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Group profit[1] of NOK 841m, operating profit of NOK 624m
· Solvency II ratio 184%
· 39% profit growth in Insurance for 2022
· 23% growth in Unit Linked premiums (y/y)
· NOK 3.70 dividend per share and a NOK 500m share buyback program proposed
"During the past year, Storebrand has once again demonstrated a strong ability
to navigate through market turbulence and manage risk. We have delivered
competitive returns to our customers in challenging markets. And we have seen
strong growth in the number of customers who choose Storebrand - both within
savings and insurance where premiums have grown over 20% in 2022.
The solvency ratio is strengthened to 184%, and we deliver a Group profit of NOK
841 million in the quarter, and 2,716 million in 2022, despite the setback in
financial markets. We are confident in our ability to continue to grow the
business and generate solvency capital. I’m pleased to announce a proposed
increase in the ordinary dividend to NOK 3.70 per share, and the Board plans to
continue the share buyback program with a new tranche of NOK 500 million," says
Group CEO Odd Arild Grefstad.
Strong Growth and Stable Operating Profit
The operating profit amounted to NOK 624m in the quarter, compared to NOK 1,038m
in 2021. The decline is mainly attributed to less performance fee income in
2022. Adjusted for performance related results and one-off items, the operating
profit was NOK 571m in the quarter, compared to NOK 589m previous year.
Strong growth in insurance and an improved combined ratio has led to an increase
in the insurance result by 52% in the 4th quarter and 37% for the full year,
compared to 2021. Written premiums grew 21% in 2022. The combined ratio in the
4th quarter was impacted by seasonal claims in motor and ended at 95%, but
amounted to 91% for the full year - in line with Storebrand’s target of 90-92%.
Total assets under management (AUM) amounted to NOK 1,020bn, which is a decrease
of 7% in 2022 compared to previous year due to weak financial market returns,
but it is an increase of 2% in the 4th quarter. Total net inflow amounted to NOK
10bn in the quarter and NOK 17bn for the full year. In Unit Linked, quarterly
premiums increased by 23% to NOK 6.6bn from NOK 5.4bn. The transfer balance has
materially improved in 2022, resulting in a net inflow (of premiums, claims,
payments, and transfers) amounting to NOK 4.7bn in the 4th quarter and NOK
12.4bn for the full year, compared to NOK 2.8bn and NOK 5.1bn respectively in
2021.
Improved Financial Result in Q4
The ‘financial items and risk result’ amounted to NOK 217m in 4th the quarter,
which is an improvement from NOK -225m accumulated in the first three quarters
of 2022. During the year, wider credit spreads have resulted in negative
investment results in the company portfolios. The expected yield has increased
correspondingly and financial markets have shown signs of improvement towards
the end of the year. We thus expect better financial results going forward.
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 184% at the end of the 4th quarter, an increase of 10
percentage points from the previous quarter. Result generation from operations
and positive financial market developments strengthened the solvency ratio, but
the improvement was more than offset by regulatory factors. Active risk
management, including increased levels of reinsurance, reduced foreign currency
exposure, and balance sheet and investment exposure optimisations, added to the
solvency ratio. In addition, a reset of available additional statutory reserves
to absorb stresses at the turn of the year improved the solvency ratio.
Dividend and share buyback
The board proposes an ordinary dividend of NOK 3.70 per share for 2022 to the
Annual General Meeting, equal to a total amount of NOK 1,718m. This represents a
NOK 0.20 nominal increase compared to the previously paid dividend,
corresponding to an increase of 5.7%.
Based on the reported solvency ratio of 184%, the Board intends to continue with
a share buyback program with a tranche amounting to NOK 500m pending approval
from the NFSA. The ambition is to return NOK 10bn of excess capital by the end
of 2030, primarily in the form of share buybacks, as the run-off of the
guaranteed business releases capital.
Capital Update
Storebrand hosted a Capital Update presentation on 8 December 2022. The
presentation mainly focused on Storebrand’s capital situation and opportunities
going forward in today’s higher interest rate environment. The presentation and
a replay can be found here: www.storebrand.no/en/investor-relations/capital
-update-2022
Key Figures in the Quarter:
(Q4-2021 in brackets)
· Solvency Ratio 184% (178%)
· Earnings per share, adjusted for amortisation NOK 1.85 (NOK 2.25)
· Equity NOK 37,935m (NOK 37,709m)
· Assets under management NOK 1,020bn (NOK 1,097bn)
Activities Related to the 4th 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
at?www.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.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:
Head of Press, Synnøve Hjelle Halkjelsvik:
synnove.hjelle.halkjelsvik@storebrand.no or (+47) 957 45 105
[1] Earnings before amortisation and tax. www.storebrand.no/ir provides an
overview of APMs used in financial reporting
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 1,020
billion. The Group has its headquarter at Lysaker outside of Oslo, Norway.
Storebrand (STB) is listed on Oslo Stock Exchange.
www.storebrand.no
This is information is pursuant to the EU Market Abuse Regulation and subject to
the disclosure requirements pursuant to Section 5-12 the Norwegian Securities
Trading Act.
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