Quarterly Report • Oct 26, 2022
Quarterly Report
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Storebrand Group
| Storebrand Group3 | |
|---|---|
| Savings 6 | |
| Insurance 8 | |
| Guaranteed pension 10 | |
| Other 12 | |
| Balance sheet and capital situation 13 | |
| Outlook 16 |
| Income statement 20 | |
|---|---|
| Statement of comprehensive income 21 | |
| Statement of financial position22 | |
| Statement of changes in equity 24 | |
| Statement of cash flow 25 | |
| Notes 27 |
| Income statement 48 | |
|---|---|
| Statement of comprehensive income 48 | |
| Statement of financial position49 | |
| Statement of changes in equity 50 | |
| Statement of cash flow 51 | |
| Notes 52 | |
| Auditor's report on review of interim financial information 53 |
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.
| 2022 | 2021 | 01.01 - 30.09 | Full year | |||||
|---|---|---|---|---|---|---|---|---|
| NOK million | Q3 | Q2 | Q1 | Q4 | Q3 | 2022 | 2021 | 2021 |
| Fee and administration income | 1,507 | 1,456 | 1,457 | 2,108 | 1,544 | 4,421 | 4,499 | 6,607 |
| Insurance result | 482 | 430 | 365 | 307 | 342 | 1,277 | 894 | 1,201 |
| Operational cost | -1,272 | -1,181 | -1,145 | -1,377 | -1,124 | -3,598 | -3,301 | -4,678 |
| Operating profit | 717 | 705 | 678 | 1,038 | 762 | 2,099 | 2,092 | 3,130 |
| Financial items and risk result life | -47 | -129 | -50 | 329 | 151 | -225 | 1,043 | 1,372 |
| Profit before amortisation | 670 | 577 | 628 | 1,367 | 912 | 1,874 | 3,136 | 4,503 |
| Amortisation and write-downs of intangible assets | -159 | -138 | -138 | -140 | -133 | -436 | -387 | -527 |
| Profit before tax | 511 | 439 | 489 | 1,227 | 779 | 1,439 | 2,749 | 3,976 |
| Tax | -125 | -26 | 398 | -310 | -181 | 247 | -536 | -846 |
| Profit after tax | 386 | 413 | 887 | 917 | 598 | 1,685 | 2,213 | 3,130 |
Storebrand Group's profit before amortisation and tax was NOK 670m (NOK 912m) in the 3rd quarter and NOK 1,874m (NOK 3,136m) year to date. Figures in brackets are from the corresponding period last year. The underlying growth continued in the quarter, as reflected in a strong operating profit, despite persistent market turbulence this year. However, weak market returns have led to a negative financial result in the quarter and year to date. This is primarily due to mark-to-market effects from rising rates and wider credit spreads in the company portfolios, which is expected to generate higher yields on investments going forward and a stronger financial result. Strong buffer capital levels at the start of the year and prudent risk management have secured sufficient customer returns in the guaranteed products and shielded the Group's results from market volatility.
The acquisition of Danica was completed on the 1st of July 2022 and is included in the Group's accounts as of the 3rd quarter. Danica's contribution to the Group's profit before amortisation was NOK 35m in the 3rd quarter, driven by a strong insurance result. Its Insurance segment reported a profit before amortisation of NOK 33m while its Savings segment reported a profit before amortisation of NOK 11m. The Guaranteed Pension segment in Danica incurred a loss of NOK 11m and the Other segment reported a profit of NOK 2m.
Total fee and administration income amounted to NOK 1,507m (NOK 1,544m) in the 3rd quarter and NOK 4,421m (NOK 4,499m) year to date, corresponding to a decrease of 2% compared to the same quarter last year and a decrease of 2% year to date. Adjusted for currency effects, the fee and administration income was unchanged. Continued underlying growth in Unit Linked, Asset Management, the Bank, Public Occupational Pensions, as well as the acquisition of Danica contribute to income growth. However, the growth is offset by lower assets under management due to weak market returns, and by lower fee margins in Unit Linked due to the introduction of Individual Pensions Accounts during 2021.
The Insurance result improved to NOK 482m (NOK 342m) in the 3rd quarter and NOK 1,277m (NOK 894m) year to date due to strong premium growth and lower claims ratios in Group Life and Pension related disability. The total combined ratio for the Insurance segment was 88% (90%) in the 3rd quarter and 89% (93%) year to date – slightly better than the target of 90-92%.
The Group's operational cost amounted to NOK -1,272m (NOK - 1,124m) in the 3rd quarter and NOK -3,598m (NOK -3,301m) year to date. Adjusted for the operational cost in Danica of NOK -77m, the Group's operational cost in the quarter was relatively stable at NOK -1,195m. Performance related costs in Asset Management amounted to NOK -8m (NOK -64m) in the quarter and NOK -25m (NOK -159m) year to date. Growth initiatives are gradually increasing costs during the year. Storebrand continues to focus on strong cost discipline, as has been demonstrated over the past decade, and has set a cost target for 2022 (full year) of NOK 4.9bn (excluding performance related costs, currency effects and acquisitions).
1 Profit 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.
Overall, the operating profit amounted to NOK 717m (NOK 762m) in the 3rd quarter and NOK 2,099m (NOK 2,092m) year to date.
