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Storebrand ASA
Quarterly Report • Apr 24, 2024
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Quarterly Report
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Interim report 1st quarter 2024
Storebrand Livsforsikring AS (unaudited)
Contents
Financial performance business areas
| Storebrand Livsforsikring Group 3 | |
|---|---|
| Savings 6 | |
| Insurance 7 | |
| Guaranteed pension 9 | |
| Other10 | |
| Balance, Solidity and Capital situation 11 | |
| Outlook 11 | |
Financial statements/notes
| Statement of comprehensive income Storebrand Livsforsikring Group 14 | |
|---|---|
| Statement of financial position Storebrand Livsforsikring Group 15 | |
| Statement of changes in equity Storebrand Livsforsikring Group 16 | |
| Statement of cash flow 17 | |
| Notes Storebrand Livsforsikring Group 18 | |
| Statement of comprehensive income Storebrand Livsforsikring AS 30 | |
| Statement of financial position Storebrand Livsforsikring AS 33 | |
| Statement of changes in equity Storebrand Livsforsikring AS 37 | |
| Notes Storebrand Livsforsikring AS 38 | |
Important notice:
This document may contain forward-looking statements. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances that may be beyond the Storebrand Group's control. As a result, the Storebrand Group's actual future financial condition, performance and results may differ materially from the plans, goals and expectations set forth in these forward-looking statements. Important factors that may cause such a difference for the Storebrand Group include, but are not limited to: (i) the macroeconomic development, (ii) change in the competitive climate, (iii) change in the regulatory environment and other government actions and (iv) market related risks such as changes in equity markets, interest rates and exchange rates, and the performance of financial markets generally. The Storebrand Group assumes no responsibility to update any of the forward-looking statements contained in this document or any other forward-looking statements it may make. This document contains alternative performance measures (APM) as defined by The European Securities and Market Authority (ESMA). An overview of APM can be found at www.storebrand.com/ir.
Interim report Storebrand Livsforsikring Group First quarter 2024
Storebrand Livsforsikring AS is a wholly owned subsidiary of the listed company Storebrand ASA. For information about the Storebrand Group's 1st quarter result please refer to the Storebrand Group's interim report for the 1st quarter of 2024. Storebrand Group's ambition is to provide our customers with financial freedom and security by being the best provider of long-term savings and insurance. The Group offers an integrated product range spanning from life insurance, P&C insurance, asset management and banking to private individuals, companies and public sector entities. The Group is divided into the segments Savings, Insurance, Guaranteed Pension and Other.
Changes in IFRS from 2023 – How to read this report
From 2023, the Storebrand Group reports its official IFRS financial statements in accordance with IFRS 17 and IFRS 9, which replaced IFRS 4 and IAS 39 on 1 January 2023. A short comment on the financial performance under IFRS is given in the subsection below and detailed disclosure is available under the "Financial statements Storebrand Livsforsikring Group" section. For the remaining part of the report, Storebrand continues to report and comment on the alternative income statement in parallel with IFRS statements of financial position. The alternative income statement is based on the statutory accounts of all the main subsidiaries and is an approximation of the cash generated in the period, while the IFRS statement includes profit-and-loss effects of updated estimates and assumptions about the timing of future cash flows and insurance services provided1.
Financial performance (IFRS)
Storebrand Livsforsikring Group's profit after tax expenses was NOK 838m (NOK 989) in the 1st quarter. Stronger results in unit linked business contributed positively. Storebrand Livsforsikring Group's net insurance service result was NOK 870m in the 1st quarter (NOK 620m). The increased insurance service result is mainly attributed to increased revenue for the insurance contracts measured according to PAA. The increased interest rates also affect the CSM development in the quarter positively. On a general basis, higher volatility is expected under IFRS 17 due to the measurement models applied.
Financial performance (alternative income statement)
Profit Storebrand Livsforsikring Group
| 2024 | 2023 | Full year | ||||
|---|---|---|---|---|---|---|
| NOK million | Q1 | Q4 | Q3 | Q2 | Q1 | 2023 |
| Fee and administration income | 988 | 975 | 963 | 926 | 937 | 3,800 |
| Insurance result | 276 | -13 | 238 | 231 | 194 | 650 |
| Operational expenses | -709 | -752 | -727 | -754 | -728 | -2,961 |
| Cash equivalent earnings from operations | 555 | 210 | 473 | 402 | 403 | 1,488 |
| Financial items and risk result life & pension | 313 | 395 | 261 | 237 | 225 | 1,119 |
| Cash equivalent earnings before amortisation | 868 | 605 | 734 | 640 | 628 | 2,607 |
| Amortisation | -46 | -46 | -133 | -44 | -50 | -273 |
| Cash equivalent earnings before tax | 822 | 559 | 601 | 596 | 578 | 2,334 |
| Tax | -130 | 11 | -137 | 275 | 109 | 258 |
| Cash equivalent earnings after tax | 692 | 570 | 463 | 872 | 688 | 2,592 |
1 Due to the fundamental differences between IFRS 17 and the alternative income statement, it is not possible to reconcile the numbers. The figures in brackets are from the corresponding period previous year.
Storebrand Livsforsikring Group's cash equivalent earnings before amortisation were NOK 868m (NOK 628m) in the 1st quarter. The improved result reflects continued underlying growth across the business, satisfactory cost development and improved financial results.
Total fee and administration income amounted to NOK 988m (NOK 37m) in the 1st quarter, corresponding to an increase of 5.4% compared to the same quarter last year. Income growth is driven by strong growth in Unit Linked Reserves.
The Insurance result amounted to NOK 276m (NOK 194m) in the 1st quarter. In Group life and Pension related disability insurance segments, successful year end repricing led to improved results. Disability continues to be at high levels and the development is closely monitored to assess the need for further pricing measures. The total combined ratio for the Insurance segment was 86% (96%) in the 1st quarter.
The Group's operational cost amounted to NOK - 709m (NOK -728m) in the 1st quarter. High inflation, strong growth and digital investments is offset by reduced integration costs and strong cost discipline.
Overall, the cash equivalent earnings from operations amounted to NOK 555m (NOK 403m) in the 1st quarter.
The 'financial items and risk result' amounted to NOK 313m (NOK 225m) in the 1st quarter. The improvement stems from strong results for the company portfolios and improved profit-sharing result in the Swedish business. In the Norwegian business profit sharing continues to be limited. Net profit sharing amounted to NOK 70m (NOK 18m) in the 1st quarter. The risk result amounted to NOK 44m (NOK 81m) in the 1st quarter.
Amortisation of intangible assets from acquired business amounted to NOK -46m (NOK -50m) in the 1st quarter.
Tax expenses for the Storebrand Livsforsikring Group amounted to NOK -130m (NOK 109m) in the 1st quarter. The low effective tax rate in the quarter reflects a high contribution to the pre-tax result from the Swedish business. The estimated normal tax rate is 19-22%, depending on each legal entity's contribution to the Group result. Currency fluctuations and varying tax rates in different countries of operations impact the quarterly tax rate.
| 2024 | 2023 | Full year | ||||
|---|---|---|---|---|---|---|
| NOK million | Q1 | Q4 | Q3 | Q2 | Q1 | 2023 |
| Savings | 246 | 168 | 206 | 156 | 201 | 731 |
| Insurance | 172 | -115 | 108 | 112 | 48 | 153 |
| Guaranteed pensions | 289 | 433 | 314 | 293 | 285 | 1,326 |
| Other | 161 | 119 | 106 | 79 | 94 | 398 |
| Cash equivalent earnings before amortisation | 868 | 605 | 734 | 640 | 628 | 2,607 |
Profit Storebrand Livsforsikring group - by business ares
The Group reports its cash equivalent earnings by business segment. For a more detailed description, see the sections by segment in the report.
Capital situation
The solvency ratio for Storebrand Livsforsikring was 258% at the end of the 1st quarter, an increase of 8 percentage points from the previous quarter. A strong post tax result, together with increasing interest rates and strong equity markets contributed positively to the solvency position, while regulatory assumptions have a negative impact. New buffer rules had a neutral effect.
Savings
- Cash equivalent earnings before amortisation up 22% compared to Q1 2023
- 19% growth in Unit Linked Reserves from Q1 2023
The Savings segment includes products for retirement savings with no interest rate guarantees. The segment consists of defined contribution pensions in Norway and Sweden.
Savings
| 2024 | 2023 | Full year | ||||
|---|---|---|---|---|---|---|
| NOK million | Q1 | Q4 | Q3 | Q2 | Q1 | 2023 |
| Fee and administration income | 598 | 553 | 549 | 538 | 559 | 2,199 |
| Operational expenses | -358 | -381 | -353 | -375 | -357 | -1,466 |
| Cash equivalent earnings from operations | 240 | 171 | 196 | 164 | 203 | 734 |
| Financial items and risk result life & pension | 6 | -3 | 10 | -8 | -2 | -3 |
| Cash equivalent earnings before amortisation | 246 | 168 | 206 | 156 | 201 | 731 |
Profit
The Savings segment reported cash equivalent earnings before amortisation of NOK 246m (NOK 201m) in the 1st quarter, up by 22% compared to the corresponding period last year.
The fee and administration income in the Savings segment amounted to NOK 598m (NOK 559m) in the 1st quarter, corresponding to growth of 5% (adjusted for currency effect NOK vs SEK). In Unit Linked Norway, income grew by 2% compared to the same quarter last year. Structural growth in the underlying business and positive markets were supportive, while reduced fee margin had a negative effect. In Sweden, fee and administration income grew by 10% compared to the same quarter last year (in SEK).
Operational cost amounted to NOK -358m (NOK -357m) in the 1st quarter.
Balance sheet and market trends
In the Norwegian Unit Linked business, assets under management increased to NOK 226bn (NOK 191bn). The growth stems from high occupational pension premiums, new sales, asset return and limited pension payments due to the young nature of the product. Net inflow (from premiums, claims and withdrawals, and transfers) amounted to NOK 3.4bn (NOK 3.1bn).
