storebrand analyst presentation - mb.cision.commb.cision.com/main/6558/9394731/108690.pdf ·...

Storebrand Analyst presentation

Results 3rd Quarter 2002

3Q 2002 2

Analystpresentation3rd quarter 2002

• Storebrand GroupGroup CEO Idar Kreutzer page 2-16

Backup• Storebrand Group page 17-21• Storebrand ASA page 22-23• Storebrand Life Insurance page 24-33• Storebrand Investments page 34-38• Storebrand Bank page 39-40• Finansbanken page 41-46• Storebrand non-life page 47-50

Storebrand Results 3rd Quarter 2002

13th November 2002

Idar KreutzerGroup CEO

3Q 2002 4

3rd Quarter – Financial highlights

� Weak development in equity markets has significant impact on financial income in the life business, If and the holding company – in addition, saving product sales and management fees are affected

� Good solidity is maintained through active and comprehensive risk management

� Booked return in life company 0.93% year to date� Combined ratio in If 103.6% in Q3 � Cost reductions developing as planned

3Q 2002 5

Storebrand GroupGroup profit

01.01-31.12

NOK million 2002 2001 2002 2001 2001

Life activities -99 -407 -496 -199 -111

Investment activities -9 9 -2 12 14

Storebrand Bank Group *) -16 -19 -19 -87 -43

Finansbanken Group 9 19 -329 -84 -74

Non life activities -61 -318 -308 -490 -767

Other activities **) -269 -174 -576 -387 -449

Group profit -446 -891 -1,730 -1,234 -1,430

*) Full year 2001 includes sale of Storebrand Finans

**) Including depreciation of goodwill Finansbanken

01.01 - 30.09Q 3

3Q 2002 6

Group result- alternative setup

Full yearNOK mill. 2002* 2001 2001Net interest income (banking) 462 467 623Net financial income -354 -33 -154Other income (banking)** 192 276 352Other income/costs** 84 93 268Operating expenses** -922 -1094 -1370Group result excluding life, If and loan loss provisions -539 -291 -281Loan loss provisions (banking) -390 -237 -269Group result excluding life and If -929 -528 -550

Profit life (w/ profit sharing) -502 -178 -118Profit life (w/o profit sharing) 53 29 104Result other life companies -48 -50 -96

Sum result life business -496 -199 -111Group result excluding If -1425 -727 -661Share of If result -305 -507 -769Group profit -1730 -1234 -1430

* Explanations:Net interest income (banking): 159m in Storebrand Bank, 303m in Finansbanken

Net financial income: Hereof -401m in Storebrand ASA, 55m in Non-life (excl. If).

Other income (banking): Mainly distribution commissions (Storebrand Bank >150m)

Other income/costs: Includes asset management fees in SB Investments (after elimination of sold services

internally in the group), premium income/claims in non-life (excl. If), write down of non-current assets Operating expenses: Storebrand ASA -164m, Finansbanken -260m, Storebrand Bank -313m, includes also SB Investments

(after elimination of sold services), and other activitiesLoan loss provisions (banking): Finansbanken -385m, Storebrand Bank -5m

**Note: Group internal bought and sold services eliminated (excluding SB Bank)

1.1 - 30.9

3Q 2002 7

Life businessProfit and loss

01.01.- 31.12NOK Million 2002 2001 2002 2001 2001Interest result -1.077 -2.875 -2.131 -2.142 -535Risk result 119 10 163 112 238Administration result 2 -12 -67 -69 -102Change in security and premium reserve -35 226 -233 111 -25Operating profit -991 -2.651 -2.268 -1.988 -425Can be drawn from additional statutory allocations *) 908 1.837 1.819 1.837 408Total result after tranferringfrom additional statutory allocations -83 -814 -449 -151 -17Transferred to policyholders 422Profit to owner SBL AS -83 -392 -449 -151 -17Profit to owner Storebrand Life Group -83 -391 -448 -149 -15 Other life insurance activities -16 -16 -48 -50 -96 Group profit life -99 -407 -496 -199 -111 *) At year-end

01.01.-30.09Q3

3Q 2002 8


� Booked return 0.93% ytd (0% in Q3). Allocation fromstatutory additional reserves (SARs) is NOK 1,819 mill. ytd, remaining SARs are NOK 2,294 mill.

01.01.- 31.12NOK Million 2002 2001 2002 2001 2001Interest result -1.077 -2.875 -2.131 -2.142 -535Risk result 119 10 163 112 238Administration result 2 -12 -67 -69 -102Change in security and premium reserve -35 226 -233 111 -25Operating profit -991 -2.651 -2.268 -1.988 -425Can be drawn from additional statutory allocations *) 908 1.837 1.819 1.837 408Total result after tranferringfrom additional statutory allocations -83 -814 -449 -151 -17Transferred to policyholders 422Profit to owner SBL AS -83 -392 -449 -151 -17Profit to owner Storebrand Life Group -83 -391 -448 -149 -15 Other life insurance activities -16 -16 -48 -50 -96 Group profit life -99 -407 -496 -199 -111 *) At year-end

01.01.-30.09Q3

3Q 2002 9


� Disability reserving of NOK 35 mill. in Q3

� Improved risk result as a consequence of repricing

01.01.- 31.12NOK Million 2002 2001 2002 2001 2001Interest result -1.077 -2.875 -2.131 -2.142 -535Risk result 119 10 163 112 238Administration result 2 -12 -67 -69 -102Change in security and premium rese -35 226 -233 111 -25Operating profit -991 -2.651 -2.268 -1.988 -425Can be drawn from additional statutory allocations *) 908 1.837 1.819 1.837 408Total result after tranferringfrom additional statutory allocations -83 -814 -449 -151 -17Transferred to policyholders 422Profit to owner SBL AS -83 -392 -449 -151 -17Profit to owner Storebrand Life Group -83 -391 -448 -149 -15 Other life insurance activities -16 -16 -48 -50 -96 Group profit life -99 -407 -496 -199 -111 *) At year-end

01.01.-30.09Q3

3Q 2002 10

� Equity market exposure 7%� Risk capital NOK 3.4 bn, equity loss absorption

buffer 40%� 0.90% costs as % of insurance funds� Transfer balance + NOK 279 mill. ytd

Rating fixed income

Life businessKey figures

Investment portfolio 3Q 20021

1) Actual exposure including derivative positions

Equity 7%

Money market 18%

Bonds 20%

Bonds HTM 38%

Real estate 10%

Loan 1%AAA

AA

AOtherBBB

3Q 2002 11

Life businessCompetitive situation

Booked return ytd SARs as % of customers’ funds as of Q3

0.8 %0.1 %

-0.8 %

-2.1 %

-3.8 %

0.9 %

-5.00 %

-2.50 %

0.00 %

2.50 %

Storeb

rand

KLP

Gjensid

ige Vital

Nordea

Liv

Spareb

ank1

0.2 % 0.1 % 0.0 % 0.0 %

2.6 %

0.0 %0.0 %

1.0 %

2.0 %

3.0 %

Storeb

rand

Gjensid

ige Vital

Spareb

ank1 KLP

Nordea

Liv

1) Internal estimate

1)

3Q 2002 12

Storebrand Bank Profit and loss

01.01.-31.12.NOK million 2002 2001 2002 2001 2001Interest income 260 263 833 773 1,059Interest expense 209 222 674 641 882Net interest income 51 40 159 132 176Non-interest income 43 64 153 204 256Non-interest expense 104 120 313 417 580Operating income -11 -16 -2 -81 -148Provision for credit losses -2 -1 -6 -4 -9Net income bank activities -13 -17 -8 -85 -157Net income Storebrand Finans 0 15 1 49 168Write-downs on long-term assets -3 -17 -13 -51 -54Net income before tax -16 -19 -19 -87 -43

Q3 01.01.-30.09.

