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2022-10-26

Storebrand ASA: STOREBRAND ASA: Results for the 3rd Quarter 2022

Strong Operating Profit Driven by Profitable Insurance Growth and Underlying Growth in Savings

  • Group profit[1] of NOK 670m, operating profit of NOK 717m
  • Solvency II ratio 174%
  • 22% overall growth in insurance portfolio premiums (y/y)
  • 21% growth in Unit Linked premiums (y/y)

"The world is still facing geopolitical and financial turmoil and the economic future might seem uncertain for both businesses and retail customers. Our customers can be assured that Storebrand is dedicated to protecting their long-term financial security. Storebrand delivers a strong operating profit of NOK 717 million in turbulent markets. Our insurance business is growing profitably, with 22% annual growth in portfolio premiums and a combined ratio of 88%. Within Savings, Defined Contribution premiums have grown 21% and we see an increase in net inflow of capital. The growth is both organic and from the acquisition of Danica, which we welcomed into the Storebrand Group in the quarter", says Group CEO Odd Arild Grefstad.  

Strong Growth and Operating Profit

The operating profit amounted to NOK 717m in the quarter, compared to NOK 762m last year. The insurance result has grown 41% compared to the same quarter last year. Fee income has fallen slightly with a reduction in assets under management due to negative market movements.

Total assets under management amounted to NOK 1,001bn, down 5% year on year. Net flows amounted to NOK +7bn year to date. In Unit Linked, assets under management fell due to market returns, but the effect was more than offset by positive net inflows and the addition of NOK 26bn of assets under management in Danica.

Profitable growth continued in Insurance, where portfolio premiums grew 15% organically and 22% with the acquisition of Danica. The combined ratio was 88% in the quarter and improved from 90% last year. This represents a better combined ratio than Storebrand's target of 90-92%.

Limited Impact from Financial Markets on the Financial Result

The `financial items and risk result' amounted to NOK -47m in the quarter, compared to NOK 151m last year. SPP's financial result had a negative impact of -126m in the quarter mainly due to a lower discount rate of guaranteed liabilities. Wider credit spreads have also had a negative impact on the investment results in the company portfolios, but the running yield has increased with higher rates. Strong buffer capital levels at the beginning of the year and prudent risk management have secured sufficient customer returns in the guaranteed products, despite turbulent markets.

Solvency Ratio Development

The solvency ratio was 174% at the end of the 3rd quarter, a decrease of 21 percentage points from the previous quarter. The completion of the Danica acquisition, negative market returns, and regulatory factors - including a significantly lower volatility adjustment - reduced the solvency ratio. Group profit after tax increased the solvency margin by 2 percentage points.

During the quarter, Storebrand completed a NOK 500 million share buyback program. When the solvency ratio is above 180%, the Board of Directors intends to continue the buyback program.

Capital Update Presentation

Storebrand will host a Capital Update presentation on 8 December 2022. The presentation will focus on Storebrand's capital situation and opportunities going forward in today's higher interest rate environment. Investors and analysts are invited to participate at Storebrand's main offices in Lysaker, Norway. The presentation will also be live streamed with the option to attend digitally.

Key Figures in the Quarter:

(Q3-2021 in brackets)

  • Solvency Ratio 174% (178%)
  • Earnings per share, adjusted for amortisation NOK 1.16 (NOK 1.56)
  • Equity NOK 37,375m (NOK 36,735m)
  • Assets under management NOK 1,001bn (NOK 1,058bn)  

Activities Related to the 3rd Quarter 2022

07:30 CET: Release of stock exchange notification. Press release, quarterly report and analyst presentation will be available at storebrand.no/ir

10:00 CET: Live investor and analyst conference in English. A webcast will be available at www.storebrand.no/en/investor-relations. The presentation will be available on demand afterwards. Analysts who would like to ask questions at the end of the presentation must register for and participate in the MS Teams Webinar. 

Link to registration and webcast (https://www.storebrand.no/en/investor-relations/quarterly-reporting/programme)

For Further Inquiries, Please Contact:

Head of Investor Relations & Rating, Daniel Sundahl:
daniel.sundahl@storebrand.noor (+47) 913 61 899

Group Head of Strategy, Finance and M&A Kjetil Ramberg Krøkje:
kjetil.r.krokje@storebrand.noor (+47) 934 12 155

Media Requests:

SVP Communications, Margrethe Assev:
margrethe.assev@storebrand.noor (+47) 951 55 056

About Storebrand
Storebrand is a Nordic financial group, delivering increased security and
financial wellness for people and companies. We offer sustainable solutions
and encourage our customers to take good economic decisions for the future.
Our purpose is clear: we create a brighter future. Storebrand has about 55.000
corporate customers, 2.2 million individual customers and manages NOK 1 001
billion. The Group has its headquarter at Lysaker outside of Oslo, Norway.
Storebrand (STB) is listed on Oslo Stock Exchange. www.storebrand.no/

[1] Earnings before amortisation and tax. www.storebrand.no/ir provides an overview of APMs used in financial reporting

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