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Storebrand ASA
Quarterly Report • Feb 12, 2025
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Quarterly Report
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Interim report 4th quarter 2024
Storebrand Livsforsikring AS (unaudited)
Contents
Financial performance business areas
| Storebrand Livsforsikring Group 3 | |
|---|---|
| Savings 6 | |
| Insurance 7 | |
| Guaranteed pension 9 | |
| Other 10 | |
| Balance, Solidity and Capital situation 11 | |
| Outlook 11 |
Financial statements/notes
| Income statement Storebrand Livsforsikring Group 14 | |
|---|---|
| Statement of financial position Storebrand Livsforsikring Group 15 | |
| Statement of changes in equity Storebrand Livsforsikring Group16 | |
| Statement of cash flow 17 | |
| Notes Storebrand Livsforsikring Group 18 | |
| Statement of comprehensive income Storebrand Livsforsikring AS 32 | |
| Statement of financial position Storebrand Livsforsikring AS 35 | |
| Statement of changes in equity Storebrand Livsforsikring AS 39 | |
| Notes Storebrand Livsforsikring AS 40 |
Important notice:
This document may contain forward-looking statements. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances that may be beyond the Storebrand Group's control. As a result, the Storebrand Group's actual future financial condition, performance and results may differ materially from the plans, goals and expectations set forth in these forward-looking statements. Important factors that may cause such a difference for the Storebrand Group include, but are not limited to: (i) the macroeconomic development, (ii) change in the competitive climate, (iii) change in the regulatory environment and other government actions and (iv) market related risks such as changes in equity markets, interest rates and exchange rates, and the performance of financial markets generally. The Storebrand Group assumes no responsibility to update any of the forward-looking statements contained in this document or any other forward-looking statements it may make. This document contains alternative performance measures (APM) as defined by The European Securities and Market Authority (ESMA). An overview of APM can be found at www.storebrand.com/ir.
Interim report Storebrand Livsforsikring Group Fourth quarter 2024
Storebrand Livsforsikring AS is a wholly owned subsidiary of the listed company Storebrand ASA. For information about the Storebrand Group's 4th quarter result please refer to the Storebrand Group's interim report for the 4th quarter of 2024. Storebrand Group's ambition is to provide our customers with financial freedom and security by being the best provider of long-term savings and insurance. The Group offers an integrated product range spanning from life insurance, P&C insurance, asset management and banking to private individuals, companies and public sector entities. The Group is divided into the segments Savings, Insurance, Guaranteed Pension and Other.
Changes in IFRS from 2023 – How to read this report
From 2023, the Storebrand Group reports its official IFRS financial statements in accordance with IFRS 17 and IFRS 9, which replaced IFRS 4 and IAS 39 on 1 January 2023. A short comment on the financial performance under IFRS is given in the subsection below and detailed disclosure is available under the "Financial statements Storebrand Livsforsikring Group" section. For the remaining part of the report, Storebrand continues to report and comment on the alternative income statement in parallel with IFRS statements of financial position. The alternative income statement is based on the statutory accounts of all the main subsidiaries and is an approximation of the cash generated in the period, while the IFRS statement includes profit-and-loss effects of updated estimates and assumptions about the timing of future cash flows and insurance services provided1.
Financial performance (IFRS)
The Livsforsikring Group's profit before amortisation and tax was NOK 1,422m in the quarter, compared to NOK 716m for the corresponding period last year. For the full year, the Group's net profit before amortisation and tax amounted to NOK 4,660m, compared to NOK 2,887m for 2023. Improving results in unit linked and insurance contributed positively. The Livsforsikring Group's net insurance service result was NOK 701m (NOK 215m) in the 4th quarter and NOK 2,582m (NOK 1,632m) year to date. 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)
| 2024 | 2023 | Full year | |||||
|---|---|---|---|---|---|---|---|
| NOK million | Q4 | Q3 | Q2 | Q1 | Q4 | 2024 | 2023 |
| Fee and administration income | 1,024 | 1,005 | 995 | 988 | 975 | 4,012 | 3,800 |
| Insurance result | 201 | 282 | 303 | 276 | -13 | 1,063 | 650 |
| Operational expenses | -770 | -742 | -705 | -709 | -752 | -2,926 | -2,961 |
| Cash equivalent earnings from operations | 456 | 545 | 593 | 555 | 210 | 2,149 | 1,488 |
| Financial items and risk result life & pension | 330 | 417 | 287 | 313 | 395 | 1,347 | 1,119 |
| Cash equivalent earnings before amortisation | 786 | 962 | 881 | 868 | 605 | 3,496 | 2,607 |
| Amortisation | -46 | -46 | -46 | -46 | -46 | -185 | -273 |
| Cash equivalent earnings before tax | 740 | 915 | 835 | 822 | 559 | 3,311 | 2,334 |
| Tax | -236 | -55 | -164 | -130 | 11 | -585 | 258 |
| Cash equivalent earnings after tax | 504 | 861 | 670 | 692 | 570 | 2,726 | 2,592 |
1 Due to the fundamental differences between IFRS 17 and the alternative income statement, it is not possible to reconcile the numbers.
The figures in brackets are from the corresponding period previous year.
The Livsforsikring Group's cash equivalent earnings before amortisation and tax was NOK 786m (NOK 605m) in the 4th quarter and NOK 3,496m (NOK 2,607m) for the full year. The improved result reflects continued underlying growth across the business, satisfactory cost development and improved insurance results. Compared to the fourth quarter last year, the cash equivalent earnings before amortisation increased by 30%.
Total fee and administration income amounted to NOK 1,024m (NOK 975m) in the 4th quarter and NOK 4,012m (NOK 3,800m) for the full year, corresponding to an increase of 5% compared to the same quarter last year and an increase of 6% for the full year. Income growth was driven by strong growth and supportive markets in Unit Linked.
The Insurance result amounted to NOK 201m (NOK - 13m) in the 4th quarter and NOK 1,063m (NOK 650m) for the full year. The result improvement stemmed from significant price increases, adjustments to terms and conditions, and operational improvements. The claims development is closely monitored to ensure that the increase in claims is mitigated our time. The total combined ratio for the Insurance segment was 95% (114%) in the 4th quarter and 88% (98%) for the full year.
The Livsforsikring Group's operational cost amounted to NOK -770m (NOK -752m) in the 4th quarter and NOK 2,926m (NOK 2,961m) for the full year. The stable cost development is to a large extent explained by efficiency measures and Danica integration cost in the comparable numbers. The Storebrand Group continues to focus on strong cost discipline, as demonstrated over the past decade.
Overall, the cash equivalent earnings from operations amounted to NOK 456m (NOK 210m) in the 4th quarter and NOK 2,149m (NOK 1,488m) for the full year.
The 'financial items and risk result' amounted to NOK 330m (NOK 395m) in the 4th quarter and NOK 1,347m (NOK 1,119m) 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. The improvement for the full year stems from the improved profit-sharing from the guaranteed business as well as improved net return on company portfolios. 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, but results are within normal variation.
Amortisation of intangible assets from acquired business amounted to NOK -46m (NOK -46m) in the 4th quarter and NOK -185m (NOK -273m) for the full year.
Tax expenses for the Livsforsikring Group amounted to NOK -397m (NOK -31m) in the 4th quarter and NOK -871m (NOK 199m) year to date. 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. Profit subject to yield tax in the Swedish business will normally contribute to lower effective tax rate. The estimated normal tax rate is 19-22%, depending on each legal entity's contribution to the Group result. Currency fluctuations and varying tax rates in different countries of operations impact the quarterly tax rate.
| 2024 | 2023 | Full year | |||||
|---|---|---|---|---|---|---|---|
| NOK million | Q4 | Q3 | Q2 | Q1 | Q4 | 2024 | 2023 |
| Savings | 265 | 258 | 253 | 246 | 168 | 1,021 | 731 |
| Insurance | 112 | 182 | 190 | 172 | -115 | 655 | 153 |
| Guaranteed pensions | 285 | 346 | 306 | 289 | 433 | 1,226 | 1,326 |
| Other | 125 | 177 | 132 | 161 | 119 | 594 | 398 |
| Cash equivalent earnings before amortisation | 786 | 962 | 881 | 868 | 605 | 3,496 | 2,607 |
Profit Storebrand Livsforsikring group - by business ares
The Group reports its cash equivalent earnings by business segment. For a more detailed description, see the sections by segment in the report.
Capital situation
The solvency ratio for Storebrand Livsforsikring was 268% at the end of the 4th quarter, an increase of 11 percentage points from the previous quarter and an increase of 18 percentage points year to date. Higher interest rates, alongside an increased Volatility Adjustment contributes to the increase of the solvency position. A lower equity stress from a decrease in the Symmetrical Adjustment has a further positive impact on the solvency ratio.
Savings
- 17% growth in fee and administration income from Q4 2023
- Cash equivalent earnings before amortisation up 58% compared to Q4 2023
- 20% growth in Unit Linked Reserves from Q4 2023
The Savings segment includes products for retirement savings with no interest rate guarantees. The segment consists of defined contribution pensions in Norway and Sweden.