3Q 2002 13


� Increase in net interest income due to product price adjustments


Q3 01.01.-30.09.

3Q 2002 14


� Weak market for sales of savings products


Q3 01.01.-30.09.

3Q 2002 15


� Cost reductions as planned


Q3 01.01.-30.09.

3Q 2002 16

60

100

140

180

Q1 01 Q2 01 Q3 01 Q4 01 Q1 02 Q2 02 Q3 02

Storebrand BankKey figures

� 20% growth in sales of risk products ytd� Stable development in sales of savings products� Reduction in commission income on existing portfolio

Key figures Operating cost development

0.09%0.05%0.08%Loan loss provisions

1.49%1.35%1.56%Net interestmargin (%)

11,03810,62511,655Loans(NOK million)

112%

Q3 2002

115%

Q3 2001 2001

134%Cost / Income

NOK million

3Q 2002 17

FinansbankenProfit and loss

01.01.-31.12NOK million 2002 2001 2002 2001 2001Net interest income 81.6 110.0 281.3 308.6 414.0 Non-interest income 9.3 15.9 39.6 42.2 74.3 Total income 90.9 125.9 320.9 350.8 488.3 Non-interest expenses -41.7 -58.2 -150.7 -155.6 -215.1 Operating income 49.2 67.7 170.2 195.2 273.2 Loan loss provisions -18.2 -26.8 -381.5 -259.8 -295.2 Write down on long-term assets -13.6 -17.9Profit before tax 17.4 40.9 -229.2 -64.6 -22.0 Finansbanken Forvaltning -2.7 -4.1 -36.6 -6.2 -10.7 Finansbanken Index 1.7 -1.0 2.5 13.2 15.8 Finansbanken Danmark -5.5 -8.9 -18.2 -4.6 -10.7 Other -2.1 -16.4 -47.7 -22.0 -46.1 Group 8.8 10.5 -329.2 -84.2 -73.7

3. Kvartal 01.01-30.09

3Q 2002 18


� Net interest income negatively affected by reduced loan book volumes and high level of non accrual loans

� Other income impacted by financial market development


3. Kvartal 01.01-30.09

3Q 2002 19


� Cost reductions as planned, number of man-years reduced from 223 to 186 in 2002


3. Kvartal 01.01-30.09

3Q 2002 20


� Loan loss provisions of 0.46%


3. Kvartal 01.01-30.09

3Q 2002 21

3.93.6

3.22.9 2.7

1.9

0.0

1.0

2.0

3.0

4.0

5.0

Q2 01 Q3 01 4Q 01 Q1 02 Q2 02 Q3 02

FinansbankenKey figures

� Continued reduction in loan book

- Shipping portfolio reduced to NOK 1.9 bn

- Stable volumes in other parts of the portfolio

� Stable funding situation – €150m credit facility undrawn

Development shipping portfolio

Key figures

60.3 %

2.00 %

15,636

Q3 2002

63.7 %

2.34 %

17,571

Q3 2001 2001

61.1 %Cost/ Income*

2.21 %Interest rate margin(%)

17,317Loan portfolio(NOK million)

0.46 % 0.72% 2.56 %Tapsprosent

(MrdNOK)

*) Group figures

3Q 2002 22

Storebrand InvestmentsProfit and loss

� Reduced management fees due to weak development in equity markets, appreciation of the NOK and reallocation from equities to fixed income

� Adjusted for Delphi and goodwill depreciations operating expenses ytd are NOK11m lower than 2001

*Delphi Fondsforvaltning is included from 01.01.2002. Storebrand part (56 %) of Storebrand Alternative Investments is included in other income.

Storebrand Investments * 01.01 – 31.12

NOK mill. 2002 2001 2002 2001 2001

Total income 47.3 67.4 175.6 190.8 252.5Total costs -60.7 -58.9 -189.6 -182.8 -245.1Net financial income / other income 3.1 0.4 9.0 4.4 6.5Profit before tax STB Investments -10.2 8.9 -5.1 12.4 13.9

Profit before tax per companyStorebrand Kapitalforvaltning -6.2 7.4 1.3 11.2 9.0Storebrand/Delphi Fondene -3.6 1.6 -5.9 1.2 4.9Storebrand Alternative Investeringer 1.1 0.0 3.9 0.0 0.0Depreciation on goodwill -1.5 0.0 -4.4 0.0 0.0Profit before tax STB Investments -10.2 8.9 -5.1 12.4 13.9

3. quarter 01.01 – 30.09

3Q 2002 23

-3.00 2.00 7.00 12.00

Odin

Carnegie

AB Industrifinans

Avanse

Nordea

Skagen

DnB

Storebrand

Net new subscriptionRedemptionSubscription

31.12.01 Valuereduction

Net sales 30.09.02

AuM as of 30.09.02 (NOK bn)

Mutual funds development

� NOK 1.5 bn in net sales gives 82% market share (ytd)

Mutual funds as of 30.09.02

(NOK bn)

13.4

+1.5-4.0

10.9

3Q 2002 24

Storebrand GroupOther activities

Weak net finance due to:� Weak development in investment assets� Termination of Total Return Swap

01.01 -

NOK million 2002 2001 2002 2001 31.12.01

Storebrand ASA (ecl. group contributions)

Net financial income and expenses -225 -132 -401 -236 -400

Operating cost -39 -36 -164 -142 -200

Netting on consolidation / Other activities *) -5 -6 -11 -9 151

Total profit other activities -269 -174 -576 -387 -449

*) Including deprecation goodwill Finansbanken

01.01 - 30.09Q 3

3Q 2002 25

IfKey figures Q3

� Continued improvement in combined ratio

� Cost ratio down 0.9%-points ytd

� According to Norwegian GAAP bonds shall be booked at market value –cumulative positiveearnings impact in Q3 ofNOK 97 mill.

This has not been adjusted previously as the variations has not beendeemed material

-60-40-20

020406080

100

1Q20

00

2Q20

00

3Q20

00

4Q20

00

1Q20

01

2Q20

01

3Q20

01

4Q20

01

1Q20

02

2Q20

02

3Q20

02

Development Combined Ratio

Norwegian vs. Swedish GAAP- variation in book values (Storebrand’s share after tax)