In the Swedish Unit Linked business, assets under management increased during the quarter by SEK 14bn and amounted to SEK 184bn. Net inflow amounted to NOK 1.3bn (NOK 2.0bn) in the 1st quarter.
Savings - Key figures
| 2024 | 2023 | ||||
|---|---|---|---|---|---|
| NOK mill | Q1 | Q4 | Q3 | Q2 | Q1 |
| Unit Linked Reserves | 410,180 | 379,516 | 353,448 | 357,150 | 343,347 |
| Unit Linked Premiums | 7,479 | 7,225 | 7,055 | 7,024 | 6,883 |
Insurance
• 9% overall growth in premiums f.o.a. compared to the corresponding quarter last year
• Combined ratio was solid at 86% in the quarter
The Insurance segment provides personal risk products in the Norwegian and Swedish retail market and employee insurance and pension-related insurance in the Norwegian and Swedish corporate markets.
Insurance
| 2024 | 2023 | Full year | ||||
|---|---|---|---|---|---|---|
| NOK million | Q1 | Q4 | Q3 | Q2 | Q1 | 2023 |
| Insurance result | 276 | -13 | 238 | 231 | 194 | 650 |
| - Insurance premiums f.o.a. | 1,057 | 989 | 996 | 995 | 970 | 3,950 |
| - Claims f.o.a. | -781 | -1,002 | -758 | -764 | -776 | -3,300 |
| Operational expenses | -128 | -130 | -139 | -136 | -151 | -556 |
| Cash equivalent earnings from operations | 148 | -143 | 99 | 95 | 43 | 93 |
| Financial items and risk result life & pension | 24 | 28 | 9 | 16 | 6 | 59 |
| Cash equivalent earnings before amortisation | 172 | -115 | 108 | 112 | 48 | 153 |
Profit
Insurance premiums f.o.a. amounted to NOK 1057m (NOK 970m) in the 1st quarter, corresponding to an increase of 9% compared to the same quarter last year. The cost ratio was 12% (16%), with cost amounting to NOK -128m (NOK - 151m) in the 1st quarter.
Cash equivalent earnings before amortisation amounted to NOK 148m (NOK 43m) in the 1st quarter. The total combined ratio was 86% (96%) in the 1st quarter. The combined ratio development was weak in Group life segment, and strong in Individual life and Pension related disability. During 2023 several measures, including repricing, were implemented to improve the profitability in the insurance business.
The result in 'Individual life' was solid. The claims ratio was 54% (60%) in the 1st quarter. Altogether, the product segment delivered a combined ratio of 69% (84%) in the 1st quarter.
Group life reported a cash equivalent earnings before amortisation of NOK 10m (NOK -24m) in the 1st quarter. The result in the quarter represented an improvement after a challenging development last year, as a result of measures including repricing with effect from January 2024. In sum, Group life reported a combined ratio of 101% (102%) in the 1st quarter.
The cash equivalent earnings before amortisation for 'Pension
related disability insurance Nordic' was NOK 57m (NOK 8m) in the 1st quarter. The result in the Norwegian business showed a positive development after weak results last year, mainly driven by price increases implemented. The Swedish business delivered a satisfactory claims ratio in the quarter. Altogether the combined ratio was 88% (99%) in the 1st quarter.
There is still a high level of uncertainty linked to the disability development in the Norwegian society and Storebrand follows this closely.
The Insurance investment portfolio is primarily invested in fixed income securities with short to medium duration and achieved a financial return of 1.3% in the 1st quarter.
Balance sheet and market trends
The Insurance segment offers a broad range of products to the retail market in Norway, as well as to the corporate market in both Norway and Sweden. Storebrand has an ambition to grow the insurance business.
Overall growth in annual portfolio premiums amounted to 10% compared to the same quarter last year. Growth in 'Individual life' amounted to 4%. 'Group life' grew by 17%, driven by price adjustments and salary increases, and 'Pension related disability insurance' grew by 10%, driven by price adjustments and salary increases.
Portfolio premiums (annual)
| 2024 | 2023 | ||||
|---|---|---|---|---|---|
| NOK million | Q1 | Q4 | Q3 | Q2 | Q1 |
| Individual life * | 1,217 | 1,198 | 1,181 | 1,174 | 1,168 |
| Group life ** | 1,137 | 1,047 | 1,040 | 1,027 | 970 |
| Pension related disability insurance *** | 2,011 | 1,928 | 1,884 | 1,856 | 1,834 |
| Portfolio premium | 4,365 | 4,173 | 4,105 | 4,057 | 3,972 |
| * Individual life disability insurance |
** Group disability, workers compensation insurance
*** DC disability risk premium Norway and disability risk Sweden
Key Figures
| Claims ratio | 74% | 101% | 76% | 77% | 80% |
|---|---|---|---|---|---|
| Cost ratio | 12% | 13% | 14% | 14% | 16% |
| Combined ratio | 86% | 115% | 90% | 90% | 96% |
Guaranteed pension
- Stable development in cash equivalent earnings from operations
- Positive, but moderate risk result and profit sharing result
- Increased buffer capital levels and more flexible Buffer fund regulations
The Guaranteed Pension segment includes long-term pension savings products that give customers a guaranteed rate of return, but most products are closed for new business and are in run-off. The area includes defined benefit pensions in Norway and Sweden, paid-up policies, public sector occupational pensions, and individual capital and pension insurance.
Guaranteed pension – Results
| 2024 | 2023 | Full year | ||||
|---|---|---|---|---|---|---|
| NOK million | Q1 | Q4 | Q3 | Q2 | Q1 | 2023 |
| Fee and administration income | 391 | 422 | 413 | 387 | 378 | 1,600 |
| Operational cost | -215 | -205 | -209 | -216 | -192 | -822 |
| Cash equivalent earnings from operations | 175 | 217 | 204 | 171 | 186 | 778 |
| Risk result life & pensions | 44 | 77 | 69 | 69 | 81 | 296 |
| Net profit sharing | 70 | 139 | 41 | 53 | 18 | 252 |
| Cash equivalent earnings before amortisation | 289 | 433 | 314 | 293 | 285 | 1,326 |
Financial performance
Guaranteed pension achieved cash equivalent earnings before amortisation of NOK 289m (NOK 285m) in the 1st quarter.
Fee and administration income amounted to NOK 391m (NOK 378m) in the 1st quarter. In sum the income level represented a modest growth of 3 percent, based on growth within public sector pensions as well as paid-up policies.
Operational cost amounted to NOK -215m (NOK -192m) in the 1st quarter.
The cash equivalent earnings from operations had a stable development and amounted to NOK 175m (NOK 186m) in the 1st quarter.
The risk result was NOK 44m (NOK 81m) in the 1st quarter. A strong disability result driven by reactivation was the main contributor to the result. Net profit sharing amounted to NOK 70m (NOK 18m) in the 1st quarter. Profit sharing was generated by the Swedish business, while the Norwegian portfolio focused on building buffer capital and fulfilling the annual guarantee. The Swedish business delivered a profitsharing result of NOK 54m (NOK 17m) in the quarter. The moderate profit-sharing result despite strong markets is explained by a reduction in the regulatory UFR (Ultimate Forward Rate).
Balance sheet and market trends
The majority of the guaranteed products are in long term runoff. As of the 1st quarter, customer reserves of guaranteed pensions amounted to NOK 285bn. This is an increase of NOK 1bn year to date, primarily from the positive transfer of public sector pensions schemes. A growth area for Storebrand is public sector occupational pensions, where Storebrand won its first mandates in 2020. New customers representing 3.1bn in volume were won in 2023 and transferred during the 1st quarter.
Net flow of guaranteed pensions amounted to NOK -2.8bn in 1st quarter (NOK -2.2bn in Q1 2023).
Storebrand's strategy is to maintain solid buffer capital levels in order to secure customer returns and shield shareholder's equity during turbulent market conditions. At the start of 2024, changes to the Norwegian buffer capital regulations were implemented. Additional statutory reserves and Market value adjustment reserves are now combined into the new Buffer fund. The new regulation is more flexible and hence positive for the company and customers, who will benefit from larger risk capacity. Buffer capital (excl. excess value of bonds at amortised cost) was 29.0bn as of the 1st quarter. As a share of guaranteed reserves, buffer capital levels amounted to 6.8% (6.5%) in Norwegian products and 23.0% (19.0%) in Swedish products. This does not include off-balance sheet excess values of bonds at amortised cost, which at the end of the 1st quarter amounted to a deficit of NOK -12.4bn (NOK -9.8bn).
Guaranteed pension – Key figures
| 2024 | 2023 | ||||
|---|---|---|---|---|---|
| NOK million | Q1 | Q4 | Q3 | Q2 | Q1 |
| Guaranteed reserves | 285,322 | 283,986 | 277,789 | 279,358 | 282,559 |
| Guaranteed reserves in % of total reserves | 41.0% | 42.8% | 44.0% | 43.9% | 45.1% |
| Net flow of premiums and claims | -2,773 | -2,979 | -2,720 | -2,486 | -2,198 |
| Buffer capital in % of customer reserves Norway | 6.8% | 6.1% | 5.1% | 6.0% | 6.5% |
| Buffer capital in % of customer reserves Sweden | 23.0% | 21.2% | 21.4% | 21.1% | 19.0% |
Other
Under Other, the company portfolios of Storebrand Livsforsikring and SPP are reported.
| 2024 | 2023 | Full year | ||||
|---|---|---|---|---|---|---|
| NOK million | Q1 | Q4 | Q3 | Q2 | Q1 | 2023 |
| Operational expenses | -9 | -35 | -26 | -28 | -29 | -117 |
| Cash equivalent earnings from operations | -9 | -35 | -26 | -28 | -29 | -117 |
| Financial items and risk result life & pension | 169 | 154 | 131 | 107 | 123 | 515 |
| Cash equivalent earnings before amortisation | 161 | 119 | 106 | 79 | 94 | 398 |
Profit
The Other segment reported cash equivalent earnings before amortisation of NOK 161m (NOK 94m) in the 1st quarter. The positive result development stems primarily from solid returns on the company portfolios. In addition, the comparable numbers from the 1st quarter in 2023 were negatively affected by integration cost from acquisitions.
