KLP Group Oslo, 7th May 2019 Table of contents 1. Main features - PowerPoint PPT Presentation

Financial results Q1 2019 KLP Group Oslo, 7th May 2019

Table of contents 1. Main features 2. KLP Group 3. Life and pension 4. KLP Non-Life Insurance 5. Bedriftspensjon 6. Banking and credits 7. KLP Asset Management 8. Summary

Main features Q1 2019 Q4 2018 Q3 2018 Q2 2018 Common portfolio • Total group assets: NOK 699 billion Booked return 1.0 % 0.4 % 0.8 % 1.0 % Value adjusted return 3.1 % -1.4 % 1.6 % 1.7 % • Common portfolio of life company: Value adjusted return incl. HTM • Book return of 1.0 per cent bonds/bonds booked at amortised 3.5 % -1.4 % 1.2 % 1.8 % • costs Value adjusted return of 3.1 per cent Investment options portfolio 3.7 % -2.4 % 1.8 % 2.2 % • Corporatate portfolio returned 3.7 per cent Corporate portfolio 1.3 % 1.2 % 0.7 % 0.7 % • Solvency ratio KLP: 270 per cent Return 8% 7% 6% 5% 4% 3% 2% 1% 0% 2014 2015 2016 2017 2018 Booked Value adjusted Corporate

KLP Group – results by segment NOK million Q1 2019 Q4 2018 Q3 2018 Q2 2018 Life insurance 824 673 615 566 Non-life insurance 110 -88 69 49 Banking 22 11 28 19 Asset management -2 -10 28 1 Other -1 -1 -1 0 Group result before tax 953 585 739 635

KLP Group – main figures - results NOK million 31.03.2019 31.12.2018 Pension premiums and incoming transfers 7 378 40 921 - of which premium reserves transferred from another company 202 524 Allocated investment income 23 574 5 732 Minority share of return of financial instruments -6 339 4 022 Claims f.o.a. -5 297 -20 015 Insurance provisions -4 245 -28 096 55 -483 Interest expenses and value adjustments subordinated loans and subordinated bonds Operating cost -454 -1 872 Other income and cost 24 33 Technical result 14 696 240 To/from value adjustment fund -10 880 8 862 life insurance To/from supplementary reserves 0 -2 792 life insurance Surplus allocated Life insurance clients -2 864 -3 469 Group result pre-tax 953 2 840 Tax -309 -125 Other profit/loss elements -35 150 609 2 866 Group result

KLP Group - Balance Assets NOK million 800 000 700 000 600 000 500 000 400 000 300 000 200 000 100 000 - Debt Lending to Debt Equity Debt instruments Investment municipalities, instruments at instruments at instruments classified as Other Total properties enterprises and fair value over fair value over held to maturity loans and individuals P/L P/L receivables 31.03.2019 67 257 29 976 143 727 98 099 163 610 179 439 16 908 699 017 31.12.2018 67 570 31 053 141 549 95 764 166 344 159 968 13 310 675 558 31.03.2019 31.12.2018 Own funds and liabilities NOK million 800 000 700 000 600 000 500 000 400 000 300 000 200 000 100 000 - Hybrid capital Minority Debt to Debt to and and Covered Insurance interests Other Own funds financial deposits from Total subordinated bonds issued reserves classified as liabilities institutions clients loans liabilities 31.03.2019 34 457 7 635 2 975 23 796 11 031 532 520 75 164 11 438 699 017 31.12.2018 33 857 7 691 2 794 23 025 10 662 515 005 67 701 14 824 675 558 31.03.2019 31.12.2018

KLP Life Premium NOK million 45000 40000 35000 30000 25000 20000 15000 10000 5000 0 2014 2015 2016 2017 2018 Total Assets NOK million 700000 600000 500000 400000 300000 200000 100000 0 2015 2016 2017 2018 Q1 2019

KLP – Appropriation of results Result Nok million Result Company 31.03.2019 31.12.2018 Customers Interest result 2 109 48 2 157 5 207 Risk result 104 103 207 958 Premium interest rate guarantee 207 207 758 Administration result 48 48 137 Net income corporate portfolio 402 402 1 109 Tax -146 -146 -624 Other result elements -45 -45 -21 Total 2 213 617 2 829 7 524 Result to owners 22 % Retur on piad-in equity to clients 78 %

KLP Life - Balance Assets NOK million 700 000 600 000 500 000 400 000 300 000 200 000 100 000 - Total assets in corporate Total assets in common Assets in investment options Total assets portfolio portfolio portfolio 31.03.2019 41 466 529 900 2 491 573 857 31.12.2018 40 392 515 905 2 423 558 719 31.03.2019 31.12.2018 Own funds and liabilities NOK million 700 000 600 000 500 000 400 000 300 000 200 000 100 000 - Total: own funds, Risk equalization Retained Hybrid capital and Insurance Paid-in equity Other liabilities provisions and fund earnings subordinated debt liabilities debt 31.03.2019 14 545 4 945 14 953 7 635 524 095 7 684 573 576 31.12.2018 14 554 4 793 14 488 7 691 507 600 9 593 558 719 31.03.2019 31.12.2018