NO

K m

illion

1 1 1 . 3 %

1 0 3 . 6 %

1 0 4 . 4 %

1 0 0 %

1 0 4 %

1 0 8 %

1 1 2 %

Q 1 2 0 0 2 Q 2 2 0 0 2 Q 3 2 0 0 2

3Q 2002 26

€225 mill. Un-drawn long term credit facility Storebrand ASA

NOK1.4 bnLiquid assets Storebrand ASA

40%Equity loss absorption

151%184.4%Solvency margin life

NOK3.4 bnNOK 6.6 bnRisk capital life

Q3 20022001Other key figures

22.4%32.2%Storebrand non-life

78.3%83.3%Storebrand ASA

11.4%9.7%Finansbanken

10.1%12.5%Storebrand Bank

16.5%10.5%Storebrand Life

Group

Capital adequacy ratio

14.8%12.7%

Q3 20022001

Storebrand GroupFinancial position

3Q 2002 27

Refinancing of STB55 NOK 1.8bn loan due 29.06.03

� New notes totalling NOK1.5 bn to be issued

- Subscription period starts 14th November

- 5 years tenor

- Fixed or floating rate of interest, both lower than interest on existing loan

- 0.8% coupon over 3 month NIBOR/5 year swap rate

- Issue date 11 December 2002

- To be listed on the Oslo Stock Exchange� The issue is fully underwritten by a guarantee

consortium consisting of selected shareholders and investors

� The proceeds from the new issue will be used to repurchase and refinance STB55

3Q 2002 28

Bank mergerStronger banking unit

� One unified bank – Storebrand Bank ASA*

- Strategic positioning towards individuals and selected corporate segments

- Enables improved management and control

- Gives better cost structure

- Strenghtens competence and capital base, new credit facilities of €225 mill established

� Progress

- Merger between Finansbanken and Storebrand Bank approved by the companies’ BoD 12th Nov 2002

- Implementation 1st March 2003� Consequence

- Secures implementation of cost reductions of NOK 75 million in 2003 within banking area

*) Finansbanken will be kept as concept brand

3Q 2002 29

3Q 2002 30

Summary

� Sound financial position

� Improved competitive situation

� Operational focus

3Q 2002 31

”We enable our customers to achieve the utmost based on their financial position, life situation and health”

We do this through:

� Good, forward looking products and services� Customer orientated communication solutions� Competent and motivated employees

Storebrand’s customer promise

3Q 2002 32

Storebrand Group

3Q 2002 34

Storebrand GroupGroup profit by area

01.01-31.12

NOK million 2002 2001 2002 2001 2001

Life activities -99 -407 -496 -199 -111

Investment activities -9 9 -2 12 14

Storebrand Bank Group -16 -19 -19 -87 -43

Finansbanken Group 9 19 -329 -84 -74

Non life activities -61 -318 -308 -490 -767

Other activities *) -269 -174 -576 -387 -449

Group profit -446 -891 -1 730 -1 234 -1 430

*) Including depreciation goodwill Finansbanken

01.01 - 30.09Q 3

3Q 2002 35

Storebrand GroupOperating Profit

01.01-31.12

NOK million 2002 2001 2002 2001 2001

Premiums for own account - insurance 2,108 2,115 8,044 7,651 9,579

Interest and similar income - banking 623 666 1,986 2,020 2,671

Financial income - insurance 2,898 3,469 15,540 14,954 18,511

Other income 156 176 382 539 675

Operating income 5,785 6,427 25,951 25,164 31,436

Insurance benefits, reserve allocations -2,432 -1,982 -9,499 -8,819 -11,763

Interest and similar expenses - banking -483 -508 -1,524 -1,554 -2,048

Loan loss provisions -22 -24 -390 -237 -269

Financial expenses - insurance -3,323 -6,268 -16,507 -18,245 -18,211

Operating costs -481 -515 -1,617 -1,656 -2,261

Other costs -397 -281 -808 -722 -876

Costs and expenses -7,139 -9,577 -30,345 -31,233 -35,428

To (from) market price adjustment reserve 0 0 844 2,998 2,154

Operating profit -1,354 -3,150 -3,550 -3,071 -1,837

01.01 - 30.09Q 3

3Q 2002 36

Storebrand GroupEarnings per share

01.01 - 31.12

NOK million 2001 2000 2001

Group profit -446 -891 -1 730 -1 234 -1 430

Changes in security reserve etc. - non life 18 27 60 134 279

Profit before tax -427 -864 -1 670 -1 100 -1 151

Tax 153 169 419 172 199

Minority interests -1 -0 -2 -1 -0

Profit for the year -275 -696 -1 254 -929 -952

0 0

- Change in security reserve etc. -13 -19 -43 -97 -201

Earnings -288 -715 -1 297 -1 026 -1 153

Earnings per share -1,04 -2,58 -4,67 -3,70 -4,15

01.01 - 30.09Q 3

3Q 2002 37

Storebrand GroupBalance sheet

30.09 Share of 31.12 Share of NOK million 2002 totalt assets 2001 total assets Intangible assets 1 056 1 % 726 0 % Real estate 10 844 7 % 11 357 7 % Shares in associated companies 3 189 2 % 3 162 2 % Loans 27 645 19 % 29 141 19 % Bonds 64 276 44 % 54 730 36 % Certificates 15 992 11 % 14 397 9 % Shares and other equity investments 11 486 8 % 23 008 15 % Other financial assets 4 680 3 % 5 226 3 % Other assets 8 031 5 % 10 468 7 % Total assets 147 197 100 % 152 214 100 %

Equity 8 195 6 % 9 605 6 % Minority interests 15 0 % 11 0 % Subordinated loan capital 3 520 2 % 3 980 3 % Market price adjustment reserve 0 0 % 844 1 % Technical reserves - Life 102 506 70 % 103 690 68 % Liabilities to financial institutions 14 289 10 % 14 786 10 % Deposits from and liabilities to customers 12 392 8 % 13 900 9 % Other allocations and liabilities 6 281 4 % 5 397 4 % Total liabilities and equity capital 147 197 100 % 152 214 100 %

3Q 2002 38

Storebrand GroupCapital adequacy

Risk weighted Net primary NOK million assets capital 30.09.02 31.12.01

Storebrand ASA 8.855 6.935 78,3 % 72,5 %

Storebrand Life insurance 30.947 5.116 16,5 % 12,0 %

Storebrand Non-life insurance 6.803 1.618 23,8 % 28,2 %

Storebrand Bank 6.011 610 10,1 % 10,4 %

Finansbanken ASA 15.021 1.712 11,4 % 10,7 %

Storebrand Unit Linked 368 97 26,3 % 17,9 %

Storebrand Group 60.389 9.016 14,9 % 12,9 %

Capital ratio

3Q 2002 39

Storebrand GroupQuarterly Group profit

NOK million Q 3 Q 2 Q 1 Q 4 Q 3 Q 2 Q 1

Life activities -99 -495 98 88 -407 97 111

Investment activities -9 -3 10 2 9 -4 8

Storebrand Bank Group -16 1 -4 44 -19 -64 -4

Finansbanken Group 9 -360 22 10 19 -140 37

Non life activities other -61 -161 -86 -277 -318 31 -202

Other activities *) -269 -206 -101 -63 -174 -73 -139

Group profit -446 -1 223 -62 -196 -891 -154 -189

*) Including depreciation goodwill Finansbanken

2002 2001

3Q 2002 40

Group result- alternative setup

Full yearNOK mill. 2002* 2001 2001Net interest income (banking) 462 467 623Net financial income -354 -33 -154Other income (banking)** 192 276 352Other income/costs** 84 93 268Operating expenses** -922 -1094 -1370Group result excluding life, If and loan loss provisions -539 -291 -281Loan loss provisions (banking) -390 -237 -269Group result excluding life and If -929 -528 -550

Profit life (w/ profit sharing) -502 -178 -118Profit life (w/o profit sharing) 53 29 104Result other life companies -48 -50 -96

Sum result life business -496 -199 -111Group result excluding If -1425 -727 -661Share of If result -305 -507 -769Group profit -1730 -1234 -1430

* Explanations:Net interest income (banking): 159m in Storebrand Bank, 303m in Finansbanken

Net financial income: Hereof -401m in Storebrand ASA, 55m in Non-life (excl. If).