The operational cost amounted to NOK -9m (NOK -29m) in the 1st quarter.
The financial result for the Other segment amounted to NOK 169m in the 1st quarter. The result mainly stems from returns in the company portfolios of SPP and Storebrand Life Insurance. The improved result reflects strong returns from fixed income investments in company portfolios where tighter credit spreads were supportive. The investments in the company portfolios are primarily in interest-bearing securities in Norway and Sweden. The Norwegian company portfolio achieved a return of 1.1% in the 1st quarter, while the Swedish company portfolio reported a return of 1.4% in the 1st quarter. The company portfolios in the Norwegian and Swedish life insurance companies and the holding company amounted to NOK 29.7bn at the end of the quarter.
The Storebrand Life Insurance Group is funded by a combination of equity and subordinated loans. Interest expenses in the quarter amounted to NOK -160m.
Balance sheet and capital situation
Continuous monitoring and active risk management is a core area of Storebrand's business. Risk and solidity are both followed up on at the Group level and in the legal entities. Regulatory requirements for financial strength and risk management follow the legal entities to a large extent. The section is thus divided up by legal entities.
Storebrand Livsforsikring AS Customer buffers (NOR)
New regulatory rules on a pooled and customer-distributed buffer fund were introduced for municipal pension schemes with effect from 1 January 2022. Correspondingly, a buffer fund is introduced for private pension schemes from 1 January 2024. The buffer fund replaces previous statutory reserves and market value adjustment reserve for private pension schemes. The buffer fund is distributed among the contracts and can cover negative returns and lack of returns until the contract's annual interest guarantee. Storebrand can set aside all or part of a surplus on the return result to a buffer fund. Furthermore, funds in the buffer fund can be assigned to the customer as surplus.
The buffer fund amounted to NOK 12.9bn at the end of quarter, corresponding to 6.8% of customer funds with a guarantee. This is an increase NOK 1.5bn compared to the comparable number for year-end 2023. The excess value of bonds and loans valued at amortised cost decreased by NOK 1.9bn during the quarter due to decreased interest rates and amounted to NOK -12.4bn at the end of the quarter. The excess value of bonds and loans at amortised cost is not included in the financial statements of Storebrand Livsforsikring AS.
Allocation of guaranteed customer assets (NOR)
Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024
Customer assets increased in the 1st quarter by NOK 21.2bn, amounting to NOK 429bn at the end of 1st quarter 2024. Customer assets within non-guaranteed savings increased by NOK 17.1bn during the 1st quarter, amounting to NOK 226bn at the end of 1st quarter 2024. Guaranteed customer assets increased by NOK 4.1bn in the 1st quarter, amounting to NOK 202bn at the end of 1st quarter 2024.
SPP Customer buffers (SWE)
Conditional bonuses in % of customer funds with guarantee
The buffer capital (conditional bonuses) amounted to SEK 15.8bn (SEK 13.4bn) at the end of the 1st quarter.
Allocation of guaranteed customer assets (SWE)
Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024
Customer assets amounted to SEK 268bn (SEK 232bn) at the end of the 1st quarter. Customer assets within non-guaranteed savings amounted to SEK 186bn (SEK 151bn) at the end of the 1st quarter, which is an increase of 24% compared to the same quarter last year. Guaranteed customer assets had a stable development compared to the same quarter last year and amounted to SEK 82bn (SEK 81bn).
Outlook
Strategy
Storebrand Group delivers financial security and freedom to individuals and businesses. We aim to make it easy for customers to make good financial decisions for the future by offering sustainable solutions: Together we create a future to look forward to. This creates value for customers, owners, and society.
Storebrand's strategy gives a compelling combination of capital-light growth in the front book, i.e. the growth areas of the "future Storebrand", and capital return from a maturing back book of guaranteed pensions.
Storebrand Group aims to (a) be the leading provider of Occupational Pensions in both Norway and Sweden, (b) continue a strategy to build a Nordic Powerhouse in Asset Management and (c) ensure fast growth as a challenger in the Norwegian retail market for financial services. The combined capital, cost and revenue synergies across the Group provide a solid platform for profitable growth and value creation.
In Norway, the market for Defined Contribution pensions is growing structurally due to the young nature of the product. High single-digit growth in Defined Contribution premiums and double-digit growth in assets under management are expected during the next years. Storebrand aims to defend its strong position in the market, while also focusing on cost leadership and improved customer experience through end-to-end digitalisation. As a leading occupational pension provider in the private sector, Storebrand also has a competitive pension offering to the Norwegian public sector, a larger and faster growing market than the private sector market. It is currently dominated by one player and represents a potential significant additional source of revenue for Storebrand.
In Sweden, SPP is a leading market challenger within the segment for non-unionised pensions, with an edge in digital and ESG-enhanced solutions. SPP has become a significant profit contributor to the Storebrand Group, supported by an ongoing capital release from its guaranteed products in runoff. SPP's ambition is achieve double digit annual growth, driven by a strong value proposition, growth in capital light guaranteed savings and selected portfolio transfers.
Overall reserves of guaranteed pensions are expected to decrease in the coming years. Guaranteed reserves represent a declining share of the Group's total pension reserves and amounted to 41 % of the pension reserves at the end of the quarter, 4 percentage points lower than a year ago. With interest rates having risen to significantly higher levels than the average level of interest rate guarantees, the prospects for future profit sharing with customers has increased.
The brand name 'Storebrand' is well recognised in Norway. Together with capital, customer and operational synergies in the business, it supports rapid growth in the Norwegian retail market.
Financial performance
Storebrand expects top line growth in both fee-based income and insurance. In 2023, the insurance results were severely affected by persistent high levels of disability. The board expects the insurance results to gradually improve from last year level.
Storebrand maintains a disciplined cost culture. Strong cost discipline will be a critical success factor to deliver on the earnings ambition. Storebrand will continue to reduce underlying costs, but it will also be necessary to make selective investments to facilitate profitable growth. Should the growth not materialise, management has contingency plans in place to cut costs. High inflation rates, particularly wage inflation, is expected to increase the cost base and acquired business will add to the total cost base.
Risk
Storebrand is exposed to several risk factors that have previously been elaborated on in the 'Outlook' section. These elements are covered by the notes and in the annual report.
Regulatory changes
Paid-up policies
A new legislation on flexible buffer fund for private sector guaranteed pension products such as paid-up policies and defined benefit contracts entered into force 1 January 2024.
The Parliament has asked the Government to consider further changes in the regulation of paid-up polices that could benefit policy holders, in a process involving the different stakeholders. The Ministry of Finance has assigned a working group to deliver a report with proposals before the end of May 2024.
Changes in the National Insurance Pension Scheme The Parliament has, based on broad political consensus, adopted the Government's proposal for changes in the National Insurance Pension Scheme to the Parliament.
Among the changes that will enter into force in 2024 is automatic adjustment of age limits in the pension system as longevity expectations increase. The earliest possible age for withdrawal of pensions will thus gradually increase from 62 years today. Storebrand expects similar changes to be introduced for occupation pensions and individual pension schemes. Work on necessary changes in occupational pension regulation is expected to start after the report on paid-up policies referred to above has been delivered.
The maximum yearly saving amount in the tax favoured Individual Pension Scheme (IPS) will increase from NOK 15 000 per annum to NOK 25 000 per annum in 2026.
The market for municipal occupational pensions
Storebrand has filed two complaints to the EFTA Surveillance Authority (ESA). Storebrand has claimed that municipalities, regional health authorities (RHAs) and hospitals have entered contracts on occupational pension with KLP, in breach of the rules on public procurement. Storebrand has also claimed that municipalities, RHAs and hospitals have granted KLP State aid in violation of European Economic Area (EEA) Agreement. According to Storebrand, KLP, by withholding retained earnings when customers move to other providers, is given access to capital from municipalities and hospitals on more favourable terms than other market participants would receive.
The Norwegian government argues that EEA-legislation does not apply, as KLP is not an economic actor and municipal occupational pension is social security. Storebrand argues that this is an insurance product delivered by life insurance companies in the marketplace. Facilitating competition has been a major goal for Norwegian insurance regulation, also for regulation particular to this product.
ESA has given its preliminary views in favour of Storebrand on the issues raised in the public procurement case, in a letter to Norwegian authorities dated 29 February 2024. Storebrand expects ESA to decide on the complaints during 2024.
Lysaker, 23 April 2024 Board of Directors Storebrand Livsforsikring AS
IFRS 18
A new accounting standard for presentation and disclosures in financial statements, IFRS 18, has been published by the IASB in April 2024 and replaces IAS 1 Presentation of Financial Statements. If endorsed by the EU, the standard will be effective for annual reporting periods beginning on or after 1 January 2027. The management's preliminary assessment is that the implementation of IFRS 18 will not significantly affect the financial reporting for the Group.
Storebrand Livsforsikring AS
Profit before tax was NOK 1,525 million (NOK 418 million). Premium incomes amounted to NOK 13,387 million (NOK 11,338 million), and solid growth in group pension, public business and defined contribution pensions contributed to the increase. There have been good returns in both the company and customer portfolios in 2024. Claims amounted to NOK 7,573 million (NOK 7,235 million), partly as a result of increased disability cases and transfer of own pension accounts. Operating costs remain relatively stable compared to last year. High inflation, strong growth and digital investments are offset by reduced integration costs and strong cost discipline. Dividends and group contributions from subsidiaries amounting to NOK 1,020 million (NOK 878 million) have been received in the first quarter.
