Operating profit doubled despite weak development in non-life

Consolidated profit reduced by NOK 152 million to NOK 452 million.

Strong improvement in financial result.

Considerably better operating profit in life insurance business.

Booked annualised yield 11.2% – value-adjusted annualised yield 14.3%.

Operating profit in non-life insurance reduced from NOK 437 million to NOK 135 million.

More and larger claims in non-life.

Life insurance market share increases – unchanged in non-life.

In the first six months of 1999 the Storebrand Group recorded an operating profit of NOK 3,323 million before distribution of profit to the life and pension policyholders. This is NOK 1,682 million higher than in the first half of 1998 when the operating profit was NOK 1,641 million. After distributing the life and pension policyholders’ share of the profit, the Group’s profit amounted to NOK 452 million compared to NOK 604 million in the same period last year. Good financial income and increased claims payments affected the result. The accounts for the first six months of 1999 have been prepared in accordance with the new Accounting Act and all comparable figures have been restated.

For full report including tables, follow the enclosed link.

For further details, please contact: <br>Jack Frostad, Director of Corporate Communications, <br>telephone + 47 22 31 57 57, mobile 928 26 255 <br>Egil Thompson, Asst. Director of Corporate Communications, <br>telephone + 47 22 48 95 86, mobile 934 80 012 <br>Christian Storm, Treasurer, telephone + 47 22 31 10 85, mobile 934 03 266