Other income (banking): Mainly distribution commissions (Storebrand Bank >150m)

Other income/costs: Includes asset management fees in SB Investments (after elimination of sold services

internally in the group), premium income/claims in non-life (excl. If), write down of non-current assets Operating expenses: Storebrand ASA -164m, Finansbanken -260m, Storebrand Bank -313m, includes also SB Investments

(after elimination of sold services), and other activitiesLoan loss provisions (banking): Finansbanken -385m, Storebrand Bank -5m

**Note: Group internal bought and sold services eliminated (excluding SB Bank)

1.1 - 30.9

3Q 2002 41

Storebrand GroupOther activities

01.01 -

NOK million 2002 2001 2002 2001 31.12.01

Storebrand ASA (ecl. group contributions)

Net financial income and expenses -225 -132 -401 -236 -400

Operating cost -39 -36 -164 -142 -200

Netting on consolidation / Other activities *) -5 -6 -11 -9 151

Total profit other activities -269 -174 -576 -387 -449

*) Including deprecation goodwill Finansbanken

01.01 - 30.09Q 3

3Q 2002 42

Storebrand ASA

3Q 2002 44

Storebrand ASABalance sheet

Share of Share of

NOK million 30.09.02 total assets 31.12.01 total assets

Real estate 63 1 % 63 1 %

Shares in subsidiaries 7 637 69 % 7 418 66 %

Investments 1 554 14 % 1 861 17 %

Other assets 1 890 17 % 1 831 16 %

Total assets 11 144 100 % 11 173 100 %

Equity 7 645 69 % 7 934 71 %

Bond loan 2 969 27 % 1 800 16 %

Intra-group debt 49 0 % 205 2 %

Other liabilities 481 4 % 1 234 11 %

Total liabilities and equity capital 11 144 100 % 11 173 100 %

3Q 2002 45

Storebrand ASAProfit and loss

01.01 - 30.09 01.01-31.12

NOK million 2002 2001 2002 2001 2001

Group contributions and transfers 0 0 0 0 672

Interest income 21 32 69 59 91

Realized/unrealized gains/losses on securities -168 -133 -272 -166 -132

Interest expense -78 -46 -197 -139 -191

Write down on other financial assets 0 0 0 0 -175

Other financial income/costs 1 15 -0 10 6

Net financial items -225 -132 -401 -236 -400

Total operating costs -39 -36 -164 -142 -200

Profit before tax -264 -168 -565 -378 71

Tax 113 47 269 106 -151

Profit after tax -151 -121 -296 -272 -80

Q 3

3Q 2002 46

Life Insurance

3Q 2002 48

Storebrand Life Group Highlights as per 30.09.2002� Storebrand Livsforsikring AS has – as the only private life

insurance company so far – obtained an exemption that enables it to offer a product similar to KLP’s to the public sector

� Municipalities and public sector companies that represent NOK 5.9 billion in total premium reserves are considering leaving KLP. Storebrand is positioned to take a considerable share of the customers who choose to transfer

� Sales of health and risk products show a positive development

� The government has proposed that private health/treatment insurance becomes tax deductible

� If the tax deduction is passed,a significantly higher number of employers will choose to insure their employees against the public health service’s waiting lists

3Q 2002 49

� Realised return on investments year to date of 0.93%

� Value adjusted return on investments year to date of 0.15%. If changes in the valuation reserve on hold to maturity assets are included, return on investments is 0.36% year to date

� Positive development in risk products without profit sharing

� Operating costs as % of customers’ assets was 0.90% as of Q3

� Net transfers for the overall life insurance business year to date is positive by NOK 279 millions. A large number of customer processes in the corporate market will be clarified before year end

Storebrand Life Group Highlights as per 30.09.2002 (cont.)

3Q 2002 50

Storebrand Group profit Life

01.01.- 31.12NOK mill. 2002 2001 2002 2001 2001Storebrand Life Group -83 -391 -448 -149 -15 Storebrand Fondsforsikring -10 -6 -31 -21 -25Other life insurance companies -6 -10 -17 -29 -71Group profit Life -99 -407 -496 -199 -111

01.01. - 30.09Q3

3Q 2002 51

Storebrand Life GroupSummary profit and loss account

Q3 01.01.- 31.12NOK Million 2002 2001 2002 2001 2001Premiums written 1.667 1,595 5.646 5.780 7,240Net transferes of premium reserve -554 -29 -253 -857 -1,222Net income of financial investments -50 -1,838 137 -1.932 1,561Claims paid -1.646 -1,624 -4.721 -5.157 -6,955Change in technical reserves -159 -470 -3.051 -1.908 -1,938Operating expenses Storebrand Livsforsikring AS -196 -208 -667 -652 -875Other income/costs -52 -77 -202 -259 -388Change in market price adjustment reserve 0 0 844 2.998 2,154Operating profit -990 -2.650 -2.267 -1.986 -422Can be drawn from additional statutoryallocations at year end 907 1.837 1.819 1.837 408Transferred to policyholders 0 -422 0 0 0Profit to owner Storebrand Life Group -83 -391 -448 -149 -15Other life insurance activities -16 -16 -48 -50 -96 Group profit life -99 -407 -496 -199 -111

01.01. - 30.09

3Q 2002 52

Storebrand Livsforsikring AS –satisfactory solidity

� Capital ratio of 16.5 %

� Risk capital ofNOK 3.4 billion

Risk capital as % of policyholders funds excl. additional statutory reserves

-1 %

0 %

1 %

2 %

3 %

4 %

5 %

6 %

7 %

2001 3Q02

5.8 billion 3.4 billion Profit carried forward

Core capital margin

Market value adj. res.

Additional statutory res.equivalent to one yearguarantieed interest

3Q 2002 53

Storebrand Livsforsikring ASDevelopment in return on capital

5.9 %3.6 %

8.7 %10.0 %

1.2 %

10.0 %

3.1 % 1.5 %0.2 %

15.7 %

10.5 %

3.5 %

1997 1998 1999 2000 2001 3Q02

Realized Value adjustedAnnualized

3Q 2002 54

Storebrand Livsforsikring ASUnrealised gains

30.09. 31.12. ChangeNOK Million 2002 2001 2002Shares -2,630 788 -3,418Fixed interest investments 608 56 552Short term investments -2,022 844 -2,866Bonds held to maturity 202 -26 228Total -1,820 818 -2,638

3Q 2002 55

Storebrand Life GroupPremium (excl. reserves transferred to the company)

01.01.- 31.12NOK Million 2002 2001 2002 2001 2001Group pension 1,372 1,255 4,491 4.310 5,288Group life 51 29 347 319 363Individual endowment 149 182 472 713 876Individual pension 80 115 291 397 660Critical illness etc. 15 14 45 41 54Total premium income 1,667 1,595 5,646 5,780 7,240

Q3 01.01. - 30.09

3Q 2002 56

Storebrand Life GroupNet transfers of premium reserves

01.01. - 31.12NOK Million 2002 2001 2002 2001 2001Premium reserves recievedGroup pensions 74 341 1.495 1.083 1.258Individual life insurance 14 14 29 33 40Total 89 355 1.524 1.116 1.298

Premium reserves transferredGroup pensions -315 -189 -1.000 -1.163 -1.501Individual life insurance -328 -195 -777 -810 -1.019Total -643 -384 -1.777 -1.973 -2.520Net transfers Storebrand Livsforsikring AS -554 -29 -253 -857 1.222

Unit Linked 279 113 624 593 771Unit Linked -29 -11 -92 -47 -85Net transfers 250 102 532 546 686

Net transfers life insurance -304 74 279 -311 -536

Q3 01.01. - 30.09.