Statement of comprehensive income
| 01.01 - 31.03 | Full year | ||
|---|---|---|---|
| NOK million | 2024 | 2023 | 2023 |
| Insurance revenue | 1,691 | 1,639 | 6,126 |
| Insurance service expenses | -816 | -1,009 | -4,442 |
| Net expenses from reinsurance contracts held | -5 | -10 | -52 |
| Net insurance service result | 870 | 620 | 1,632 |
| Income from unit linked | 543 | 508 | 2008 |
| Other income | 78 | 55 | 344 |
| Total income | 1,491 | 1,183 | 3,984 |
| Operating expenses | -410 | -438 | -1,775 |
| Other expenses | -15 | -93 | -95 |
| Operating profit | 1,066 | 652 | 2,114 |
| Income from investments in subsidiaries, associated companies and joint ventures companies |
69 | 113 | -395 |
| Net income on financial and property investments | 32,680 | 14,090 | 55,660 |
| Net change in investment contract liabilities | -29,143 | -7,551 | -38,409 |
| Finance expenses from insurance contracts issued | -3,414 | -6,034 | -15,274 |
| Interest expenses securities issued and other interest expenses | -211 | -258 | -809 |
| Net financial result | -20 | 360 | 773 |
| Profit/loss before amortisation and tax | 1,046 | 1,012 | 2,887 |
| Amortisation and write-downs intangible assets | -39 | -43 | -245 |
| Tax expenses | -169 | 19 | 199 |
| Profit/loss for the period | 838 | 989 | 2,841 |
| Change in actuarial assumptions | -3 | -41 | |
| Fair value adjustment of properties for own use | -14 | ||
| Other comprehensive income allocated to customers | 14 | ||
| Tax on other profit elements not to be reclassified to profit/loss | 4 | 3 | |
| Other comprehensive income not to be reclassified to profit/loss |
1 | -39 | |
| Profit/loss cash flow hedging | -15 | -10 | |
| Translation differences foreign exchange | -42 | -401 | -364 |
| Unrealised profit/loss on financial instruments FVOCI | -47 | 26 | 82 |
| Tax on other profit elements that may be reclassified to profit/loss | 12 | -20 | |
| Other profit comprehensive income that may be reclassified to | |||
| profit /loss | -77 | -390 | -313 |
| Other comprehensive income | -77 | -388 | -352 |
| TOTAL COMPREHENSIVE INCOME | 761 | 601 | 2,489 |
| PROFIT IS ATTRIBUTABLE TO: | |||
| Share of profit for the period - shareholders | 838 | 989 | 2,841 |
| Share of profit for the peride - non-controlling interests | |||
| COMPREHENSIVE INCOME IS ATTRIBUTABLE TO: | |||
| Share of profit for the period - shareholders | 761 | 601 | 2,489 |
| Share of profit for the peride - non-controlling interests |
Statement of financial position
| NOK million | 31.03.24 | 31.12.23 |
|---|---|---|
| ASSETS | ||
| Other intangible assets | 2,744 | 2,792 |
| Total intangible assets | 2,744 | 2,792 |
| Tangible fixed assets | 662 | 658 |
| Tax assets | 2,903 | 3,037 |
| Equities and units in subsidiaries, associated companies and joint ventures | 7,887 | 7,739 |
| Investment properties | 34,671 | 34,382 |
| Loans | 27,344 | 27,153 |
| Bonds and other fixed-income securities | 281,472 | 277,575 |
| Equities and fund units | 371,527 | 333,550 |
| Derivatives | 1,905 | 8,003 |
| Bank deposits | 12,177 | 13,201 |
| Total investments | 736,983 | 701,603 |
| Insurance contracts assets | ||
| Reinsurance contracts assets | 189 | 184 |
| Receivable in the group | 128 | 113 |
| Accounts receivable and other short-term receivables | 49,456 | 48,052 |
| TOTAL ASSETS | 793,064 | 756,438 |
| EQUITY AND LIABILITIES | ||
| Paid in equity | 15,578 | 15,578 |
| Earned equity | -871 | 1,807 |
| Total equity | 14,707 | 17,385 |
| Subordinated loans and hybrid tier 1 capital | 9,963 | 10,672 |
| Insurance contracts liabilities | 320,846 | 316,783 |
| Reinsurance contracts liabilities | ||
| Investment contracts liabilities | 388,752 | 354,270 |
| Pension liabilities etc. | 55 | 57 |
| Deferred tax | 1,056 | 1,064 |
| Derivatives | 9,481 | 6,056 |
| Liabilities to group companies | 533 | 35 |
| Other liabilities | 47,671 | 50,116 |
| Total liabilities | 768,394 | 728,381 |
| TOTAL EQUITY AND LIABILITIES | 793,064 | 756,438 |
Statement of changes in equity
| Majority's share of equity | ||||||
|---|---|---|---|---|---|---|
| NOK million | Share capital |
Share premium |
Other paid in equity |
Total paid in equity |
Other equity |
Total equity |
| Equity at 1.1.2023 | 3,540 | 9,711 | 1,899 | 15,150 | 1,621 | 16,772 |
| Profit for the period | 2,841 | 2,841 | ||||
| Other comprehensive income | -352 | -352 | ||||
| Total comprehensive income for the period | 2,489 | 2,489 | ||||
| Equity transactions with owner: | ||||||
| Received dividend/group contributions | 427 | 427 | 427 | |||
| Paid dividend/group contributions | -2,325 | -2,325 | ||||
| Other | 22 | 22 | ||||
| Equity at 31.12.2023 | 3,540 | 9,711 | 2,327 | 15,578 | 1,807 | 17,385 |
| Profit for the period | 838 | 838 | ||||
| Other comprehensive income | -77 | -77 | ||||
| Total comprehensive income for the period | 761 | 761 | ||||
| Equity transactions with owner: | ||||||
| Received dividend/group contributions | ||||||
| Paid dividend/group contributions | -3,439 | -3,439 | ||||
| Other | ||||||
| Equity at 31.03.2024 | 3,540 | 9,711 | 2,327 | 15,578 | -871 | 14,707 |
Storebrand Livsforsikring Group/AS Statement of cash flow
| group | Storebrand Livsforsikring | Storebrand Livsforsikring AS |
||
|---|---|---|---|---|
| 01.01 - 31.03 | 01.01 - 31.03 | |||
| 2023 | 2024 NOK million | 2024 | 2023 | |
| Cash flow from operating activities | ||||
| 7,102 | 6,045 Net received - direct insurance | 5,636 | 6,676 | |
| -4,894 | -5,515 Net claims/benefits paid - direct insurance | -3,987 | -3,368 | |
| 557 | 3,955 Net receipts/payments - policy transfers | 3,823 | 513 | |
| 28,699 | 465 Net change insurance liabilities | 315 | 28,532 | |
| -156 | -190 Taxes paid | 86 | ||
| 332 | -782 Net receipts/payments operations | -427 | -423 | |
| -188 | -5,461 Net receipts/payments - other operational activities | -104 | -1,692 | |
| 31,452 | -1,482 Net cash flow from operating activities before financial assets | 5,256 | 30,325 | |
| 2,573 | -163 Net receipts/payments - loans to customers | 40 | -250 | |
| -31,732 | 4,576 Net receipts/payments - financial assets | -5,121 | -29,343 | |
| 210 | 227 Net receipts/payments - property activities | |||
| -1 | Receipts - sale of investment properties | |||
| -239 | -146 Payment - purchase of investment properties | |||
| -29,188 | 4,494 Net cash flow from operating activities from financial assets | -5,081 | -29,593 | |
| 2,263 | 3,012 Net cash flow from operating activities | 175 | 732 | |
| Cash flow from investing activities | ||||
| Net payments - purchase/capitalisation associated companies | ||||
| -18 | -1 Net receipts/payments - sale/purchase of fixed assets | -1 | -12 | |
| -18 | -1 Net cash flow from investing activities | -1 | -12 | |
| Cash flow from financing activities | ||||
| Receipts - subordinated loans issued | -7 | |||
| -862 Repayment of subordinated loans | -862 | |||
| -211 | -257 Payments - interest on subordinated loans | -257 | -204 | |
| Payments received of dividend and group contribution | 1,020 | 876 | ||
| -1,760 | -2,934 Payment of dividend and group contribution | -2,934 | -1,760 | |
| -1,971 | -4,053 Net cash flow from financing activities | -3,033 | -1,095 | |
| 275 | -1,042 Net cash flow for the period | -2,858 | -375 | |
| 29,463 | -5,536 of which net cash flow for the period before financial assets | 2,223 | 29,218 | |
| 275 | -1,042 Net movement in cash and cash equivalent assets | -2,858 | -375 | |
| 13,470 | 13,201 Cash and cash equivalents at the start of the period | 9,817 | 8,814 | |
| -315 | 18 Currency translation differences | |||
| 13,430 | 12,177 Cash and cash equivalent assets at the end of the period | 6,959 | 8,439 |
Storebrand Livsforsikring Group Notes to the financial statements
Note Basis for preparation
1
The Group's interim financial statements include Storebrand Livsforsikring AS, subsidiaries, associated and joint-ventures companies. The financial statements are prepared in accordance with IAS 34 Interim Financial Reporting for the consolidated financial statements. The interim financial statements do not contain all the information that is required in full annual financial statements. Please refer to notes in the annual report for detailed information.
A description of the accounting policies applied in the preparation of the financial statements are provided in the 2023 annual report, and the interim financial statements are prepared in accordance with these accounting policies.
There are none new or changed accounting standards that entered into effect in 2024 that have significant effect on Storebrand's consolidated financial statements.
In preparing the Group's financial statements the management are required to make estimates, judgements and assumptions of uncertain amounts. The estimates and underlying assumptions are reviewed on an ongoing basis and are based on historical experience and expectations of future events and represent the management's best judgement at the time the financial statements were prepared.
Actual results may differ from these estimates.
A description of the most critical estimates and judgements that can affect recognised amounts is included in the 2023 annual report in note 2, financial marked risk and insurance risk in note 7 and valuation of financial instruments and properties is described in note 12.
Note Profit by segments
2
Storebrand´s operation includes the segments Savings, Insurance, Guaranteed Pension and Other. A description of the segment reporting and the reconciliation between the profit and loss statement and alternative statement of the result (segment) is included in the 2023 annual report in note 4.
