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claims frequency in motor and disability
· Solvency II ratio 196%, increase of 17 percentage points from last quarter
· Share buyback of NOK 1bn approved for H2 2023, tranche of NOK 500m starts
today
During the last quarter interest rates in Norway and Sweden have increase to
levels we have not seen for decades, driven by persistent high inflation. These
factors have improved asset under management and earnings, but also led to
increased cost and claims.
Several companies have chosen Storebrand as their pension provider within
occupational pension and the bank continues to gain market shares within the
retail market. The solvency position remains strong. This shows that Storebrand
manages well in turbulent times, says CEO Odd Arild Grefstad.
Continued growth in savings segment
Total assets under management (AUM) reached an all-time high and amounted to
NOK 1,143bn. This is an increase of 3% or NOK 32bn compared to the previous
quarter, of which NOK 10bn came from a net inflow of capital in the quarter. In
addition, earned but not booked performance related income continues to increase
and amounts to NOK 132m year to date.
Lending volume within retail banking amounted to NOK 72 bn in the second
quarter, corresponding to an increase of 16% year on year. In combination with
strong interest margins and improving cost-ratios, Storebrand Bank delivers a
solid return and maintains its position as one of the fastest growing retail
banks in the Norwegian market.
Negative result impact from high claims
Written premiums in insurance have grown 18% overall compared to the second
quarter last year, amounting to NOK 8.3bn. Storebrand continues to gain market
shares within Norwegian retail P&C. As of the second quarter, the market share
amounted to 6.5 percent compared to 6.2 percent a year earlier.
The first quarter’s combined ratio reached 96%, above the targeted combined
ratio of 90-92%. The weak combined ratio is driven mainly by the P&C and Group
Life segments. In P&C, the claims ratio deteriorated due to high frequency in
motor claims and claims inflation. In Group Life, the weak development is due to
a challenging disability trend. Price increases have been implemented, and
further price adjustments will be made where necessary.
Capital situation and an additional Share buyback
The solvency ratio was 196% at the end of the second quarter, an increase of 17
percentage points from the previous quarter. Strong results, increased interest
rates and higher volatility adjustment (VA) are the main drives for the
strengthened position. The solvency ratio continues to be well above the
threshold for overcapitalisation of 175%.
Storebrand has gotten approval from the Financial Supervisory Authority (FSA) to
do share buybacks of NOK 1bn (divided into two tranches) to be carried out
during second half of 2023. The first tranche amounting to a maximum of NOK 500m
is initiated today (14 July 2023).
Capital Markets Day
Storebrand will host a virtual capital markets day 14 December 2023, at 09:00 -
12:00 CET. Presentation will be held by Storebrand’s executive management with a
focus on the company’s growth strategy and ambitions. More information and a
formal invitation will follow.
Key Figures in the Quarter:
(Q2-2022 in brackets)
. Solvency Ratio 196% (195%)
. Cash EPS NOK 3.98 (NOK 3.33)
. Equity NOK 28,902m (NOK 28,968m) restated under IFRS 17
. Assets under management NOK 1,143bn (NOK 1,008bn)
Activities Related to the 2nd Quarter 2023
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 analyst conference in English. A webcast will be available at
storebrand.no/ir. The presentation will be available on demand afterwards. Link
to webcast Analysts who would like to ask questions at the end of the
presentation must register for and participate in the MS Teams Webinar.
Lysaker, 14. July 2023
For Further Inquiries, Please Contact:
Group CFO, Lars Aasulv Løddesøl:
lars.loddesol@storebrand.no og (+47) 934 80 151
Investor Relations (interim): Trond Finn Eriksen:
trond.finn.eriksen@storebrand.no og (+47) 991 64 135
Media Requests:
Communication, Aleksander Hannisdal
aleksander.hannisdal@storebrand.no og (+47) 980 43 936
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 1,143
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.
Kilde
