Storebrand Result Q4 2009 17 February 2010 Idar Kreutzer - CEO - PowerPoint PPT Presentation

Storebrand Result Q4 2009 17 February 2010 Idar Kreutzer - CEO Odd Arild Grefstad - CFO

Highlights Q4 2009 RESULT  Group profit of NOK 596 mill in Q4 and NOK 1.276 mill in 2009  Good development in results of Life and Asset Management  Weak net interest income in Bank OPERATIONS  Good sales development in Life&Pensions in Norway and Sweden  Realisation of synergies ahead of plan  One-off costs related to restructuring and streamlining BALANCE  Life Group solvency margin up to 170%, ASR up by NOK 1.3 bn  Group contribution to ASA of NOK 823 mill  Board proposes that no dividend be paid for 2009 2

Storebrand Group Q4 Full year NOK mill. 2009 2008 2009 2008 Life and Pension Norway 193 406 759 348 Life and Pension Sweden (SPP) 307 1.419 478 831 Storebrand Investments 138 96 240 218 Storebrand Bank 24 -54 63 68 P&C (incl Health) -1 -9 -18 0 Storebrand ASA / other -64 -71 -255 -155 Group Profit 596 1.788 1.276 1.310 Write-down of intangible assets -7 -2.507 Amortisation -101 -97 -390 -519 Pre-tax profit 496 1.683 887 -1.716 3

Life and Pensions Norway - buffer capital strengthened  Strong sales and positive Q4 Full year transfer balance NOK mill. 2009 2008 2009 2008 Administration  Efficiency improvement and result -19 -56 -169 -177 cost reducing measures Risk result 61 12 229 475 Finance result* 16 356 201 -316  Strong balance sheet and Profit from risk strengthened customer and interest rate guarantees 125 96 478 398 buffers Other 8 -2 20 -31 Profit for Norwegian life insurance 193 406 759 348 * Interest result and profit sharing 4

Life and Pensions Norway - strong sales and positive transfer balance Transfer balance 1  Storebrand has positive transfer balance 5th year running 9,9 2,8 0,1 Bn NOK 1,1 5,3  Transfers of NOK 2.4 bn notified 0,6  Several large pension schemes 2005 2006 2007 2008 2009 2005- have chosen Storebrand as their 2009 pensions supplier Premium income 2 (12 month rolling) 16.302 16.201 16.282 16.304 16.074  Targeted effort towards public 1 339 1 323 1 368 1 409 1 484 enterprises has provided good 3.281 3.147 3.189 3.854 4.697 results 5.145 4.924 4.979 4.421 3.712 Bn NOK  Defined contribution pensions 6.537 6.761 6.705 6.706 6.181 now represent 29% of total premiums Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 DB - running premiums DB - single premiums DC/UL Risk products 1 Transfer balance 2005-2009 5 2 Premium income excluding transfers

Life and Pensions Norway - strong sales and positive transfer balance Transfer balance and reported sales 1  Storebrand has positive transfer balance 5th year running Bn NOK 9.9 2.4  Transfers of NOK 2.4 bn notified Transfer balance Reported sales  Several large pension schemes 2005-2009 2009 have chosen Storebrand as their pensions supplier Premium income 2 (12 month rolling) 16.302 16.201 16.282 16.304 16.074  Targeted effort towards public 1 339 1 323 1 368 1 409 1 484 enterprises has provided good 3.281 3.147 3.189 3.854 4.697 results 5.145 4.924 4.979 4.421 3.712 Bn NOK  Defined contribution pensions 6.537 6.761 6.705 6.706 6.181 now represent 29% of total premiums Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 DB - running premiums DB - single premiums DC/UL Risk products 1 Transfer balance 2005-2009 and reported sales 2009 6 2 Premium income excluding transfers

Life and Pensions Norway - improvement in cost efficiency continues  Headcount reduced Costs / Customer funds 1,20 %  Efficiency improvements continue 1.06% 1.01% 1,00 % 0.88% ― LEAN across departments ― Tasks moved to Storebrand 0,80 % 0.86% Baltic ― Reduced headcount in 0,60 % central functions 0,40 % 1 Operational cost target  2006 2007 2008 2009 remains fast: Admin. result > 0 in 2010 1 2007 Cost ratio is adjusted for deviations from estimates in pensions, which contributed to higher costs in 2007 7

Life and Pensions Sweden (SPP) - strengthened market position  Increased market share new Q4 Full year sales NOK mill. 2009 2008 2009 2008  Cost synergies realised ahead of plan Administration result -37 -104 -101 -103  Improvement in underlying Risk result 82 95 253 287 operations: Finance result  Joint IT-organisation 245 1.184 260 340  Municipal customer Other 17 229 74 307 administration to Logica Profit for  Reduced headcount Swedish life 307 1.419 487 831 insurance  Restructuring costs of NOK 30 million in Q4 8

