In This Article:
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Group Cash-Based Earnings: NOK167 million, up 8% from last year.
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Operating Result: NOK800 million, up 16% year on year.
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Financial Result: NOK367 million, including profit sharing from Norway and Sweden.
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Annualized Return on Equity: 15% for the quarter.
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Solvency Margin: 198, positively affected by strong post-tax results.
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Unit Linked Volumes Growth: 9% year on year.
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Asset Management Fee and Administration Income: Increased by 19% from Q1 2024.
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Retail Banking Result Contribution: Up 73% compared to Q1 2024.
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Portfolio Premiums in Retail Insurance: Increased by 24% since Q1 2024.
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Market Share in PNC Insurance: 7.1%, up from 6.5% last year.
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Top Line Growth: 10% for the first quarter.
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Insurance Result Growth: Up 28%.
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Operational Costs: Up 11% due to acquisition and increased sales costs.
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Tax Charge for the Quarter: 11%, below normal due to currency movements.
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Combined Ratio Ambition: 92% or less for the full year 2025.
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Green Bonds Issued: Over NOK16 billion since 2021.
Release Date: May 07, 2025
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 16% year-on-year increase in operating results, driven by strong growth in savings and insurance.
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The company executed share buybacks worth NOK440 million in the first quarter, with a long-term ambition to conduct annual share buybacks of EUR1.5 billion.
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Storebrand ASA (SREDF) saw a 9% year-on-year growth in Unit Linked volumes, supported by structural growth in Norway and Sweden.
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The company entered a new distribution partnership with Danske Bank in its Swedish pension business, expected to enhance market reach.
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Storebrand ASA (SREDF) reported a 24% increase in portfolio premiums in retail insurance since the first quarter of 2024, driven by effective repricing strategies and strong distribution.
Negative Points
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Fee administration income was slightly below expectations due to prioritization effects and lack of event-driven fees.
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The insurance result was somewhat behind expectations due to minor reserve strengthening and large losses.
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Operational costs increased by 11% due to the acquisition of AIP and higher sales-related costs in insurance.
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The financial result was slightly down in turbulent financial markets, impacting overall performance.
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Currency fluctuations had a negative effect on asset under management, primarily due to the strengthening of the Norwegian crown against the dollar.
Q & A Highlights
Q: Can you explain the lack of transaction revenues and when they are expected to return? Also, is the revenue expected to be back-loaded while OpEx is front-loaded this year? A: Odd Grefstad, Acting CEO: The Danish property market has been quiet, but the pipeline is good, so we expect more transaction fees later this year. AIP fees related to fund closings and transactions are also expected in the second half. Revenue is indeed back-loaded, especially profit splits in guaranteed portfolios, which typically occur towards the end of the year. Costs are front-loaded due to P&C sales and public sector growth investments.