3Q 2002 57

Storebrand Livsforsikring ASOperating costs as % of average policyholders funds

1,02

0,860,94 0,96 0,94 0,89

0,97 0,950,90 0,90

1995 1996 1997 1998 1999 2000 2001 as of1Q

2002 *

as of2Q

2002 *

as of3Q

2002 ** annualized

3Q 2002 58

Storebrand Livsforsikring ASProfit analysis

01.01.- 31.12NOK Million 2002 2001 2002 2001 2001Interest result -1,077 -2,875 -2,131 -2,142 -535Risk result 119 10 163 112 238Administration result 2 -12 -67 -69 -102Change in security and premium reserve -35 226 -233 111 -25Operating profit -991 -2,651 -2,268 -1,988 -425Can be withdrawn from additional statutory allocations *) 908 1,837 1,819 1,837 408Total result after tranferringfrom additional statutory allocations -83 -814 -449 -151 -17Transferred to policyholders 422Profit to owner SBL AS -83 -392 -449 -151 -17Profit to owner Storebrand Life Group -83 -391 -448 -149 -15 Other life insurance activities -16 -16 -48 -50 -96 Group profit life -99 -407 -496 -199 -111 *) If year-end

01.01.-30.09Q3

3Q 2002 59

Storebrand Life GroupBalance sheet

Share of Share oftotal assets total assets

NOK Million 30.09.02 30.09.02 31.12.01 31.12.01Equity 2.924 3 % 3.189 3 %Minority interests' share in equity 12 0 % 11 0 %Subordinated loan capital 2.991 3 % 3.435 3 %Market price adjustment reserve 0 0 % 844 1 %

0 %Premium reserve for own account 90.026 85 % 86.982 81 %Additional statutory allocations 4.113 4 % 4.301 4 %Can be drawn from additional statutoryallocations at year end -1.819 -2 %Premuim/pension adjustment fund 5.837 5 % 7.622 7 %Claims reserve for own account 248 0 % 251 0 %Other insurance reserves 57 0 % 46 0 %Insurance fund reserves for own account 98.460 93 % 99.201 92 %Security reserves 130 0 % 125 0 %Insurance related reserves for own account 98.590 93 % 99.326 92 %

Other debts 1.696 2 % 1.214 1 %Total equity and liabilities 106.213 100 % 108.019 100 %

3Q 2002 60

Storebrand Life GroupBalance sheet

Share of Share oftotal assets total assets

NOK Million 30.09.02 30.09.02 31.12.01 31.12.01Immaterial assets 264 0 % 0 0 %

Real estate 10.715 10 % 11,293 10 %Long term shares and interests from group compa 116 0 % 131 0 %Bonds hold to maturity 40.230 38 % 25,044 23 %Mortages and other loans 1.234 1 % 1,402 1 %Other long term financial assets 29 0 %Shares 10.830 10 % 22,060 20 %Bonds 21.685 20 % 28,102 26 %Certificates 14.334 13 % 11,353 11 %Other short term financial assets 873 1 % 671 1 %Total financial assets 100.045 94 % 100,057 93 %

Other assets 5.904 6 % 7,962 7 %Total assets 106.213 100 % 108,019 100 %

3Q 2002 61

Storebrand Livsforsikring ASKey figures

01.01.- 31.122002 2001 2001

Booked return - year-to-date 0.93% 1.03%Booked return - annualised 1.24% 1.37% 3.56%Value adjusted return - year-to-date 0.15% -1.69%Value adjusted return - annaualised 0.20% -2.25% 1.51%Value adjusted return - year-to-date -including bonds held to maturity 0.36% -1.55% 1.80%Solvency margin 151% *) 184.4%Capital ratio (SBL Group) 16.53% 11.61% 12.03%Operating expenses as % of policyholders funds 0.90% 0.87% 0.88%*) Not calculated

01.01.-30.09.

3Q 2002 62

Interest bearing portfolio- solid and liquid, with good return

Interest bearing portfolio as per 30.09 2002 Sector allocation

Norwegian govt. bond

International govt. bond

European credit Bond

Money market

Hold to maturity

Govt./Govt. guaranteed

Bank/Finance

Industry/Other

Municipalities/ Supranational

3Q 2002 63

Storebrand Livsforsikring ASReal estate fund

Geographic allocation

Return on capital year to date:*) Current rent in % of average market value

**) (Sum operating income - sum operating expenses) in % of average marketvalue

01.01.- 30.09.Key figures 2002 2001 2001

The real estate fund: Gross yield *) 6.6% 6.4% 8.6% Growth in value 4.2% 10.3% 12.4%

The fund's properties: Operating result I **) 5.9% 5.6% 7.6%

Total m2 692,000 742,000 733,000

Occupancy level 98.5% 99.4% 99.4% Rest ofOslo

18 %

Shoppingcentres45 %

Rest of Norway

2 %

Vika35 %

3Q 2002 64

Storebrand Fondsforsikring ASSummary profit and loss account

01.01-31.12NOK Million 2002 2001 2002 2001 2001Premiums written 315.8 142.5 740.0 709.3 974.2

Income of financial investments 6.6 9.2 22.8 28.4 36.5

Income - Unit Linked assets -1.2 9.4 61.6 60.6 162.7

Claims paid -47.2 -23.1 -145.2 -75.8 -127.2

Change in technical reserves 96.2 538.8 310.2 340.0 -186.7

Operating costs - insurance -23.8 -17.9 -65.6 -58.5 -78.5

Costs - financial investments -2.1 -5.3 -15.2 -15.6 -19.9

Financial expense - Unit Linked assets -354.7 -659.4 -939.4 -1008.8 -785.1

Other expenses/ Other insurance related exp 0.0 -0.1 0.0 -0.1 -1

Tax payable 2.6 1.1 7 4.3 3.6Profit after tax -7.7 -4.8 -23.7 -16.2 -21.4

Q3 01.01- 30.09

3Q 2002 65

Storebrand Fondsforsikring ASBalance sheet

Share ShareNOK Million 30.09.02 30.09.02 31.12.02 31.12.02Deferred tax allowances 12.8 0 % 42.4 1 %Bonds and other fixed income securities 33.1 1 % 79.3 2 %Assets - Unit Link 2,912.1 96 % 3,213.0 95 %Cash and bank 14.2 0 % 26.7 1 %Other receivables 7.0 0 % 10.6 0 %Prepaid tax 61.1 2 %Prepaid expences 0.5 0 % 1.5 0 %Total assets 3,040.7 100 % 3,373.5 100 %

Share capital 44.5 1 % 44.5 1 %Other equity 64.9 2 % 88.6 3 %Total equity capital 109.4 4 % 133.1 4 %

Insurance fund reserves for own account 7.7 0 % 16.9 1 %Insurance fund reserves - Unit Link 2,912.1 96 % 3,213.0 95 %Intra group liabilities 8.0 0 % 8.1 0 %Other liabilities 3.3 0 % 1.4 0 %Accrued cost 0.3 0 % 1.0 0 %Total equity and liabilities 3,040.7 100 % 3,373.5 100 %

3Q 2002 66

Storebrand Investments

3Q 2002 68

• Unsatisfactory result. Reduced cost level insufficient to compensate for income reduction.