Life and Pensions Sweden (SPP) - strengthened market position “Top of mind” survey 1  New sales APE: - SPP: +6% in 2009 25 AMF - Market share increased to Alecta 8.7 9.5%* SPP 6.2 Folksam 5.8  Unit Link represents 55% of new sales Skandia 4.2 Up from 9th KPA 3.6 place in 2008  Top score on all criteria in LF 3.5 Söderberg & Partners' Unit Link ranking Swedbank 3.3 Nordea 3 SEB 2.8 1 Carried out January 2010 * Market statistics as per 31.12.2009 9

Life and Pensions Sweden (SPP) - cost synergies realised ahead of plan Annual cost synergies by Mill NOK function 200 150 12 22 100 Target as at Q4 72 153 2009 50 47 0 10

Storebrand Investments - strong improvement in results  Good returns and high value Q4 Full year creation NOK mill. 2009 2008 2009 2008  Market development and * Total income 203 139 496 403 new sales increases basis for volume based income Total costs -90 -68 -339 -264 Net financial/other 25 25 83 80  Transfer of SPP assets, Result asset 138 96 240 218 increased assets under management management * Total income includes volume based income and net performance-based income 11

Storebrand Investments - good returns Return on active mandates for Storebrand Life  Active management provided 69,7% Norwegian equities return to Storebrand Life of NOK 63,7% 977 mill above benchmark indices i 10,1 % Global equities 7,2 % 2009 4,8 % L/S Europe 0,8 % 4,8 %  90% of Storebrand mutual funds L/S Energy 0,3 % performed better than benchmark 5,6 % Norwegian money … * 4,2 % in 2009 3,5 % Norwegian bonds 2,9 % 8,5 % International credit  64% of Storebrand mutual funds 6,1 % have performed better than 3,0 % International bonds 1,9 % * benchmark last 5 years 8,6 % AGFIX 2,1 % Return active mandate Index return * Actively managed funds, measured after management fees 12

Storebrand Investments - strong sales in funds Accumulated net new subscriptions to Storebrand funds  Positive net new subscriptions to funds in 5,3 3,8 31,1 2,0 3,4 2009 Bn NOK 39,8 Value increase - SPP fonder: NOK 3.4 bn 2 New subscriptions - STB funds: NOK 2 bn 1 SPP Fonder 27,7 21,9 03.03.09 SFO 3 01.01.09  NOK 14.5 bn increase in Storebrand Fondene SPP Fonder assets under management in 2009 - SPP fonder: NOK 8.7 bn - STB funds: NOK 5.8 bn 1) Excl. group customers 2) For the period when the company has had operations,30.03.2009-31.12.2009 3) Storebrand fondene 13

Storebrand Bank - weak net interest margin  Cost reducing measures Q4 Full year NOK mill. 2009 2008 2009 2008  Measures to improve net Net interest income 104 110 423 512 interest income Net fee and 20 12 76 62 commission income Other income 57 42 148 89  Solid balance sheet Total income 181 164 647 663 ― High deposit/loan ratio Operating expenses -134 -132 -504 -473 ― Low losses Profit before loss 47 31 144 190 Loan loss provisions -23 -85 -81 -122 ― Stable development in non- performing loans Profit from banking 24 -54 63 68 activities 14

Storebrand Bank - cost reducing measures proceeding as planned  Cost reducing measures being implemented 550 500 - Reduction in headcount 50 450 - Tasks moved to service 400 center Storebrand Baltic 504 350 454 - Consolidate Ring offices 300 - Streamline and simplify IT 250 structure 200 Total cost Cost base Targeted  23 FTEs cut in Q4 2009 after cut cost cut  Restructuring costs 2009 – NOK 12 million 15

Life and Pensions Norway - priority given to building customer buffers Defined Individual Group contribution and paid- defined and Risk up Company NOK mill. benefit * unit linked* products policies** portfolio Total Q4 2009 -169 Administration result -10 -6 -8 5 -19 229 Risk result 6 54 1 61 201 Finance result 1 -2 10 17 -9 17 Profit from risk and interest rate 478 guarantees 125 125 20 Other 3 5 9 759 Profit for Norwegian life insurance 125 -8 56 24 -4 193 1 ) Interest result and profit sharing 1 Invested assets (NOK billion) 78 15 3 80 9 185 Change in invested assets (NOK billion) 0 2 -1 1 -1 1  Value adjusted and bookd return customer portfolios with interest guarantee : 1.5% in Q4, 4.6% in 2009 * Fee based ** Profit sharing 16