Savings - Results
| 2024 | 2023 | Full year | |||||
|---|---|---|---|---|---|---|---|
| NOK million | Q4 | Q3 | Q2 | Q1 | Q4 | 2024 | 2023 |
| Fee and administration income | 648 | 620 | 606 | 598 | 553 | 2,472 | 2,199 |
| Operational expenses | -392 | -363 | -354 | -358 | -381 | -1,467 | -1,466 |
| Cash equivalent earnings from operations | 256 | 258 | 252 | 240 | 171 | 1,005 | 734 |
| Financial items and risk result life & pension | 9 | 0 | 1 | 6 | -3 | 16 | -3 |
| Cash equivalent earnings before amortisation | 265 | 258 | 253 | 246 | 168 | 1,021 | 731 |
Financial Performance
The Savings segment reported cash equivalent earnings before amortisation of NOK 265m (NOK 168m) in the in the 4th quarter and NOK 1,021m (NOK 731m) for the full year, up by 58% 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 648m (NOK 553m) in the 4th quarter and NOK 2,472m (NOK 2,199m) for the full year, corresponding to growth of 11% (adjusted for currency effect NOK vs SEK). 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.
Operational cost amounted to NOK -392m (NOK -381m) in the 4th quarter and NOK -1,467m (NOK -1,466m) for the full year. The stable cost development is largely explained by efficiency measures. Growth in the business in addition to underlying price inflation and wage growth affected the cost level.
Balance sheet and market trends
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.
Savings - Key figures
| 2024 | |||||||
|---|---|---|---|---|---|---|---|
| NOK mill | Q4 | Q3 | Q2 | Q1 | Q4 | ||
| Unit Linked Reserves | 456,326 | 448,514 | 425,589 | 410,180 | 379,516 | ||
| Unit Linked Premiums | 7,717 | 7,617 | 7,739 | 7,479 | 7,225 |
Insurance
• 16% growth in insurance premiums f.o.a. compared to the corresponding quarter last year
• Combined ratio of 95% in the quarter and 88% for the full year
The Insurance segment includes personal risk products in the Norwegian and Swedish retail market and employee insurance and pension-related insurance in the Norwegian and Swedish corporate markets.
Insurance - Results
| 2024 | 2023 | Full year | |||||
|---|---|---|---|---|---|---|---|
| NOK million | Q4 | Q3 | Q2 | Q1 | Q4 | 2024 | 2023 |
| Insurance result | 201 | 282 | 303 | 276 | -13 | 1,063 | 650 |
| - Insurance premiums f.o.a. | 1,146 | 1,094 | 1,072 | 1,057 | 989 | 4,369 | 3,950 |
| - Claims f.o.a. | -944 | -812 | -768 | -781 | -1,002 | -3,306 | -3,300 |
| Operational expenses | -148 | -144 | -133 | -128 | -130 | -553 | -556 |
| Cash equivalent earnings from operations | 53 | 138 | 171 | 148 | -143 | 510 | 93 |
| Financial items and risk result life & pension | 59 | 44 | 19 | 24 | 28 | 145 | 59 |
| Cash equivalent earnings before amortisation | 112 | 182 | 190 | 172 | -115 | 655 | 153 |
Financial Performance
Insurance premiums f.o.a. amounted to NOK 1,146m (NOK 989m) in the 4th quarter and NOK 4,369m (NOK 3,950m) for the full year, corresponding to an increase of 16% compared to the same quarter last year and an increase of 11% for the full year. The cost ratio was 13% (13%), with cost amounting to NOK -148m (NOK -130m) in the 4th quarter and NOK -553m (NOK -556m) for the full year.
Cash equivalent earnings before amortisation amounted to NOK 112m (NOK -115m) in the 4th quarter and NOK 655m (NOK 153m) year to date. The total combined ratio was 95% (114%) in the 4th quarter and 88% (98%) 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.
Within 'Individual life' the cash equivalent earnings before amortisation were NOK 73m (NOK 84m) in the 4th quarter and NOK 342m (NOK 281m) for the full year. The claims ratio was 62% (60%) in the 4th quarter and 58% (57%) year to date. Altogether, the product segment delivered a combined ratio of 81% (77%) in the 4th quarter and 75% (78%) 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% 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.
Overall growth in annual portfolio premiums was 13% compared to the same quarter last year. Growth in 'Individual life' amounted to 7%. 'Group life' grew by 22%, driven by price adjustments, sales and salary increases, and 'Pension related disability insurance' grew by 13%, driven by price adjustments and salary increases.
Portfolio premiums (annual)
| 2024 | 2023 | ||||||
|---|---|---|---|---|---|---|---|
| NOK million | Q4 | Q3 | Q2 | Q1 | Q4 | ||
| Individual life * | 1,279 | 1,256 | 1,238 | 1,217 | 1,198 | ||
| Group life ** | 1,281 | 1,283 | 1,198 | 1,137 | 1,047 | ||
| Pension related disability insurance *** | 2,173 | 2,143 | 2,071 | 2,011 | 1,928 | ||
| Portfolio premium | 4,733 | 4,682 | 4,507 | 4,365 | 4,173 | ||
| * Individual life disability insurance |
** Group disability, workers compensation insurance
*** DC disability risk premium Norway and disability risk Sweden
Key Figures
| 2024 | 2023 | ||||
|---|---|---|---|---|---|
| Q4 | Q3 | Q2 | Q1 | Q4 | |
| Claims ratio | 82% | 74% | 72% | 74% | 101% |
| Cost ratio | 13% | 13% | 12% | 12% | 13% |
| Combined ratio | 95% | 87% | 84% | 86% | 115% |
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
Under Other, the company portfolios of Storebrand Livsforsikring and SPP are reported.
| 2024 | 2023 | Full year | |||||
|---|---|---|---|---|---|---|---|
| NOK million | Q4 | Q3 | Q2 | Q1 | Q4 | 2024 | 2023 |
| Operational expenses | -7 | -12 | -7 | -9 | -35 | -35 | -117 |
| Cash equivalent earnings from operations | -7 | -12 | -7 | -9 | -35 | -35 | -117 |
| Financial items and risk result life & pension | 132 | 189 | 138 | 169 | 154 | 629 | 515 |
| Cash equivalent earnings before amortisation | 125 | 177 | 132 | 161 | 119 | 594 | 398 |
Financial Performance
The Other segment reported cash equivalent earnings before amortisation of NOK 125m (NOK 119m) in the 4th quarter and 594m (NOK 398m) 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 -7m (NOK -35m) in the 4thquarter and -35m (NOK -117m) year to date.
The financial result for the Other segment amounted to NOK 132m (NOK 154m) in the 4th quarter and NOK 629m (NOK 515m) for the full year. The result was driven by returns in the company portfolios of SPP and Storebrand Life Insurance. 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 amounted to NOK 26.2bn at the end of the quarter.
The Storebrand Livsforsikring Group is funded by a combination of equity and subordinated loans. Interest expenses in the quarter amounted to NOK -159m excluding hedging effects.
Balance sheet and capital situation
Continuous monitoring and active risk management is a core area of Storebrand's business. Risk and solidity are both followed up on at the Group level and in the legal entities. Regulatory requirements for financial strength and risk management follow the legal entities to a large extent. The section is thus divided up by legal entities.
Storebrand Livsforsikring AS Customer buffers (NOR)
New regulatory rules on a pooled and customer-distributed buffer fund were introduced for municipal pension schemes with effect from 1 January 2022. Correspondingly, a buffer fund 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)
Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024
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 80bn at end quarter (SEK 82bn), down by 2% year over year.
Outlook
Strategy
The Storebrand Group delivers financial security and freedom to individuals and businesses. The Group aim to make it easy for customers to make good financial decisions for the future by offering sustainable solutions: Together we create a future to look forward to.
The Storebrand Group's strategy gives a compelling combination of capital-light growth in the front book, i.e. the growth areas of the "future Storebrand", and capital return from a maturing back book of guaranteed pensions.
The Storebrand Group aims to (a) be the leading provider of Occupational Pensions in both Norway and Sweden, (b) continue a strategy to build a Nordic Powerhouse in Asset Management and (c) ensure fast growth as a challenger in the Norwegian retail market for financial services. The combined capital, cost and revenue synergies across the Group provide a solid platform for profitable growth and value creation.
In Norway, the market for Defined Contribution pensions is growing structurally due to the young nature of the product. High single-digit growth in Defined Contribution premiums and double-digit growth in assets under management are expected during the next years. Storebrand aims to defend its strong position in the market, while also focusing on cost leadership and improved customer experience through end-to-end digitalisation. As a leading occupational pension provider in the private sector, Storebrand also has a competitive pension offering to the Norwegian public sector, a 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 ESG-enhanced solutions. SPP is a significant profit contributor to the Storebrand Group, supported by an ongoing capital release from its guaranteed products in runoff. 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 Storebrand 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.
The brand name 'Storebrand' is well recognised in Norway. Together with capital, customer and operational synergies in the business, it supports rapid growth in the Norwegian retail market.
Financial performance
Storebrand expects top line growth in both fee-based income and insurance. In 2024, the insurance results were severely affected by persistent high levels of disability. Several measures, including repricing, are implemented and the board expects the insurance results to gradually improve from last year level.
Storebrand maintains a disciplined cost culture. To meet the Storebrand Group's profit ambitions, Storebrand invests in profitable growth. This includes growth in digital solutions, public occupational pensions 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. Growth investments have gradually increased costs, and cost reduction measures will be implemented if ambitions are not achieved.
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
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.