Segment information Q1
| Savings | Insurance | Guaranteed pension | ||||
|---|---|---|---|---|---|---|
| NOK million | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 |
| Fee and administration income | 598 | 559 | 391 | 378 | ||
| Insurance result | 276 | 194 | ||||
| - Insurance premiums for own account | 1,057 | 970 | ||||
| - Claims for own account | -781 | -776 | ||||
| Operational cost | -358 | -357 | -128 | -151 | -215 | -192 |
| Cash equivalent earnings from operations | 240 | 203 | 148 | 43 | 175 | 186 |
| Financial items and risk result life & pension | 6 | -2 | 24 | 6 | 44 | 81 |
| Net profit sharing | 70 | 18 | ||||
| Cash equivalent earnings before amortisation | 246 | 201 | 172 | 48 | 289 | 285 |
| Other | Storebrand Livsforsikring group |
|||
|---|---|---|---|---|
| NOK million | 2024 | 2023 | 2024 | 2023 |
| Fee and administration income | 988 | 937 | ||
| Insurance result | 276 | 194 | ||
| - Insurance premiums for own account | 1,057 | 970 | ||
| - Claims for own account | -781 | -776 | ||
| Operational cost | -9 | -29 | -709 | -728 |
| Cash equivalent earnings from operations | -9 | -29 | 555 | 403 |
| Financial items and risk result life & pension | 169 | 123 | 313 | 225 |
| Cash equivalent earnings before amortisation | 161 | 94 | 868 | 628 |
| Amortisation and write-downs intangible assets | -46 | -50 | ||
| Cash equivalent earnings before tax | 161 | 94 | 822 | 578 |
| Tax | -130 | 109 | ||
| Cash equivalent earnings after tax | 692 | 688 |
Note 3
Liquidity risk
Specification of subordinated loans
| Nominal | Currency | Interest | Call | Book value Book value | ||
|---|---|---|---|---|---|---|
| NOK million | value | rate | date | 31.03.24 | 31.12.23 | |
| Issuer | ||||||
| Perpetual subordinated loans 1) | ||||||
| Storebrand Livsforsikring AS 4) | 1,100 NOK | Variable | 2024 | 863 | ||
| Storebrand Livsforsikring AS 2) | 900 SEK | Variable | 2026 | 916 | 910 | |
| Storebrand Livsforsikring AS | 300 NOK | Variable | 2028 | 303 | 302 | |
| Storebrand Livsforsikring AS 2) | 400 SEK | Variable | 2028 | 409 | 406 | |
| Storebrand Livsforsikring AS 2) | 300 NOK | Fixed | 2028 | 317 | 316 | |
| Dated subordinated loans | ||||||
| Storebrand Livsforsikring AS 2) | 900 SEK | Variable | 2025 | 914 | 907 | |
| Storebrand Livsforsikring AS 2) | 1,000 SEK | Variable | 2024 | 1,017 | 1,010 | |
| Storebrand Livsforsikring AS | 500 NOK | Variable | 2025 | 501 | 501 | |
| Storebrand Livsforsikring AS 3) | 650 NOK | Variable | 2027 | 653 | 653 | |
| Storebrand Livsforsikring AS 2,3) | 750 NOK | Fixed | 2027 | 764 | 763 | |
| Storebrand Livsforsikring AS 2,3) | 1,250 NOK | Variable | 2027 | 1,259 | 1,260 | |
| Storebrand Livsforsikring AS 2) | 300 EUR | Fixed | 2031 | 2,911 | 2,782 | |
| Total subordinated loans and hybrid capital | 9,963 | 10,672 |
1) Regarding perpetual subordinated loans, the cash flow has been calculated until the first call.
2) The loans are subject to hedge accounting.
3) Green bonds
4) The loan has been repaid in the first quarter of 2024
Note 4
Valuation of financial instruments and investment properties
The Group categorises financial instruments valued at fair value on three different levels. Criteria for the categorisation and processes associated with valuing are described in more detail in note 12 in the annual report for 2023.
The company has established valuation models and gathers information from a wide range of wellinformed sources with a view to minimize the uncertainty of valuations.
Fair value of financial assets and liabilities at amortised cost
| NOK million | Fair value | Fair value | Book value | Book value |
|---|---|---|---|---|
| 31.03.24 | 31.12.23 | 31.03.24 | 31.12.23 | |
| Subordinated loan capital | 10,001 | 10,711 | 9,963 | 10,672 |
Valuation of financial instruments at fair value OCI
| Level 1 | Level 2 | Level 3 Non |
|||
|---|---|---|---|---|---|
| NOK million | Quoted prices |
Observable assumptions |
observable assumptions |
Total 31.03.2024 |
Total 31.12.2023 |
| Bonds and other fixed income securities | |||||
| - Government bonds | 1,555 | 1,555 | 1,847 | ||
| - Corporate bonds | 4,070 | 4,070 | 4,133 | ||
| - Structured notes | 498 | 498 | 497 | ||
| Total bonds and other fixed income securities 31.03.2024 | 6,123 | 6,123 | |||
| Total bonds and other fixed income securities 31.12.2023 | 6,477 | 6,477 |
Valuation of financial instruments and properties at fair value
| Level 1 | Level 2 | Level 3 Non |
|||
|---|---|---|---|---|---|
| NOK million | Quoted prices |
Observable assumptions |
observable assumptions |
31.03.24 | 31.12.23 |
| Assets | |||||
| Equities and fund units | |||||
| - Equities | 44,560 | 285 | 71 | 44,916 | 41,626 |
| - Fund units | 302,601 | 24,011 | 326,611 | 291,924 | |
| Total equities and fund units 31.03.2024 | 44,560 | 302,885 | 24,082 | 371,527 | |
| Total equities and fund units 31.12.2023 | 41,240 | 270,648 | 21,662 | 333,550 | |
| Total loans to customers | |||||
| - Loans to customers - corporate | 10,651 | 10,651 | 10,391 | ||
| - Loans to customers - private | 16,693 | 16,693 | 16,761 | ||
| Bonds and other fixed income securities | |||||
| - Government bonds | 31,129 | 33,038 | 64,167 | 62,098 | |
| - Corporate bonds | 108,675 | 8 | 108,683 | 106,242 | |
| - Structured notes | 13,414 | 13,414 | 14,055 | ||
| - Collateralised securities | 2,642 | 2,642 | 3,049 | ||
| - Bond funds | 72,036 | 14,409 | 86,444 | 85,654 | |
| Total bonds and other fixed income securities 31.03.2024 | 31,129 | 229,804 | 14,416 | 275,349 | |
| Total bonds and other fixed income securities 31.12.2023 | 27,674 | 228,278 | 15,146 | 271,098 | |
| Derivatives: | |||||
| - Equity derivatives | |||||
| - Interest derivatives | -4,548 | -4,548 | -3,193 | ||
| - Currency derivatives | -3,029 | -3,029 | 5,140 | ||
| Total derivatives 31.03.2024 | -7,576 | -7,576 | |||
| - derivatives with a positive market value | 1,905 | 1,905 | 8,003 | ||
| - derivatives with a negative market value | -9,481 | -9,481 | -6,056 | ||
| Total derivatives 31.12.2023 | 1,947 | 1,947 | |||
| Properties: | |||||
| - investment properties | 32,922 | 32,922 | 32,644 | ||
| - Owner-occupied properties | 1,748 | 1,748 | 1,737 | ||
| Total properties 31.03.2024 | 34,671 | 34,671 | |||
| Total properties 31.12.2023 | 34,382 | 34,382 |
There is no significant movement between level 1 and level 2 in this quarter.
Movement level 3
| NOK million | Equities | Fund units | Loans to customers |
Corporate bonds |
Bond funds | Investment properties |
Owner occupied properties |
|---|---|---|---|---|---|---|---|
| Book value 01.01 | 76 | 21,586 | 27,152 | 8 | 15,138 | 32,644 | 1,737 |
| Net profit/loss | -3 | 2,887 | -64 | 296 | -60 | -1 | |
| Supply/disposal | -2 | -485 | 212 | -1,111 | 168 | 37 | |
| Sales/overdue/settlement | |||||||
| To quoted prices and observable assumptions | |||||||
| Currency translation differences | 25 | 43 | 84 | 85 | -25 | ||
| Other | -3 | 85 | |||||
| Book value 31.03.2024 | 71 | 24,011 | 27,344 | 8 | 14,408 | 32,922 | 1,748 |
As of 31 March 2024, Storebrand Livsforsikring had NOK 7 678 million invested in Storebrand Eiendomsfond Norge KS and Ruseløkkveien 26 AS, Oslo. The investments are classified as "investment in associated companies and joint ventures" in the Consolidated Financial Statements.
Sensitivity assessments
Sensitivity assessments of investments on level 3 are described in note 12 in the 2023 annual report. There is no significant change in sensitivity in this quarter.
