Storebrand Livsforsikring AS has entered into an agreement to buy 100% of the shares inDanica Pensjonsforsikring AS , Norway ("Danica"). "With Danica on board, we strengthen our presence in the occupational pensions market for small and medium-sized enterprises and our personal risk offering. These are strategically prioritised growth areas for Storebrand. We look forward to combining our own expertise and technical solutions with Danica's partners andDanske Bank's professional distribution platform. This combination helps customers gain access to market leading products and services, and we look forward to being able to welcome all of Danica's customers to Storebrand", says CEO of Storebrand Odd Arild Grefstad. The Norwegian market for Defined Contribution pensions amounts to approximatelyNOK 420 billion in assets under management andNOK 36 billion in annual premiums, according to Finance Norway. Market growth has been strong over the last 10 years and Storebrand expects the market to continue to grow by more than 10% annually in the coming years. Danica, a subsidiary ofDanske Bank , is the 6th largest provider of Defined Contribution pensions inNorway with 5% market share. In addition to managingNOK 22 billion of Defined Contribution pensions for 14,000 companies and 98,000 active members, Danica managesNOK 6 billion of retail savings and a small back book of guaranteed products ofNOK 1 billion . Total assets under management amount to approximatelyNOK 30 billion . Danica also offers commercial and personal risk products, totalling approximatelyNOK 300 million in annual premiums for own account. Profit before tax amounted toNOK 127 million in 2020. Most of the distribution is throughDanske Bank , which will continue to distribute the products from Storebrand. "We look forward to the long experience, the business development and digital capabilities, as well as the solid products and solutions that Storebrand will add to our offering. Both parties are very committed to taking the steps necessary to make this a success which will benefit our customers", says Country Manager ofDanske Bank Norway Trond Mellingsæter .Storebrand Livsforsikring AS will payNOK 2.01 billion for the shares of Danica (adjusted for the change in the net asset value of Danica in the period from30 September 2021 to31 December 2021 ). The transaction will be funded by available funds in the company portfolio, which amounts toNOK 24 billion . The immediate effect on the solvency ratio forStorebrand Group is expected to be minus 5 percentage points. It is expected that the transaction will strengthen the Group's solvency generation and dividend capacity going forward - supported by capital, cost and distribution synergies - and that it will be accretive for the Group's return on equity. The acquisition will not impact Storebrand's ordinary dividend capacity for the financial year 2021. The conclusion of the transaction is expected in the first half of 2022 and is subject to approval from theNorwegian Financial Supervisory Authority and theNorwegian Competition Authority as well as certain other customary transaction conditions.ABG Sundal Collier acts as the financial and transaction adviser, Thommessen as the legal adviser, and Deloitte as the Financial Due Diligence advisor, for Storebrand. Lysaker,20 December 2021 For further inquiries, please contact: Head of Investor Relations & Rating,Daniel Sundahl : daniel.sundahl@storebrand.no or (+47) 913 61 899 Group Head of Strategy, Finance and M&A Kjetil Ramberg Krøkje: kjetil.r.krokje@storebrand.no or (+47) 934 12 155 Media Requests:SVP Communications ,Margrethe Assev : margrethe.assev@storebrand.no or (+47) 951 55 056 Storebrand's ambition is to provide our customers with financial freedom and security by being the best provider of long-term savings and insurance. Storebrand will deliver sustainable solutions adapted to the customer's individual situation. Storebrand has about 40,000 corporate customers and 2 million individual customers, and has its headquarter at Lysaker outside ofOslo, Norway . Storebrand managesNOK 1,058 bn and is one of the largest asset managers in the Nordics. Storebrand (STB) is listed onOslo Stock Exchange . Visit us at http://www.storebrand.noDanske Bank is a Nordic universal bank with strong local roots and bridges to the rest of the world. Today, our approximately 22,000 employees continue to help our 3.3 million personal and business customers in 10 countries release their potential through sustainable choices, specialised advisory and digital convenience. The latest annual report showed a total income ofDKK 42.4 billion and assets under management totalledDKK 1.8 trillion . In Norway,Danske Bank is the third largest bank with approximately 1,200 employees. Visit us at http://www.danskebank.com This announcement is subject to information pursuant to the Securities Trading Act § 5-12
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