 220 Growth driven by: ▪ 200 180 ─ Increased salaries and savings rates Population growth ─ 160 19% Age distribution of policyholders ─ 140 Expected DB conversions ─ market return 120 New sales ─ 100 ─ New retail savings products 80 Positive transfer balance ─ Market returns ─ 60 40 2012 2012 2013 2013 2014 2015 2016 2017 2018 2019 2020E 2021E 1 Premiums net of claims. 14
A Occupational Pension Storebrand to enter Norwegian public sector pension market Large public sector market New regulation will make it attractive for opening up for competition Storebrand to enter the market again Annual market premium NOK bn 1 With effect from 2020, the pension system for ▪ 52 public employees will be adjusted to better fit the 2010 Norwegian pension reform. Market monopoly today. ▪ 29 Capital efficient product offering. ▪ 5% expected annual market premium growth. ▪ Storebrand will build on existing systems ▪ and solutions and execute within previously communicated cost target for the group. Private Sector Public Sector 2 Defined Contribution 1 Private sector as of 2018, Public sector est. 2018 15 1 Private sector as of 2018, Public sector est. 2018 2 Norwegian municipalities, does not include pay as you go scheme for state employees. 2 Norwegian municipalities, does not include pay as you go scheme for state employees.
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