Storebrand Livsforsikring AS
Profit before tax was NOK 499 million in the 4th quarter, and NOK 3,084 million year to date (NOK 2,813 million and NOK 2,109 million). Premium incomes amounted to NOK 8,357 million in the 4th quarter and NOK 38,284 million year to date (NOK 7,671 million and NOK 36,720 million). The increase in the 4th quarter is due to higher transfer in premium reserves and pension capital, and a slightly higher premium. A solid growth in premiums from group pension and defined contribution pensions contributed to the increase year to date. There have been good returns in both the company and customer portfolios in 2024, but a soft result in the quarter is driven by negative mark to market effects of rising interest rates and widening credit spreads. Claims amounted to NOK 7,910 million in the 4th quarter, and NOK 30,124 year to date (NOK 6,120 million and 30,473), partly as a result of increased disability cases and lower transfer of own pension accounts for the year. Operating costs remain relatively stable compared to last year. Strong growth and digital investments are offset by reduced integration costs and strong cost discipline. Dividends and group contributions from subsidiaries amounting to NOK 1,023 million (NOK 878 million) have mainly been booked in the first quarter.
Lysaker, 11 February 2025 Board of Directors Storebrand Livsforsikring AS
Statement of comprehensive income
| Q4 | 01.01 - 31.12 | ||||
|---|---|---|---|---|---|
| NOK million | 2024 | 2023 | 2024 | 2023 | |
| Insurance revenue | 1,707 | 1,527 | 6,589 | 6,126 | |
| Insurance service expenses | -1,005 | -1,313 | -3,990 | -4,442 | |
| Net expenses from reinsurance contracts held | -1 | 1 | -16 | -52 | |
| Net insurance service result | 701 | 215 | 2,582 | 1,632 | |
| Income from unit linked | 602 | 480 | 2265 | 2008 | |
| Other income | 76 | 135 | 295 | 344 | |
| Total income | 1,380 | 830 | 5,142 | 3,984 | |
| Operating expenses | -458 | -463 | -1,694 | -1,775 | |
| Other expenses | -12 | -12 | -54 | -95 | |
| Operating profit | 909 | 355 | 3,395 | 2,114 | |
| Income from investments in subsidiaries, associated companies and joint ventures companies |
115 | -23 | 448 | -395 | |
| Net income on financial and property investments | 6,922 | 33,946 | 73,198 | 55,660 | |
| Net change in investment contract liabilities | -8,599 | -16,443 | -57,458 | -38,409 | |
| Finance expenses from insurance contracts issued | 2,247 | -16,856 | -14,110 | -15,274 | |
| Interest expenses securities issued and other interest expenses | -172 | -263 | -813 | -809 | |
| Net financial result | 512 | 361 | 1,265 | 773 | |
| Profit/loss before amortisation and tax | 1,422 | 716 | 4,660 | 2,887 | |
| Amortisation and write-downs intangible assets | -39 | -39 | -157 | -245 | |
| Tax expenses | -397 | -31 | -871 | 199 | |
| Profit/loss for the period | 985 | 646 | 3,632 | 2,841 | |
| Change in actuarial assumptions | -6 | -33 | -14 | -41 | |
| Fair value adjustment of properties for own use | 48 | ||||
| Other comprehensive income allocated to customers | -48 | ||||
| Tax on other comprehensive income not to be reclassified to | 3 | 3 | |||
| profit/loss Other comprehensive income not to be reclassified to profit/loss |
-6 | -31 | -14 | -39 | |
| Profit/loss cash flow hedging | -10 | ||||
| Translation differences foreign exchange | 64 | -155 | -118 | -364 | |
| Unrealised profit/loss on financial instruments FVOCI | -157 | 301 | -23 | 82 | |
| Tax on other comprehensive income that may be reclassified to | 39 | -78 | 6 | -20 | |
| profit/loss Other comprehensive income that may be reclassified to profit /loss |
-54 | 68 | -135 | -313 | |
| Other comprehensive income | -60 | 38 | -149 | -352 | |
| TOTAL COMPREHENSIVE INCOME | 925 | 684 | 3,483 | 2,489 | |
| PROFIT IS ATTRIBUTABLE TO: | |||||
| Share of profit for the period - shareholders | 985 | 646 | 3,632 | 2,841 | |
| Share of profit for the peride - non-controlling interests | |||||
| COMPREHENSIVE INCOME IS ATTRIBUTABLE TO: | |||||
| Share of profit for the period - shareholders | 925 | 684 | 3,483 | 2,489 | |
| Share of profit for the peride - non-controlling interests |
Statement of financial position
| NOK million | 31.12.24 | 31.12.23 |
|---|---|---|
| ASSETS | ||
| Other intangible assets | 2,617 | 2,792 |
| Total intangible assets | 2,617 | 2,792 |
| Tangible fixed assets | 654 | 658 |
| Tax assets | 2,105 | 3,037 |
| Equities and units in subsidiaries, associated companies and joint ventures | 7,325 | 7,739 |
| Investment properties | 36,225 | 34,382 |
| Loans | 25,734 | 27,153 |
| Bonds and other fixed-income securities | 290,219 | 277,575 |
| Equities and fund units | 414,712 | 333,550 |
| Derivatives | 2,448 | 8,003 |
| Bank deposits | 8,102 | 13,201 |
| Total investments | 784,766 | 701,603 |
| Insurance contracts assets | ||
| Reinsurance contracts assets | 180 | 184 |
| Receivable in the group | 178 | 113 |
| Accounts receivable and other short-term receivables | 49,032 | 48,052 |
| TOTAL ASSETS | 839,533 | 756,438 |
| EQUITY AND LIABILITIES | ||
| Paid in equity | 15,959 | 15,578 |
| Earned equity | 1,851 | 1,807 |
| Total equity | 17,810 | 17,385 |
| Subordinated loans and hybrid tier 1 capital | 9,979 | 10,672 |
| Insurance contracts liabilities | 323,974 | 316,783 |
| Reinsurance contracts liabilities | 11 | |
| Investment contracts liabilities | 429,471 | 354,270 |
| Pension liabilities etc. | 58 | 57 |
| Deferred tax Lease liabilities |
1,135 641 |
1,064 641 |
| Derivatives | 8,907 | 6,056 |
| Liabilities to group companies | 33 | 35 |
| Other liabilities | 47,515 | 49,475 |
| Total liabilities | 811,744 | 728,381 |
| TOTAL EQUITY AND LIABILITIES | 839,533 | 756,438 |
Statement of changes in equity
| Majority's share of equity | ||||||
|---|---|---|---|---|---|---|
| NOK million | Share capital |
Share premium |
Other paid in equity |
Total paid in equity |
Other equity |
Total equity |
| Equity at 1.1.2023 | 3,540 | 9,711 | 1,899 | 15,150 | 1,621 | 16,772 |
| Profit for the period | 2,841 | 2,841 | ||||
| Other comprehensive income | -352 | -352 | ||||
| Total comprehensive income for the period | 2,489 | 2,489 | ||||
| Equity transactions with owner: | ||||||
| Received dividend/group contributions | 427 | 427 | 427 | |||
| Paid dividend/group contributions | -2,325 | -2,325 | ||||
| Other | 22 | 22 | ||||
| Equity at 31.12.2023 | 3,540 | 9,711 | 2,327 | 15,578 | 1,807 | 17,385 |
| Profit for the period | 3,632 | 3,632 | ||||
| Other comprehensive income | -149 | -149 | ||||
| Total comprehensive income for the period | 3,483 | 3,483 | ||||
| Equity transactions with owner: | ||||||
| Received dividend/group contributions | 381 | 381 | 381 | |||
| Paid dividend/group contributions | -3,439 | -3,439 | ||||
| Other | ||||||
| Equity at 31.12.2024 | 3,540 | 9,711 | 2,708 | 15,959 | 1,851 | 17,810 |
Storebrand Livsforsikring Group/AS Statement of cash flow
| Storebrand Livsforsikring group |
Storebrand Livsforsikring AS |
|||
|---|---|---|---|---|
| 01.01 - 31.12 | 01.01 - 31.12 | |||
| 2023 | 2024 NOK million | 2024 | 2023 | |
| Cash flow from operating activities | ||||
| 27,075 | 28,776 Net received - direct insurance | 27,121 | 25,653 | |
| -20,813 | -21,990 Net claims/benefits paid - direct insurance | -15,867 | -14,796 | |
| -4,660 | -2,305 Net receipts/payments - policy transfers | -2,799 | -4,709 | |
| 30,344 | 5,116 Net change insurance liabilities | -72 | 30,714 | |
| -918 | -1,190 Taxes paid | 86 | ||
| 2,874 | -2,901 Net receipts/payments operations | -1,731 | -1,772 | |
| 6,856 | -3,622 Net receipts/payments - other operational activities | 216 | 29 | |
| 40,759 | 1,886 Net cash flow from operating activities before financial assets | 6,867 | 35,205 | |
| 4,099 | 1,847 Net receipts/payments - loans to customers | -7 | 572 | |
| -43,721 | -4,490 Net receipts/payments - financial assets | -8,957 | -33,595 | |
| 1,306 | 8 Net receipts/payments - property activities | |||
| 3 | 1,201 Receipts - sale of investment properties | |||
| -300 | -1,180 Payment - purchase of investment properties | |||
| -38,613 | -2,614 Net cash flow from operating activities from financial assets | -8,963 | -33,023 | |
| 2,146 | -728 Net cash flow from operating activities | -2,096 | 2,182 | |
| Cash flow from investing activities | ||||
| Net payments - purchase/capitalisation associated companies | -2 | |||
| -26 | 11 Net receipts/payments - sale/purchase of fixed assets | -8 | ||
| -26 | 11 Net cash flow from investing activities | -8 | -2 | |
| Cash flow from financing activities | ||||
| 997 | 1,040 Receipts - subordinated loans issued | 1,040 | 997 | |
| -676 | -1,899 Repayment of subordinated loans | -1,899 | -676 | |
| -613 | -638 Payments - interest on subordinated loans | -638 | -613 | |
| 565 | 505 Payments received of dividend and group contribution | 1,528 | 1,441 | |
| -2,325 | -3,439 Payment of dividend and group contribution | -3,439 | -2,325 | |
| -2,052 | -4,431 Net cash flow from financing activities | -3,409 | -1,177 | |
| 68 | -5,148 Net cash flow for the period | -5,513 | 1,004 | |
| 38,681 | -2,534 of which net cash flow for the period before financial assets | 3,450 | 34,026 | |
| 68 | -5,148 Net movement in cash and cash equivalent assets | -5,513 | 1,004 | |
| 13,470 | 13,201 Cash and cash equivalents at the start of the period | 9,817 | 8,814 | |
| -337 | 49 Currency translation differences | |||
| 13,201 | 8,102 Cash and cash equivalent assets at the end of the period | 4,304 | 9,817 |
Storebrand Livsforsikring Group Notes to the financial statements
Note Basis for preparation
1
The Livsforsikring Group's interim financial statements include Storebrand Livsforsikring AS, subsidiaries, associated and joint-ventures companies. The financial statements are prepared in accordance with IAS 34 Interim Financial Reporting for the consolidated financial statements. The interim financial statements do not contain all the information that is required in full annual financial statements. Please refer to notes in the annual report for detailed information.