• Assets under management reduced due to fall in equity markets.

• Outperformance relative to index for Life portfolio of 1.37%.• Product range widened with new supplementary fixed income

product, hiring of 3 new fixed income asset managers.

Storebrand Investments GroupMain features Q3

94,0

10,39,5

11,0 14,514,2 13,2 11,5

95,596,1102,0113,495,5

10,89,6 10,910,9

11,4

22,99,5

4,321,0 20,9

23,1

1998 1999 2000 2001 2Q 2002 3Q 2002Group Internal Real EstateExternal discretionary Mutual funds

Assets under management, NOK billions

119 144 151 144.6 140.6 137.2

3Q 2002 69

Profit & loss Efficient cost control

•Costs are reduced with NOK 10.6 mill compared to 2001 level if adjusted for Delphi and goodwill depreciation.

•Reduced income level year to date due to: � Changes in fee structure If� Reduced sales in retail market� Fall in equity market/NOK strengthening

• Delphi Fondsforvaltning is included from 01.01.2002. Storebrand part (56 %) of Storebrand Alternative Investments is included in other income.

Storebrand Investments * 01.01 – 31.12

NOK mill. 2002 2001 2002 2001 2001

Total income 47.3 67.4 175.6 190.8 252.5Total costs -60.7 -58.9 -189.6 -182.8 -245.1Net financial income / other income 3.1 0.4 9.0 4.4 6.5Profit before tax STB Investments -10.2 8.9 -5.1 12.4 13.9

Profit before tax per companyStorebrand Kapitalforvaltning -6.2 7.4 1.3 11.2 9.0Storebrand/Delphi Fondene -3.6 1.6 -5.9 1.2 4.9Storebrand Alternative Investeringer 1.1 0.0 3.9 0.0 0.0Depreciation on goodwill -1.5 0.0 -4.4 0.0 0.0Profit before tax STB Investments -10.2 8.9 -5.1 12.4 13.9

3. quarter 01.01 – 30.09

3Q 2002 70

Profit development Q3 2002

• Cost programme achieves results. The target is to reduce cost level by 20 % in three years. Automation will require investments also in 2003

• Reduced cost level compensate for some of the Q3 income reduction

Profit & loss Storebrand Investments group*NOK mill

* Delphi Fondsforvaltning AS is included for the entire period.

12 months rolling profit & lossIncome (incl. finance / other income)Expenses

70 70 73 6875

5951

5973

63 65 65 64 61

-2

18263858

2020

Q1-01 Q2-01 Q3-01 Q4-01 Q1-02 Q2-02 Q3-02

3Q 2002 71

2

10

1

810

7 7

2 1

-4-2-2

4 0

Operating profit before tax

12 months rolling profit & loss

Profit & loss - Storebrand FondeneLagging behind share price development

Profit & loss Storebrand Fondene Group NOK millionsMSCI World

Price Local

-2

2 Q 3 Q. 4 Q. 1 Q. 2 Q. 3 Q. 4 Q.1999 1999 1999 2000 2000 2000 2000

1 Q.2001

2 Q.2001

1 Q.2002

4 Q.2001

3 Q.2001

2 Q.2002

3 Q.2002

• Reduced management fees due to fall in equity market

• Weak sales figures in retail market, satisfying institutional market

• Automation yields efficiency improvements. Number of Operations employees reduced from 68 as of 30.09.01 to 52 as of 30.09.02

3Q 2002 72

Life portfolio as of Q3 2002Return +0.08 %

• Positive total return of 1.37%

• Outperformance relative to index in 7out of 10 portfolios

• The differences in relative performance is mainly driven by stock selection

-1,29

-32,54

-36,45

-23,95

-42,64

-37,19

-26,47

4,64

-25,95

8,06

11,23

5,44

0,08

-24,97

-37,07

-43,68

-18,86

-35,84

5,89

4,12

11,20

5,1

-11,24

-27,87

Portefolio

Index

Return in %

+1,37

+4,67

+1,50

+0,12

-1,04

+5,10

+0,61

+0,45

-3,94

-0,03

+0,46

+14,7

Outperformance

Total

Equities Norway

Equities International

Equities Europe

Equities N-A

Equities Asia

Equities Global Finance

Bonds Norway

Bonds European Credit

Bonds International Gvmnt.

Money Market

Private Equity

3Q 2002 73

Storebrand FondeneMarket share

• Reduced total market share due to relatively high share of international equity funds (reduced value due to fall in equity market and the strengthening of the Norwegian krone)

09-2002 06-2002

�Total: 10.2 % 10.4 % (+0.1 percentage points in 2002)

�Equity funds: 13.5 % 12.9 % (+0.5 percentage points in 2002)

�Bond funds: 15.4 % 15.2 % (+0.6 percentage points in 2002)

�Money Market: 5.9 % 5.9 % (+2.0 percentage points in 2002)

• Over 80% market share since the beginning of the year (low volume)

• Appropriate product mix: global equity fund with capital protection, Storebrand Global med Sikring, net sales of NOK 120 mill in a net outflow market

0

2

4

6

8

10

12

14

1995 1996 1997 1998 1999 2000 2001 2Q2002

3Q2002

0

10

20

30

40

50

60

70

80

90Market share mutual fundsPercent

Market share net new

subscription (right axis)

Total market share

(left axis) 10,2%

5,5%

82%

3Q 2002 74

� 7 with 25 % 10 %� 6 with 21 % 20 %� 6 with 21 % 20 %� 7 with 25 % 25 %� 2 with 7 % 25 %

Storebrand

• Standard & Poor has measured relative performance and volatility on all funds for sale in Norway. Only 40 funds have afive-star ranking. Storebrand has 7 funds with a five-star ranking

Storebrand FondeneRating

Average 3,32 2,65

S&P

Standard & Poor rating – all funds:

��

��

��

��

�

� 2 with 9,5 % 10,0 %� 5 with 23,8 % 22,5 %� 10 with 47,6 % 35,0 %� 4 with 19,1 % 22,5 %� 0 with 0,0 % 10,0 %

Storebrand

Morningstar Rating – equity funds:

Average 3,24 3,0

Morningstar

3Q 2002 75

Sales funds

• Net sales external assets of NOK 1,9 billion year to date.

• Still slow net new subscription in retail market. Net redemption in total market for equity funds of NOK –1.3 billion year to date

• Distribution strategy shows results. External distribution account for 80% of net fund sales in retail market (free funds and link)

NOK millions824

41

164

-75

477

-676

-806

-1 330

-1 500 -1 000 -500 0 500 1 000 1 500 2 000 2 500 3 000

Net subscriptionGross subscription

Redemption

Skagen

Storebrand

Odin Forv.

Gambak

Carnegie

Nordea

DnB / Skandia

Avanse

Subscription and redemptions in equity funds ytd.

