Storebrand (STB) Q2 2024 earnings summary

Executive summary

• Cash-based earnings reached NOK 2,249 million in Q2 2024, up from NOK 856 million in Q2 2023, driven by operational growth, cost control, and a NOK 1,047 million gain from the divestment of Storebrand Health Insurance.

• Solvency II ratio remained robust at 191%, well above the overcapitalisation threshold.

• Double-digit growth across all business lines: 14% in AUM, 19% in Unit Linked reserves, and 16% in insurance premiums year-over-year.

• Ongoing share buyback program, with NOK 1.1 billion tranche initiated in Q2 and NOK 409 million completed; total 2024 buybacks to reach NOK 1.5 billion.

• Strategic acquisitions included increasing AIP Management stake to 60% and purchasing the Lysaker Park headquarters.

Financial highlights

• Group cash equivalent earnings before amortisation: NOK 2,249 million in Q2 2024, up from NOK 856 million in Q2 2023.

• Fee and administration income up 13% year-over-year to NOK 1,888 million.

• Cash earnings per share after tax at a record NOK 4.59.

• Combined insurance premiums up 16% year-over-year, mainly due to price increases.

• Group profit before amortisation and tax (IFRS) was NOK 2,546 million in Q2 2024, up from NOK 616 million in Q2 2023.

Outlook and guidance

• On track to achieve NOK 5 billion profit ambition and 14% return on equity target for 2025.

• Cost guidance for 2024 maintained at NOK 5.9 billion, excluding integration, currency, and performance-related costs.

• Combined insurance ratio targeted to return to 90-92% by 2025, with current ratio at 97%.

• Share buybacks of NOK 1.5 billion per year, aiming for NOK 12 billion by 2030.

• Gradual opening of the public sector pension market expected, with more municipalities entering tenders.