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· Group profit[1] of NOK 628m in the 1st quarter
· Operating profit of NOK 678m, up 5% y/y
· Total assets under management (AuM) of NOK 1,040bn, up 5% y/y, down 5% q/q
· 19% growth in overall insurance portfolio premiums, 24% growth in retail
insurance (y/y)
· Solvency II ratio of 184%
“The first quarter of 2022 has been a shaky quarter for the world and for
financial markets. We witnessed reintroduced Covid-19 restrictions at the start
of the year with the outbreak of the Omicron variant. As soon as the future
looked brighter with the removal of infection controls in February, Russia
shocked the world by starting a devastating war in Europe. The humanitarian
costs are unimaginable and the geopolitical situation is uncertain”, says CEO
Odd Arild Grefstad.
“Storebrand has been able to navigate successfully through a quarter with
volatile markets. Inflation and interest rates are rising. Positive consequences
of higher interest rates are increased savings and expected long term results
for our pension customers. Financial results are negatively affected by higher
interest rates resulting in a Group profit of NOK 628 million in the quarter.
Continued growth and strong operations improved the operating profit by 5% to
NOK 678 million. We have strengthened our solvency ratio to 184% - the strongest
on record and above our targeted range of 150-180%. The Board now intends to
start a share buyback program”, continues Grefstad.
Market Returns Reduce Assets under Management, Insurance Growth Continues
Storebrand continues to see net inflows of capital in the Savings segment,
totalling NOK 11 billion in asset management in the quarter, but weak financial
markets and a stronger Norwegian krone reduced assets under management (AuM) by
5% to NOK 1,040 billion compared to the last quarter. Compared to the same
quarter last year, the growth in AuM was 5%.
Annual written premiums grew 19% in the Insurance segment, led by 24% growth in
P&C & Individual life. Annual market data for 2021 shows that Storebrand is
Norway’s fastest growing retail P&C insurer in terms of total written premiums
and market share. The overall combined ratio improved to 92% from 96% in the
previous quarter and is in line with the targeted combined ratio of 90-92%.
Solvency Ratio Development
The solvency ratio was 184% at the end of 1st quarter, an increase of 9
percentage points from the previous quarter and 4 percentage points above the
targeted range of 150-180%. Turbulent financial markets, with falling equity
markets and wider credit spreads, detracted 7 percentage points from the
solvency ratio while rising interest rates added 3 percentage points.
Countercyclical regulatory factors, including an increase in the volatility
adjustment and a lower symmetric equity stress, added 7 percentage points.
Actions, including changes made in the investment portfolios, improved the
solvency ratio by 5 percentage points. The Group profit after tax, net of
dividends set aside for 2022, contributed an additional 3 percentage points to
the solvency ratio.
Initiation of buyback program
Storebrand’s dividend policy states that if the solvency ratio is above 180%,
the Board of Directors intends to propose special dividends or share buybacks.
The Board thus intends to initiate a share buyback program and will seek an
approval from the Financial Supervisory Authority to initiate a program
amounting to NOK 500 million.
Key figures in the quarter:
(Q1-2021 in brackets)
· Solvency Ratio 184% (176%)
· Earnings per share, adjusted for amortisation NOK 2.18 (NOK 1.21)
· Equity NOK 38,430m (NOK 36,069m)
· Assets under management NOK 1,040bn (NOK 987bn)
Activities Related to the 1st Quarter 2022
07:30 CET: Release of stock exchange notification. Press release, quarterly
report and analyst presentation (https://www.storebrand.no/en/investor
-relations/quarterly-reporting/storebrand-asa/2021) will be available
on storebrand.no/ir (https://www.storebrand.no/en/investor-relations/quarterly
-reporting/storebrand-asa/2021).
10:00 CET: Live analyst conference in English. A webcast will be available for
everyone to view on storebrand.no/ir (https://www.storebrand.no/en/investor
-relations). The presentation will be available on demand afterwards. Link to
webcast (Storebrand ASA: Result presentation Q1 2022 - Quickchannel)
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 (https://www.storebrand.no/ir)
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
[1] Earnings before amortisation and tax. www.storebrand.no/ir provides an
overview of APMs used in financial reporting.
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 of
Oslo, Norway. Storebrand manages NOK 1 040 bn and is one of the largest asset
managers in the Nordics. Storebrand (STB) is listed on Oslo Stock Exchange.
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