Storebrand ASA : 3Q 2011: Turbulent markets - Stable operations

• Group result of NOK 1,004 million year-to-date and minus NOK 52 million for 3Q
• Result affected by unstable financial markets and fall in assets under management
• Solvency sustained in the quarter: solvency margin of 165 per cent for life and pensions

The Board of Director's Interim report for 3Q 2011, 3Q 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 1400 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).

 3Q 2011: Turbulent markets - Stable operations

• Group result of NOK 1,004 million year-to-date and minus NOK 52 million for 3Q
• Result affected by unstable financial markets and fall in assets under management
• Solvency sustained in the quarter: solvency margin of 165 per cent for life and pensions

"In a weak financial market, we have delivered competitive returns for the pension customers in Norway and Sweden. The instability in the market weakened earnings in the quarter, but the systematic building of buffer capital in healthy markets, gives the Group a solid financial position," says Idar Kreutzer.

5.2 billion to life customers

The return in Storebrand Life Insurance was sufficient to cover the average interest guarantee in all customer portfolios during the quarter. In addition to this, undistributed profits of NOK 0.9 billion have been earned for the customers year-to-date, in addition to the interest rate guarantee.

The quarter's financial result was affected by the instability in the markets, and the owner having to cover parts of the longevity reservation year-to-date. So far this year, the result has been charged NOK 162 million due to the build up of these reserves. The risk results have improved and are developing as expected.

Reduced financial result and improved operations in SPP

The steep decline in the equity markets contributed to a weak financial result, reduced profit sharing between customers and the owner, and lower customer funds in SPP. The underlying operations are good and cost development is according to plan. The risk results are stabilising on good levels.

Premium income was affected by the reduction in guaranteed business, while premium income from unit linked insurance continues to increase in the Swedish business. The market share for new sales in the competitive market for unit linked insurance increased to 14.4 per cent in the quarter.

Market turmoil affecting asset management

Asset management's result improved by NOK 4 million in the quarter and by NOK 38 million year-to-date compared with the same period last year. Costs levelled out and income experienced a positive trend in the quarter. The fall in the equity market resulted in reduced assets under management and lower volume-based fees going forward.

Result growth in Insurance

Insurance has experienced an improvement of NOK 99 million in its result year-to-date, compared with last year. The unit contains the areas P&C and health insurance, as well as personal risk and employee cover. The claims ratio is lower than in the same period last year, and costs are developing well in the business area.

Bank stable

Storebrand Bank's efforts in the retail market have resulted in a higher number of active customers and better volume growth. The improvement in the result compared with the same period last year was due to increase in other income and low losses. At the same time, the market is still characterised by a high degree of competition and low margins for mortgages.

Good solvency

The Storebrand Group's solvency at the close of the quarter was good. The Storebrand Life Insurance Group's (Storebrand Life Insurance and SPP) solvency margin was 165 per cent. The solvency margin was positively affected by 5 percentage points due to a change in the way real estate is treated in calculations.

In solvency calculations in Sweden, insurance liabilities are discounted by a market interest rate. Interest rates fell markedly in Sweden in 3Q and the degree of volatility was unusually high. This resulted in the insurance liabilities in the solvency accounts rising and the solvency ratio decreasing. It was decided to strengthen the SPP Group's capital to ensure a robust solvency ratio in this unstable market situation. During the quarter Storebrand ASA provided SPP with a NOK 0.9 billion capital injection. At the close of the quarter, SPP's solvency ratio was 128 per cent. This had increased to 147 per cent as per 25 October.

Lysaker, 26 October 2011

Contacts:

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 3Q 2011

The Storebrand Group is a leading actor 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 pursuant to section 5-12 of the Norwegian Securities Trading Act.