Storebrand (STB) CMD 2025 summary

Strategic direction and transformation

• Focus on scaling capital-light Front Book business, with ambitions to be a leading Nordic savings and insurance group, leveraging three commercial pillars: occupational pensions in Norway/Sweden, Nordic asset management, and a challenger in Norwegian retail financial market.

• Strategy built on unlocking shareholder value and customer security through capital build-up, growth, and disciplined capital distribution, with a shift from capital-intensive guaranteed business to capital-light savings and insurance.

• Digital transformation includes cloud migration, AI-driven automation, and unified platforms, enabling rapid integration, operational efficiency, and enhanced customer experience.

• Sustainability leadership is central, with clear climate targets, high ratings in gender equality and transparency, and new health concepts like VEL integrated into insurance from 2026.

• Well positioned to capitalize on Nordic megatrends: digitalization, demographic shifts, and individualization of savings and insurance.

Financial targets and capital allocation

• Group result target increased to NOK 7 billion by 2028, with return on equity target raised to 17% and ambition to exceed 20% by 2035.

• Double-digit annual dividend growth targeted, with NOK 2 billion share buyback in 2026 and NOK 1.5 billion annually through 2030, totaling over NOK 12 billion by 2030.

• 100% remittance ratio expected, with robust liquidity and capital position (SII margin 195% Q3 2025), and excess capital from over-capitalized life company prudently upstreamed.

• Capital allocation prioritizes dividends, buybacks, organic growth, and disciplined M&A, with additional distributions if solvency margin exceeds 175% or liquidity exceeds NOK 4-6 billion.

• Balance sheet transformation reduces capital intensity, with Guaranteed business declining to 20% of capital requirements by 2035.

Segment performance and growth initiatives

• Asset management targets 7%-9% AUM growth and >10% operational earnings CAGR by 2028, focusing on alternatives, scalability, and expansion in Sweden and Denmark.

• Swedish savings segment aims for 10% profit growth, leveraging digitalization, operational efficiency, and new partnerships.

• Norwegian Unit Linked targets 12%-14% volume growth and 7%-9% operating profit growth, leveraging digital platforms and automation.

• Retail banking and savings seek 5–10% annual lending growth, 1.2% net interest margin, and scaling Kron as a digital core.

• Insurance segment targets >10% annual growth in premiums and combined ratio at or below 90%, with VEL program to reduce disability claims and strong expansion in both retail and corporate markets.