Note 5
Insurance contracts
Sensitivities
| NOK Million | CSM as at end of period |
Impact on CSM | |
|---|---|---|---|
| 12,647 | |||
| Equity down | -25% | (2,410) | |
| Property down | - 10bp | (1,070) | |
| Interest rate up | - 50bp | 803 | |
| Interest rate down | + 50bp | (711) | |
| Spread up | + 15bp | (779) | |
| Mortality down | -5% | (363) | |
| Disability up and return to work from disability down |
5% | (29) | |
| Expenses up | +5 % | (316) |
Insurance revenue and expenses
| 31.03.24 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Guaranteed pension | Insurance | |||||||
| NOK million | Guarantee d products - Norway |
Guarantee d products - Sweden |
Pension related disability insurance - Norway |
P&C and Individual Life |
Group Life and Disability Insurance |
Total | 31.03.23 | 31.12.23 |
| Contracts measured under VFA and GMM |
||||||||
| Amounts relating to changes in LRC Expected incurred claims and other insurance service expenses |
||||||||
| Expected incurred claims | -1 | 175 | 175 | 142 | 611 | |||
| Expected incurred expenses | 137 | 51 | 35 | 223 | 208 | 831 | ||
| Change in the risk adjustment for non-financial risk for risk expired |
50 | 26 | 6 | 82 | 84 | 336 | ||
| CSM recognised in P&L for services provided |
299 | 119 | 98 | 516 | 513 | 1,898 | ||
| Other | ||||||||
| Recovery of insurance acquisition cash flows |
1 | 1 | 2 | 4 | 3 | 12 | ||
| Insurance revenue from contracts measured under VFA and GMM |
486 | 197 | 317 | 1,000 | 950 | 3,687 | ||
| Insurance revenue from contracts measured under the PAA |
326 | 365 | 691 | 690 | 2,440 | |||
| Total insurance revenue | 486 | 197 | 317 | 326 | 365 | 1,691 | 1,640 | 6,126 |
| Incurred claims and other directly attributable expenses |
||||||||
| Incurred claims | -140 | -212 | -358 | -711 | -797 | -2,167 | ||
| Incurred expenses | -152 | -52 | -31 | -37 | -45 | -318 | -313 | -1,267 |
| Changes that relate to past service - Adjustment to the LIC |
103 | 147 | 249 | 108 | -225 | |||
| Losses on onerous contracts and reversal on those losses |
334 | -29 | -327 | -12 | -33 | -5 | -771 | |
| Insurance acquisition cash flows amortisation |
-1 | -1 | -2 | -4 | -3 | -12 | ||
| Total insurance service expenses | 182 | -82 | -501 | -147 | -268 | -816 | -1,010 | -4,442 |
| Net income (expenses) from reinsurance contracts held |
-3 | -1 | -5 | -11 | -53 | |||
| Total insurance service result | 667 | 115 | -184 | 176 | 96 | 870 | 619 | 1,631 |
Guaranteed pension
Reconciliation of the measurement component of insurance contract balances
| 31.03.24 | ||||||
|---|---|---|---|---|---|---|
| NOK million | Present value of future cash flows |
Risk adjustment for non financial risk |
CSM | Total | Total 31.12.2023 |
|
| Net opening balance | 295,453 | 3,984 | 10,801 | 310,239 | 296,171 | |
| Changes that relate to current service | ||||||
| CSM recognised in profit or loss for the services provided |
-516 | -516 | -1,898 | |||
| Change in the risk adjustment for non-financial risk for the risk expired |
-83 | -83 | -338 | |||
| Experience adjustments | -21 | -21 | 33 | |||
| Total changes that relate to current service | -21 | -83 | -516 | -620 | -2,202 | |
| Change that relate to future service | ||||||
| Changes in estimates that adjust the CSM | -1,951 | -30 | 1,981 | |||
| Changes in estimates that results in onerous contract losses or reversal of losses |
-259 | -62 | -321 | 555 | ||
| Contracts initially recognised in the period | -103 | 91 | 354 | 342 | 217 | |
| Total changes that relate to future service | -2,313 | -1 | 2,335 | 21 | 772 | |
| Changes that relate to past service | ||||||
| Adjustment to liabilities for incurred claims | ||||||
| Insurance service result | -2,335 | -84 | 1,819 | -599 | -1,430 | |
| Finance expenses from insurance contracts issued recognised in profit or loss |
3,428 | 5 | 3,433 | 15,160 | ||
| Finance expenses from insurance contracts issued recognised in OCI |
||||||
| Finance expenses from insurance contracts issued | 3,428 | 5 | 3,433 | 15,160 | ||
| Total amount recognised in comprehensive income |
1,094 | -84 | 1,823 | 2,833 | 13,730 | |
| Other changes | 9 | 9 | 45 | |||
| Effect of changes in foreign exchange rates | 558 | 7 | 22 | 587 | 5,239 | |
| Cash flows | ||||||
| Premiums received | 2,695 | 2,695 | 9,607 | |||
| Claims and other directly attributable expenses paid | -2,154 | -2,154 | -14,503 | |||
| Insurance acquisition cash flows | -19 | -19 | -51 | |||
| Total cash flows | 522 | 522 | -4,947 | |||
| Net closing balance | 297,636 | 3,908 | 12,647 | 314,190 | 310,239 |
Insurance
Reconciliation of the liability for remaining coverage and the liability for incurred claims
| 31.03.24 | ||||||
|---|---|---|---|---|---|---|
| LIC for contracts under the LRC PAA |
||||||
| NOK million | Excluding loss component |
Loss component |
Present value of future cash flows |
Risk adjustment for non financial risk |
Total | Total 31.12.23 |
| Net opening balance | 268 | 10 | 6,145 | 122 | 6,544 | 5,996 |
| Insurance revenue | -691 | -691 | -2,440 | |||
| Insurance service expenses | ||||||
| Incurred claims and other directly attributable expenses |
653 | 653 | 1,956 | |||
| Adjustment to liabilities for incurred claims | -258 | 8 | -249 | 225 | ||
| Losses on onerous contracts and reversal of those losses |
12 | 12 | ||||
| Insurance acquisition cash flows amortisation | ||||||
| Insurance service expenses | 12 | 395 | 8 | 415 | 2,181 | |
| Insurance service result | -691 | 12 | 395 | 8 | -276 | -259 |
| Finance expenses from insurance contracts issued recognised in profit or loss |
-19 | -19 | 113 | |||
| Finance expenses from insurance contracts issued recognised in OCI |
||||||
| Finance expenses from insurance contracts issued |
-19 | -19 | 113 | |||
| Total amounts recognised in comprehensive income |
-691 | 12 | 376 | 8 | -295 | -146 |
| Investment components | ||||||
| Other changes | ||||||
| Effect of changes in foreign exchange rates | 7 | 7 | 69 | |||
| Cash flows | ||||||
| Premiums recieved | 921 | 921 | 2,431 | |||
| Claims and other directly attributable expenses paid |
-523 | -523 | -1,806 | |||
| Insurance acquisition cash flows | ||||||
| Total cash flows | 921 | -523 | 398 | 625 | ||
| Net closing balance | 498 | 21 | 6,005 | 131 | 6,654 | 6,545 |
Note
6
Tax
A description of the accounting principles for tax, and the most significant impact on the effective tax rate is described in Storebrand Livsforsikring's annual report note 1 and note 21.
Uncertain tax positions
The tax rules for the insurance industry have undergone changes in recent years. In some cases, Storebrand and the Norwegian Tax Administration have had different interpretations of the tax rules and
associated transitional rules. As a result of this, uncertain tax positions arise in connection with the recognised tax expenses. Whether or not the uncertain tax positions have to be recognised in the financial statements is assessed in accordance with IAS 12 and IFRIC 23. Uncertain tax positions will only be recognised in the financial statements if the company considers it to be preponderance that the Norwegian Tax Administration's interpretation will be accepted in a court of law. For further description of uncertain tax positions, se note 21 (group) and note 26 (company) in Storebrand Livsforsikring's Annual Report. The discussion below relates to developments in the case in the first quarter of 2024.
As previously stated in the annual report, Storebrand received full approval from the Tax Appeals Commitee regarding group contributions in June 2023. In December 2023, the Ministry of Finance took legal action against the decision. In a petition dated 15 March 2024, the Ministry of Finance states that the remaining issue is regarding the direct group contributions, and Storebrand sees that a substantial part of the uncertain tax position is therefore considered finally settled. With regard to the direct group contribution from Storebrand Eiendom Holding AS to Storebrand Livsforsikring AS, the assessment is that there is a preponderance of probability that the company's view will prevail in a legal process, and an uncertain tax position has therefore not been recognised in the accounts based on the subpoena. If the Ministry of Finance prevails with its views on the direct group contributions, a tax cost for the company will arise between NOK 100 and 400 million,
The outcome of the interpretation of tax rules for group contributions under (A) will have an impact when calculating the effect from the transitional rules for the new tax rules referred to under point (B). The Ministry of Finance will not argue that indirect group contributions must be assumed to apply in general terms, and will therefore also have an impact on an indirect group contribution of approximately NOK 1.8 billion. If the Ministry of Finance prevails, Storebrand will account for a tax cost of approximately NOK 40 million.
Storebrand has reviewed the uncertain tax positions as part of the reporting process. The review has not reduced the company's assessment of the probability that Storebrand's interpretation will be accepted in a court of law. The timeline for the continued process is unclear, but if necessary, Storebrand will seek clarification from the court of law for the aforementioned uncertain tax positions.
Note Contingent assets and liabilities
7
| Storebrand Livsforsikring Group | |||||
|---|---|---|---|---|---|
| NOK million | 31.03.24 | 31.12.23 | |||
| Uncalled residual liabilities limitied partnership | 3,999 | 3,990 | |||
| Uncalled residual liabilities in alternative investment funds | 14,970 | 14,949 | |||
| Total contigent liabilities | 18,969 | 18,939 |
Guarantees essentially encompass payment and contract guarantees.
Storebrand Group companies are engaged in extensive activities in Norway and abroad, and are subject for client complaints and may become a party in legal disputes, see also note 2 and note 37 in the 2023 annual report.
Note 8 Information about related parties
The terms for transactions with management and related parties are stipulated in notes 24 for the parent company and note 39 for the group, in the 2023 annual report.
Storebrand Livsforsikring acquires mortgages from Storebrand Bank ASA at commercial terms. The total portfolio of loans bought as of 31 March 2024 is NOK 16.9 billion, net changes of NOK -0.2 billion year to date. Storebrand Livsforsikring AS pays management fees to Storebrand Bank ASA for management of the portfolios, the expence year to date is NOK 16.9 million.
