Storebrand (STB) Q1 2025 earnings summary

Executive summary

• Q1 2025 delivered strong earnings growth, with cash-based earnings reaching NOK 1,167 million and group result up 8% year-over-year, despite volatile markets.

• Fee and administration income rose 10% year-over-year to NOK 1,997 million, with robust growth in savings, insurance, and retail banking.

• Solvency II ratio remained strong at 198%, well above the 150% target and overcapitalisation threshold.

• Strategic focus continues on occupational pensions in Norway/Sweden, asset management, retail financial services, and sustainability.

• Ongoing NOK 1.5 billion annual share buyback program, with NOK 300 million executed in Q1 and NOK 750 million tranche initiated.

Financial highlights

• Operating result increased 16% year-over-year to NOK 800 million; group profit before amortisation and tax (IFRS) was NOK 1,225 million.

• Fee and administration income reached NOK 1,997 million, up from NOK 1,818 million year-over-year.

• Insurance result improved to NOK 470 million from NOK 367 million year-over-year; combined ratio at 97%.

• Annualised return on equity for the quarter was 15%, exceeding the financial target.

• Solvency margin stable at 198%, supported by strong post-tax results.

Outlook and guidance

• Ambition for a combined ratio of 90–92% for full year 2025 and double-digit growth in cash results, retail savings, mortgage lending, and insurance.

• Fee income and profit sharing expected to be back-end loaded in the second half of the year.

• Return on equity target raised to 14% for the group.

• Cost guidance for 2025 is NOK 6.8 billion, with reduction measures if growth targets are not met.

• Guidance for profit sharing: NOK 300 million each from Norway and Sweden for 2025.