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Storebrand ASA
Quarterly Report • Feb 12, 2025
3766_rns_2025-02-12_d0e6b890-ad6b-49ba-8bd0-0aec146b13f4.pdf
Quarterly Report
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Interim report 4th quarter 2024
Storebrand Group (unaudited)
Contents
Financial performance business areas
| Storebrand Group 3 | |
|---|---|
| Savings 6 | |
| Insurance 7 | |
| Guaranteed pension 9 | |
| Other 10 | |
| Balance sheet and capital situation 11 | |
| Outlook 13 | |
Financial statements Storebrand Group
| Income statement 15 | |
|---|---|
| Statement of comprehensive income 16 | |
| Statement of financial position17 | |
| Statement of changes in equity 18 | |
| Statement of cash flow 19 | |
| Notes 21 |
Financial Storebrand ASA
| Income statement 40 | |
|---|---|
| Statement of comprehensive income 40 | |
| Statement of financial position41 | |
| Statement of changes in equity 42 | |
| Statement of cash flow 43 | |
| Notes 44 |
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.
- Cash equivalent earnings1 of NOK 1,065m in the 4th quarter and NOK 5,904m for the full year
- Cash equivalent earnings up 46% from Q4 2023, driven by strong growth and improved insurance results
- Dividend of NOK 4.7 per share for 2024, an increase of 15% compared to 2023
- Received approval for share buybacks amounting to NOK 1.5bn for 2025
- Solvency II ratio 200%, an increase of 10 percentage points from the previous quarter
Storebrand'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.
Cash equivalent earnings2
| 2024 | 2023 | Full year | |||||
|---|---|---|---|---|---|---|---|
| NOK million | Q4 | Q3 | Q2 | Q1 | Q4 | 2024 | 2023 |
| Fee and administration income | 1,908 | 1,971 | 1,888 | 1,818 | 1,739 | 7,585 | 6,782 |
| Insurance result | 394 | 483 | 396 | 367 | 64 | 1,640 | 1,122 |
| Operational cost | -1,600 | -1,509 | -1,465 | -1,498 | -1,542 | -6,072 | -5,787 |
| Cash equivalent earnings from operations | 702 | 944 | 819 | 688 | 262 | 3,153 | 2,117 |
| Financial items and risk result life | 363 | 563 | 1,431 | 394 | 465 | 2,751 | 1,362 |
| Cash equivalent earnings before amortisation | 1,065 | 1,507 | 2,249 | 1,082 | 728 | 5,904 | 3,480 |
| Amortisation and write-downs of intangible assets | -77 | -73 | -72 | -73 | -114 | -295 | -379 |
| Cash equivalent earnings before tax | 988 | 1,434 | 2,177 | 1,009 | 614 | 5,609 | 3,101 |
| Tax | -353 | -141 | -213 | -147 | 19 | -854 | 116 |
| Cash equivalent earnings after tax | 635 | 1,293 | 1,964 | 862 | 633 | 4,754 | 3,217 |
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 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 provided3 .
Financial performance (IFRS)
Group profit before amortisation and tax was NOK 1,947m in the quarter, compared to NOK 1,058m for the corresponding period last year. For the full year, the Group's net profit before amortisation and tax amounted to NOK 7,067m, compared to NOK 3,759m for 2023. Improving results in unit linked and insurance contributed positively. Storebrand Group's net insurance service result was NOK 672m in the 4th quarter (NOK 110m). The increase stemmed from a positive development in the insurance contracts with a loss component. On a general basis, higher volatility is expected under IFRS 17 due to the measurement models applied.
Financial performance (alternative income statement)
Storebrand Group's cash equivalent earnings before amortisation were NOK 1,065m (NOK 728m) in the 4th quarter and NOK 5,904m (NOK 3,480m) for the full year. The improved result reflects continued underlying growth across the business, satisfactory cost development and improved insurance results. Compared to the 4th quarter last year, the cash equivalent earnings before amortisation increased by 46%.
Total fee and administration income amounted to NOK 1,908m (NOK 1,739m) in the 4th quarter and NOK 7,585m (NOK 6,782m) for the full year, corresponding to an increase of 10% compared to the same quarter last year and an increase of 12% for the full year. Income growth was driven by strong growth and supportive markets in Unit Linked and Asset Management. In Retail Banking, fee and administration income grew 22% year over year, driven by volume growth and improved net interest margins.
The Insurance result amounted to NOK 394m (NOK 64m) in the 4th quarter and NOK 1,640m (NOK 1,122m) for the full year. All segments contributed to an improved result both for the quarter and for the full year. The result improvement stemmed mainly from significant price increases and adjustments to terms and conditions. The claims development is closely monitored to ensure that the increase in claims is mitigated over time.
3 Due to the fundamental differences between IFRS 17 and the alternative
1 Cash equivalent earnings before amortisation and tax. www.storebrand.no/ir provides an overview of APMs used in financial reporting.
2 The income statement is based on reported IFRS results for the individual group companies. The statement differs from the official accounts layout.
income statement, it is not possible to reconcile the numbers.
The total combined ratio for the Insurance segment was 100% (115%) in the 4th quarter and 97% (102%) for the full year. The profitability is expected to return to the targeted 90-92% combined ratio for the full year of 2025.
The Group's operational cost amounted to NOK -1,600m (NOK -1,542m) in the 4th quarter and NOK -6,072m (NOK -5,787m) for the full year. Adjusted for currency effects of NOK -91m, performance related cost of NOK -38m, special items of NOK - 21m and cost in the acquired company AIP management of NOK -29m, the operational cost was NOK -5,893m for the full year. This is in line with the full year cost guidance of NOK 5.9bn. Storebrand continues to focus on strong cost discipline, as demonstrated over the past decade.
Overall, the cash equivalent earnings from operations amounted to NOK 702m (NOK 262m) in the 4th quarter and NOK 3,153m (NOK 2,117m) for the full year.
The 'financial items and risk result' amounted to NOK 363m (NOK 465m) in the 4th quarter and NOK 2,751m (NOK 1,362m) for the full year. The reduced result for the fourth quarter is attributed to weaker risk result and negative mark to market effects on the company portfolios due to sharply increasing interest rates and widening credit spreads. The strong improvement for the full year stems from the divestment of shares in Storebrand Health Insurance and improved profitsharing from the guaranteed business. The net gain from the divestment amounted to NOK 1,047m. Net profit sharing amounted to NOK 153m (NOK 139m) in the 4th quarter and NOK 522m (NOK 252m) for the full year. The risk result amounted to NOK -22m (NOK 77m) in the 4th quarter and NOK 35m (NOK 296m) for the full year. The risk result is negatively affected by weak development within longevity and disability.
Amortisation of intangible assets from acquired business amounted to NOK -77m (NOK -114m) in the 4th quarter and NOK -295m (NOK -379m) for the full year.
Tax expenses for the Group amounted to NOK -353m (NOK 19m) in the 4th quarter and NOK -854m (NOK 116m) for the full year. The high effective tax rate in the quarter is mainly due to taxable unrealised gains on currency hedges related to the Swedish business and corresponding non-deductible unrealised losses on the shares in the subsidiaries, as the Swedish krona depreciated against the Norwegian krone. The low effective tax rate for the full year was mainly due to the divestment of shares in Storebrand Helseforsikring AS, which is not subject to income tax under Norwegian tax legislation. 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.
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 was 200% at the end of the 4th quarter, an increase of 10 percentage points from the third quarter. The solvency ratio was positively affected by increasing interest rates, regulatory assumptions and cash earnings in the quarter. The solvency ratio continues to be well above the threshold for overcapitalisation of 175%.
Storebrand submitted an internal model application to the Norwegian FSA in the 2nd quarter of 2024.
Dividend and share buyback
Based on the Group's results, the board proposes an ordinary dividend of NOK 4.7 per share for 2024 to the Annual General Meeting, equal to a total amount of NOK 2.0bn. This represents a NOK 0.60 nominal increase per share compared to the previously paid dividend, corresponding to an increase of 15% per share and a pay-out ratio of 43% of the Group cash result after tax.
During the 4th quarter Storebrand completed the NOK 1.1bn share buyback tranche initiated in the 2nd quarter, taking the total completed buybacks for 2024 to NOK 1.5bn. Including share buybacks of NOK 1.5 billion, the total pay-out ratio was 74% for 2024. Based on the strong solvency position and a forward-looking assessment, the Board of Directors intends to conduct NOK 1.5bn of share buybacks in 2025, subject to a solvency ratio above 175%. An approval from the FSA amounting to NOK 1.5bn for the full year was received on 10 February 2025. A tranche amounting to a maximum of NOK 750m is initiated on 12 February 2025 and will end no later than 27 June 2025. The ambition is to return NOK 12bn of excess capital by the end of 2030 as the run-off of the guaranteed business releases capital.
Cash equivalent earnings by segment
| 2024 | 2023 | Full year | |||||
|---|---|---|---|---|---|---|---|
| NOK million | Q4 | Q3 | Q2 | Q1 | Q4 | 2024 | 2023 |
| Savings - non-guaranteed | 610 | 785 | 630 | 567 | 399 | 2,592 | 1,862 |
| Insurance | 106 | 214 | 118 | 108 | -193 | 546 | 27 |
| Guaranteed pension | 285 | 346 | 306 | 289 | 433 | 1,226 | 1,326 |
| Other profit | 64 | 162 | 1,195 | 119 | 88 | 1,539 | 265 |
| Cash equivalent earnings before amortisation | 1,065 | 1,507 | 2,249 | 1,082 | 728 | 5,904 | 3,480 |
Group - Key figures
| 2024 | 2023 | Full year | |||||
|---|---|---|---|---|---|---|---|
| Q4 | Q3 | Q2 | Q1 | Q4 | 2024 | 2023 | |
| Cash equivalent EPS | 1.66 | 3.12 | 4.59 | 2.09 | 2.14 | 11.47 | 7.85 |
| Equity | 32,113 | 30,672 | 29,986 | 29,956 | 29,531 | 28,940 | 28,902 |
| Cash ROE, annualised | 10.7% | 21.2% | 33.3% | 14.5% | 14.6% | 18.4% | 13.0% |
| Solvency II ratio | 200% | 190% | 191% | 191% | 192% | 200% | 192% |
Financial metrics
| Target | Actual | |
|---|---|---|
| Cash return on equity (last 12 months, after tax) | 14% | 18% |
| Future Storebrand (Savings & Insurance)* | 35% | |
| Back book (Guaranteed & Other)* | 12% | |
| Pay-out ratio after tax, total** | 74% | |
| Dividend pay-out ratio | 43% | |
| Share buybacks | 32% | |
| Solvency II ratio Storebrand Group | > 150% | 200% |
* The RoE is calculated based on the profit for the last 12 months, after tax and before amortisation of intangible assets, divided on a pro forma distribution of the IFRS equity less hybrid capital per line of business (opening balance). The capital is allocated based on the capital consumption under SII and CRD IV adjusted for positive capital contribution to own funds. The segments Savings, Insurance and Other are calibrated at 150% of the capital requirement (before own funds contribution), while the remainder of the capital is allocated to the Guaranteed segment. The methodology is an estimation of ROE pr. reporting segment.
