In This Article:
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Group Cash-Based Earnings: NOK1,507 million in Q3, a 41% increase year-on-year.
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Operating Result: NOK944 million, up by 36% year-on-year.
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Financial Result: NOK563 million, with profit sharing from Sweden and Norway.
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Unit-Linked Growth: 27% year-over-year, with NOK95 billion absolute growth in assets.
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Assets Under Management: Grew by 19% year-on-year, with a net flow of NOK14 billion in Q3.
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Insurance Premium Volumes: Increased by 19% year-on-year.
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Loan Volumes: Up by 13% year-on-year in the Norwegian retail market.
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Retail Savings Platform (Kron): Assets increased by 14% in Q3 and 72% year-to-date.
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Solvency Position: Stable at 190%.
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Cash EPS After Tax: NOK3.12 in the quarter.
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Fee and Administration Income: Up 13% year-to-date.
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Combined Insurance Premiums: Up 19% compared to Q3 2023.
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Cost Income Ratio: 41% in the quarter.
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Interest Rate Margin: 1.6%.
Release Date: October 23, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Storebrand ASA (SREDF) reported a record high operating result of NOK944 million, up by 36% year-on-year.
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The company achieved double-digit growth across its business segments, driven by strong market positions and strategic initiatives.
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Assets under management grew by 19% year-on-year, with a net flow of NOK14 billion in the quarter.
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The Norwegian retail market saw a 19% year-on-year growth in premium volumes, with Storebrand ASA (SREDF) gaining market share.
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The solvency position remains strong at 190%, supported by improved buffer capital rules and strong cash results year-to-date.
Negative Points
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The P&C insurance results are still weak, with high claims inflation impacting profitability.
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The insurance results are below the targeted level, despite improvements from previous quarters.
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There is uncertainty regarding the ESA case, which affects the public occupational pension growth area.
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The Norwegian paid-up policies saw a reduction in fees, impacting margins.
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The company anticipates somewhat higher costs in the fourth quarter, maintaining a cost guidance of NOK5.9 billion for the full year.
Q & A Highlights
Q: Can you explain the drivers behind the investment results and the strong profit sharing in Sweden this quarter? A: The investment results were primarily driven by mark-to-market effects due to falling interest rates and contracting credit spreads. In Sweden, profit sharing was influenced by deferred capital contribution reversals, profit splits, and indexation fees, totaling NOK260 million year-to-date, slightly ahead of the NOK300 million annual guidance.