Statement of comprehensive income
| 01.01 - 31.03 | Full year | ||
|---|---|---|---|
| NOK million | 2024 | 2023 | 2023 |
| TECHNICAL ACCOUNT: | |||
| Gross premiums written | 7,283 | 7,370 | 26,018 |
| Reinsurance premiums ceded | -11 | -30 | -33 |
| Premium reserves and pension capital transferred from other | 6,115 | 3,997 | 10,735 |
| companies Premiums for own account |
13,387 | 11,338 | 36,720 |
| Income from investments in subsidiaries, associated companies and joint ventures companies |
290 | 219 | -1,200 |
| of which from investment in property companies | 290 | 219 | -1,200 |
| Interest income and dividends etc. from financial assets | 1,367 | 1,056 | 5,000 |
| Changes in investment value | -155 | 1,300 | 2,683 |
| Realised gains and losses on investments | 1,351 | -424 | -869 |
| Total net income from investments in the collective portfolio | 2,853 | 2,151 | 5,615 |
| Income from investments in subsidiaries, associated companies and joint ventures companies |
89 | 60 | -338 |
| of which from investment in rproperty companies | 89 | 60 | -338 |
| Interest income and dividends etc. from financial assets | 220 | 238 | 1,707 |
| Changes in investment value | 11,519 | 9,138 | 11,509 |
| Realised gains and losses on investments | 1,959 | -644 | 9,852 |
| Total net income from investments in the investment selection | |||
| portfolio | 13,788 | 8,791 | 22,729 |
| Other insurance related income | 235 | 201 | 824 |
| Gross claims paid | -3,937 | -3,761 | -15,062 |
| Claims paid - reinsurance | 2 | 10 | 33 |
| Premium reserves, pension capital etc., additional satutory reserves | -3,638 | -3,484 | -15,444 |
| and buffer fund transferred to other companies | |||
| Claims for own account | -7,573 | -7,235 | -30,473 |
| To/from premium reserve, gross | -3,120 | -1,846 | -1,923 |
| Change in market value adjustment fund1) | -29 | -988 | -1,783 |
| Change in buffer fund1) | -414 | -611 | 1,717 |
| Change in premium fund, deposit fund and the pension surplus fund | -1 | ||
| To/from technical reserves for non-life insurance business | -55 | -39 | -46 |
| Transfer of additional statutory reserves and buffer fund from other insurance companies/pension funds |
434 | 192 | 254 |
| Changes in insurance obligations recognised in the Profit and | |||
| Loss Account - contractual obligations | -3,185 | -3,292 | -1,781 |
| Change in pension capital | -17,159 | -11,822 | -30,110 |
| Changes in insurance obligations recognised in the Profit and Loss Account - investment portfolio separately |
-17,159 | -11,822 | -30,110 |
Statement of comprehensive income (continued)
| 01.01 - 31.03 | Full year | |||
|---|---|---|---|---|
| NOK million | 2024 | 2023 | 2023 | |
| Profit on investment result | -8 | -120 | ||
| Risk result allocated to insurance contracts | -49 | -216 | ||
| Other allocation of profit | -1,413 | -60 | ||
| Unallocated profit | -155 | |||
| Funds allocated to insurance contracts | -1,462 | -162 | -396 | |
| Management expenses | -56 | -56 | -228 | |
| Selling expenses | -73 | -81 | -294 | |
| Insurance-related administration expenses (incl. commissions for reinsurance received) |
-298 | -286 | -1,236 | |
| Insurance-related operating expenses | -427 | -423 | -1,758 | |
| Other insurance related expenses after reinsurance share | -12 | -11 | -84 | |
| Technical insurance profit | 446 | -464 | 1,284 | |
| NON-TECHNICAL ACCOUNT | ||||
| Income from investments in subsidiaries, associated companies and joint ventures companies |
1,099 | 1,666 | 1,640 | |
| Interest income and dividends etc. from financial assets | 182 | 160 | 725 | |
| Changes in investment value | 25 | 149 | 139 | |
| Realised gains and losses on investments | -6 | -749 | -604 | |
| Net income from investments in company portfolio | 1,301 | 1,226 | 1,900 | |
| Other income | 24 | 16 | 90 | |
| Management expenses | -5 | -5 | -19 | |
| Other expenses | -241 | -356 | -1,147 | |
| Total management expenses and other costs linked to the company portfolio |
-246 | -361 | -1,166 | |
| Profit or loss on non-technical account | 1,079 | 882 | 824 | |
| Profit before tax | 1,525 | 418 | 2,109 | |
| Tax expenses | -104 | 303 | 326 | |
| Profit before other comprehensive income | 1,421 | 721 | 2,435 | |
| Change in actuarial assumptions | -2 | |||
| Tax on other profit elements not to be reclassified to profit/loss | 4 | 3 | ||
| Other comprehensive income not to be reclassified to profit/loss |
4 |
Statement of comprehensive income (continued)
| NOK million | 01.01 - 31.03 | |||
|---|---|---|---|---|
| 2023 | 2023 | |||
| Profit/loss cash flow hedging | -15 | -10 | ||
| Other profit comprehensive income that may be reclassified to profit /loss |
-15 | -10 | ||
| Other comprehensive income | -11 | -10 | ||
| TOTAL COMPREHENSIVE INCOME | 1,421 | 710 | 2,425 |
1) The additional statutory reserves and the market value adjustment fund have been merged into the buffer fund from January 1, 2024
Storebrand Livsforsikring AS Statement of financial position
NOK million 31.03.24 31.12.23 ASSETS ASSETS IN COMPANY PORTFOLIO Goodwill 302 302 Other intangible assets 1,055 1,091 Total intangible assets 1,357 1,392 Equities and units in subsidiaries, associated companies and joint ventures 13,133 13,045 of which investment in property companies Loans at amortised cost 2,959 3,218 Bonds at amortised cost 12,326 12,453 Deposits at amoritsed cost 484 332 Equities and fund units at fair value 357 598 Bonds and other fixed-income securities at fair value 3,860 6,065 Derivatives at fair value 22 499 Total investments 33,142 36,209 Receivables in connection with direct business transactions 1,115 831 Receivables in connection with reinsurance transactions 3 5 Receivables with group company 598 578 Other receivables 40,948 40,298 Total receivables 42,665 41,713 Tangible fixed assets 14 14 Cash, bank 2,297 1,245 Tax assets 1,196 1,300 Other assets designated according to type 3 3 Total other assets 3,510 2,562 Other pre-paid costs and income earned and not received 83 64 Total pre-paid costs and income earned and not received 83 64 Total assets in company portfolio 80,757 81,942
Statement of financial position (continued)
| NOK million | 31.03.24 | 31.12.23 |
|---|---|---|
| ASSETS IN CUSTOMER PORTFOLIOS | ||
| Equities and units in subsidiaries, associated companies and joint ventures | 21,979 | 22,226 |
| of which investment in property companies | 21,979 | 22,226 |
| Bonds held to maturity | ||
| Bonds at amortised cost | 141,542 | 135,453 |
| Loans at amoritsed cost | 17,486 | 17,279 |
| Deposits at amoritsed cost | 3,272 | 7,704 |
| Equities and fund units at fair value | 19,758 | 19,675 |
| Bonds and other fixed-income securities at fair value | 9,791 | 8,798 |
| Derivatives at fair value | 987 | 2,045 |
| Total investments in collective portfolio | 214,815 | 213,182 |
| Reinsurance share of insurance obligations | 180 | 175 |
| Equities and units in subsidiaries, associated companies and joint ventures | 7,105 | 6,319 |
| of which investment in property companies | 7,105 | 6,319 |
| Bonds at amortised cost | 266 | 187 |
| Loans at amoritsed cost | 554 | 546 |
| Deposits at amoritsed cost | 906 | 536 |
| Equities and fund units at fair value | 161,866 | 143,577 |
| Bonds and other fixed-income securities at fair value | 56,740 | 54,052 |
| Loans at fair value | 137 | 135 |
| Derivatives at fair value | 26 | 3,582 |
| Other financial assets | ||
| Total investments in investment selection portfolio | 227,601 | 208,934 |
| Total assets in customer portfolios | 442,596 | 422,290 |
| TOTAL ASSETS | 523,353 | 504,232 |
Statement of financial position (continued)
| NOK million | 31.03.24 | 31.12.23 |
|---|---|---|
| EQUITY AND LIABILITIES | ||
| Share capital | 3,540 | 3,540 |
| Share premium | 9,711 | 9,711 |
| Other paid in equity | 2,708 | 2,708 |
| Total paid in equity | 15,959 | 15,959 |
| Risk equalisation fund | 1,129 | 1,067 |
| Security reserves | 7 | 7 |
| Other earned equity | 10,525 | 9,167 |
| Total earned equity | 11,662 | 10,241 |
| Perpetual subordinated loans | 1,945 | 2,798 |
| Dated subordinated loans | 8,019 | 7,875 |
| Total subordinated loans and hybrid tier 1 capital | 9,963 | 10,672 |
| Premium reserves | 195,278 | 191,951 |
| Market value adjustment reserve1) | 67 | 2,411 |
| Buffer fund1) | 12,926 | 8,990 |
| Premium fund, deposit fund and the pension surplus fund | 2,900 | 2,986 |
| Unallocated profit to insurance contracts | 97 | |
| Other technical reserve | 846 | 788 |
| Total insurance obligations in life insurance - contractual obligations | 212,114 | 207,127 |
| Pension capital | 226,452 | 209,317 |
| Total insurance obligations in life insurance - investment portfolio separately | 226,451 | 209,317 |
Statement of financial position (continued)
| NOK million | 31.03.24 | 31.12.23 |
|---|---|---|
| Pension liabilities etc. | ||
| Deferred tax | 199 | 199 |
| Other provisions for liabilities | ||
| Total provisions for liabilities | 199 | 199 |
| Liabilities in connection with direct insurance | 851 | 905 |
| Liabilities in connection with reinsurance | ||
| Derivatives | 5,169 | 2,615 |
| Liabilities to group companies | 534 | 3,474 |
| Other liabilities | 39,636 | 43,409 |
| Total liabilities | 46,190 | 50,403 |
| Other accrued expenses and received, unearned income | 815 | 314 |
| Total accrued expenses and received, unearned income | 815 | 314 |
| TOTAL EQUITY AND LIABILITIES | 523,353 | 504,232 |
1) The additional statutory reserves and the market value adjustment fund have been merged into the buffer fund from January 1, 2024
Storebrand Livsforsikring AS Statement of changes in equity
| Share capital1) |
Share premium reserve |
Other paid in capital |
Total paid in equity |
Risk equalisatio n fund |
Security reserves |
Other equity |
Total equity |
|---|---|---|---|---|---|---|---|
| 3,540 | 9,711 | 2,327 | 15,578 | 809 | 8 | 10,423 | 26,818 |
| 234 | 2,200 | 2,434 | |||||
| -10 | -10 | ||||||
| 234 | 2,190 | 2,424 | |||||
| 381 | 381 | 381 | |||||
| -3,439 | -3,439 | ||||||
| 23 | -6 | 17 | |||||
| 3,540 | 9,711 | 2,708 | 15,959 | 1,067 | 7 | 9,167 | 26,200 |
| 62 | 1,358 | 1,421 | |||||
| 62 | 1,358 | 1,421 | |||||
| 3,540 | 9,711 | 2,708 | 15,959 | 1,129 | 7 | 10,526 | 27,621 |
1) 35 404 200 shares of NOK 100 par value.