3Q 2002 76

Storebrand Bank

3Q 2002 78

Storebrand Bank GroupFinancial highlights and key performance indicators

• Strong increase in net income

• Improved net interest rate margin

• Still weak sales of saving products, but strengthenedposition in the market for structured products

• Positive trend in sales of risk products (+20% as of30.09.02)

• Significant reduction in operating costs

• Shares in Acta Holding ASA written down

01.01-31.12Key performance indicators* 2002 2001 2002 2001 2001Net interest rate margin 1,56 % 1,35 % 1,63 % 1,53 % 1,49 %Cost/income 112 % 115 % 101 % 124 % 134 %Sale of savings products (NOK mill) 508 378 1.615 1.867 2.420Sale of risk products (NOK mill) 13 11 43 36 49Growth in loans 0 % 5 % 5 % 16 % 21 %* Storebrand Bank AS

Q3 01.01-30.09

3Q 2002 79

Storebrand Bank GroupIncome Statement


Q3 01.01.-30.09.

3Q 2002 80

Storebrand Bank GroupBalance Sheet

Share ShareNOK million 30.09.02 30.09.02 31.12.01 31.12.01Cash and due from banks 62 0 % 61 0 %Net loans 11.655 89 % 11.038 86 %Securities available for sale 951 7 % 1.112 9 %Premises, furniture and equipment, net 4 0 % 8 0 %Miscellaneous assets 385 3 % 567 4 %Total assets 13.057 100 % 12.785 100 %Loan from banks 1.020 8 % 300 2 %Certificate loans 3.982 30 % 4.848 38 %Interest-bearing deposits 6.706 51 % 6.479 51 %Miscellaneous liabilities 595 5 % 391 3 %Shareholders' equity 754 6 % 768 6 %Total liabilities and shareholders' equity 13.057 100 % 12.785 100 %

Finansbanken

3Q 2002 821

Main Features and value drivers3. quarter 2002

• Continued and accelerated build-down of shipping exposure• Stable volumes in other segments• High volume of non accruing loans reduces net interest income• Cost reductions according to plan• Moderate losses on loans and guarantees, within long term goals of 0.4 to 0.6 % of

gross lending• Write down of shares reduces result by NOK 14.4 million,

Key figures 3Q Change 2001Gross lending 15.636 -1.681 17.317 Shipping exposure 1.873 -1.692 3.565 Innskudd 5.686 -1.735 7.421 Rentemargin 2,00 % -0,21 % 2,21 %C/I morbank 45,9 % 1,80 % 44,1 %

3Q 2002 832

3Q - 02 3Q - 01 1.-3. Q - 02 1.-3- Q - 01 2001Net interest income 81.6 110.0 281.3 308.6 414.0Other operating income 9.3 15.9 39.6 42.2 74.3 Total income 90.9 125.9 320.9 350.8 488.3Operating expenses -41.7 -58.2 -150.7 -155.6 -215.1Operating profit before losses 49.2 67.7 170.2 195.2 273.2Loss provisions -18.2 -26.8 -381.5 -259.8 -295.2Write down on fixed assets/shares -13.6 -17.9Profit before tax 17.4 40.9 -229.2 -64.6 -22.0

Finansbanken Forvaltning -2.7 -4.1 -36.6 -6.2 -10.7 Finansbanken Index 1.7 -1.0 2.5 13.2 15.8 Finansbanken Danmark -5.5 -8.9 -18.2 -4.6 -10.7 Other -2.1 -16.4 -47.7 -22.0 -46.1 Finansbanken Group 8.8 10.5 -329.2 -84.2 -73.7

Profit and loss account3. quarter 2002

Profit and lossProfit and loss

3Q 2002 843

3Q - 02 3Q - 01 1.-3. Q - 02 1.-3- Q - 01 2001Net interest income 88.5 117.7 302.5 333.5 447.2 Other operating income 18.0 20.1 63.6 107.6 139.0 Total income 106.5 137.8 366.1 441.1 586.2 Operating expenses -64.3 -87.7 -259.4 -259.7 -357.8 Operating profit before losses 42.2 50.1 106.7 181.4 228.4

Loss provisions -19.0 -31.4 -384.5 -265.6 -302.1 Write down on fixed assets/shares -14.4 -51.4Profit before tax 8.8 18.7 -329.2 -84.2 -73.7

Profit and loss account3. quarter 2002

P&L Finansbanken GroupP&L Finansbanken Group

3Q 2002 854

Balance sheet30.09.02

(NOK mill.) 30/09/02%

30/09/02 31/12/01 % 31/12/01Central banks/Credit Institutions 605 3.52% 777 3.94%Netto utlån og fordringer på kunder 14,748 85.78% 16,691 84.71%Net lendings to customers 17 0.10% 59 0.30%Assets acquired 1,109 6.45% 1,365 6.93%Com. papers, bonds and other interest-earnin 3 0.02% 37 0.19%Shareholding in group companies 219 1.27% 203 1.03%Fixed assets/intangible 492 2.86% 571 2.90%Other assets 17,193 100.00% 19,703 100.00%Total assets 4,843 28.17% 4,051 20.56%Loans from credit institutions 5,686 33.07% 7,421 37.66%Deposits from and debt to customers 4,445 25.85% 5,588 28.36%Securitised Debt 332 1.93% 733 3.72%Other liabilities 529 3.08% 544 2.76%Subordinated loan capital 1,359 7.91% 1,366 6.93%Total equity 17,193 100.00% 19,703 100.00%Total liability and equity

3Q 2002 865

Reduction of shipping exposureTotal lending distributed by sector

0.8

2.9 2.8

4.2

6.2

1.3

3.13.3 3.2

6.4

1.9

2.73.0

1.9

6.2

Othe r bus ines ses( law yers , consutants

e tc.)

Financial inve s tors Private individuals Shipping com panie s Real e s tate com panie s

2000 2001 3. Quarte r

Gross lending:2000: NOK 16.9 bn2001: NOK 17.3 bn3Q-2002: NOK 15.6 bn

Gross lending:2000: NOK 16.9 bn2001: NOK 17.3 bn3Q-2002: NOK 15.6 bn

(NOK bn)

3Q 2002 878

Finansbanken GroupLoss provisions - 30.09.2002

Net loss provisions (P&L)(3. quarter 2002)

Classified loans and loss provisions

NOK 1,62 mrd (34,2%)

NOK 0,51 mrd

(44,5%)

0.49

1.07

0.55

0.28

0.30

0.23

0.10

0.23

0.55

0.34

Other lossexposed 1)

Lossexpoese

Real estate

Lossexposedshipping

Total lossexposed

Grosslending

Net lending Specif ied loss provisionsUnspecif ied loss provisions

4.8

0

-4.4

18.9

18.5

Unspec.