A description of the accounting policies applied in the preparation of the financial statements are provided in the 2023 annual report, and the interim financial statements are prepared in accordance with these accounting policies.
There are none new or changed accounting standards that entered into effect in 2024 that have significant effect on Storebrand's consolidated financial statements.
In preparing the Livsforsikring Group's financial statements the management are required to make estimates, judgements and assumptions of uncertain amounts. The estimates and underlying assumptions are reviewed on an ongoing basis and are based on historical experience and expectations of future events and represent the management's best judgement at the time the financial statements were prepared.
Actual results may differ from these estimates.
A description of the most critical estimates and judgements that can affect recognised amounts is included in the 2023 annual report in note 2, financial marked risk and insurance risk in note 7 and valuation of financial instruments and properties are described in note 12.
Note Profit by segments
2
Storebrand Group´s operation includes the segments Savings, Insurance, Guaranteed Pension and Other. A description of the segment reporting and the reconciliation between the profit and loss statement and alternative statement of the result (segment) is included in the 2023 annual report in note 4.
Segment information Q4
| Savings | Insurance | Guaranteed pension | ||||
|---|---|---|---|---|---|---|
| NOK million | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 |
| Fee and administration income | 648 | 553 | 376 | 422 | ||
| Insurance result | 201 | -13 | ||||
| - Insurance premiums for own account | 1,146 | 989 | ||||
| - Claims for own account | -944 | -1,002 | ||||
| Operational cost | -392 | -381 | -148 | -130 | -222 | -205 |
| Cash equivalent earnings from operations | 256 | 171 | 53 | -143 | 154 | 217 |
| Financial items and risk result life & pension | 9 | -3 | 59 | 28 | -22 | 77 |
| Net profit sharing | 153 | 139 | ||||
| Cash equivalent earnings before amortisation | 265 | 168 | 112 | -115 | 285 | 433 |
| Other | Storebrand Livsforsikring group |
|||
|---|---|---|---|---|
| NOK million | 2024 | 2023 | 2024 | 2023 |
| Fee and administration income | 1,024 | 975 | ||
| Insurance result | 201 | -13 | ||
| - Insurance premiums for own account | 1,146 | 989 | ||
| - Claims for own account | -944 | -1,002 | ||
| Operational cost | -7 | -35 | -770 | -752 |
| Cash equivalent earnings from operations | -7 | -35 | 456 | 210 |
| Financial items and risk result life & pension | 132 | 154 | 330 | 395 |
| Cash equivalent earnings before amortisation | 125 | 119 | 786 | 605 |
| Amortisation and write-downs intangible assets | -46 | -46 | ||
| Cash equivalent earnings before tax | 125 | 119 | 740 | 559 |
| Tax | -236 | 11 | ||
| Cash equivalent earnings after tax | 504 | 570 |
Segment information as at 31.12
| Savings | Insurance | Guaranteed pension | ||||
|---|---|---|---|---|---|---|
| NOK million | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 |
| Fee and administration income | 2,472 | 2,199 | 1,540 | 1,600 | ||
| Insurance result | 1,063 | 650 | ||||
| - Insurance premiums for own account | 4,369 | 3,950 | ||||
| - Claims for own account | -3,306 | -3,300 | ||||
| Operational cost | -1,467 | -1,466 | -553 | -556 | -871 | -822 |
| Cash equivalent earnings from operations | 1,005 | 734 | 510 | 93 | 669 | 778 |
| Financial items and risk result life & pension | 16 | -3 | 145 | 59 | 35 | 296 |
| Net profit sharing | 522 | 252 | ||||
| Cash equivalent earnings before amortisation | 1,021 | 731 | 655 | 153 | 1,226 | 1,326 |
| Other | Storebrand Livsforsikring group |
|||
|---|---|---|---|---|
| NOK million | 2024 | 2023 | 2024 | 2023 |
| Fee and administration income | 4,012 | 3,800 | ||
| Insurance result | 1,063 | 650 | ||
| - Insurance premiums for own account | 4,369 | 3,950 | ||
| - Claims for own account | -3,306 | -3,300 | ||
| Operational cost | -35 | -117 | -2,926 | -2,961 |
| Cash equivalent earnings from operations | -35 | -117 | 2,149 | 1,488 |
| Financial items and risk result life & pension | 629 | 515 | 1,347 | 1,119 |
| Cash equivalent earnings before amortisation | 594 | 398 | 3,496 | 2,607 |
| Amortisation and write-downs intangible assets | -185 | -273 | ||
| Cash equivalent earnings before tax | 3,311 | 2,334 | ||
| Tax | -585 | 258 | ||
| Cash equivalent earnings after tax | 2,726 | 2,592 |
Note 3
Liquidity risk
Specification of subordinated loans
| Nominal | Currency | Interest | Call | Book value Book value | ||
|---|---|---|---|---|---|---|
| NOK million | value | rate | date | 31.12.24 | 31.12.23 | |
| Issuer | ||||||
| Perpetual subordinated loans 1) | ||||||
| Storebrand Livsforsikring AS 4) | 1,100 NOK | Variable | 2024 | 863 | ||
| Storebrand Livsforsikring AS 2) | 900 SEK | Variable | 2026 | 928 | 910 | |
| Storebrand Livsforsikring AS | 300 NOK | Variable | 2028 | 302 | 302 | |
| Storebrand Livsforsikring AS 2) | 400 SEK | Variable | 2028 | 414 | 406 | |
| Storebrand Livsforsikring AS 2) | 300 NOK | Fixed | 2028 | 313 | 316 | |
| Dated subordinated loans | ||||||
| Storebrand Livsforsikring AS 2,5) | 862 SEK | Variable | 2025 | 887 | 907 | |
| Storebrand Livsforsikring AS 2,4) | 1,000 SEK | Variable | 2024 | 1,010 | ||
| Storebrand Livsforsikring AS 5) | 426 NOK | Variable | 2025 | 427 | 501 | |
| Storebrand Livsforsikring AS 3) | 650 NOK | Variable | 2027 | 653 | 653 | |
| Storebrand Livsforsikring AS 2,3) | 750 NOK | Fixed | 2027 | 748 | 763 | |
| Storebrand Livsforsikring AS 2,3) | 1,250 NOK | Variable | 2027 | 1,259 | 1,260 | |
| Storebrand Livsforsikring AS 2) | 300 EUR | Fixed | 2031 | 3,022 | 2,782 | |
| Storebrand Livsforsikring AS 2,3) | 1,000 SEK | Variable | 2029 | 1,026 | ||
| Total subordinated loans and hybrid capital | 9,979 | 10,672 |
1) Regarding perpetual subordinated loans, the cash flow has been calculated until the first call.
2) The loans are subject to hedge accounting.
3) Green bonds
4) The loan has been repaid in 2024
5) The loan has been partly repaid in September 2024
Note 4
Valuation of financial instruments and investment properties
The Storebrand Group categorises financial instruments valued at fair value on three different levels. Criteria for the categorisation and processes associated with valuing are described in more detail in note 12 in the annual report for 2023.
