The Banking Law Commission's report NOU 2012:3 was submitted to the Ministry of
Finance today, 17 January 2012. In this report the Banking Law Commission
proposes amendments to the Defined Benefit Pension Act regarding paid-up
policies. The Banking Law Commission will pursue work on new regulations for
insurance-based occupational pension schemes adapted to the pension reform and
altered market conditions.

In NOU 2012:3 the Banking Law Commission points out that the existing
regulations for paid- up policies will lead to a significant increase in the
solvency capital requirement under Solvency II. Among other things, the Banking
Law Commission describes a "worst case scenario" where capital requirements as a
result of future paid-up policies will not be manageable without significant
adjustments in the regulatory framework (NOU 2012:3 page 39).

The assessments made by the Banking Law Commission in the report generally
correspond to what Storebrand has previously communicated in terms of the need
for adaption of the Norwegian regulatory framework to Solvency II. Changes in
the Norwegian regulatory framework are necessary to ensure a good and stable
occupational pension system for businesses and employees.

In NOU 2012:3 the Banking Law Commission proposes amendments that may
contribute to improved adaptation of paid-up policies to the capital
requirements pursuant to Solvency II. The main issues of the Banking Law
Commission's proposal are:

   1.    Voluntary conversion of paid-up policies to paid-up policies with
investment choice
      The Banking Law Commission proposes allowing customers to voluntarily
convert paid-up policies to unit-linked based paid-up policies without
guarantees.

   2.    Conversion of small paid-up policies to individual pension agreements
      Currently, the company can convert paid-up policies that constitute less
than 50 per cent of the national insurance base amount (G[1]) to an individual
pension agreement without guarantee. The Banking Law Commission proposes that
the threshold for conversion is increased to 150 per cent of 1 G for new paid-up
policies. This constitutes approximately 13 per cent of the reserve volume of
expected future paid up-policies in Norway.

   3.    Shorter payment time for small paid-up policies
      The Banking Law Commission proposes to change regulations such that more
small paid-up policies can be paid as time-limited rather than life-long
benefits.

Storebrand is positive toward giving customers more choice in the management of
paid-up policies. Storebrand supports the proposed measures, which will
contribute to a reduction of the capital requirements under Solvency II. At the
same time we would like to emphasize that the proposed changes are not
sufficient to resolve the challenges related to paid-up policies under Solvency
II for the Norwegian occupational pension market. Storebrand has a constructive
dialogue with the authorities concerning these issues.

The Banking Law Commission's present report will now be considered by the
Ministry of Finance, and public consultation is expected in the first half of
2012.

The Banking Law Commission will continue to work on new regulations for
insurance-based occupational pension schemes. The main issues in this work are:

* Designing new insurance-based pension schemes that are competitive
alternatives in relation to both the businesses' costs and to the pension
instruments' return risk and biometric risk, inter alia with an aim to
reduce the effects of a new capital requirement regime.
* Handling of new pension rights earned under existing pension schemes in the
transition to new insurance-based pension schemes. Important to avoid
incentives for the discontinuation of existing pension schemes and the
issuing of new paid-up policies to a significant extent.

The Banking Law Commission plans to return to this in the course of May/June
2012.

The Banking Law Commission emphasizes the importance of ensuring that the life
insurance companies have access to long-term interest investments with low risk
in Norwegian kroner. The Banking Law Commission does not have the mandate to
report on and propose measures to strengthen access to such long-term interest
investments.

"In the report, the Banking Law Commission discusses the challenges that life
insurance companies are facing in the management of paid-up policies. In
addition to the specific proposals put forward, the report gives a good basis
for analysis for the work on new pension products". (Press release from the
Minister of Finance Sigbjørn Johnsen.)

http://www.regjeringen.no/nb/dep/fin/pressesenter/pressemeldinger/2012/utredning
-om-fripoliser-og-kapitalkrav.html?id=669927

Lysaker, 17 January 2012

Contacts:

Executive Vice President Egil Thompson: Mobile +47 93 48 00 12
Director of Public Affairs Jan Otto Risebrobakken: Mobile +47 48 08 26 02
Head of Investor Relations Trond Finn Eriksen: Mobile +47 99 16 41 35

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[1] G = NOK 79,216

[HUG#1578183]

Storebrand:The Banking Law Commission's proposal concerning paid-up policies and capital requirements