Other 1)

Real estate

Shipping

Total

Specified loss provisionsUnspecified loss provisions

NOK 0,39 mrd

(24,5%)

NOK 0,72 mrd

(31,7%)

1) including private, fin investments, other business2) Defaulted loans, but that are not loss exposed or non-accruals, are not included

NOK 15,64 mrd (5,7%)14,75

2)

3Q 2002 887

174

517

1041

80

555

555

337

375549

475

0

500

1000

1500

2000

2500

3000

Not defaulte d loansw ith loss

provisions

Defaulte d loansintere s t not

accrue d, w ith lossprovis ions

Tot al los s expose d De faluted, inte re stnot accrued, no loss

provisions

De faluted, inte res taccrued

Total lossprovis ions

Loss exposed loans

Specified loss provisionsUnspecified loss provisions

1,103850

253

(NOK mill)Loss exposed Loss exposed Exposed

interestsExposed interests

31%

56% 50%

891

Not loss-exposed

Not loss-exposed

3Q 2002 899

Key figures - Finansbanken Group3. quarter - 2002

Gross lending to customers

Deposit from customers

Total assets

Interest margin (as % of total assets)

Cost/Income Group

Cost income parent bank

Other income/total income

Operating profit before losses

Core capital ratio1)

ROE before losses

ROE after taxes

Employees

20013. quarter -02

17,317

7,421

19,702

2.21 %

61.1%

44.1%

23.7 %

228

7.37 %

16.7 %

-4.84 %

223

15,636

5,686

17,193

2.00 %

60.4 %

45.9 %

16.9 %

42.3

7.88 %

14.3 %

2.00 %

186

3. quarter -01

17,571

7,689

19,956

2.34 %

63.6 %

46.3 %

14.6 %

18.7

7.08 %

14.7 %

3.1 %

223

YTD -02

15,636

5,686

17,193

2.15 %

70.9 %

47.0 %

17.4 %

106.7

7.82 %

10.9 %

-24.8 %

186

YTD -01

17,571

7,689

19,956

2.18 %

58.9 %

44.4 %

24.4 %

181.5

7.88 %

17.8 %

-6.7 %

223

3Q 2002 9010

Key Figures - Finansbanken Group

Gross lending to customers

Deposit from customers

Total assets

Interest margin (as % of total assets)

Cost/Income Group

Cost income parent bank

Other income/total income

Operating profit before losses

Core capital ratio1)

ROE before losses

ROE after taxes

Employees

3. quarter 4. quarter

17,571

7,689

19,956

2.38 %

63.7 %

46.3 %

14.6 %

50.1

7.8 %

14.7 %

3.1 %

223

17,317

7,421

19,703

2.30 %

67.7 %

43.3 %

21.7 %

46.9

7.37 %

13.6 %

0.9 %

223

1. quarter

16,898

6,523

19,141

2.34 %

60.0 %

37.8 %

11.1 %

51.9

7.91 %

15.2 %

4.3 %

210

2001 2002

2. quarter

16,591

7,323

18,177

2.10 %

94.1 %

59.6 %

20.9 %

7.4

6.36 %

2.2%

-68.0 %

186

3. quarter

15,636

5,686

17,193

2.00 %

60.4 %

45.9 %

16.9 %

42.3

7.88 %

14.3 %

2.00 %

186

3Q 2002 9111

Finansbanken GroupCapital Adequacy

(NOK mill) 31/12/01 30/09/02 ChangeCore capital 1,280.3 1,183.0 -97.3 Subordinated loan capital 542.4 528.8 -13.6 Total capital 1,822.7 1,711.8 -110.9

Assets, other portfolios 16,084.2 15,237.2 -847.1 Off-balance sheet items, other portfolios 592.0 589.4 -2.6 Foreign exchange risk and risk in trading portfoli 127.9 84.8 -43.2 Deduction for loss provisions, exch. rate reg. ac -624.4 -889.9 -265.5 Risk-weighted basis for calculation 16,179.8 15,021.4 -1,158.4

Capital ratio 11.27% 11.40% 0.13%Surplus capital 528.3 510.1 -18.3 Core capital ratio 7.91 % 7.88 % -0.04 %

3Q 2002 92

Storebrand non-life

3Q 2002 94

Main features Non Life 30.09.02� Operating profit in Q3 was minus NOK 61 mill. (minus NOK 319 mill.) and

year to date minus NOK 308 mill. (minus NOK 490 mill.). The negative resultis due to weak results in If and Fair

� Net result from If is minus NOK -56 mill. in Q3 (minus NOK 320 mill.) and year to date minus NOK 306 mill. (minus NOK 507 mill.). The insurance result is positiv in Q3. Combined ratio in Q3 was 103.6% (107.5% proforma) and year to date 106.3% (108.7%). Expense ratio in Q3 was 20.3% (19.5% proforma) and year to date 21.4% (21.4%)

� Under Norwegian GAAP Storebrand’s share of surplus values in bonds are booked, in Q3 this amouted to NOK 97 mill.

� Storebrand’s share of result from Fair in Q3 was minus NOK 5 mill. (minus NOK 14 mill) and year to date minus NOK 30 mill. (minus NOK 40 mill.). Salesresults has increased with 89% compared with Q3 last year

� Operating result in Q3 in Oslo Re was minus NOK 5 mill. ( NOK 11 mill.) and year to date NOK 11 mill. ( NOK 2 mill.)

Numbers in ( ) is 30.09.2001

3Q 2002 95

Profit and loss account Skade Group

01.01. - 31.12NOK million 2002 2001 2002 2001 2001SB Skadeforsikring ex If 5 3 16 55 6422,47 % share of result If -56 -320 -306 -507 -769Storebrand Skadeforsikring AS -51 -317 -289 -452 -705Oslo Re -5 11 11 2 0Operating result -56 -305 -278 -450 -705Fair -5 -14 -30 -40 -62Profit from non-life business -61 -319 -308 -490 -767

01.01. - 30.09.Q3

3Q 2002 96

Balance sheet Skade Group

30.09. Share 31.12. ShareNOK million 2002 30.09.02 2001 31.12.01Ownership interest in If (22,47%) 3,098 69 % 3,042 60 %Financial assets 969 22 % 1,214 24 %Group receivables 0 % 0 %Other assets 400 9 % 773 15 %Total assets 4,467 100 % 5,029 100 %

Equity 2,153 48 % 2,558 51 %Premium and claims reserve 449 10 % 549 11 %Security reserve 424 9 % 484 10 %Deferred tax 225 5 % 205 4 %Payable tax 0 % 0 %Group contribution 1,068 24 % 1,068 21 %Other liablilities 148 3 % 165 3 %Total equity and liabilities 4,467 100 % 5,029 100 %

3Q 2002 97

Profit and loss account Oslo Re

01.01. 31.12NOK million 2002 2001 2002 2001 2001Premiums for own account 1 1 4 2 3 Claims for own account -7 -5 -10 -18 5 Insurance related operating costs -6 -27 -17 -59 -64 Financial income 17 39 38 69 42 Other income/costs -11 2 -4 8 14 Operating result -6 10 11 2 - Changes in security reserve etc. 1 3 7 34 39 Profit before taxes -5 13 18 36 39

01.01 -30.09Q3

3Q 2002 98

Balance sheet Oslo Re

30.09. Share 31.12. ShareNOK million 2002 30.09.02 2001 31.12.01Deferred tax asset 21 2 % 21 2 %Financial assets 625 69 % 714 66 %Receivables 113 12 % 138 13 %Other assets 145 16 % 203 19 %Total assets 903 100 % 1,076 100 %

Equity 234 26 % 250 23 %Premium and claims reserve 449 50 % 549 51 %Security reserve 75 8 % 82 8 %Other liablilities 145 16 % 195 18 %Total equity and liabilities 903 100 % 1,076 100 %

3Q 2002 99

Storebrand Skadeforsikring ASChange in booked value If

� Change in booked value If 30.09.02 (NOK mill.)

Booked value 31.12.01 3,042

22.47% share og operating result If - 306

Currency adjustment/reclassification - 102

Capital injection 464

Booked value 30.09.02 3,098

storebrand analyst presentation - mb.cision.commb.cision.com/main/6558/9394731/108690.pdf ·...

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