The company has established valuation models and gathers information from a wide range of wellinformed sources with a view to minimize the uncertainty of valuations.
| NOK million | Fair value | Fair value | Book value | Book value |
|---|---|---|---|---|
| 31.12.24 | 31.12.23 | 31.12.24 | 31.12.23 | |
| Subordinated loan capital | 10,012 | 10,711 | 9,979 | 10,672 |
| Level 1 | Level 2 | Level 3 | |||
|---|---|---|---|---|---|
| NOK million | Quoted prices |
Observable assumptions |
Non observable assumptions |
Total 31.12.2024 |
Total 31.12.2023 |
| 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 31.12.2024 | 6,154 | 6,154 | |||
| Total bonds and other fixed income securities 31.12.2023 | 6,477 | 6,477 |
Valuation of financial instruments and properties at fair value
| Level 1 | Level 2 | Level 3 Non |
|||
|---|---|---|---|---|---|
| NOK million | Quoted prices |
Observable assumptions |
observable assumptions |
31.12.24 | 31.12.23 |
| Assets | |||||
| Equities and fund units | |||||
| - Equities | 57,719 | 335 | 72 | 58,126 | 41,626 |
| - Fund units | 330,454 | 26,133 | 356,587 | 291,924 | |
| Total equities and fund units 31.12.2024 | 57,719 | 330,789 | 26,204 | 414,712 | |
| Total equities and fund units 31.12.2023 | 41,240 | 270,648 | 21,662 | 333,550 | |
| Total loans to customers | |||||
| - Loans to customers - corporate | 8,199 | 8,199 | 10,391 | ||
| - Loans to customers - private | 17,535 | 17,535 | 16,761 | ||
| Bonds and other fixed income securities | |||||
| - Government bonds | 28,996 | 32,167 | 61,162 | 62,098 | |
| - Corporate bonds | 90,857 | 8 | 90,864 | 106,242 | |
| - Structured notes | 37,694 | 37,694 | 14,055 | ||
| - Collateralised securities | 2,582 | 2,582 | 3,049 | ||
| - Bond funds | 77,830 | 13,933 | 91,763 | 85,654 | |
| Total bonds and other fixed income securities 31.12.2024 | 28,996 | 241,129 | 13,941 | 284,065 | |
| Total bonds and other fixed income securities 31.12.2023 | 27,674 | 228,278 | 15,146 | 271,098 | |
| Derivatives: | |||||
| - Equity derivatives | 37 | 37 | |||
| - Interest derivatives | -3,240 | -3,240 | -3,193 | ||
| - Currency derivatives | -3,256 | -3,256 | 5,140 | ||
| Total derivatives 31.12.2024 | -6,496 | 37 | -6,459 | ||
| - derivatives with a positive market value | 2,402 | 46 | 2,448 | 8,003 | |
| - derivatives with a negative market value | -8,898 | -9 | -8,907 | -6,056 | |
| Total derivatives 31.12.2023 | 1,947 | 1,947 | |||
| Properties: | |||||
| - investment properties | 34,404 | 34,404 | 32,644 | ||
| - Owner-occupied properties | 1,820 | 1,820 | 1,737 | ||
| Total properties 31.12.2024 | 36,225 | 36,225 | |||
| Total properties 31.12.2023 | 34,382 | 34,382 |
There is no significant movement between level 1 and level 2 in this quarter and year to date.
Movement level 3
| NOK million | Equities | Fund units | Loans to customers |
Corporate bonds |
Bond funds | Investment properties |
Owner occupied properties |
|---|---|---|---|---|---|---|---|
| Book value 01.01 | 76 | 21,586 | 27,152 | 8 | 15,138 | 32,644 | 1,737 |
| Net profit/loss | -5 | 5,697 | 491 | 42 | 419 | 44 | |
| Supply/disposal | -1,285 | -2,035 | -1,495 | 1,082 | 36 | ||
| Sales/overdue/settlement | |||||||
| To quoted prices and observable assumptions | |||||||
| Currency translation differences | 75 | 126 | 248 | 250 | -2 | ||
| Other | 60 | 9 | 5 | ||||
| Book value 31.12.2024 | 72 | 26,133 | 25,734 | 8 | 13,933 | 34,404 | 1,820 |
As of 31 December 2024, 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 is described in note 12 in the 2023 annual report. There is no significant change in sensitivity in this quarter.
Note 5
Insurance contracts
Sensitivities
| NOK Million | CSM as at end of period |
Impact on CSM | |
|---|---|---|---|
| 13,507 | |||
| Equity down | -25% | (2,891) | |
| Property down | - 10bp | (1,009) | |
| Interest rate up | + 50bp | 305 | |
| Interest rate down | - 50bp | (384) | |
| Spread up (credit and volatility adjustment) | + 50bp +15bp | (1,041) | |
| Mortality down | -5% | (323) | |
| Disability up | +5 % | 25 | |
| Expenses up | +5 % | (301) |
Insurance revenue and expenses
| 31.12.24 | |||||||
|---|---|---|---|---|---|---|---|
| Guaranteed pension | Insurance | ||||||
| Guarantee d products |
Guarantee d products |
Pension related disability insurance |
P&C and Individual |
Group Life and Disability |
Total | 31.12.23 | |
| NOK million Contracts measured under VFA and |
- Norway | - Sweden | - Norway | Life | Insurance | ||
| 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 | ||
| Other | |||||||
| 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 |
1,322 | 1,509 | 2,831 | 2,440 | |||
| Total insurance revenue | 1,976 | 797 | 984 | 1,322 | 1,509 | 6,589 | 6,126 |
| Incurred claims and other directly attributable expenses |
|||||||
| Incurred claims | 1 | 1 | -480 | -670 | -1,462 | -2,609 | -2,167 |
| Incurred expenses | -612 | -206 | -127 | -190 | -181 | -1,316 | -1,267 |
| Changes that relate to past service - Adjustment to the LIC |
-257 | 250 | -7 | -225 | |||
| 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 | -1,117 | -1,393 | -3,990 | -4,442 |
| Net income (expenses) from | |||||||
| reinsurance contracts held Total insurance service result |
-2 1,765 |
495 | 4 19 |
-13 192 |
-5 111 |
-16 2,582 |
-53 1,631 |
| Q4 2024 | |||||||
|---|---|---|---|---|---|---|---|
| Guaranteed pension | Insurance | ||||||
| NOK million | Guarantee d products - Norway |
Guarantee d products - Sweden |
Pension related disability insurance - Norway |
P&C and Individual Life |
Group Life and Disability Insurance |
Total | Q4 2023 |
| Contracts not measured under the | |||||||
| PAA 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 | ||
| Other | |||||||
| Recovery of insurance acquisition cash flows |
1 | 1 | 4 | 6 | 3 | ||
| Insurance revenue from contracts not measured under the PAA |
533 | 196 | 201 | 929 | 925 | ||
| Insurance revenue from contracts measured under the PAA |
390 | 388 | 778 | 602 | |||
| Total insurance revenue | 533 | 196 | 201 | 390 | 388 | 1,707 | 1,527 |
| Incurred claims and other directly attributable expenses |
|||||||
| Incurred claims | 1 | -113 | -140 | -411 | -663 | -381 | |
| Incurred expenses | -147 | -54 | -33 | -54 | -47 | -335 | -308 |
| Changes that relate to past service - Adjustment to the LIC |
-120 | 43 | -76 | -161 | |||
| 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 | -313 | -411 | -1,005 | -1,313 |
| Net income (expenses) from reinsurance contracts held |
1 | -2 | -1 | ||||
| Total insurance service result | 452 | 119 | 78 | 77 | -24 | 701 | 214 |
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 31.12.2023 |
|---|---|---|---|---|---|
| Net opening balance | 295,453 | 3,984 | 10,801 | 310,239 | 296,171 |
| Changes that relate to current service | |||||
| CSM recognised in profit or loss for the services provided |
-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 |
| Changes that relate to past service | |||||
| Adjustment to liabilities for incurred claims | |||||
| 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 | PAA | LIC for contracts under the | ||||
| NOK million | Excluding loss component |
Loss component |
Present value of future cash flows |
Risk adjustment for non financial risk |
Total | Total 31.12.23 |
| Net opening balance | 268 | 10 | 6,145 | 122 | 6,544 | 5,996 |
| Insurance revenue | -2,831 | -2,831 | -2,439 | |||
| Insurance service expenses | ||||||
| Incurred claims and other directly attributable expenses |
2,503 | 2,503 | 1,956 | |||
| Adjustment to liabilities for incurred claims | -6 | 13 | 7 | 225 | ||
| Losses on onerous contracts and reversal of those losses |
||||||
| Insurance acquisition cash flows amortisation | ||||||
| Insurance service expenses | 2,497 | 13 | 2,510 | 2,181 | ||
| Insurance service result | -2,831 | 2,497 | 13 | -322 | -259 | |
| Finance expenses from insurance contracts issued recognised in profit or loss |
-124 | -124 | 113 | |||
| Finance expenses from insurance contracts issued recognised in OCI |
||||||
| Finance expenses from insurance contracts issued |
-124 | -124 | 113 | |||
| Total amounts recognised in comprehensive income |
-2,831 | 2,373 | 13 | -445 | -146 | |
| Investment components | ||||||
| Effect of changes in foreign exchange rates | 21 | 1 | 22 | 69 | ||
| Cash flows | ||||||
| Premiums recieved | 2,863 | 2,863 | 2,431 | |||
| Claims and other directly attributable expenses paid |
-2,062 | -2,062 | -1,806 | |||
| Insurance acquisition cash flows | ||||||
| Total cash flows | 2,863 | -2,062 | 801 | 625 | ||
| Net closing balance | 299 | 9 | 6,477 | 137 | 6,922 | 6,545 |
Note
6
Tax
A description of the accounting principles for tax, and the most significant impact on the effective tax rate is described in Storebrand Livsforsikring's annual report note 1 and note 21.