KLP Life - Solvency 31.03.2019 31.12.2018 30.09.2018 30.06.2018 Solvency ratio (SCR) 270 % 263 % 274 % 253 % Solvency ratio (SCR) with transitional 342 % 311 % 321 % 321 % • Solvency ratio Q1: 270* per cent measures Minimum solvnecy ratio 508 % 492 % 517 % 472 % • Minimum solvnecy ratio Q1: 508* per cent (MCR) Minimum solvnecy ratio *without transitional measures 669 % 600 % 623 % 623 % (MCR) with transitional measures Solvency Ratio 800% 700% 600% 500% 400% 300% 200% 100% 0% SCR SCR with transitional MCR MCR with transitional measures measures 31.12.2018 31.12.2017 31.12.2016

KLP Life - Common Portfolio Share* Return Share* Return 31.03.2019 31.03.2019 31.12.2018 31.12.2018 Equities 23.6 % 8.9 % 21.4 % -3.6 % Bonds 18.1 % 3.0 % 18.4 % -0.8 % Bonds held-to-maturity 28.6 % 0.9 % 29.1 % 3.7 % Lending 12.1 % 0.6 % 12.1 % 2.3 % Property 12.1 % 1.3 % 12.7 % 7.3 % Other financial assets 5.6 % 0.5 % 6.3 % 1.1 % *) Measured by exposure Allocation NOK bn 200 150 100 50 0 Property Lending Equities Bonds held-to- Bonds Other financial assets maturity Q2 2018 Q3 2018 Q4 2018 Q1 2019

KLP Life - Allocation NOK bn NOK bn NOK bn Property Bonds Equities 140 20% 70 14% 96 4% 4% 60 12% 94 120 3% 15% 50 10% 92 3% 100 2% 40 8% 90 10% 80 2% 30 6% 88 1% 60 5% 20 4% 86 1% 40 0% 10 2% 84 0% -1% 20 0 0% 82 -1% 2015 2 016 2017 2018 Q1 0 -5% 80 -2% 2019 2015 2 016 2017 2018 Q1 2015 2 016 2017 2018 Q1 2019 2019 Value Return Value Return Value Return Lending Other financial assets NOK bn NOK bn NOK bn Bonds held-to maturity 70 6% 45 6% 160 6% 40 60 5% 5% 140 35 5% 50 120 4% 30 4% 100 40 4% 25 3% 3% 80 20 30 3% 2% 15 2% 60 20 10 40 1% 1% 2% 10 5 20 0 0% 0 0% 0 1% 2015 2 016 2017 2018 Q1 2015 2 016 2017 2018 Q1 2015 2 016 2017 2018 Q1 2019 2019 2019 Value Return Value Return Value Return

KLP Life - Property Property value - by country 3 % 16 % • The portfolio written up by NOK 120 Norway million (0.2 %) in Q1 Denmark 9 % Sweden • New investments / sales in 2018 Europe 71 % • None Property value - by sector 3 % 4 % Offices, education Shopping centres 21 % Hotels Other (leasehold land, 61% 10 % co-properties, parking) Sites under development

KLP Life – Property NOK million 31.03.2019 31.12.2018 30.09.2018 30.06.2018 Fair value total portfolio* 66 076 65 788 63 798 62 788 Fair value common portfolio* 61 380 61 949 60 199 59 193 *Incl exchange-rate hedged and excl. property fund Q1 2019 Q4 2018 Q3 2018 Q2 2018 Value adjustment in per cent 0.2 % 1.0 % 0.2 % 2.3 % Value adjustment in per cent common portfolio 0.1 % 0.6 % 0.2 % 2.3 % Total return common portfolio** 1.3 % 1.7 % 1.3 % 3.3 % **Incl exchange-rate hedgede and property fund

KLP Skadeforsikring (non-life insurance) • Surplus of NOK 110 million in Q1 140,0 % • 121,9 % None large injuries estimated over 118,1 % 120,0 % NOK 10 million. 107,7 % 106,0 % 104,50% 103,7 % 30,4 % • 26,5 % 99,40% Some industries have unsatisfactory 98,8 % 98,7 % 95,6 % 100,0 % high claims rates 91,8 % 21,8 % 26,4 % 24,60% 26,2 % 18,70% • 21,1 % Motor, Public 22,8 % 29,1 % • 80,0 % 23,1 % Property Public • Group life 60,0 % • Revenue recognition of previous years reserves of NOK 47 million, 91,5 % 91,6 % 2.7 per cent of reserves at the 84,2 % 81,3 % 80,70% 40,0 % 79,90% 77,5 % 77,7 % 75,9 % beginning of the year 68,8 % 66,5 % • Financial income of NOK 107million 20,0 % in Q1 (2,5 per cent) 0,0 % • Solvency ratio: 246 per cent 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Q1 2019 Claims ratio on own account Cost ratio on own account Combined ratio on own account

KLP Skadeforsikring (non-life insurance) NOK million Q1 2019 Q4 2018 Q3 2018 Q2 2018 Premium written f.o.a. 350.0 326,0 321.4 314.2 Claims f.o.a. -282.3 -300.5 -251.5 -260.4 Insurance related expenses -65.6 -81.7 -50.8 -68.4 0,5 0.4 0.2 Other insurance related income 0.4 -55,5 19.5 -14.4 Result from technical activities 2.5 -32,7 49.6 63.1 Result from investment activities 106.8 0,1 0.1 0.1 Other income 0.2 -88,1 69.2 49.0 Result from ordinary operation 109.5 Estimated tax expense -27.4 4,1 -16.2 -9.7 Other elements -4.5 -1,1 0 0 -10,1 -4.3 -10.0 Provisions for equity fund -4.3 Result after provisions for equity fund -95,2 48.7 29.2 73.3