** The pay-out ratio is based on the cash-result after tax and amortisation
Savings
• 16% growth in fee and administration income from Q4 2023
• Cash equivalent earnings before amortisation up 53% compared to Q4 2023
• 21% growth in Unit Linked Reserves and Assets under Management from Q4 2023
The Savings segment includes savings products without interest rate guarantees. The segment consists of Defined Contribution pensions in Norway and Sweden under the Unit Linked products, as well as asset management and retail banking products.
Savings – Results
| 2024 | 2023 | Full year | |||||
|---|---|---|---|---|---|---|---|
| NOK million | Q4 | Q3 | Q2 | Q1 | Q4 | 2024 | 2023 |
| Fee and administration income | 1,607 | 1,660 | 1,567 | 1,494 | 1,388 | 6,327 | 5,443 |
| Operational cost | -1,012 | -948 | -923 | -947 | -972 | -3,831 | -3,582 |
| Cash equivalent earnings from operations | 594 | 712 | 644 | 547 | 416 | 2,497 | 1,861 |
| Financial result | 16 | 73 | -13 | 20 | -16 | 96 | 1 |
| Cash equivalent earnings before amortisation | 610 | 785 | 630 | 567 | 399 | 2,592 | 1,862 |
Financial performance
The Savings segment reported cash equivalent earnings before amortisation of NOK 610m (NOK 399m) in the 4th quarter and NOK 2,592m (NOK 1,862m) for the full year, up by 53% compared to the corresponding period last year. All business lines saw positive developments.
The fee and administration income in the Savings segment amounted to NOK 1,607m (NOK 1,388m) in the 4th quarter and NOK 6,327m (NOK 5,443m) for the full year, corresponding to growth of 16% (adjusted for currency effect NOK vs SEK). In Asset Management, fee and administration income grew by 11% compared to the same quarter last year. Performance based income amounted to NOK 197m for the full year and NOK -28m in the 4th quarter. The negative contribution in the quarter had a corresponding negative effect on the fee margin in the segment and stemmed from weak performance in active funds. In Unit Linked Norway, income grew by 19% compared to the same quarter last year. Structural growth in the underlying business and positive markets were supportive. In Sweden, fee and administration income grew by 15% compared to the same quarter last year. In Retail Banking, income grew by 22% from the 4th quarter last year, driven by lending growth and a higher net interest margin.
Operational costs amounted to NOK -1,012m (NOK -972m) in the 4th quarter and NOK -3,831m (NOK -3,582m) for the full year. The cost increase is related to growth in the business in addition to underlying price inflation and wage growth.
The financial result was NOK 16m (NOK -16m) in the 4th quarter and NOK 96m (NOK 1m) for the full year. The financial result for the full year was positively impacted by a revaluation of the initial shareholding in AIP Management.
Balance sheet and market trends
Total assets under management stood at NOK 1,469bn at the end of the 4th quarter compared to NOK 1,347bn at the end of the 3rd quarter. The growth over the past quarter is primarily attributed to the acquisition of Danish infrastructure business AIP Management, which is now owned 60% and consolidated in on 100% basis in accordance with the IFRS treatment.
Assets under management in Unit Linked increased to NOK 459bn (NOK 380bn) from NOK 449bn last quarter. Unit Linked premiums increased to NOK 7.7bn (NOK 7.3bn) in the 4th quarter. In the Norwegian Unit Linked business, AUM increased to NOK 248bn (NOK 209bn). 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 amounted to NOK 1.6bn (NOK 2.6bn). In the Swedish Unit Linked business, AUM increased during the quarter by NOK 4bn and amounted to NOK 210bn at end of the period. Net inflow amounted to NOK 1.7bn (NOK 1.4bn) in the 4th quarter.
The bank lending portfolio increased by NOK 1.7 bn (2%) to NOK 86.5bn during the quarter. Loan losses remained at a stable level compared to the 4th quarter 2023.
Savings - Key figures
| 2024 | 2023 | ||||
|---|---|---|---|---|---|
| NOK million | Q4 | Q3 | Q2 | Q1 | Q4 |
| Premium income Unit Linked | 7,717 | 7,617 | 7,740 | 7,475 | 7,309 |
| Unit Linked reserves | 458,525 | 448,514 | 425,589 | 410,180 | 379,516 |
| AuM Asset Management | 1,468,840 | 1,347,397 | 1,298,128 | 1,281,120 | 1,211,831 |
| Retail lending* | 86,501 | 84,818 | 82,155 | 78,669 | 76,706 |
*Includes mortgages on the Storebrand Livsforsikring AS balance sheet
Insurance
• 20% growth in insurance premiums f.o.a. compared to the corresponding quarter last year
• Combined ratio of 100% in the quarter and 97% for the full year
• 6.9% market share in Norwegian retail P&C compared to 6.6% in the same quarter last year
The Insurance segment includes P&C insurance and personal risk products in the Norwegian retail market and employer's liability insurance and pension-related insurance in the Norwegian and Swedish corporate markets.
Insurance – Results
| 2024 | 2023 | Full year | |||||
|---|---|---|---|---|---|---|---|
| NOK million | Q4 | Q3 | Q2 | Q1 | Q4 | 2024 | 2023 |
| Insurance premiums f.o.a. | 2,134 | 2,044 | 1,955 | 1,875 | 1,776 | 8,008 | 6,908 |
| Claims f.o.a. | -1,740 | -1,561 | -1,559 | -1,508 | -1,712 | -6,368 | -5,787 |
| Operational cost | -390 | -351 | -336 | -327 | -328 | -1,404 | -1,251 |
| Cash equivalent earnings from operations | 4 | 132 | 60 | 40 | -263 | 236 | -129 |
| Financial result | 102 | 82 | 58 | 68 | 70 | 310 | 155 |
| Cash equivalent earnings before amortisation | 106 | 214 | 118 | 108 | -193 | 546 | 27 |
| Claims ratio | 82% | 76% | 80% | 80% | 96% | 80% | 84% |
| Cost ratio | 18% | 17% | 17% | 17% | 18% | 18% | 18% |
| Combined ratio | 100% | 94% | 97% | 98% | 115% | 97% | 102% |
Financial performance
Insurance premiums f.o.a. amounted to NOK 2,134m (NOK 1,776m) in the 4th quarter and NOK 8,008m (NOK 6,908m) for the full year, corresponding to an increase of 20% compared to the same quarter last year and an increase of 16% for the full year. The cost ratio was 18% (18%), with cost amounting to NOK -390m (NOK -328m) in the 4th quarter and NOK -1,404m (NOK -1,251m) for the full year.
Cash equivalent earnings before amortisation amounted to NOK 106m (NOK -193m) in the 4th quarter and NOK 546m (NOK 27m) for the full year. The total combined ratio was 100% (115%) in the 4th quarter and 97% (102%) for the full year. The combined ratio improvement stemmed from several measures, including repricing across segments. There is still a high level of uncertainty linked to the disability development in the Norwegian society and Storebrand monitors this closely. The profitability is expected to return to the targeted 90-92% combined ratio for the full year of 2025.
Within 'P&C & Individual life', strong growth continued with premiums f.o.a. up by 20% in the 4th quarter year over year. The cash equivalent earnings before amortisation were NOK 69m (NOK -4m) in the 4th quarter and NOK 237m (NOK 182m) for the full year. Repricing measures had a positive impact whilst continued high claims inflation and run-off losses impacted negatively. The claims ratio was 76% (82%) in the 4th quarter and 77% (76%) for the full year. Operational cost increased to NOK -300m (NOK -248m) in the 4th quarter and NOK -1,061m (NOK -938m) for the full year due to business growth and the scale-up of the corporate business. Altogether, the segment delivered a combined ratio of 99% (105%) in the 4th quarter and 99% (99%) for the full year.
'Group life' reported cash equivalent earnings before amortisation of NOK -18m (NOK -137m) in the 4th quarter and NOK 68m (NOK -238m) for the full year. Continued high disability levels as well as more large losses than normal negatively affected the results in the quarter. In sum, 'Group life' reported a combined ratio of 119% (159%) in the 4th quarter and 103% (122%) for the full year.
The cash equivalent earnings before amortisation for 'Pension related disability insurance Nordic' were NOK 56m (NOK -52m) in the 4th quarter and NOK 241m (NOK 82m) for the full year. The Norwegian business showed a positive result development in the quarter. Altogether the combined ratio was 89% (113%) in the 4th quarter and 87% (96%) for the full year.
The Insurance investment portfolio is primarily invested in fixed income securities with short to medium duration and achieved a financial return of 1.5% in the 4th 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, particularly within P&C. As of the 4th quarter, 61% of the insurance portfolio was accounted for by 'P&C & Individual Life'. Storebrand is one of the fastest growing companies within Norwegian retail P&C and held a market share of 6.9% as of the 3rd quarter compared to 6.6% in the same quarter last year, according to the latest market data.
Overall growth in annual portfolio premiums amounted to 19% compared to the same quarter last year. Growth in 'P&C & Individual life' amounted to 22%, driven by strong sales, continued strong contribution from sales agents and distribution partnerships, and significant price increases. 'Group life' grew by 22%, driven by price adjustments, and 'Pension related disability insurance' grew by 13%, driven by price adjustments and salary increases.
Insurance – Portfolio premiums
| 2024 | 2023 | ||||
|---|---|---|---|---|---|
| NOK million | Q4 | Q3 | Q2 | Q1 | Q4 |
| P&C & Individual life | 5,392 | 5,148 | 4,915 | 4,676 | 4,430 |
| Group life* | 1,281 | 1,283 | 1,198 | 1,137 | 1,047 |
| Pension related disability insurance Nordic | 2,173 | 2,143 | 2,071 | 2,022 | 1,928 |
| Total written premiums | 8,846 | 8,574 | 8,184 | 7,835 | 7,405 |
| Investment portfolio** | 11,364 | 11,371 | 11,345 | 10,896 | 11,538 |
* Excludes portfolio premiums in Storebrand Helseforsikring AS (50% ownership sold to Ergo International Q2 2024).
** Ca. NOK 3.8bn of the investment portfolio is linked to disability coverages where the investment result goes to the customer reserves and not as a result element in the P&L.
Guaranteed pension
• Reduced fee and administration income due to run-off and reduced fees from corporate pension funds
• Public occupational pension mandates of more than NOK 4.5bn won despite low tender activity in 2024
• Improved profit-sharing result, but weak risk result for the quarter and for the full year
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 | Q4 | Q3 | Q2 | Q1 | Q4 | 2024 | 2023 |
| Fee and administration income | 376 | 385 | 388 | 391 | 422 | 1,540 | 1,600 |
| Operational cost | -222 | -223 | -211 | -215 | -205 | -871 | -822 |
| Cash equivalent earnings from operations | 154 | 162 | 177 | 175 | 217 | 669 | 778 |
| Risk result life & pensions | -22 | 3 | 10 | 44 | 77 | 35 | 296 |
| Net profit sharing | 153 | 181 | 119 | 70 | 139 | 522 | 252 |
| Cash equivalent earnings before amortisation | 285 | 346 | 306 | 289 | 433 | 1,226 | 1,326 |
Financial performance
Guaranteed pension achieved cash equivalent earnings before amortisation of NOK 285m (NOK 433m) in the 4th quarter and NOK 1,226m (NOK 1,326m) for the full year.
Fee and administration income amounted to NOK 376m (NOK 422m) in the 4th quarter and NOK 1,540m (NOK 1,600m) for the full year. The development reflects a reduced contribution from the sub-segments in long-term run-off, and lower income level within paid-up polices due to reduced fees from transferred closed corporate pension funds. Growth within public sector pensions had a positive effect.