Uncertain tax positions
The tax rules for the insurance industry have undergone changes in recent years. In some cases, Storebrand and the Norwegian Tax Administration have had different interpretations of the tax rules and
associated transitional rules. As a result of this, uncertain tax positions arise in connection with the recognised tax expenses. Whether or not the uncertain tax positions have to be recognised in the financial statements is assessed in accordance with IAS 12 and IFRIC 23. Uncertain tax positions will only be recognised in the financial statements if the company considers it to be preponderance that the Norwegian Tax Administration's interpretation will be accepted in a court of law. For further description of uncertain tax positions, see note 21 (Group) and note 26 (Company) in the Annual Report. 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.
Regarding 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 Contingent assets and liabilities
7
| Storebrand Livsforsikring Group | ||||
|---|---|---|---|---|
| NOK million | 31.12.24 | 31.12.23 | ||
| Uncalled residual liabilities limitied partnership | 3,544 | 3,990 | ||
| Uncalled residual liabilities in alternative investment funds | 16,235 | 14,949 | ||
| Total contigent liabilities | 19,779 | 18,939 |
Guarantees essentially encompass payment and contract guarantees.
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.
Storebrand Group companies are engaged in extensive activities in Norway and abroad, and are subject for client complaints and may become a party in legal disputes, see also note 2 and note 37 in the 2023 annual report.
Note 8 Information about related parties
The terms for transactions with management and related parties are stipulated in notes 24 for the parent company and note 39 for the group, in the 2023 annual report.
Storebrand Livsforsikring acquires mortgages from Storebrand Bank ASA at commercial terms. The total portfolio of loans bought as of 31 December 2024 is NOK 17.6 billion, net changes of NOK 0.6 billion year to date. Storebrand Livsforsikring AS pays management fees to Storebrand Bank ASA for management of the portfolios, the expense year to date is NOK 67 million.
Storebrand ASA and Storebrand AIF AS issued bonds during the second quarter 2024 in which Storebrand Livsforsikring has invested. The investment in the bonds are respectively MNOK 60 and MNOK 920. Storebrand Livsforsikring has also invested in bonds in Storebrand Boligkreditt AS, the total amount is MNOK 74. Storebrand Livsforsikring will receive interests on the bonds.
Statement of comprehensive income
| Q4 | 01.01 - 31.12 | |||
|---|---|---|---|---|
| NOK million | 2024 | 2023 | 2024 | 2023 |
| TECHNICAL ACCOUNT: | ||||
| Gross premiums written | 6,385 | 6,024 | 26,844 | 26,018 |
| Reinsurance premiums ceded | -9 | -3 | -33 | -33 |
| Premium reserves and pension capital transferred from other | 1,982 | 1,651 | 11,473 | 10,735 |
| companies Premiums for own account |
8,357 | 7,671 | 38,284 | 36,720 |
| Income from investments in subsidiaries, associated companies and joint ventures companies |
265 | -136 | 1,342 | -1,200 |
| of which from investment in property companies | 265 | -136 | 1,342 | -1,200 |
| Interest income and dividends etc. from financial assets | 1,649 | 1,273 | 5,944 | 5,000 |
| Changes in investment value | -440 | 2,076 | 813 | 2,683 |
| Realised gains and losses on investments | 279 | 27 | 2,155 | -869 |
| Total net income from investments in the collective portfolio | 1,752 | 3,240 | 10,255 | 5,615 |
| Income from investments in subsidiaries, associated companies and joint ventures companies |
96 | -38 | 464 | -338 |
| of which from investment in property companies | 96 | -38 | 464 | -338 |
| Interest income and dividends etc. from financial assets | 1,823 | 1,069 | 2,516 | 1,707 |
| Changes in investment value | -358 | 6,487 | 19,555 | 11,509 |
| Realised gains and losses on investments | 2,520 | 2,765 | 7,956 | 9,852 |
| Total net income from investments in the investment selection portfolio |
4,081 | 10,283 | 30,490 | 22,729 |
| Other insurance related income | 256 | 250 | 976 | 824 |
| Gross claims paid | -4,023 | -3,775 | -15,860 | -15,062 |
| Claims paid - reinsurance | 6 | 2 | 9 | 33 |
| Premium reserves, pension capital etc., additional satutory reserves and buffer fund transferred to other companies |
-3,893 | -2,347 | -14,272 | -15,444 |
| Claims for own account | -7,910 | -6,120 | -30,124 | -30,473 |
| To/from premium reserve, gross | 266 | 139 | -2,618 | -1,923 |
| Change in market value adjustment fund1) | 55 | -1,522 | 37 | -1,783 |
| Change in buffer fund1) | -2,918 | 2,282 | -3,154 | 1,717 |
| Change in premium fund, deposit fund and the pension surplus fund | -5 | -6 | -1 | |
| To/from technical reserves for non-life insurance business | -45 | -88 | -114 | -46 |
| Transfer of additional statutory reserves and buffer fund from other | ||||
| insurance companies/pension funds | 26 | 52 | 306 | 254 |
| Changes in insurance obligations recognised in the Profit and | -2,621 | 862 | -5,549 | -1,781 |
| Loss Account - contractual obligations | ||||
| Change in pension capital | -5,646 | -12,764 | -39,000 | -30,110 |
| Changes in insurance obligations recognised in the Profit and Loss Account - investment portfolio separately |
-5,646 | -12,764 | -39,000 | -30,110 |
Statement of comprehensive income (continued)
| Q4 | 01.01 - 31.12 | |||
|---|---|---|---|---|
| NOK million | 2024 | 2023 | 2024 | 2023 |
| Profit on investment result | -968 | -120 | -1,458 | -120 |
| Risk result allocated to insurance contracts | -96 | -216 | -201 | -216 |
| Other allocation of profit | 3,658 | -60 | -91 | -60 |
| Unallocated profit | 323 | |||
| Funds allocated to insurance contracts | 2,593 | -74 | -1,750 | -396 |
| Management expenses | -61 | -55 | -232 | -228 |
| Selling expenses | -71 | -72 | -285 | -294 |
| Insurance-related administration expenses (incl. commissions for reinsurance received) |
-307 | -342 | -1,215 | -1,236 |
| Insurance-related operating expenses | -439 | -469 | -1,731 | -1,758 |
| Other insurance related expenses after reinsurance share | -2 | -70 | -29 | -84 |
| Technical insurance profit | 421 | 2,809 | 1,820 | 1,284 |
| NON-TECHNICAL ACCOUNT | ||||
| Income from investments in subsidiaries, associated companies and joint ventures companies |
-114 | 330 | 1,271 | 1,640 |
| Interest income and dividends etc. from financial assets | 384 | 234 | 897 | 725 |
| Changes in investment value | -160 | -68 | -24 | 139 |
| Realised gains and losses on investments | 167 | -180 | 16 | -604 |
| Net income from investments in company portfolio | 277 | 316 | 2,160 | 1,900 |
| Other income | 11 | 12 | 57 | 90 |
| Management expenses | -5 | -5 | -20 | -19 |
| Other expenses | -206 | -319 | -934 | -1,147 |
| Total management expenses and other costs linked to the company portfolio |
-211 | -324 | -953 | -1,166 |
| Profit or loss on non-technical account | 78 | 4 | 1,264 | 824 |
| Profit before tax | 499 | 2,813 | 3,084 | 2,109 |
| Tax expenses | -220 | -615 | -486 | 326 |
| Profit before other comprehensive income | 279 | 2,198 | 2,598 | 2,435 |
| Change in actuarial assumptions | 3 | -2 | 3 | -2 |
| Tax on other profit elements not to be reclassified to profit/loss | 3 | |||
| Other comprehensive income not to be reclassified to profit/loss |
3 | -2 | 3 |
Statement of comprehensive income (continued)
| Q4 | 01.01 - 31.12 | |||
|---|---|---|---|---|
| NOK million | 2024 | 2023 | 2024 | 2023 |
| Profit/loss cash flow hedging | -10 | |||
