Carnegie's Norwegian

non-life insurance day

DNB Skadeforsikring AS

March 2013

by non-life CEO Hans Petter Madsen

Agenda

2

History

Strategy

Key financial figures

Profit development

Balance and asset allocation

Market shares

Profitable growth - potential

History

3

• 1999:UW-agency established 1999

• Group decision in 2007 to establish a

full scale insurance company

• DNB Skadeforsikring AS established

2008

• 12 % annual growth in portfolio

premium from 2008

From insurance uw-agency (Vital Skade AS) to full scale profitable

non-life insurance company

Strategy

4

Business strategy:

• To develop and deliver relevant and profitable non-life insurance products

for the retail market

Market:

• Norwegian retail market

Products:

• Fire and perils (house, home), motor, travel, accident

Distribution:

• DNB’s physical distribution network

• DNB’s digital distribution channels

Key financial figures

5

Portfolio premium 2012 (MNOK) 1,656

# individual customers 188,000

Market share Norwegian retail market 5.2 %

Pre-tax profit 2012 (MNOK) 203.4

Claims ratio for own account 2012 73.7 %

Cost ratio for own account 14.0 %

Financial assets 2012 (MNOK) 1,516

Investment return 2012 3.8 %

Profit development: profitable growth

6

• Substantial improvement in pre-

tax profit since 2009

• Made profit in the third

operational year

• 2009 and 2010: result

infuenced by security reserves;

total MNOK 154

• Improvement 2011 and 2012

was due to several

measurements. 2012 in general

also a good year for insurance.

• Portfolio premium increased by

MNOK 913 since 2009

• 188.000 individual customers

end 2012. Increased 14,700 in

2012 (8.5 %)

7

Profit development: Claims ratios

• Sufficient profitability in all main products end 2012

• Claims ratio for the house product improved by 59 % in 2 years

• Claims handling costs are included in all figures

8

Balance sheet and asset allocation

MNOK %

Bonds- held to maturity 264 17 %

Bonds 1 191 79 %

Real estate fund 61 4 %

Total 1 516 100 %

• Asset allocation: low market risk

• Financial assets have increased by MNOK 810 (115 %)

• Financial assets in % of earned premium (2012): 1.2

- indicates a product-line with short tale

• Equity in % of earned premium (2012): 40 %

- indicates a fairly good capitalization

• Solvency II: fulfills capital requirements

2009 2010 2011 2012

Financial assets 706 1 011 1 287 1 516

Reinsurance assets 13 32 237 268

Insurance receivables 185 274 352 408

Reinsurance receivables 1 23 94 113

Other assets 250 214 76 69

Total assets 1 155 1 554 2 046 2 374

Equity 366 325 348 495

Premieum reserves 373 491 602 676

Claim reserves 233 480 680 754

Security reserves 83 146 160 168

Reinsurance liabilities 11 3 161 176

other liabilities 89 109 95 105

Total equity and liabilities 1 155 1 554 2 046 2 374

Market shares (total) – large vs. small companies

9

• Market share for the smaller companies totals 24.5 % at year-end 2012

• DNB’s markets share – including non-life products in DNB Life – is 4.4

% at year-end 2012

• The four largest companies have lost 17.1 % in the period of 2002-2012

Market shares - retail and main products

10

• Travel: 9.3 % market share at

year-end 2012

• Fire: 5.8 % market share.

Increased 2.7 % since 2009

• Car: 4.3 % market share.

Increased 1.8 % since 2009

• Market share in the retail market

has risen 2.1 % since 2009

11

Profitable growth - potential

• Further utilization of the in-group bank customer traffic:

- dnb.no:

- household loans:

- bank customers: 2,1 mill.

• Focusing on established and stabile customers in contrast to the “shopping

segment”:

- utilize distribution power – not at low-price company

• Key success factor: a large customer base. Non-life insurance is relevant when

customers buy (and lend to) houses, cars etc.

• Cooperation with e.g. DNB Finans

12

Balance!

Simplicity Risk selection

Customer satisfaction