Operational cost amounted to NOK -222m (NOK -205m) in the 4th quarter and NOK -871m (NOK -822m) for the full year.
The cash equivalent earnings from operations fell to NOK 154m (NOK 217m) in the 4th quarter and NOK 669m (NOK 778m) for the full year.
The risk result was NOK -22m (NOK 77m) in the 4th quarter and NOK 35m (NOK 296m) for the full year. The risk result was negatively affected by a weak development within disability, where provisions were strengthened for children's disability pension. Measures have been taken to improve the profitability. Net profit sharing amounted to NOK 153m (NOK 139m) in the 4th quarter and NOK 522m (NOK 252m) for the full year. Profit sharing from the Swedish portfolio contributed most significantly during the year, but the Norwegian portfolio also contributed strongly against a backdrop of higher interest rates and buffer capital levels.
Balance sheet and market trends
The majority of the guaranteed products are in long term runoff. As of the 4th quarter, customer reserves of guaranteed pensions amounted to NOK 291bn. This is an increase of NOK 7bn for the full year, primarily from the positive transfer of public sector pensions schemes and building of customer buffers. A growth area for Storebrand is public sector occupational pensions, where Storebrand won its first mandates in 2020. Despite low tender activity, Storebrand won mandates within public occupation pensions of more than NOK 4.5bn in 2024. These will be transferred in 2025.
Net flow of guaranteed pensions amounted to NOK -3.1bn in the quarter (NOK -3.0bn in Q4 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. More information on this is found under 'Balance sheet and capital situation'. Buffer capital was NOK 31.0bn as of the 4th quarter. As a share of guaranteed reserves, buffer capital levels amounted to 7.4% (6.1%) in Norwegian products and 24.4% (21.2%) in Swedish products. This does not include off-balance sheet excess values of bonds at amortised cost, which at the end of the 4th quarter amounted to a deficit of NOK -13.2bn (NOK -10.6bn).
Guaranteed pension – Key figures
| 2024 | 2023 | ||||
|---|---|---|---|---|---|
| NOK million | Q4 | Q3 | Q2 | Q1 | Q4 |
| Guaranteed reserves | 290,799 | 294,115 | 287,990 | 285,323 | 283,986 |
| Guaranteed reserves in % of total reserves | 38.8% | 39.6% | 40.4% | 41.0% | 42.8% |
| Net flow of premiums and claims | -3,133 | -2,780 | -2,840 | -2,773 | -2,977 |
| Buffer capital in % of customer reserves Norway | 7.4% | 7.5% | 6.8% | 6.8% | 6.1% |
| Buffer capital in % of customer reserves Sweden | 24.4% | 23.5% | 23.4% | 23.0% | 21.2% |
Other
The result for Storebrand ASA is reported under Other, as well as the financial result for the company portfolios of Storebrand Life Insurance and SPP. Group eliminations are reported in a separate table below.
Results excluding eliminations
| 2024 | 2023 | Full year | |||||
|---|---|---|---|---|---|---|---|
| NOK million | Q4 | Q3 | Q2 | Q1 | Q4 | 2024 | 2023 |
| Fee and administration income | 8 | 4 | 4 | 6 | 1 | 23 | 18 |
| Operational cost | -59 | -65 | -66 | -81 | -109 | -271 | -411 |
| Cash equivalent earnings from operations | -51 | -61 | -62 | -74 | -108 | -248 | -393 |
| Financial result | 115 | 223 | 1,257 | 193 | 196 | 1,788 | 658 |
| Cash equivalent earnings before amortisation | 64 | 162 | 1,195 | 119 | 88 | 1,539 | 265 |
Eliminations
| 2024 | 2023 | Full year | |||||
|---|---|---|---|---|---|---|---|
| NOK million | Q4 | Q3 | Q2 | Q1 | Q4 | 2024 | 2023 |
| Fee and administration income | -82 | -78 | -72 | -72 | -71 | -305 | -279 |
| Operational cost | 82 | 78 | 72 | 72 | 71 | 305 | 279 |
| Financial result | |||||||
| Cash equivalent earnings before amortisation |
Financial performance
The Other segment reported cash equivalent earnings before amortisation of NOK 64m (NOK 88m) in the 4th quarter and 1,539m (NOK 265m) for the full year. The soft result in the quarter is driven by the financial result, where the contribution from the company portfolios was weak due to the negative mark to market effects of rising interest rates and widening credit spreads.
The operational cost amounted to NOK -59m (NOK -109m) in the 4th quarter and -271m (NOK -411m) for the full year.
The financial result in the segment amounted to NOK 115m in the 4th quarter and 1,788m for the full year. The strong year to date result reflects the divestment of Storebrand Health Insurance. The underlying result was mainly driven by returns in the company portfolios of SPP and Storebrand Life Insurance, and the financial result of Storebrand ASA. The company portfolios are primarily invested in interest-bearing securities in Norway and Sweden. The Norwegian company portfolio achieved a return of 1.2% in the 4th quarter and 4.8% for the full year, while the Swedish company portfolio reported a return of 0.8% in the 4th quarter and 5.1% for the full year. The company portfolios in the Norwegian and Swedish life insurance companies and the holding company amounted to NOK 29.4bn at the end of the quarter.
Storebrand is funded by a combination of equity and debt. Interest expenses for the Group amounted to NOK -180m in the quarter excluding hedging effects and banking activities.
Balance sheet and capital situation
- Solvency II ratio 200%, an increase of 10 percentage points from the previous quarter
- Cash return on equity of 18.4% for the full year
- Buffer capital at 7.4% of customer reserves with guarantees in Norway and 24.4% in Sweden
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.
140% 150% 160% 170% 180% 190% 200% 210%
Storebrand Group
Solvency
-10.0 10.0 30.0 50.0 70.0 90.0 110.0 130.0 150.0
The solvency ratio was 200% at the end of the 4th quarter, an increase of 10 percentage points from the third quarter. The solvency ratio was positively affected by increasing interest rates, regulatory assumptions and cash earnings in the quarter. The solvency ratio continues to be well above the threshold for overcapitalisation of 175%.
Solvency development - Storebrand Group
Cash equivalent return on equity
The Group's quarterly Cash ROE1 (annualised) was 10.7% in the 4th quarter and 18.4% for the full year. The Cash ROE in the 4th quarter was negatively impacted by a high effective tax rate. The current Cash ROE target is 14%.
Storebrand ASA
Storebrand ASA held liquid assets of NOK 3.2bn at the end of the 4th quarter. Storebrand ASA's total interest-bearing liabilities were NOK 1.0bn at the end of the 4th quarter, of which NOK 0.5bn matures in September 2025. In addition, the company has an unused revolving credit facility of EUR 200m. This was renewed in 2024 with a sustainability-linked component, aligning the facility with Storebrand's progress on selected sustainability performance targets.
Storebrand ASA owned 13,988,270 of the company's own shares at the end of the 4th quarter, representing 3.12% of the share capital. Shares purchased under buyback programs will normally be redeemed, subject to permission from NFSA and Storebrand's AGM.
Storebrand Livsforsikring AS Customer buffers (NOR)
Buffer capital in % of customer reserves Norway
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 was introduced for private pension schemes on 1 January 2024. The buffer fund replaces previous statutory reserves and market value adjustment reserve for private pension schemes. The buffer fund is distributed across individual contracts and can be used to cover the difference between contracts' annual interest guarantee and achieved investment return, including when returns are negative. Storebrand can set aside all or part of a surplus on the return to a buffer fund. Furthermore, funds in the buffer fund can be assigned to the customer as surplus.
The buffer fund amounted to NOK 14.1bn at the end of the 4th quarter, corresponding to 7.4% of customer funds with a guarantee. The buffer fund decreased by NOK 0.1bn in the quarter but increased by NOK 2.7bn during the year to date. Due to higher interest rates, the excess value of bonds and loans valued at amortised cost increased by NOK 2.8bn during the quarter and NOK 2.7bn year to date and amounted to NOK - 13.2bn 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)
Customer assets increased by NOK 7.0bn during the quarter and NOK 46.6bn year to date, amounting to NOK 454bn at the end of 4th quarter 2024. Of this, customer assets within nonguaranteed savings increased by NOK 5.6bn during the quarter and NOK 38.9bn year to date, amounting to NOK 248bn at the end of the 4th quarter. Guaranteed customer assets increased by NOK 1.4bn during the quarter and NOK 7.7bn year to date, amounting to NOK 206bn at the end of 4th quarter. The new flexible buffer fund has led to increased allocation to assets with higher risk such as equities, with a corresponding positive effect on expected returns for customers and shareholders.
SPP Customer buffers (SWE)
Conditional bonuses in % of customer funds with guarantee
The buffer capital (conditional bonuses) amounted to SEK 16.9bn (SEK 15.0bn) at the end of the 4th quarter.
Allocation of guaranteed customer assets (SWE)
Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024
Customer assets amounted to SEK 285bn (SEK 251bn) at the end of the 4th quarter, an increase of 14% compared to the same quarter last year. Customer assets within non-guaranteed savings amounted to SEK 205bn (SEK 169bn) at the end of the 4th quarter, up by 21% compared to the same quarter last year. Meanwhile, guaranteed customer assets amounted to SEK 81bn at end quarter (SEK 82bn), down by 2% year over year.
Storebrand Bank
Loans outstanding increased by NOK 1.6bn during the 4th quarter. The home mortgage portfolio managed on behalf of Storebrand Livsforsikring AS increased by NOK 0.3bn in the quarter. The combined portfolio of loans in Storebrand Bank and Storebrand Livsforsikring increased by NOK 1.6bn this quarter and NOK 9.8bn year to date.
The Bank Group had an increase in the risk-weighted balance sheet of NOK 3.5bn for the full year. The Storebrand Bank Group had own funds of NOK 6.1bn at the end of the 4th quarter. The capital adequacy ratio was 22.1% at end quarter, up from 21.8% at end 2023, while the Core Equity Tier 1 (CET1) ratio stood at 18.0%, compared to 17.0% at end year 2023.
A group internal merger between Storebrand Bank and the Norwegian savings platform Kron was conducted in the quarter, with the former as the acquiring company.
Outlook
Strategy
Storebrand delivers financial security and freedom to individuals and businesses. The Group aims 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.
Storebrand's strategy gives a compelling combination of capitallight 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.
The 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 large and fast growing market. It is currently dominated by one player and represents a potential additional source of revenue for Storebrand.
In Sweden, SPP is a market challenger within the segment for non-unionised pensions, with an edge in digital and ESGenhanced solutions. SPP is a significant profit contributor to the Storebrand Group, supported by an ongoing capital release from its guaranteed products in run-off. SPP's ambition is to 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 less than 39% 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 have increased.
In addition to managing internal pension funds, Storebrand Asset Management is growing its external mandates from institutional and retail investors. Storebrand is a local partner for Nordic investors, and a gateway to the Nordics for international investors. The product offering includes a full product range of index, factor and actively managed funds. Storebrand is also one of the strongest providers of alternatives (private equity, real estate, private debt and infrastructure) in the Nordic region. Over the past three decades, Storebrand has focused on sustainable investments with a strong track record. The overall ambition is to grow cash results double digit, driven by continued positive net inflow and a stable fee margin development.