| Other profit comprehensive income that may be reclassified to profit /loss |
-10 | |||
| Other comprehensive income | 3 | -2 | 3 | -10 |
| TOTAL COMPREHENSIVE INCOME | 281 | 2,195 | 2,601 | 2,425 |
1) The additional statutory reserves and the market value adjustment fund have been merged into the buffer fund from January 1, 2024
Storebrand Livsforsikring AS Statement of financial position
| NOK million | 31.12.24 | 31.12.23 |
|---|---|---|
| ASSETS | ||
| ASSETS IN COMPANY PORTFOLIO | ||
| Goodwill | 302 | 302 |
| Other intangible assets | 969 | 1,091 |
| Total intangible assets | 1,270 | 1,392 |
| Equities and units in subsidiaries, associated companies and joint ventures | 13,304 | 13,045 |
| of which investment in property companies | ||
| Loans at amortised cost | 3,182 | 3,218 |
| Deposits at amoritsed cost | 365 | 332 |
| Equities and fund units at fair value | 356 | 598 |
| Bonds and other fixed-income securities at fair value | 4,951 | 6,065 |
| Derivatives at fair value | 102 | 499 |
| Total investments | 33,955 | 36,209 |
| Receivables in connection with direct business transactions | 509 | 831 |
| Receivables in connection with reinsurance transactions | 18 | 5 |
| Receivables with group company | 676 | 578 |
| Other receivables | 43,029 | 40,298 |
| Total receivables | 44,231 | 41,713 |
| Tangible fixed assets | 11 | 14 |
| Cash, bank | 1,750 | 1,245 |
| Tax assets | 639 | 1,300 |
| Other assets designated according to type | 8 | 3 |
| Total other assets | 2,407 | 2,562 |
| Other pre-paid costs and income earned and not received | 79 | 64 |
| Total pre-paid costs and income earned and not received | 79 | 64 |
| Total assets in company portfolio | 81,943 | 81,942 |
Statement of financial position (continued)
| NOK million | 31.12.24 | 31.12.23 |
|---|---|---|
| Equities and units in subsidiaries, associated companies and joint ventures | 21,297 | 22,226 |
| of which investment in property companies | 21,297 | 22,226 |
| Bonds at amortised cost | 145,093 | 135,453 |
| Loans at amoritsed cost | 17,395 | 17,279 |
| Deposits at amoritsed cost | 1,341 | 7,704 |
| Equities and fund units at fair value | 22,676 | 19,675 |
| Bonds and other fixed-income securities at fair value | 8,989 | 8,798 |
| Derivatives at fair value | 1,071 | 2,045 |
| Total investments in collective portfolio | 217,863 | 213,182 |
| Reinsurance share of insurance obligations | 157 | 175 |
| Equities and units in subsidiaries, associated companies and joint ventures | 7,818 | 6,319 |
| of which investment in property companies | 7,818 | 6,319 |
| Bonds at amortised cost | 216 | 187 |
| Loans at amoritsed cost | 607 | 546 |
| Deposits at amoritsed cost | 849 | 536 |
| Equities and fund units at fair value | 181,407 | 143,577 |
| Bonds and other fixed-income securities at fair value | 59,414 | 54,052 |
| Loans at fair value | 135 | |
| Derivatives at fair value | 294 | 3,582 |
| Other financial assets | ||
| Total investments in investment selection portfolio | 250,606 | 208,934 |
| Total assets in customer portfolios | 468,626 | 422,290 |
| TOTAL ASSETS | 550,569 | 504,232 |
Statement of financial position (continued)
| NOK million | 31.12.24 | 31.12.23 |
|---|---|---|
| EQUITY AND LIABILITIES | ||
| Share capital | 3,540 | 3,540 |
| Share premium | 9,711 | 9,711 |
| Other paid in equity | 3,123 | 2,708 |
| Total paid in equity | 16,374 | 15,959 |
| Risk equalisation fund | 1,242 | 1,067 |
| Security reserves | 9 | 7 |
| Other earned equity | 7,441 | 9,167 |
| Total earned equity | 8,692 | 10,241 |
| Perpetual subordinated loans | 2,983 | 2,798 |
| Dated subordinated loans | 6,996 | 7,875 |
| Total subordinated loans and hybrid tier 1 capital | 9,979 | 10,672 |
| Premium reserves | 195,551 | 191,951 |
| Market value adjustment reserve1) | 2,411 | |
| Buffer fund1) | 14,128 | 8,990 |
| Premium fund, deposit fund and the pension surplus fund | 3,908 | 2,986 |
| Other technical reserve | 905 | 788 |
| Total insurance obligations in life insurance - contractual obligations | 214,493 | 207,127 |
| Pension capital | 248,179 | 209,317 |
| Total insurance obligations in life insurance - investment portfolio separately | 248,179 | 209,317 |
Statement of financial position (continued)
| NOK million | 31.12.24 | 31.12.23 |
|---|---|---|
| Pension liabilities etc. | ||
| Deferred tax | 158 | 199 |
| Other provisions for liabilities | ||
| Total provisions for liabilities | 158 | 199 |
| Liabilities in connection with direct insurance | 861 | 905 |
| Liabilities in connection with reinsurance | 11 | |
| Derivatives | 6,063 | 2,615 |
| Liabilities to group companies | 4,198 | 3,474 |
| Other liabilities | 41,347 | 43,409 |
| Total liabilities | 52,480 | 50,403 |
| Other accrued expenses and received, unearned income | 214 | 314 |
| Total accrued expenses and received, unearned income | 214 | 314 |
| TOTAL EQUITY AND LIABILITIES | 550,569 | 504,232 |
1) The additional statutory reserves and the market value adjustment fund have been merged into the buffer fund from January 1, 2024
Storebrand Livsforsikring AS Statement of changes in equity
| NOK million | Share capital1) |
Share premium reserve |
Other paid in capital |
Total paid in equity |
Risk equalisatio n fund |
Security reserves |
Other equity |
Total equity |
|---|---|---|---|---|---|---|---|---|
| Equity at 01.01.2023 | 3,540 | 9,711 | 2,327 | 15,578 | 809 | 8 | 10,423 | 26,818 |
| Profit for the period | 234 | 2,200 | 2,434 | |||||
| Other comprehensive income | -10 | -10 | ||||||
| Total comprehensive income for the period | 234 | 2,190 | 2,424 | |||||
| Equity transactions with owner: | ||||||||
| Received dividend/group contributions | 381 | 381 | 381 | |||||
| Paid dividend/group contributions | -3,439 | -3,439 | ||||||
| Other | 23 | -6 | 17 | |||||
| Equity at 31.12.2023 | 3,540 | 9,711 | 2,708 | 15,959 | 1,067 | 7 | 9,167 | 26,200 |
| Profit for the period | 176 | 1 | 2,422 | 2,598 | ||||
| Other comprehensive income | 3 | 3 | ||||||
| Total comprehensive income for the period | 176 | 1 | 2,424 | 2,601 | ||||
| Equity transactions with owner: | ||||||||
| Received dividend/group contributions | 415 | 415 | 415 | |||||
| Paid dividend/group contributions | -4,150 | -4,150 | ||||||
| Other | ||||||||
| Equity at 31.12.2024 | 3,540 | 9,711 | 3,123 | 16,374 | 1,242 | 9 | 7,441 | 25,066 |
1) 35 404 200 shares of NOK 100 par value.
Storebrand Livsforsikring AS Notes to the financial statements
Note Basis for preparation
1
The financial statements are prepared in accordance with the Regulation on the annual accounts etc. of lifeinsurance companies" for the parent company. The interim financial statements do not contain all the information that is required in full annual financial statements.
A description of the accounting policies applied in the preparation of the financial statements are provided in the 2023 annual report, and the interim financial statements are prepared in accordance with these accounting policies.
See note 1 in the consolidated accounts for information about estimates, note 3 for information on subordinated loans and liquidity risk, note 6 for development in the uncertain tax positions and note 8 for information about related parties.
Note 2 Segments - profit by business area
Storebrand´s operation includes the segments Savings, Insurance, Guaranteed Pension and Other. A description of the segment reporting and the reconciliation between the profit and loss statement and alternative statement of the result (segment) is included in the 2023 annual report in note 4.
