Q4 2009: Good result for customers and owners

• Group result of NOK 596 million for Q4 and NOK 1,276 million for the full year
• Solid financial position - increased buffer capital and stronger solvency margin
• Good customer growth in life and pensions
• The board will prioritise financial flexibility and proposes that no dividend be paid for 2009

The Board of Director's interim report for Q4 2009, Q4 2009 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 0900 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 3184501 (from Norway or abroad).

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Press release:

Q4 2009: Good result for customers and owners

Group result of NOK 596 million for Q4 and NOK 1,276 million for the full year

Solid financial position - increased buffer capital and stronger solvency margin

Good customer growth in life and pensions

"In a year characterised by major market fluctuations, Storebrand delivered a good result for its customers and owners. The group's position in life and pensions in Norway and Sweden has strengthened. The work on streamlining business operations continues at full strength," says CEO Idar Kreutzer.

Results driven by good value creation

The quarter's result was characterised by good value creation in both life and pensions and the asset management business. The returns on the customers' assets were higher than the average guaranteed interest in all portfolios. This provided a good financial result and allowed the customers' buffer capital to be strengthened by NOK 1.3 billion in the Norwegian business. The quarter's result in SPP was characterised by good returns and profit sharing for the owner.

Good value creation resulted in high performance-based fees in the asset management business. Income within the asset management business increased in 2009 due to the takeover of SPP's customer assets, increased market values and strong new sales.  

Storebrand Bank's result for the quarter was characterised by weak net interest income due to high funding costs. The development of losses and defaults is considered satisfactory, and the bank's other income is developing positively.

Strong customer growth

Storebrand Life Insurance experienced a strong inflow of customers in the occupational pensions market in Q4. Reported net sales in Q4 were NOK 2.5 billion for group pensions. The sales will mostly be booked in Q1 2010. Sales of the guarantee account product in the retail market were very good, with net sales of NOK 0.9 billion in Q4 and around NOK 1.6 billion for the full year.

SPP's total new sales measured in new premiums (APE) increased by 6% in a declining total market. The increase in new sales was largely due to sales through broker channels.

Net new sales in the asset management business (external discretionary assets and mutual funds) amounted to NOK 1.8 billion for Q4. The company saw total positive net subscriptions of NOK 3.4 billion in the year. Total net subscriptions to mutual funds via the retail market channels amounted to NOK 679 million in 2009.

Insurance policy sales in the P&C insurance business remain good. The annual premium rose by 10% in Q4 to NOK 346 million, and by a total of 54% in the full year.

Solid financial position

Storebrand is in a strong financial position at the start of 2010. The Storebrand Life Insurance Group's solvency margin at the close of Q4 was 170% and capital adequacy was 14.9%.

The bank's core (tier 1) capital ratio was 10.4% at the close of Q4 and therefore satisfies the internal core (tier 1) capital ratio target of 10%. As announced in October 2009, a NOK 200 million capital increase in Storebrand Bank from Storebrand ASA was carried out in Q4.

In 2009, the board focused on building up customer buffers, strengthening the solvency margin, and reducing the net debt ratio. Therefore, it is recommended that no dividend be paid for 2009.

Lysaker, 17 February 2010

Contact people:

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 Q4 2009