The brand name 'Storebrand' is well known in Norway. Together with capital, customer and operational synergies in the business, it supports rapid growth in the Norwegian retail market. The ambition is to grow more than 10% annually within retail savings, mortgage lending and insurance through leading customer experience, cross sales and continued focus on scalable growth. P&C insurance is a key area for profitable and capital efficient growth. Storebrand Bank plays an important strategic role in offering a complete range of financial products and services to the retail market.
Financial performance
Storebrand expects top line growth in both fee-based income and insurance. In 2024, the insurance results were negatively affected by continued high claims in P&C and Individual, and high levels of disability in Group life. Several measures, including repricing, are implemented and the board expects the insurance combined ratio to return to the targeted 90-92% for the full year of 2025.
Storebrand maintains a disciplined cost culture. To meet the Group's profit ambitions, Storebrand invests in profitable growth. This includes growth in digital solutions, public occupational pensions and P&C insurance, in addition to acquired business. Within savings and pension, the Group continues its focus on automation and efficiency measures to maintain cost leadership in core markets. Within P&C insurance cost is increasing due to fast growth in the retail market and the scale-up of the corporate business. Storebrand has double digit growth ambitions for 2025 and a corresponding cost guidance of NOK 6.8bn for the full year. The cost guidance does not include integration cost, currency and performance-related cost. Growth investments have gradually increased costs, and cost reduction measures will be implemented if ambitions are not achieved.
At the capital markets day in December 2023, Storebrand announced an ambition to achieve cash equivalent earnings before amortisation and tax of NOK 5bn in 2025. The Return on Equity target for the group was raised from 10% to 14%.
Risk
Storebrand is exposed to several risk factors. The notes in this report and the annual report give comprehensive information about the main risk factors.
Regulatory changes
Paid-up policies in Norway
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.
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 stake holders. A working group delivered a report with proposals to the Ministry of Finance in September 2024. Among proposals considered in the report are more flexible guarantee regulations which could facilitate more long-term investment strategies with increased risk taking. The public consultation showed broad support for the proposals from both labour market parties and consumer organizations. Storebrand expects the Government to present a bill to Parliament in 2025.
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, the mutual company KLP is given access to capital from municipalities and hospitals on more favourable terms than other market participants would receive by withholding retained earnings when customers move to other providers.
ESA gave preliminary views on the issues raised in the public procurement case, in a letter to Norwegian authorities dated 29 February 2024. ESA's preliminary view is that public sector occupational pension contracts fall within the scope of public procurement law, and that the lack of tender processes in this market constitutes a consistent and general practice in failure to observe EEA public procurement law with regard to the award and/or modification of contracts concerning insured public sector occupational pension contracts.
The Norwegian government responded to ESAs preliminary view on 14 June 2024. The government's letter to ESA did not present new arguments or views compared to submissions made before ESA's preliminary view. Storebrand therefore expects ESA to initiate infringement proceedings in the public procurement case.
ESA is still considering the state aid case.
Implementation of CRR3 for Norwegian Banks
The Ministry of Finance has passed regulation implementing the new CRR3 capital requirements for banks in Norway. CRR3 introduces a new standard model that is more favourable for Storebrand Bank and will contribute to a more level playing field between standard model banks and IRB banks in the Norwegian market. Changes in risk weights for IRB-banks will enter into force 1 July 2025 at latest.
Capital management and Dividend policy
Storebrand continues to manage capital for increased shareholder return. This includes both a dividend policy of growing ordinary dividends from earnings as well as managing the legacy products that carry interest guarantees in a capitalefficient and customer centric manner.
Storebrand has established a framework for capital management that links dividends to the solvency margin. The dividend policy intends to reflect the strong growth in fee-based earnings, the more volatile financial markets related earnings and the capital release from the guaranteed book. The Board's ambition is to pay a gradually growing ordinary dividend. When the solvency margin is sustainably above 175%, the Board will conduct share buyback programs. The purpose of buyback programs is to return excess capital released from the guaranteed liabilities that are in long-term run-off. The ambition is to return NOK 12bn of excess capital by the end of 2030, primarily in the form of share buybacks, while generating additional excess capital which may fund further growth or could be returned to shareholders.
Storebrand is developing a partial internal model for risk measurement and risk management. The internal model is currently used to better understand the risk in the business and as a supplement to the public capital requirement calculations based on the standard model. Storebrand has applied to the FSA for approval to use a partial internal model in public capital requirement calculations.
Storebrand dividend policy:
The Board of Directors' ambition is to pay ordinary dividends per share of at least the same nominal amount as the previous year. Ordinary dividends are subject to a sustainable solvency margin of above 150%. If the solvency margin is above 175%, the Board of Directors intends to propose special dividends or share buybacks.
Lysaker, 11 February 2025 Board of Directors of Storebrand ASA
Income statement
| Q4 | 01.01 - 31.12 | ||||
|---|---|---|---|---|---|
| NOK million | Notes | 2024 | 2023 | 2024 | 2023 |
| Income from unit linked | 602 | 480 | 2,265 | 2,008 | |
| Income from asset management | 1,086 | 995 | 3,420 | 3,108 | |
| Income from banking activities | 1,119 | 942 | 4,285 | 3,069 | |
| Other income | 152 | 149 | 370 | 413 | |
| Operating income excl. insurance | 2,958 | 2,566 | 10,340 | 8,597 | |
| Insurance revenue | 6 | 2,710 | 2,325 | 10,282 | 9,147 |
| Insurance service expenses | 6 | -2,048 | -2,210 | -7,925 | -7,701 |
| Net expenses from reinsurance contracts held | 6 | 9 | -6 | 17 | 19 |
| Net insurance service result | 6 | 672 | 110 | 2,374 | 1,465 |
| Operating income incl. insurance result | 3,629 | 2,676 | 12,714 | 10,062 | |
| Operating expenses | -1,370 | -1,362 | -5,234 | -5,147 | |
| Interest expenses banking activities | -798 | -686 | -3,052 | -2,096 | |
| Other expenses | -50 | -28 | -150 | -166 | |
| Total expenses | -2,218 | -2,077 | -8,436 | -7,409 | |
| Operating profit | 1,412 | 600 | 4,279 | 2,653 | |
| Profit from investment in associates and joint ventures | 115 | -22 | 428 | -431 | |
| Net income on financial and property investments | 6,975 | 34,078 | 74,837 | 56,108 | |
| Net change in investment contract liabilities | -8,599 | -16,443 | -57,458 | -38,409 | |
| Finance expenses from insurance contracts issued | 2,258 | -16,869 | -14,096 | -15,272 | |
| Interest expenses securities issued and other interest expenses | -213 | -285 | -922 | -889 | |
| Net finance result | 535 | 459 | 2,789 | 1,106 | |
| Profit before amortisation | 1,947 | 1,058 | 7,067 | 3,759 | |
| Amortisation of intangible assets | -93 | -95 | -424 | -466 | |
| Profit before income tax | 1,854 | 964 | 6,643 | 3,294 | |
| Tax expenses | -511 | -27 | -1,121 | 84 | |
| Profit for the period | 1,343 | 937 | 5,522 | 3,377 | |
| Profit/loss for the period attributable to: | |||||
| Share of profit for the period - shareholders | 1,337 | 929 | 5,494 | 3,350 | |
| Share of profit for the period - hybrid capital investors | 7 | 8 | 30 | 27 | |
| Share of profit for the period - non-controlling interests | -1 | -1 | |||
| Total | 1,343 | 937 | 5,522 | 3,377 | |
| Earnings per ordinary share (NOK) | 3.07 | 2.06 | 12.48 | 7.31 | |
| Average number of shares as basis for calculation (million) | 440.3 | 458.0 |
Statement of comprehensive income
| Q4 | 01.01 - 31.12 | ||||
|---|---|---|---|---|---|
| NOK million | 2024 | 2023 | 2024 | 2023 | |
| Profit/loss for the period | 1,343 | 937 | 5,522 | 3,377 | |
| Actuarial assumptions pensions own employees | -19 | -37 | -27 | -45 | |
| Fair value adjustment of properties for own use | 22 | 48 | 70 | ||
| Other comprehensive income allocated to customers | -48 | ||||
| Tax on other comprehensive income not to be reclassified to profit/loss | 3 | 3 | 2 | 3 | |
| Other comprehensive income not to be reclassified to profit/loss | 5 | -33 | 45 | -42 | |
| Exchange rate adjustments | 89 | -159 | -43 | -302 | |
| Gains/losses from cash flow hedging | -10 | ||||
| Change in unrealised gains on financial instruments available for sale | -156 | 303 | -21 | 82 | |
| Tax on other comprehensive income that may be reclassified to profit/loss |
39 | -78 | 5 | -21 | |
| Other comprehensive income that may be reclassified to profit/loss | -28 | 65 | -58 | -251 | |
| Other comprehensive income | -23 | 32 | -13 | -292 | |
| Total comprehensive income | 1,320 | 969 | 5,509 | 3,085 | |
| Total comprehensive income attributable to: | |||||
| Share of total comprehensive income - shareholders | 1,314 | 961 | 5,481 | 3,058 | |
| Share of total comprehensive income - hybrid capital investors | 7 | 8 | 30 | 27 | |
| Share of total comprehensive income - non-controlling interests | -1 | -1 | |||
| Total | 1,320 | 969 | 5,509 | 3,085 |
Statement of financial position
| NOK million | Notes | 31.12.24 | 31.12.23 |
|---|---|---|---|
| Assets | |||
| Deferred tax assets | 2,147 | 3,134 | |
| Intangible assets | 6,721 | 6,055 | |
| Tangible fixed assets | 2 | 2,654 | 1,261 |
| Investments in associated companies and joint ventures | 7,412 | 7,823 | |
| Assets held for sale | 265 | ||
| Minority portion of consolidated mutual funds | 63,567 | 58,809 | |
| Reinsurance contracts assets | 316 | 297 | |
| Investment properties | 5 | 36,225 | 34,382 |
| Loans to customers | 5 | 94,586 | 86,761 |
| Loans to financial institutions | 5 | 2,781 | 1,138 |
| Equities and fund units | 5 | 414,959 | 333,866 |
| Bonds and other fixed-income securities | 5 | 303,803 | 292,407 |
| Derivatives | 5 | 2,568 | 8,093 |
| Other assets | 49,831 | 48,733 | |
| Bank deposits | 9,241 | 13,916 | |
| Total assets | 996,811 | 896,940 | |
| Equity and liabilities | |||
| Paid-in capital | 13,012 | 13,078 | |
| Retained earnings | 18,347 | 16,045 | |
| Hybrid capital | 353 | 408 | |
| Non-controlling interests | 402 | ||
| Total equity | 32,113 | 29,531 | |
| Pension liabilities | 173 | 172 | |
| Deferred tax | 1,409 | 1,232 | |
| Minority portion of consolidated mutual funds | 63,567 | 58,809 | |
| Insurance contracts liabilities | 6 | 325,611 | 318,225 |
| Investment contracts liabilities | 6 | 429,471 | 354,270 |
| Reinsurance contracts liabilities | 6 | 11 | |
| Subordinated loan capital | 4 | 10,807 | 11,501 |
| Other non-current liabilities | 841 | 1,180 | |
| Deposits from banking customers | 31,403 | 23,948 | |
| Debt raised by issuance of securities | 4 | 39,669 | 40,655 |
| Loans and deposits from credit institutions | 4 | 3,415 | 283 |
| Derivatives | 5 | 8,988 | 6,118 |
| Other liabilities | 49,331 | 51,015 | |
| Total liabilities | 964,698 | 867,409 | |
| Total equity and liabilities | 996,811 | 896,940 |
Statement of changes in equity
| Majority's share of equity | Non | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| NOK million | Share capital 1) |
Own shares |
Share premium |
Total paid in equity |
Currency translation differences |
Other equity |
Total retained earnings |
Hybrid capital 2) |
controll -ing interest |
Total equity s |
| Equity 31.12.22 | 2,360 | -39 | 10,842 | 13,163 | 1,041 | 14,988 | 16,029 | 327 | 29,519 | |
| Profit for the period | 3,350 | 3,350 | 27 | 3,377 | ||||||
| Total other comprehensive income elements |
-302 | 10 | -292 | -292 | ||||||
| Total comprehensive income for the period |
-302 | 3,360 | 3,058 | 27 | 3,085 | |||||
| Equity transactions with owners: | ||||||||||
| Own shares | -32 | -52 | -84 | -1,370 | -1,370 | -1,454 | ||||
| Hybrid capital classified as equity | 7 | 7 | 80 | 87 | ||||||
| Paid out interest hybrid capital | -26 | -26 | ||||||||
| Dividend paid | -1,715 | -1,715 | -1,715 | |||||||
| Other | 35 | 35 | 35 | |||||||
| Equity 31.12.23 | 2,327 | -91 | 10,842 | 13,078 | 739 | 15,305 | 16,044 | 408 | 29,531 | |
| Profit for the period | 5,494 | 5,494 | 30 | -1 | 5,522 | |||||
| Total other comprehensive income elements |
-43 | 29 | -13 | -13 | ||||||
| Total comprehensive income for the period |
-43 | 5,523 | 5,481 | 30 | -1 | 5,509 | ||||
| Equity transactions with owners: | ||||||||||
| Own shares | -88 | 21 | -67 | -1,379 | -1,379 | -1,446 | ||||
| Hybrid capital classified as equity | 7 | 7 | -55 | -47 | ||||||
| Paid out interest hybrid capital | -30 | -30 | ||||||||
| Dividend paid | -1,817 | -1,817 | -1,817 | |||||||
| Other | 10 | 10 | 404 | 414 | ||||||
| Equity 31.12.24 | 2,240 | -70 | 10,842 | 13,012 | 697 | 17,650 | 18,346 | 353 | 402 | 32,113 |
1) 447 972 681 shares with a nominal value of NOK 5.