Storebrand Livsforsikring AS Notes to the financial statements
Note Basis for preparation
1
The financial statements are prepared in accordance with the Regulation on the annual accounts etc. of lifeinsurance companies" for the parent company. The interim financial statements do not contain all the information that is required in full annual financial statements.
A description of the accounting policies applied in the preparation of the financial statements are provided in the 2023 annual report, and the interim financial statements are prepared in accordance with these accounting policies.
Se note 1 in the consolidated accounts for information about estimates, note 3 for information on subordinated loans and liquidity risk, note 6 for development in the uncertain tax positions and note 8 for information about related parties.
Note 2 Segments - profit by business area
Storebrand´s operation includes the segments Savings, Insurance, Guaranteed Pension and Other. A description of the segment reporting and the reconciliation between the profit and loss statement and alternative statement of the result (segment) is included in the 2023 annual report in note 4.
Segment information Q1
| Savings | Insurance | Guaranteed pension | ||||
|---|---|---|---|---|---|---|
| NOK million | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 |
| Fee and administration income | 298 | 292 | 257 | 249 | ||
| Insurance result | 215 | 157 | ||||
| - Insurance premiums for own account | 976 | 894 | ||||
| - Claims for own account | -761 | -736 | ||||
| Operational cost | -145 | -161 | -114 | -136 | -153 | -133 |
| Cash equivalent earnings from operations | 153 | 130 | 101 | 22 | 105 | 116 |
| Financial items and risk result life & pension | 24 | 6 | 48 | 66 | ||
| Net profit sharing | 16 | 1 | ||||
| Cash equivalent earnings before amortisation | 152 | 130 | 125 | 27 | 168 | 183 |
| Other | Storebrand Livsforsikring AS |
|||
|---|---|---|---|---|
| NOK million | 2024 | 2023 | 2024 | 2023 |
| Fee and administration income | 555 | 541 | ||
| Insurance result | 215 | 157 | ||
| - Insurance premiums for own account | 976 | 894 | ||
| - Claims for own account | -761 | -736 | ||
| Operational cost | -6 | -27 | -418 | -457 |
| Cash equivalent earnings from operations | -6 | -27 | 352 | 241 |
| Financial items and risk result life & pension | 1,111 | 938 | 1,198 | 1,010 |
| Cash equivalent earnings before amortisation | 1,104 | 911 | 1,550 | 1,252 |
| Amortisation and write-downs intangible assets | -25 | -29 | ||
| Cash equivalent earnings before tax | 1,525 | 1,222 | ||
| Tax | -104 | -57 | ||
| Cash equivalent earnings after tax | 1,421 | 1,166 |
Note 3
Valuation of financial instruments and properties
The Group categorises financial instruments valued at fair value on three different levels. Criteria for the categorisation and processes associated with valuing are described in more detail in note 13 in the annual report for 2023.
The company has established valuation models and gathers information from a wide range of wellinformed sources with a view to minimize the uncertainty of valuations.
Fair value of financial assets and liabilities at amortised cost
| NOK million | Fair value 31.03.24 |
Fair value 31.12.23 |
Book value 31.03.24 |
Book value 31.12.23 |
|---|---|---|---|---|
| Financial assets | ||||
| Loans to customers - corporate | 3,987 | 3,991 | 4,075 | 4,056 |
| Loans to customers - retail | 16,712 | 16,766 | 16,925 | 16,986 |
| Bonds held to maturity | ||||
| Bonds classified as loans and receivables | 142,084 | 137,898 | 154,134 | 148,094 |
| Financial liabilities | ||||
| Subordinated loan capital | 10,079 | 10,774 | 9,963 | 10,672 |
Expected credit loss
| 31.03.24 | ||||
|---|---|---|---|---|
| Stage 1 | Stage 2 Lifetime ECL - credit risk significantly |
Stage 3 LiftimeECL - |
||
| NOK million 01.01.2023 |
12 months ECL -65 |
increased | credit impaired | Total -65 |
| The periods change in impairment losses stage 1 | ||||
| The periods change in impairment losses stage 2 | ||||
| The periods change in impairment losses stage 3 | ||||
| New loans/bonds | -2 | -2 | ||
| Derecognition | 2 | 2 | ||
| ECL on financial assets without change in stage | -11 | -11 | ||
| 31.03.24 | -75 | -75 | ||
| ECL FVOCI bonds | -1 | |||
| ECL Amortized Cost loan | -29 | -29 | ||
| ECL Amortized Cost bonds | -45 | -45 | ||
| Total | -75 | -73 |
Valuation of financial instruments and properties at fair value
| Level 1 | Level 2 | Level 3 | Total | ||
|---|---|---|---|---|---|
| Quoted | Observable | Non observable |
|||
| NOK million | prices | assumptions | assumptions | 31.03.24 | 31.12.23 |
| Assets | |||||
| Equities and fund units | |||||
| - Equities | 43,073 | 250 | 71 | 43,394 | 40,278 |
| - Fund units | 118,597 | 19,990 | 138,587 | 123,572 | |
| Total equities and fund units 31.03.2024 | 43,073 | 118,846 | 20,061 | 181,980 | |
| Total equities and fund units 31.12.2023 | 39,924 | 105,806 | 18,120 | 163,850 | |
| Total loans to customers | |||||
| - Loans to customers - corporate | 137 | 137 | 135 | ||
| Bonds and other fixed income securities | |||||
| - Government bonds | 8,002 | 8,002 | 7,948 | ||
| - Corporate bonds | 3,094 | 3,094 | 3,117 | ||
| - Structured notes | 222 | 222 | 323 | ||
| - Collateralised securities | |||||
| - Bond funds | 56,213 | 2,860 | 59,074 | 57,528 | |
| Total bonds and other fixed income securities 31.03.2024 | 8,002 | 59,530 | 2,860 | 70,392 | |
| Total bonds and other fixed income securities 31.12.2023 | 7,948 | 58,216 | 2,752 | 68,916 | |
| Derivatives: | |||||
| - Interest derivatives | -1,519 | -1,519 | -1,093 | ||
| - Currency derivatives | -2,614 | -2,614 | 4,604 | ||
| Total derivatives 31.03.2024 | -4,133 | -4,133 | |||
| - derivatives with a positive market value | 1,036 | 1,036 | 6,126 | ||
| - derivatives with a negative market value | -5,169 | -5,169 | -2,615 | ||
| Total derivatives 31.12.2023 | 3,511 | 3,511 |
Movement level 3
| NOK million | Equities | Fund units | Loans to customers |
Corporate bonds |
Bond funds |
|---|---|---|---|---|---|
| Book value 01.01 | 76 | 18,044 | 135 | 2,752 | |
| Merger | |||||
| Net profit/loss | -3 | 2,383 | 2 | 123 | |
| Supply/disposal | -2 | -436 | -15 | ||
| Sales/overdue/settlement | |||||
| Book value 31.03.2024 | 71 | 19,990 | 137 | 2,860 |
Note
4
| Storebrand Livsforsikring AS | |||
|---|---|---|---|
| NOK million | 31.03.24 | 31.12.23 | |
| Uncalled residual liabilities limitied partnership | 3,765 | 3,762 | |
| Uncalled residual liabilities in alternative investment funds | 12,372 | 12,382 | |
| Total contigent liabilities | 16,137 | 16,144 |
Guarantees essentially encompass payment and contract guarantees.
Contingent assets and liabilities
Storebrand Group companies are engaged in extensive activities in Norway and abroad, and are subject for client complaints and may become a party in legal disputes, see also note 2 and note 43 in the 2023 annual report.
Note Solvency II
5
Storebrand Livsforsikring is an insurance company with capital requirements in accordance with Solvency II. See note 46 in the annual report for further description of solvency reporting.
| NOK million | 31.03.24 | 31.12.23 |
|---|---|---|
| Total solvency capital | 43,072 | 40,523 |
| Total solvency capital available to cover the minimum capital requirement | 36,078 | 33,806 |
| Total solvency requirement | 16,717 | 16,195 |
| Solvency margin | 258% | 250% |
| Minimum capital requirement | 6,820 | 6,902 |
| Minimum margin | 529% | 490% |
Financial calendar
12 July 2024 Results Q2 2024 23 October 2024 Results Q3 2024
Investor Relations contacts
Lars Aa. Løddesøl
Group CFO [email protected] +47 934 80 151
Kjetil R. Krøkje
Group Head of Finance, Strategy and M&A [email protected] +47 934 12 155
Johannes Narum
Head of Investor Relations [email protected] +47 993 33 569
Storebrand Livsforsikring AS Professor Kohts vei 9, P.O. Box 500, N-1327 Lysaker, Norway Phone: +47 22 31 50 50
Interim Report Storebrand Livsforsikring AS 44