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: 19% in Unit Linked reserves, 14% in assets under management, and 16% in insurance premiums.

• Ongoing share buyback program of NOK 1.5 billion for 2024, with NOK 800 million completed in H1 and NOK 409 million completed in Q2.

• Strategic focus on capital-light business, asset management expansion, and sustainability leadership.

Financial highlights

• Group profit before amortisation and tax (IFRS) was NOK 2,546 million in Q2 2024, up from NOK 616 million in Q2 2023, mainly due to the health insurance divestment.

• Fee and administration income increased 13% year-over-year to NOK 1,888 million in Q2.

• 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.

• Insurance result was NOK 396 million in Q2, with a combined ratio of 97%.

Outlook and guidance

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

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

• Targeting combined insurance ratio below 92% in 2025, with current ratio at 97%.

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

• Expect continued gradual opening of public sector pension market.