2) Perpetual hybrid tier 1 capital classified as equity.
Statement of cash flow
| 01.01 - 31.12 | |||
|---|---|---|---|
| NOK million | 2024 | 2023 | |
| Cash flow from operating activities | |||
| Net receipts premium - insurance | 32,401 | 29,946 | |
| Net payments claims and insurance benefits | -24,858 | -22,982 | |
| Net receipts/payments - transfers | -2,305 | -4,660 | |
| Net change insurance liabilities | 5,116 | 30,344 | |
| Receipts - interest, commission and fees from customers | 3,992 | 2,987 | |
| Payments - interest, commission and fees to customers | -1,036 | -536 | |
| Taxes paid | -1,252 | -964 | |
| Payments relating to operations | -8,578 | -2,352 | |
| Net receipts/payments - other operating activities | 1,503 | 11,213 | |
| Net cash flow from operations before financial assets and banking customers | 4,983 | 42,997 | |
| Net receipts/payments - loans to customers | -7,451 | -5,503 | |
| Net receipts/payments - deposits bank customers | 7,455 | 4,470 | |
| Net receipts/payments - securities | -2,679 | -44,228 | |
| Net receipts/payments - investment properties | 8 | 1,306 | |
| Receipts - sale of investment properties | 1,201 | 3 | |
| Payments - purchase of investment properties | -1,180 | -300 | |
| Net cash flow from financial assets and banking customers | -2,647 | -44,252 | |
| Net cash flow from operating activities | 2,336 | -1,255 | |
| Cash flow from investing activities | |||
| Receipts - sale of subsidiaries | 1,313 | ||
| Payments - purchase of subsidiaries | -252 | -345 | |
| Net receipts/payments - sale/purchase of fixed assets | -1,687 | -127 | |
| Net receipts/payments - sale/purchase of associated companies and joint ventures | -27 | -168 | |
| Net cash flow from investing activities | -654 | -640 | |
| Cash flow from financing activities | |||
| Receipts - new loans | 6,355 | 12,644 | |
| Payments - repayments of loans | -7,306 | -4,895 | |
| Payments - interest on loans | -2,122 | -1,535 | |
| Receipts - subordinated loans | 1,040 | 997 | |
| Payments - repayment of subordinated loans | -1,899 | -676 | |
| Payments - interest on subordinated loans | -689 | -656 | |
| Receipts - loans to financial institutions | 13,152 | 12,105 | |
| Payments - repayments of loans from financial institutions | -10,021 | -12,225 | |
| Receipts - issuing of share capital / sale of shares to employees | 65 | 51 | |
| Payments - repayment of share capital | -1,500 | -1,500 | |
| Payments - dividends | -1,817 | -1,715 | |
| Receipts - hybrid capital | 249 | ||
| Payments - repayment of hybrid capital | -55 | -170 | |
| Payments - interest on hybrid capital | -30 | -26 | |
| Net cash flow from financing activities | -4,828 | 2,648 | |
| Net cash flow for the period | -3,146 | 753 | |
| Cash and cash equivalents at the start of the period | 15,105 | 14,007 |
| 01.01 - 31.12 | ||||
|---|---|---|---|---|
| NOK million | 2024 | 2023 | ||
| Currency translation cash/cash equivalents in foreign currency | 63 | 294 | ||
| Cash and cash equivalents at the end of the period 1) | 12,022 | 15,054 | ||
| 1) Consists of: | ||||
| Loans to financial institutions | 2,781 | 1,138 | ||
| Bank deposits | 9,241 | 13,916 | ||
| Total | 12,022 | 15,054 |
Notes to the interim accounts Storebrand Group
Note Basis for preparation
G1
The Group's interim financial statements include Storebrand ASA, subsidiaries, associated companies and joint ventures. The financial statements are prepared in accordance with IAS 34 Interim Financial Reporting. The interim financial statements do not contain all the information that is required in the 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.
There are no 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 market risk and insurance risk in note 7 and valuation of financial instruments and investment properties in note 12.
Note Acquisition
G2
AIP Management P/S
Storebrand Asset Management has acquired 50% of the shares in AIP Management and now holds a 60% ownership stake in the company. AIP Management is a Danish infrastructure manager with approximately NOK 95 billion in assets under management. In connection with the purchase, a gain of NOK 100 million has been recorded on the existing ownership stake. AIP Management specializes in investments in the renewable energy sector. The company's headquarters are located in Copenhagen and consist of approximately 100 employees. The company also has offices in Spain and the USA. The transaction was completed on November 15, 2024. The acquisition is in line with Storebrand's growth strategy and will further strengthen Storebrand's position as a Nordic asset manager and pioneer in sustainability.
The acquisition of AIP Management was announced on June 30, 2024, and the transaction was subsequently approved by the Danish Financial Supervisory Authority and the Ministry of Finance.
| Book values in the |
Excess value upon |
Book | |
|---|---|---|---|
| NOK million | company | acquisition | values |
| Assets - Customer lists |
443 | 443 | |
| Total intangible assets | 443 | 443 | |
| Other assets | 127 | 127 | |
| Bank deposits | 107 | 107 | |
| Total assets | 234 | 443 | 677 |
| Liabilities | |||
| Loans | 24 | 24 | |
| Current liabilities | 146 | 146 | |
| Deferred tax | 111 | 111 | |
| Net identifiable assets and liabilities | 63 | 332 | 396 |
| Goodwill | 619 | ||
| Fair value at acquisition date | 1,015 | ||
| Non-controlling interests | 404 | ||
| Value of existing 10% ownership stake at the time of acquisition |
101 | ||
| Conditional payment | 151 | ||
| Cash payment | 359 | ||
| Bank deposit in acquired business | 107 | ||
| Net Cash payment | 252 |
Lysaker Park Eiendom AS
Storebrand AIF AS, which is wholly owned by Storebrand Asset Management AS, has acquired 100% of the shares in the company Lysaker Park Eiendom AS. The transaction was completed on 21st of June 2024. Lysaker Park Eiendom AS owns the real estate property Professor Kohts vei 9, where Storebrand is currently headquartered. The gross property value amounts to approximately NOK 1.70 billion. After agreed customary purchase price adjustments, approximately NOK 1.62 billion was paid for the shares in Lysaker Park Eiendom AS.
Note G3 Profit by segments
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.
Storebrand has implemented a minor adjustment to its alternative income statement, effective from 1st quarter 2024. In historical reporting, performance-related cost in the asset management business was recognised continuously, while performance-related income was fully recognised in the 4th quarter. Starting from the 1st quarter of 2024, Storebrand will record performance-related income on continuous basis to align the timing of performance-related income and costs. This change will not impact the annual result.