| Q4 | 01.01 - 31.12 | ||||
|---|---|---|---|---|---|
| NOK million | 2024 | 2023 | 2024 | 2023 | |
| Savings | 188 | 128 | 680 | 492 | |
| Insurance | 93 | -140 | 503 | 23 | |
| Guaranteed pension | 140 | 212 | 636 | 769 | |
| Other | 103 | 29 | 1,364 | 1,014 | |
| Cash equivalent earnings before amortisation | 524 | 229 | 3,185 | 2,299 | |
| Amortisation and write-downs intangible assets | -25 | -25 | -100 | -190 | |
| Cash equivalent earnings before tax | 499 | 204 | 3,084 | 2,109 |
Profit by segments
| Segment information Q4 | |||||||
|---|---|---|---|---|---|---|---|
| Savings | Insurance | Guaranteed pension | |||||
| NOK million | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |
| Fee and administration income | 328 | 272 | 240 | 294 | |||
| Insurance result | 168 | -51 | |||||
| - Insurance premiums for own account | 1,075 | 896 | |||||
| - Claims for own account | -907 | -947 | |||||
| Operational cost | -139 | -144 | -134 | -117 | -150 | -143 | |
| Cash equivalent earnings from operations | 189 | 128 | 34 | -168 | 90 | 151 | |
| Financial items and risk result life & pension | -1 | 1 | 59 | 28 | -9 | 59 | |
| Net profit sharing | 58 | 2 | |||||
| Cash equivalent earnings before amortisation | 188 | 128 | 93 | -140 | 140 | 212 |
| Other | Storebrand Livsforsikring AS |
|||
|---|---|---|---|---|
| NOK million | 2024 | 2023 | 2024 | 2023 |
| Fee and administration income | 569 | 566 | ||
| Insurance result | 168 | -51 | ||
| - Insurance premiums for own account | 1,075 | 896 | ||
| - Claims for own account | -907 | -947 | ||
| Operational cost | -10 | -33 | -434 | -438 |
| Cash equivalent earnings from operations | -10 | -33 | 303 | 77 |
| Financial items and risk result life & pension | 113 | 62 | 221 | 153 |
| Cash equivalent earnings before amortisation | 103 | 29 | 524 | 229 |
| Amortisation and write-downs intangible assets | -25 | -25 | ||
| Cash equivalent earnings before tax | 499 | 204 | ||
| Tax | -220 | 37 | ||
| Cash equivalent earnings after tax | 279 | 242 |
Segment information as at 31.12
| Savings Insurance |
Guaranteed pension | |||||
|---|---|---|---|---|---|---|
| NOK million | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 |
| Fee and administration income | 1,241 | 1,106 | 1,010 | 1,090 | ||
| Insurance result | 854 | 461 | ||||
| - Insurance premiums for own account | 4,075 | 3,628 | ||||
| - Claims for own account | -3,221 | -3,167 | ||||
| Operational cost | -560 | -607 | -496 | -498 | -611 | -584 |
| Operating profit | 682 | 500 | 358 | -36 | 399 | 506 |
| Financial items and risk result life & pension | -1 | -7 | 145 | 59 | 84 | 252 |
| Net profit sharing | 154 | 11 | ||||
| Profit before amortisation | 680 | 492 | 503 | 23 | 636 | 769 |
| Other | Storebrand Livsforsikring AS |
|||
|---|---|---|---|---|
| NOK million | 2024 | 2023 | 2024 | 2023 |
| Fee and administration income | 2,251 | 2,196 | ||
| Insurance result | 854 | 461 | ||
| - Insurance premiums for own account | 4,075 | 3,628 | ||
| - Claims for own account | -3,221 | -3,167 | ||
| Operational cost | -27 | -110 | -1,694 | -1,798 |
| Cash equivalent earnings from operations | -27 | -110 | 1,411 | 859 |
| Financial items and risk result life & pension | 1,392 | 1,124 | 1,773 | 1,439 |
| Cash equivalent earnings before amortisation | 1,364 | 1,014 | 3,185 | 2,299 |
| Amortisation and write-downs intangible assets | -100 | -190 | ||
| Cash equivalent earnings before tax | 3,084 | 2,109 | ||
| Tax | -486 | 326 | ||
| Cash equivalent earnings after tax | 2,598 | 2,435 |
Note 3
Valuation of financial instruments and investment properties
The Storebrand Group categorises financial instruments valued at fair value on three different levels. Criteria for the categorisation and processes associated with valuing are described in more detail in note 13 in the annual report for 2023.
The Storebrand Group has established valuation models and gathers information from a wide range of well-informed sources with a view to minimize the uncertainty of valuations.
Fair value of financial assets and liabilities at amortised cost
| NOK million | Fair value 31.12.24 |
Fair value 31.12.23 |
Book value 31.12.24 |
Book value 31.12.23 |
|---|---|---|---|---|
| Financial assets | ||||
| Loans to customers - corporate | 3,641 | 3,991 | 3,654 | 4,056 |
| Loans to customers - retail | 17,537 | 16,766 | 17,530 | 16,986 |
| Bonds held to maturity | ||||
| Bonds classified as loans and receivables | 143,869 | 137,898 | 157,004 | 148,094 |
| Financial liabilities | ||||
| Subordinated loan capital | 10,154 | 10,774 | 9,979 | 10,672 |
Expected credit loss
| 31.12.24 | |||||||
|---|---|---|---|---|---|---|---|
| Stage 1 | Stage 2 | Stage 3 | |||||
| NOK million | 12 months ECL | Lifetime ECL - credit risk significantly increased |
LiftimeECL - credit impaired |
Total | |||
| 01.01.2024 | -64 | -64 | |||||
| The periods change in impairment losses stage 1 | |||||||
| The periods change in impairment losses stage 2 | |||||||
| The periods change in impairment losses stage 3 | |||||||
| New loans/bonds | -9 | -9 | |||||
| Derecognition | 13 | 13 | |||||
| ECL on financial assets without change in stage | -10 | -10 | |||||
| 31.12.24 | -69 | -69 | |||||
| ECL FVOCI bonds | |||||||
| ECL Amortized Cost loan | -25 | -25 | |||||
| ECL Amortized Cost bonds | -44 | -44 | |||||
| Total | -69 | -69 |
Valuation of financial instruments and properties at fair value
| Level 1 Level 2 |
Level 3 | Total | |||
|---|---|---|---|---|---|
| NOK million | Quoted prices |
Observable assumptions |
Non observable assumptions |
31.12.24 | 31.12.23 |
| Assets | |||||
| Equities and fund units | |||||
| - Equities | 56,307 | 290 | 72 | 56,668 | 40,278 |
| - Fund units | 126,041 | 21,730 | 147,771 | 123,572 | |
| Total equities and fund units 31.12.2024 | 56,307 | 126,331 | 21,802 | 204,439 | |
| Total equities and fund units 31.12.2023 | 39,924 | 105,806 | 18,120 | 163,850 | |
| Total loans to customers | |||||
| - Loans to customers - corporate | 135 | ||||
| Bonds and other fixed income securities | |||||
| - Government bonds | 7,065 | 7,065 | 7,948 | ||
| - Corporate bonds | 3,029 | 3,029 | 3,117 | ||
| - Structured notes | 98 | 98 | 323 | ||
| - Collateralised securities | |||||
| - Bond funds | 60,433 | 2,729 | 63,163 | 57,528 | |
| Total bonds and other fixed income securities 31.12.2024 | 7,065 | 63,560 | 2,729 | 73,354 | |
| Total bonds and other fixed income securities 31.12.2023 | 7,948 | 58,216 | 2,752 | 68,916 | |
| Derivatives: | |||||
| - Interest derivatives | -1,386 | -1,386 | -1,093 | ||
| - Currency derivatives | -3,208 | -3,208 | 4,604 | ||
| Total derivatives 31.12.2024 | -4,595 | -4,595 | |||
| - derivatives with a positive market value | 1,468 | 1,468 | 6,126 | ||
| - derivatives with a negative market value | -6,063 | -6,063 | -2,615 | ||
| Total derivatives 31.12.2023 | 3,511 | 3,511 |
Movement level 3
| NOK million | Equities | Fund units | Loans to customers |
Corporate bonds |
Bond funds |
|---|---|---|---|---|---|
| Book value 01.01 | 76 | 18,044 | 135 | 2,752 | |
| Merger | |||||
| Net profit/loss | -5 | 4,648 | -7 | 4 | |
| Supply/disposal | -962 | -27 | |||
| Sales/overdue/settlement | -128 | ||||
| Book value 31.12.2024 | 72 | 21,730 | 2,729 |
Note 4
Contingent assets and liabilities
| Storebrand Livsforsikring AS | |||
|---|---|---|---|
| NOK million | 31.12.24 | 31.12.23 | |
| Uncalled residual liabilities limitied partnership | 3,437 | 3,762 | |
| Uncalled residual liabilities in alternative investment funds | 13,001 | 12,382 | |
| Total contigent liabilities | 16,438 | 16,144 |
Guarantees essentially encompass payment and contract guarantees.
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.
Storebrand Group companies are engaged in extensive activities in Norway and abroad, and are subject for client complaints and may become a party in legal disputes, see also note 2 and note 43 in the 2023 annual report.
Note 5 Solvency II
Storebrand Livsforsikring is an insurance company with capital requirements in accordance with Solvency II. See note 46 in the annual report for further description of solvency reporting.
Solvency capital
| 31.12.24 | 31.12.23 | |||||
|---|---|---|---|---|---|---|
| NOK million | Total | Group 1 unlimited |
Group 1 limited |
Group 2 | Group 3 | Total |
| Share capital | 3,540 | 3,540 | 3,540 | |||
| Share premium | 9,711 | 9,711 | 9,711 | |||
| Reconciliation reserve | 23,617 | 23,617 | 20,318 | |||
| Including the effect of the transitional arrangement | ||||||
| Counting subordinated loans | 9,206 | 1,976 | 7,230 | 9,847 | ||
| Deferred tax asset | ||||||
| Risk equalisation reserve | 1,242 | 1,242 | 1,067 | |||
| Expected dividend/group distributions | -3,732 | -3,732 | -3,056 | |||
| Non-counting tier 3 capital | -411 | -411 | -904 | |||
| Total solvency capital | 43,174 | 33,136 | 1,976 | 8,061 | 40,523 | |
| Total solvency capital available to cover the minimum capital requirement |
36,413 | 33,136 | 1,976 | 1,301 | 33,806 |
Solvency capital requirement and margin
| NOK million | 31.12.24 | 31.12.23 |
|---|---|---|
| Market | 15,001 | 15,206 |
| Counterparty | 838 | 961 |
| Life | 8,189 | 8,039 |
| Health | 826 | 794 |
| Operational | 1,034 | 1,037 |
| Diversification | -5,501 | -5,524 |
| Loss-absorbing tax effect | -4,265 | -4,318 |
| Total solvency requirement | 16,122 | 16,195 |
| Solvency margin | 268% | 250% |
| Minimum capital requirement | 6,503 | 6,902 |
| Minimum margin | 560% | 490% |
Financial calendar
| 12 February 2025 Results Q4 2024 | |
|---|---|
| 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
Storebrand Livsforsikring AS Professor Kohts vei 9, P.O. Box 500, N-1327 Lysaker, Norway Phone: +47 22 31 50 50
www.storebrand.com/ir
47 Interim Report Storebrand Livsforsikring AS