1Q 2011: Good result development

• Group result of NOK 514 million for 1Q
• Administration results improved by NOK 52 million in Nordic life and pensions
• Good financial position: solvency margin of 161 per cent for life and pensions

The Board of Director's Interim report for 1Q 2011, 1Q 2011 result presentation and Supplementary Information are attached on http://www.newsweb.no

Storebrand will today host a press and analyst conference in Storebrands head office at Lysaker, Professor Kohts vei 9, at 1000 CET (in Norwegian). An international conference call will be hosted at 1500 CET. To participate in the conference call please use link on http://www.storebrand.no/ir, or call in and register 10 minutes before the presentation starts. Dial: +47 80080119 (from Norway) or +47 23184501 (from Norway or abroad).

1Q 2011: Good result development 

• Group result of NOK 514 million for 1Q
• Administration results improved by NOK 52 million in Nordic life and pensions
• Good financial position: solvency margin of 161 per cent for life and pensions

"The quarterly result was characterised by good value creation and that measures we have implemented are producing the expected effect. The growth in the result in the Swedish part of the business is significant," says CEO Idar Kreutzer.

Strong growth in SPP's result
SPP, the Swedish pension and insurance provider, delivered a result improvement of NOK 168 million compared to the same period last year. The administration result was up NOK 37 million. In addition, good risk and financial results made positive contributions in the quarter.

SPP was named best unit linked insurance provider in Sweden by the independent pensions advisor Söderberg & Partners for the third year in a row. Premium income from unit linked insurance continues to increase and was 12 per cent higher than in the same period last year. Premium income from guaranteed business is down 23 per cent.

NOK 2.2 billion for life customers
The return on investments in customer portfolios in the Norwegian life business contributed to a good financial result, and a NOK 0.3 billion increase in the customers' buffer capital in the quarter. The booked return for all portfolios was high enough to cover the guaranteed interest rate, and provide a profit sharing of NOK 0.9 billion for customers.

The result for Storebrand Life Insurance was negatively affected by a fall in the risk result within defined contribution pensions in 1Q. A rise in the number of approved disability claims had a negative effect on the quarter. Similar effects are not expected going forward.

The transfer balance to the life insurance company amounted to minus NOK 2.4 billion in 1Q. This was primarily due to three municipalities choosing to transfer their pension schemes in 4Q 2010 with effect from 2011.

Sales up in asset management
Asset management's result is good, and underlying development follows plan. The result is positively affected in the quarter by changes to Storebrand Life Insurance's asset management contract. Net new sales in asset management (external discretionary assets and mutual funds) amounted to NOK 2.6 billion in the quarter.

Improvement for the bank
Storebrand Bank delivered a result characterised by improved net interest income, higher other income and a low level of loan losses. Net interest income increased from NOK 106 million to NOK 115 million in the quarter. The bank group's performance was characterised by improved deposit margins and reduced borrowing costs compared with the same period last year.

Positive for insurance
Storebrand Insurance was established as a separate business area on 1 March and comprises the areas P&C and health insurance, as well as individual and group life products. As a consequence of the changes in the Group's organisational model, part of the business from Storebrand Life Insurance is moved to Insurance, which for Q1 has given a positive effect of 30 million for Insurance. The business area showed a strong improvement compared with last year and is developing in line with expectations for the area.

Solid financial position
The Storebrand Group was in a sound financial position at the end of the quarter. The Storebrand Life Insurance Group's (Storebrand Life Insurance and SPP) solvency margin was 161 per cent. Capital adequacy was 13.3 per cent.

Lysaker, 11 May 2011

Contact persons:

EVP Corporate Communications Egil Thompson: Mobile (+47) 93 48 00 12
Head of Investor Relations Trond Finn Eriksen: Mobile (+47) 99 16 41 35

Enclosure: Board's Interim Report for Q1 2011

The Storebrand Group is a leading company in the Nordic market for life insurance, pensions and long-term savings. The Group consists of the following business areas: life and pensions, asset management, bank, and insurance.

This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)