Segment information as of Q4
| Savings Q4 |
Insurance Q4 |
Guaranteed pension Q4 |
||||
|---|---|---|---|---|---|---|
| NOK million | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 |
| Fee and administration income | 1,607 | 1,388 | 376 | 422 | ||
| Insurance result | 394 | 64 | ||||
| - Insurance premiums for own account | 2,134 | 1,776 | ||||
| - Claims for own account | -1,740 | -1,712 | ||||
| Operating expense | -1,012 | -972 | -390 | -328 | -222 | -205 |
| Cash equivalent earnings from operations | 594 | 416 | 4 | -263 | 154 | 217 |
| Financial items and risk result life & pension | 16 | -16 | 102 | 70 | 130 | 216 |
| Cash equivalent earnings before amortisation | 610 | 399 | 106 | -193 | 285 | 433 |
| Amortisation of intangible assets 1) | ||||||
| Cash equivalent earnings before tax |
| Other | Storebrand Group | |||
|---|---|---|---|---|
| Q4 | Q4 | |||
| NOK million | 2024 | 2023 | 2024 | 2023 |
| Fee and administration income | -74 | -70 | 1,908 | 1,739 |
| Insurance result | 394 | 64 | ||
| - Insurance premiums for own account | 2,134 | 1,776 | ||
| - Claims for own account | -1,740 | -1,712 | ||
| Operating expense | 23 | -38 | -1,600 | -1,542 |
| Cash equivalent earnings from operations | -51 | -108 | 702 | 262 |
| Financial items and risk result life & pension | 115 | 196 | 363 | 465 |
| Cash equivalent earnings before amortisation | 64 | 88 | 1,065 | 728 |
| Amortisation of intangible assets 1) | -77 | -114 | ||
| Cash equivalent earnings before tax | 988 | 614 |
Segment information as of 01.01 - 31.12
| Savings 01.01 - 31.12 |
Insurance 01.01 - 31.12 |
Guaranteed pension 01.01 - 31.12 |
||||
|---|---|---|---|---|---|---|
| NOK million | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 |
| Fee and administration income | 6,327 | 5,443 | 1,540 | 1,600 | ||
| Insurance result | 1,640 | 1,122 | ||||
| - Insurance premiums for own account | 8,008 | 6,908 | ||||
| - Claims for own account | -6,368 | -5,787 | ||||
| Operating expense | -3,831 | -3,582 | -1,404 | -1,251 | -871 | -822 |
| Cash equivalent earnings from operations | 2,497 | 1,861 | 236 | -129 | 669 | 778 |
| Financial items and risk result life & pension | 96 | 1 | 310 | 155 | 557 | 547 |
| Cash equivalent earnings before amortisation | 2,592 | 1,862 | 546 | 27 | 1,226 | 1,326 |
| Amortisation of intangible assets 1) | ||||||
| Cash equivalent earnings before tax |
| Other | Storebrand Group | |||
|---|---|---|---|---|
| 01.01 - 31.12 | 01.01 - 31.12 | |||
| NOK million | 2024 | 2023 | 2024 | 2023 |
| Fee and administration income | -282 | -261 | 7,585 | 6,782 |
| Insurance result | 1,640 | 1,122 | ||
| - Insurance premiums for own account | 8,008 | 6,908 | ||
| - Claims for own account | -6,368 | -5,787 | ||
| Operating expense | 34 | -132 | -6,072 | -5,787 |
| Cash equivalent earnings from operations | -248 | -393 | 3,153 | 2,117 |
| Financial items and risk result life & pension | 1,788 | 658 | 2,751 | 1,362 |
| Cash equivalent earnings before amortisation | 1,539 | 265 | 5,904 | 3,480 |
| Amortisation of intangible assets 1) | -295 | -379 | ||
| Cash equivalent earnings before tax | 5,609 | 3,101 | ||
| Tax | -854 | 116 | ||
| Reconcilation between cash equivalent earning and profit for the period |
768 | 160 | ||
| Profit for the year | 5,522 | 3,377 |
1) Amortisation of intangible assets is included in Storebrand Group
Note Liquidity risk
G4
Specification of subordinated loans 1)
| Book value | ||||||
|---|---|---|---|---|---|---|
| NOK million | Nominal | value Currency | Interest | rate Call date 31.12.24 31.12.23 | ||
| Issuer | ||||||
| Perpetual subordinated loans 2) | ||||||
| Storebrand Livsforsikring AS 5) | 1,100 | NOK | Variable | 2024 | 863 | |
| Storebrand Livsforsikring AS 3) | 900 | SEK | Variable | 2026 | 928 | 910 |
| Storebrand Livsforsikring AS | 300 | NOK | Variable | 2028 | 302 | 302 |
| Storebrand Livsforsikring AS 3) | 400 | SEK | Variable | 2028 | 414 | 406 |
| Storebrand Livsforsikring AS 3) | 300 | NOK | Fixed | 2028 | 313 | 316 |
| Dated subordinated loans | ||||||
| Storebrand Livsforsikring AS 3,6) | 862 | SEK | Variable | 2025 | 887 | 907 |
| Storebrand Livsforsikring AS 3,5) | 1,000 | SEK | Variable | 2024 | 1,010 | |
| Storebrand Livsforsikring AS 6) | 426 | NOK | Variable | 2025 | 427 | 501 |
| Storebrand Livsforsikring AS 4) | 650 | NOK | Variable | 2027 | 653 | 653 |
| Storebrand Livsforsikring AS 3,4) | 750 | NOK | Fixed | 2027 | 748 | 763 |
| Storebrand Livsforsikring AS 3,4) | 1,250 | NOK | Variable | 2027 | 1,259 | 1,260 |
| Storebrand Livsforsikring AS 3) | 300 | EUR | Fixed | 2031 | 3,022 | 2,782 |
| Storebrand Livsforsikring AS 3,4) | 1,000 | SEK | Variable | 2029 | 1,026 | |
| Storebrand Bank ASA | 125 | NOK | Variable | 2025 | 126 | 126 |
| Storebrand Bank ASA | 300 | NOK | Variable | 2026 | 300 | 300 |
| Storebrand Bank ASA | 400 | NOK | Variable | 2027 | 403 | 403 |
| Total subordinated loans and hybrid tier 1 capital |
10,807 | 11,501 |
1) Storebrand Bank ASA has issued hybrid tier 1 capital bonds/hybrid capital that is classified as equity. See the statement of changes in equity.
2) In the case of perpetual subordinated loans, the cash flow is calculated through to the first call date
3) The loans are subject to hedge accounting
4) Green bonds
5) The loan has been repaid in 2024
6) The loan has partly been repaid September 2024
Specification of loans and deposits from credit institutions
| Book value | ||
|---|---|---|
| NOK million | 31.12.24 | 31.12.23 |
| Call date | ||
| 2024 | 283 | |
| 2025 | 3,415 | |
| Total loans and deposits from credit institutions | 3,415 | 283 |
Specification of securities issued
| Book value | |||
|---|---|---|---|
| NOK million | 31.12.24 | 31.12.23 | |
| Call date | |||
| 2024 | 6,071 | ||
| 2025 | 6,040 | 8,288 | |
| 2026 | 10,367 | 11,001 | |
| 2027 | 10,379 | 8,127 | |
| 2028 | 9,946 | 5,905 | |
| 2029 | 995 | ||
| 2031 | 1,248 | 1,264 | |
| 2038 | 693 | ||
| Total securities issued | 39,669 | 40,655 |
The loan agreements contain standard covenants.
Credit facilities
Storebrand ASA has an unused credit facility of EUR 200 million, expiration December 2029 with two one-year extension options.
Note Valuation of financial instruments and investment properties
G5
Valuation of financial instruments at amortised cost
| Fair value | Book value | Fair value | Book value | |
|---|---|---|---|---|
| NOK Million | 31.12.24 | 31.12.24 | 31.12.23 | 31.12.23 |
| Financial assets | ||||
| Loans to and due from financial institutions | 2,781 | 2,781 | 1,138 | 1,138 |
| Loans to customers - retail | 355 | 355 | 375 | 375 |
| Bonds held to maturity | 20 | 20 | ||
| Bonds classified as loans and receivables | 6,284 | 6,278 | 6,002 | 6,010 |
| Total financial assets 31.12.24 | 9,419 | 9,413 | ||
| Total financial assets 31.12.23 | 7,535 | 7,543 | ||
| Financial liabilities | ||||
| Debt raised by issuance of securities | 39,569 | 39,669 | 40,668 | 40,655 |
| Loans and deposits from credit institutions | 3,415 | 3,415 | 283 | 283 |
| Deposits from banking customers | 31,403 | 31,403 | 23,948 | 23,948 |
| Subordinated loan capital | 10,838 | 10,807 | 11,528 | 11,501 |
| Total financial liabilities 31.12.24 | 85,224 | 85,295 | ||
| Total financial liabilities 31.12.23 | 76,427 | 76,387 |
Valuation of financial instruments at fair value over OCI (FVOCI)
| Level 2 | Level 3 | Total fair value | ||
|---|---|---|---|---|
| NOK Million | Observable assumptions |
Non observable assumptions |
31.12.24 | 31.12.23 |
| Assets | ||||
| Loans to customers | ||||
| - Loans to customers - retail | 67,721 | 67,721 | 58,882 | |
| Total loans to customers 31.12.24 | 67,721 | 67,721 | ||
| Total loans to customers 31.12.23 | 58,882 | 58,882 | ||
| Bonds and other fixed-income securities | ||||
| - Government bonds | 1,150 | 1,150 | 1,847 | |
| - Corporate bonds | 3,484 | 3,484 | 4,133 | |
| - Structured notes | 1,519 | 1,519 | 497 | |
| Total bonds and other fixed-income securities 31.12.24 |
6,154 | 6,154 | ||
| Total bonds and other fixed-income securities 31.12.23 |
6,477 | 6,477 |
Financial instruments at fair value over OCI - level 3
| NOK million | Loans to customers |
|---|---|
| Book value 01.01.24 | 58,882 |
| Net gains/losses on financial instruments | -32 |
| Additions | 28,089 |
| Sales | -19,218 |
| Book value 31.12.24 | 67,721 |
Valuation of financial instruments and real estate at fair value
| Level 1 | Level 2 | Total Fair Value | |||
|---|---|---|---|---|---|
| NOK Million | Quoted prices |
Observable assumptions |
Non observable assumptions |
31.12.24 | 31.12.23 |
| Assets: | |||||
| Equities and fund units | |||||
| - Equities | 57,719 | 374 | 107 | 58,200 | 41,701 |
| - Fund units | 330,625 | 26,135 | 356,759 | 292,165 | |
| Total equities and fund units 31.12.24 | 57,719 | 330,999 | 26,242 | 414,959 | |
| Total equities and fund units 31.12.23 | 41,240 | 270,925 | 21,701 | 333,866 | |
| Loans to customers | |||||
| - Loans to customers - corporate | 8,199 | 8,199 | 10,391 | ||
| - Loans to customers - retail | 18,312 | 18,312 | 17,113 | ||
| Total loans to customers 31.12.24 | 26,511 | 26,511 | |||
| Total loans to customers 31.12.23 | 27,504 | 27,504 | |||
| Bonds and other fixed-income securities | |||||
| - Government bonds | 28,996 | 32,517 | 61,513 | 62,768 | |
| - Corporate bonds | 90,355 | 8 | 90,363 | 106,242 | |
| - Structured notes | 37,694 | 37,694 | 14,055 | ||
| - Collateralised securities | 3,798 | 3,798 | 5,731 | ||
| - Bond funds | 84,071 | 13,933 | 98,004 | 91,125 | |
| Total bonds and other fixed-income securities 31.12.24 |
28,996 | 248,435 | 13,941 | 291,371 | |
| Total bonds and other fixed-income securities 31.12.23 |
27,674 | 237,100 | 15,146 | 279,920 | |
| Derivatives: | |||||
| - Equity derivatives | 37 | 37 | |||
| - Interest derivatives | -3,201 | -3,201 | -3,165 | ||
| - Currency derivatives | -3,256 | -3,256 | 5,140 | ||
| Total derivatives 31.12.24 | -6,458 | 37 | -6,421 | ||
| - of which derivatives with a positive market value | 2,522 | 46 | 2,568 | 8,093 | |
| - of which derivatives with a negative market value | -8,979 | -9 | -8,988 | -6,119 | |
| Total derivatives 31.12.23 | 1,975 | 1,975 | |||
| Properties: | |||||
| Investment properties | 34,404 | 34,404 | 32,644 | ||
| Properties for own use | 1,820 | 1,820 | 1,737 | ||
| Total properties 31.12.24 | 36,225 | 36,225 | |||
| Total properties 31.12.23 | 34,382 | 34,382 |
3
There is no significant movements between level 1 and level 2 in this quarter.
Financial instruments and investment properties at fair value - level
| NOK million | Equities | Fund units |
Loans to customers |
Corporate bonds |
Bond funds |
Investment properties |
Properties for own use |
|---|---|---|---|---|---|---|---|
| Book value 01.01.24 | 116 | 21,586 | 27,504 | 8 | 15,138 | 32,644 | 1,737 |
| Net gains/losses on financial instruments |
57 | 5,697 | 496 | 42 | 419 | 44 | |
| Additions | 1 | 12 | 2,470 | 315 | 2,283 | 39 | |
| Sales | -68 | -1,294 | -4,084 | -1,810 | -1,201 | -3 | |
| Exchange rate adjustments | 75 | 126 | 248 | 250 | -2 | ||
| Other | 60 | 9 | 5 | ||||
| Book value 31.12.24 | 107 | 26,135 | 26,511 | 8 | 13,933 | 34,404 | 1,820 |
As at 31.12.24, Storebrand Livsforsikring had NOK 7.180 million invested in Storebrand Eiendomsfond Norge KS and VIA, 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 changes in sensitivity in this quarter.
