Storebrand (STB) Q3 2024 earnings summary

Executive summary

• Cash-based earnings reached NOK 1,507 million in Q3 2024, up 41% year-over-year, driven by double-digit growth, strong cost control, and improved insurance results.

• Group result and operating profit rose 41% and 36% year-over-year, respectively, with strong contributions from all business areas.

• Robust solvency II ratio at 190%, well above the overcapitalisation threshold.

• Ongoing NOK 1.5 billion annual share buyback program and commitment to growing dividends through 2030.

• Financial gains from Storebrand Health Insurance divestment and revaluation of AIP Management stake.

Financial highlights

• Operating result up 36% year-over-year to NOK 944 million; group profit before amortisation and tax (IFRS) was NOK 1,396 million in Q3.

• Cash EPS after tax was NOK 3.12 for the quarter; annualised cash ROE reached 21.2%.

• Solvency ratio stable at 190% after NOK 1.2 billion increase in own funds and NOK 800 million increase in SCR.

• Fee and administration income up 11% to NOK 1,971 million in Q3; insurance result up 52% to NOK 483 million.

• Insurance premiums up 19% year-over-year, mainly from price increases and volume growth.

Outlook and guidance

• On track to deliver NOK 5 billion result ambition and ROE target above 14% for 2025.

• Annual share buybacks of NOK 1.5 billion and growing dividends planned up to 2030.

• Cost guidance for full year maintained at NOK 5.9 billion, with reduction measures if ambitions are not met.

• Combined ratio target for insurance set at 90%-92% for 2025.

• Profit sharing in Sweden guided at NOK 300 million per year; Norwegian profit sharing expected to grow after buffer building in 2024.