Note G6
Insurance contracts
Insurance revenue and expenses
| 31.12.24 | 31.12.23 | ||||||
|---|---|---|---|---|---|---|---|
| Guaranteed pension Insurance |
|||||||
| NOK Million | Guaranteed products - Norway |
Guaranteed products - Sweden |
Pension related disability insurance - Norway |
P&C and Individual Life |
Group Life and Disability Insurance |
Total | Total |
| Contracts measured under VFA and GMM |
|||||||
| Amounts relating to changes in LRC | |||||||
| Expected incurred claims and other insurance service expenses |
|||||||
| Expected incurred claims | -4 | -1 | 511 | 507 | 611 | ||
| Expected incurred expenses | 560 | 203 | 143 | 906 | 831 | ||
| Change in the risk adjustment for non financial risk for risk expired |
200 | 105 | 23 | 328 | 336 | ||
| CSM recognised in P&L for services provided |
1,217 | 485 | 297 | 1,999 | 1,898 | ||
| Recovery of insurance acquisition cash flows |
3 | 5 | 10 | 18 | 12 | ||
| Insurance revenue from contracts measured under VFA and GMM |
1,976 | 797 | 984 | 3,757 | 3,687 | ||
| Insurance revenue from contracts measured under the PAA |
5,016 | 1,509 | 6,525 | 5,461 | |||
| Total insurance revenue | 1,976 | 797 | 984 | 5,016 | 1,509 | 10,282 | 9,147 |
| Incurred claims and other directly attributable expenses |
|||||||
| Incurred claims | 1 | 1 | -480 | -3,592 | -1,462 | -5,531 | -4,697 |
| Incurred expenses | -612 | -206 | -127 | -1,115 | -181 | -2,241 | -2,030 |
| Changes that relate to past service - Adjustment to the LIC |
-344 | 250 | -94 | -191 | |||
| Losses on onerous contracts and reversal on those losses |
404 | -92 | -352 | -40 | -771 | ||
| Insurance acquisition cash flows amortisation |
-3 | -5 | -10 | -18 | -12 | ||
| Total insurance service expenses | -210 | -302 | -968 | -5,052 | -1,393 | -7,925 | -7,701 |
| Net income (expenses) from reinsurance contracts held |
-2 | 4 | 20 | -5 | 16 | 19 | |
| Total insurance service result | 1,765 | 495 | 19 | -16 | 111 | 2,374 | 1,465 |
| Q4 2024 | Q4 2023 | ||||||
|---|---|---|---|---|---|---|---|
| Guaranteed pension Insurance |
|||||||
| NOK Million | Guaranteed products - Norway |
Guaranteed products - Sweden |
Pension related disability insurance - Norway |
P&C and Individual Life |
Group Life and Disability Insurance |
Total | Total |
| Contracts measured under VFA and GMM |
|||||||
| Amounts relating to changes in LRC | |||||||
| Expected incurred claims and other insurance service expenses |
|||||||
| Expected incurred claims | -1 | 112 | 111 | 164 | |||
| Expected incurred expenses | 144 | 50 | 36 | 231 | 212 | ||
| Change in the risk adjustment for non financial risk for risk expired |
52 | 26 | 8 | 85 | 85 | ||
| CSM recognised in P&L for services provided |
336 | 119 | 42 | 497 | 459 | ||
| Recovery of insurance acquisition cash flows |
1 | 1 | 4 | 6 | 3 | ||
| Insurance revenue from contracts measured under VFA and GMM |
533 | 196 | 201 | 929 | 925 | ||
| Insurance revenue from contracts measured under the PAA |
1,393 | 388 | 1,781 | 1,401 | |||
| Total insurance revenue | 533 | 196 | 201 | 1,393 | 388 | 2,710 | 2,325 |
| Incurred claims and other directly attributable expenses |
|||||||
| Incurred claims | 1 | -113 | -883 | -411 | -1,407 | -1,107 | |
| Incurred expenses | -147 | -54 | -33 | -318 | -47 | -599 | -527 |
| Changes that relate to past service - Adjustment to the LIC |
-156 | 43 | -112 | -114 | |||
| Losses on onerous contracts and reversal on those losses |
67 | -22 | 26 | 4 | 75 | -459 | |
| Insurance acquisition cash flows amortisation |
-1 | -1 | -4 | -6 | -3 | ||
| Total insurance service expenses | -80 | -77 | -123 | -1,356 | -411 | -2,048 | -2,210 |
| Net income (expenses) from reinsurance contracts held |
11 | -2 | 9 | -7 | |||
| Total insurance service result | 452 | 119 | 78 | 47 | -24 | 672 | 109 |
GUARANTEED PENSION
Reconciliation of the measurement component of insurance contract balances
| NOK Million | Present value of future cash flows |
Risk adjustment for non financial risk |
CSM | Total | Total 31.12.23 |
|---|---|---|---|---|---|
| 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 | -1,999 | -1,999 | -1,898 | ||
| Change in the risk adjustment for non-financial risk for the risk expired |
-339 | -339 | -338 | ||
| Experience adjustments | 20 | 20 | 33 | ||
| Total changes that relate to current service | 20 | -339 | -1,999 | -2,317 | -2,202 |
| Change that relate to future service | |||||
| Changes in estimates that adjust the CSM | -4,470 | 274 | 4,195 | ||
| Changes in estimates that results in onerous contract losses or reversal of losses |
-387 | 2 | -385 | 555 | |
| Contracts initially recognised in the period | -90 | 95 | 420 | 425 | 217 |
| Total changes that relate to future service | -4,946 | 372 | 4,615 | 40 | 772 |
| Insurance service result | -4,926 | 32 | 2,616 | -2,277 | -1,430 |
| Finance expenses from insurance contracts issued recognised in profit or loss |
14,209 | 25 | 14,234 | 15,160 | |
| Finance expenses from insurance contracts issued | 14,209 | 25 | 14,234 | 15,160 | |
| Total amount recognised in comprehensive income | 9,283 | 32 | 2,641 | 11,957 | 13,730 |
| Other changes | -64 | -64 | 45 | ||
| Effect of changes in foreign exchange rates | 1,626 | 21 | 65 | 1,712 | 5,239 |
| Cash flows | |||||
| Premiums received | 9,953 | 9,953 | 9,607 | ||
| Claims and other directly attributable expenses paid | -16,672 | -16,672 | -14,503 | ||
| Insurance acquisition cash flows | -73 | -73 | -51 | ||
| Total cash flows | -6,792 | -6,792 | -4,947 | ||
| Net closing balance | 299,507 | 4,038 | 13,507 | 317,052 | 310,238 |
INSURANCE
Reconciliation of the liability for remaining coverage and the liability for incurred claims
| 31.12.24 | ||||||
|---|---|---|---|---|---|---|
| LRC | LIC for contracts under the PAA |
|||||
| NOK Million | Excluding loss compo nent |
Loss compo nent |
Present value of future cash flows |
Risk adjust ment for non financial risk |
Total | Total 31.12.23 |
| Net opening balance | 373 | 10 | 7,411 | 192 | 7,986 | 7,106 |
| Insurance revenue | -6,525 | -6,525 | -5,461 | |||
| Insurance service expenses | ||||||
| Incurred claims and other directly attributable expenses |
6,350 | 6,350 | 5,249 | |||
| Adjustment to liabilities for incurred claims | 62 | 32 | 94 | 191 | ||
| Losses on onerous contracts and reversal of those losses |
||||||
| Insurance service expenses | 6,413 | 32 | 6,444 | 5,440 | ||
| Insurance service result | -6,525 | 6,413 | 32 | -80 | -21 | |
| Finance expenses from insurance contracts issued recognised in profit or loss |
-138 | -138 | 114 | |||
| Finance expenses from insurance contracts issued |
-138 | -138 | 114 | |||
| Total amounts recognised in comprehensive income |
-6,525 | 6,275 | 32 | -218 | 93 | |
| Effect of changes in foreign exchange rates | 21 | 1 | 22 | 69 | ||
| Cash flows | ||||||
| Premiums received | 6,571 | 6,571 | 5,468 | |||
| Claims and other directly attributable expenses paid |
-5,802 | -5,802 | -4,750 | |||
| Total cash flows | 6,571 | -5,802 | 769 | 718 | ||
| Net closing balance | 420 | 9 | 7,904 | 226 | 8,559 | 7,986 |
Sensitivities
| NOK Million | CSM as at end of period |
Impact on CSM | |
|---|---|---|---|
| 13,507 | |||
| Equity | -25% | -2,891 | |
| Property | -10bp | -1,009 | |
| Interest rate | +50bp | 305 | |
| Interest rate | -50bp | -384 | |
| Spread (credit spead and VA) | +50 bp+15bp | -1,041 | |
| Mortality | -5% | -323 | |
| Disability | +5% | 25 | |
| Expenses | +5% | -301 |
Note G7
Tax
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, see note 26 in the Annual Report for 2023. The statement below relates to developments in the case regarding group contributions in 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. In a petition dated 21 June 2024, the Ministry of Finance accepts that NOK 1.5 billion of the direct group contributions of NOK 2.9 billion are not a repayment of contributed capital. The remaining NOK 1.4 billion will be distributed among the company's 2,300 shares and treated according to the share-by-share principle.
In the case with the direct group contributions that was hold in the City Court in September 2024, a verdict was reached om 5. November 2024. The Tax Appeal Board was fully upheld. The Ministry of Finance has appealed to the Court of Appeal.
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 financial statements based on the subpoena. If the Ministry of Finance were to prevail with its view on the direct group contribution, the estimated tax cost would be between NOK 100 million and NOK 150 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 G8 Contingent assets and liabilities
Storebrand Livsforsikring received a letter from the Norwegian FSA (Finanstilsynet) in 2023 regarding the fee structure on paid up policies for the year 2023. Storebrand is of the opinion that the fee is legitimate and hence that the company is entitled to it and has appealed the decision. Storebrand is awaiting further proceedings in the Ministry of Finance. There is uncertainty regarding the potential financial impact.
Note Solidity and capital management
G9
The Storebrand Group is an insurance-dominated, cross-sectoral financial group with capital requirements in accordance with Solvency II. Storebrand calculates Solvency II according to the standard method as defined in the Solvency II Regulations.
Solidity and capital management is further described in the 2023 annual report in note 13.
| 31.12.24 | 31.12.23 | |||||
|---|---|---|---|---|---|---|
| NOK million | Total | Group 1 unlimited |
Group 1 limited |
Group 2 | Group 3 | Total |
| Share capital | 2,240 | 2,240 | 2,327 | |||
| Share premium | 10,842 | 10,842 | 10,842 | |||
| Reconciliation reserve | 34,581 | 34,581 | 30,286 | |||
| Counting subordinated loans | 8,795 | 1,976 | 6,819 | 8,943 | ||
| Deferred tax assets | 223 | 223 | 266 | |||
| Risk equalisation reserve | 1,267 | 1,267 | 1,091 | |||
| Deductions for CRD IV subsidiaries | -7,144 | -7,144 | -5,972 | |||
| Expected dividend | -2,040 | -2,040 | -1,834 | |||
| Total basic solvency capital | 48,764 | 38,479 | 1,976 | 8,086 | 223 | 45,948 |
| Subordinated capital for subsidiaries regulated in accordance with CRD IV |
7,144 | 5,972 | ||||
| Total solvency capital | 55,908 | 51,921 | ||||
| Total solvency capital available to cover the minimum capital requirement |
42,468 | 38,479 | 1,976 | 2,013 | 39,621 |
Solvency capital
Solvency capital requirement and -margin
| NOK million | 31.12.24 | 31.12.23 |
|---|---|---|
| Market risk | 18,928 | 18,842 |
| Counterparty risk | 919 | 1,062 |
| Life insurance risk | 11,160 | 11,069 |
| Health insurance risk | 1,046 | 1,049 |
| P&C insurance risk | 951 | 746 |
| Operational risk | 1,503 | 1,508 |
| Diversification | -7,880 | -7,777 |
| Loss-absorbing ability deferred tax | -4,405 | -4,437 |
| Total solvency capital requirement - insurance company | 22,221 | 22,062 |
| Capital requirements for subsidiaries regulated in accordance with CRD IV | 5,778 | 5,037 |
| Total solvency capital requirement | 28,000 | 27,099 |
| Solvency margin | 200% | 192% |
| Minimum capital requirement | 10,065 | 10,304 |
| Minimum margin | 422% | 385% |
Capital- and capital requirement in accordance with the conglomerate directive
| NOK million | 31.12.24 | 31.12.23 |
|---|---|---|
| Capital requirements for CRD IV companies | 6,394 | 5,541 |
| Solvency capital requirements for insurance | 22,221 | 22,062 |
| Total capital requirements | 28,615 | 27,603 |
| Net primary capital for companies included in the CRD IV report | 7,144 | 5,972 |
| Net primary capital for insurance | 49,070 | 45,948 |
| Total net primary capital | 56,214 | 51,921 |
| Overfulfilment | 27,599 | 24,318 |
Note G10 Information about related parties
Storebrand conducts transactions with related parties as part of its normal business activities. These transactions take place on commercial terms. The terms for transactions with management and related parties are stipulated in notes 20 and 44 in the 2023 annual report.
Storebrand has not carried out any material transactions other than normal business transactions with related parties at the close of the 4rd quarter 2024.
Note G11 Divestment of company
Storebrand ASA has entered into an agreement with ERGO International AG, a wholly-owned subsidiary of ERGO Group AG to sell its 50 per cent stake in Storebrand Helseforsikring AS. Storebrand Helseforsikring is a health insurance joint-venture in which ERGO International AG and Storebrand ASA each previously held a 50 per cent stake. The Company is headquartered at Lysaker in Norway and offers medical expense insurance in the corporate and retail markets in Norway and Sweden.
The transaction was completed 2nd of April 2024 with a positive impact of NOK 1.047 million on Storebrand's Group results.
Income statement
| Q4 | 01.01 - 31.12 | |||
|---|---|---|---|---|
| NOK million | 2024 | 2023 | 2024 | 2023 |
| Operating income | ||||
| Income from investments in subsidiaries | 4,981 | 4,465 | 4,981 | 4,465 |
| Net income and gains from financial instruments: | ||||
| - equities and other units | -2 | -2 | -9 | |
| - bonds and other fixed-income securities | 34 | 53 | 195 | 186 |
| Other financial instruments | 1 | 1 | 1,111 | 7 |
| Operating income | 5,016 | 4,518 | 6,285 | 4,649 |
| Interest expenses | -15 | -8 | -46 | -26 |
| Other financial expenses | -21 | -107 | -122 | -111 |
| Operating expenses | ||||
| Personnel expenses | -15 | -14 | -56 | -52 |
| Other operating expenses | -54 | -48 | -211 | -191 |
| Total operating expenses | -68 | -61 | -267 | -243 |
| Total expenses | -104 | -176 | -434 | -381 |
| Profit before income tax | 4,911 | 4,342 | 5,850 | 4,268 |
| Tax expenses | -167 | -200 | -152 | -184 |
| Profit for the period | 4,744 | 4,142 | 5,699 | 4,083 |
Statement of total comprehensive income
| Q4 | 01.01 - 31.12 | |||
|---|---|---|---|---|
| NOK million | 2024 | 2023 | 2024 | 2023 |
| Profit for the period | 4,744 | 4,142 | 5,699 | 4,083 |
| Other total comprehensive income elements not to be classified to profit/loss |
||||
| Change in estimate deviation pension | -10 | -2 | -10 | -2 |
| Tax on other comprehensive elements | 3 | 1 | 3 | 1 |
| Total other comprehensive income elements | -8 | -2 | -8 | -2 |
| Total comprehensive income | 4,737 | 4,140 | 5,691 | 4,082 |
Statement of financial position
| NOK million | 31.12.24 | 31.12.23 |
|---|---|---|
| Fixed assets | ||
| Deferred tax assets | 39 | 24 |
| Tangible fixed assets | 29 | 29 |
| Shares in subsidiaries and associated companies | 27,853 | 26,425 |
| Total fixed assets | 27,922 | 26,477 |
| Current assets | ||
| Owed within group | 4,982 | 4,467 |
| Other current receivables | 28 | 14 |
| Investments in trading portfolio: | ||
| - equities and other units | 28 | 31 |
| - bonds and other fixed-income securities | 3,176 | 2,336 |
| Bank deposits | 45 | 46 |
| Total current assets | 8,258 | 6,894 |
| Total assets | 36,180 | 33,371 |
| Equity and liabilities | ||
| Share capital | 2,240 | 2,327 |
| Own shares | -70 | -91 |
| Share premium reserve | 10,842 | 10,842 |
| Total paid in equity | 13,012 | 13,078 |
| Other equity | 19,116 | 16,817 |
| Total equity | 32,127 | 29,896 |
| Non-current liabilities | ||
| Pension liabilities | 112 | 111 |
| Securities issued | 1,002 | 501 |
| Total non-current liabilities | 1,114 | 612 |
| Current liabilities | ||
| Debt within group | 833 | 990 |
| Provision for dividend | 2,040 | 1,834 |
| Other current liabilities | 66 | 39 |
| Total current liabilities | 2,939 | 2,864 |
| Total equity and liabilities | 36,180 | 33,371 |
Storebrand ASA
Statement of changes in equity
| NOK million | Share capital |
Own shares | Share | premium Other equity | Total equity |
|---|---|---|---|---|---|
| Equity at 31. December 2022 | 2,360 | -39 | 10,842 | 15,932 | 29,095 |
| Profit for the period | 4,083 | 4,083 | |||
| Total other result elements | -2 | -2 | |||
| Total comprehensive income | 4,082 | 4,082 | |||
| Provision for dividend | -1,832 | -1,832 | |||
| Own shares bought back 2) | -88 | -1,412 | -1,500 | ||
| Own shares sold2) | 3 | 43 | 46 | ||
| Cancellation of own shares1) | -32 | 32 | |||
| Employee share2) | 5 | 5 | |||
| Equity at 31. December 2023 | 2,327 | -91 | 10,842 | 16,817 | 29,896 |
| Profit for the period | 5,699 | 5,699 | |||
| Total comprehensive income | 5,691 | 5,691 | |||
| Provision for dividend | -2,023 | -2,023 | |||
| Own shares bought back 2) | -70 | -1,430 | -1,500 | ||
| Own shares sold2) | 3 | 51 | 54 | ||
| Cancellation of own shares1) | -88 | 88 | |||
| Employee share2) | 10 | 10 | |||
| Equity at 31. December 2024 | 2,240 | -70 | 10,842 | 19,116 | 32,127 |
1) 447 972 681 shares with a nominal value of NOK 5. Share capital reduced in May by NOK 88 million by cancellation of 17 525 185 shares.
2) In 2024, Storebrand ASA has bought 13.963.803 shares. In 2024, 627.954 shares were sold to our own employees. Holding of own shares 31. December 2024 was 13.988.270.
Statement of cash flow
| 01.01 - 31.12 | |||
|---|---|---|---|
| NOK million | 2024 | 2023 | |
| Cash flow from operational activities | |||
| Net receipts/payments - securities at fair value | -645 | 2,479 | |
| Payments relating to operations | -263 | -257 | |
| Net receipts/payments - other operational activities | 4,464 | 3,181 | |
| Net cash flow from operational activities | 3,556 | 5,402 | |
| Cash flow from investment activities | |||
| Receipts - sale of subsidiaries | 1,313 | ||
| Payments - purchase/capitalisation of subsidiaries | -2,070 | -2,598 | |
| Net receipts/payments - sale/purchase of property and fixed assets | -1 | -1 | |
| Net cash flow from investment activities | -758 | -2,599 | |
| Cash flow from financing activities | |||
| Receipts - new loans | 499 | ||
| Payments - interest on loans | -46 | -26 | |
| Receipts - sold own shares to employees | 65 | 52 | |
| Payments - buy own shares | -1,500 | -1,500 | |
| Payments - dividends | -1,817 | -1,715 | |
| Net cash flow from financing activities | -2,799 | -3,190 | |
| Net cash flow for the period | -2 | -386 | |
| Net movement in cash and cash equivalents | -2 | -386 | |
| Cash and cash equivalents at start of the period | 46 | 433 | |
| Cash and cash equivalents at the end of the period | 45 | 46 |
Notes to the financial statements Storebrand ASA
Note Basis for preparation
P1
The financial statements are presented in accordance with the accounting policies applied in the annual financial statements for 2023. The accounting policies are described in note 1 in the 2023 annual report.
Storebrand ASA does not apply IFRS to the parent company's financial statements.
In preparing the interim accounts, Storebrand has used assumptions and estimates that affect reported amounts of assets, liabilities, revenues, and costs, and information in the notes to the financial statements. The final values realised may differ from these estimates.
Note P2 Income from subsidiaries
| Bond loan 2020/2025 | 2024 | 2023 |
|---|---|---|
| Storebrand Livsforsikring AS | 4,150 | 3,439 |
| Storebrand Bank ASA | 300 | 395 |
| Storebrand Asset Management AS | 525 | 627 |
| Storebrand Facilities AS | 6 | 4 |
| Total | 4,981 | 4,465 |
Note Bond and bank loan
P3
P4
| NOK million | Interest rate |
Currency | Net nomial value |
31.12.24 | 31.12.23 |
|---|---|---|---|---|---|
| Bond loan 2020/2025 | Variable | NOK | 500 | 502 | 501 |
| Bond loan 2024/2029 | Variable | NOK | 500 | 500 | |
| Total 1) | 1,002 | 501 |
1) Loans are booked at amortised cost and include earned not due interest.
Signed loan agreements have covenant requirements.
Storebrand ASA has an unused drawing facility for EUR 200 million, expiration December 2029 with two one-year extension options.
Note Divestment of company
Storebrand ASA has entered into an agreement with ERGO International AG to sell its 50 per cent stake in Storebrand Helseforsikring AS.
The transaction was completed 2nd of April 2024 with a positive impact of NOK 1.098 million on Storebrand ASA's company results.
For further information see note 10 in the Storebrand Group.
Financial calendar
12 February 2025 Results Q4 2024 17 March 2025 Annual Report 2024 9 April 2025 Annual General Meeting 7 May 2025 Results Q1 2025 11 July 2025 Results Q2 2025 22 October 2025 Results Q3 2025
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
45 Interim Report Storebrand Group Storebrand ASA Professor Kohts vei 9, P.O. Box 500, N-1327 Lysaker, Norway Phone: +47 22 31 50 50