The 'financial items and risk result' amounted to NOK -47m (NOK 151m) in the 3rd quarter and NOK -225m (NOK 1,043m) year to date. Rising interest rates, wider credit spreads and falling equities have resulted in lower mark-to-market valuations so far this year, leading to weak investment results and negative financial result – particularly in Storebrand's company portfolios. Running yield in the portfolios have increased accordingly. Net profit sharing amounted to NOK -116m (NOK 38m) in the 3rd quarter and NOK -143m (NOK 251m) year to date. The quarterly loss stems from a lower discount rate and increased need for Deferred Capital Contribution in Swedish guaranteed liabilities, due to a reduction in the Volatility Adjustment. The risk result has strengthened, particularly in the Norwegian guaranteed products with reduced disability and somewhat higher mortality this year, and amounted to NOK 74m (NOK 70m) in the 3rd quarter and NOK 210m (NOK 124m) year to date.
Amortisation of intangible assets amounted to NOK -159m (NOK - 133m) in the 3rd quarter and NOK -436m (NOK -387m) year to date. Quarterly amortisation of intangible assets is expected to amount to around NOK -160m going forward due to amortisation of acquired business.
Tax expenses for the Group amounted to NOK -125m (NOK - 181m) in the 3rd quarter and NOK 247m (NOK -536m) year to date. The estimated normal tax rate is 19-22%, depending on each legal entity's contribution to the Group result. Different tax rates in different countries of operations as well as currency fluctuations impact the quarterly tax rate. The effective tax rate in the 3rd quarter is higher than normal due to a lower contribution to the pre-tax result from the Swedish business. The tax income reported year to date is explained by the recognition of NOK 568m in tax income in the 1st quarter due to new information received from The Norwegian Tax Administration related to the uncertain tax position for the income year 2018. Tax related issues are described more under the Outlook section and in note 9.
The Group reports the results by business segment. For a more detailed description of the results, see the sections by segment in the report. Savings reported a profit before amortisation of NOK 401m (NOK 476m) in the 3rd quarter and NOK 1,197m (NOK 1,438m) year to date. Profit before amortisation in Insurance increased to NOK 210m (NOK 162m) in the 3rd quarter and NOK 487m (NOK 363m) year to date. In Guaranteed pensions, it decreased to NOK 148m (NOK 315m) in the 3rd quarter and NOK 633m (NOK 946m) year to date due to lower profit sharing. In the Other segment, profit before amortisation also fell to NOK -89m (NOK -40m) in the 3rd quarter and -443m (NOK 388m) year to date due to weaker investment returns in company portfolios and because last year's result included the above-mentioned divestment gain.
The solvency ratio was 174% at the end of the 3rd quarter, a decrease of 21 percentage points from the previous quarter. The level is in the upper end of the targeted range of 150-180%. The completion of the Danica acquisition detracted 6 percentage points from the solvency ratio at the beginning of the quarter. Negative market returns from wider credit spreads and falling equity markets detracted 5 percentage points from the solvency ratio. Regulatory factors, including a significantly reduced volatility adjustment (VA) but a lower symmetric equity stress adjustment (SA), detracted a net amount of 10 percentage points. Group profit after tax equalled approximately the amount of capital set aside for dividends for a net zero effect on the solvency ratio.
During the quarter, Storebrand completed a NOK 500 million share buyback program. When the solvency ratio is above 180%, the Board of Directors intends to continue with share buybacks.
| 2022 | 2021 | 01.01 - 30.09 | Full year | |||||
|---|---|---|---|---|---|---|---|---|
| NOK million | Q3 | Q2 | Q1 | Q4 | Q3 | 2022 | 2021 | 2021 |
| Savings - non-guaranteed | 401 | 392 | 404 | 916 | 476 | 1,197 | 1,438 | 2,355 |
| Insurance | 210 | 169 | 109 | 61 | 162 | 487 | 363 | 423 |
| Guaranteed pension | 148 | 254 | 232 | 485 | 315 | 633 | 946 | 1,432 |
| Other profit | -89 | -238 | -116 | -95 | -40 | -443 | 388 | 293 |
| Profit before amortisation | 670 | 577 | 628 | 1,367 | 912 | 1,874 | 3,136 | 4,503 |
| 2022 | 2021 | 01.01 - 30.09 | Full year | |||||
|---|---|---|---|---|---|---|---|---|
| Q3 | Q2 | Q1 | Q4 | Q3 | 2022 | 2021 | 2021 | |
| Earnings per share, adj. for amortisation | 1.16 | 1.16 | 2.18 | 2.25 | 1.56 | 4.50 | 5.56 | 7.81 |
| Equity | 37,375 | 37,268 | 38,430 | 37,709 | 36,735 | 37,375 | 36,735 | 37,709 |
| Adjusted ROE, annualised | 6.1% | 6.3% | 12.1% | 12.8% | 8.7% | 8.0% | 10.2% | 10.7% |
| Solvency II ratio | 174% | 195% | 184% | 175% | 178% | 174% | 178% | 175% |
| Target | Actual |
|---|---|
| Return on equity (after tax)* > 10% |
8.0% |
| Future Storebrand (Savings & Insurance)** | 39% |
| Back book (Guaranteed & Other)** | 2% |
| Dividend pay-out ratio > 50% |
N/A |
| Solvency II ratio Storebrand Group > 150% |
174% |
* YTD profit after tax, adjusted for amortisation of intangible assets. Includes the tax income of NOK 568m in the 1st quarter 2022. Excluding this effect, the figure was 5.8%.
** 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 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, asset management and retail banking products.
| 2022 | 2021 | 01.01 - 30.09 | Full year | |||||
|---|---|---|---|---|---|---|---|---|
| NOK million | Q3 | Q2 | Q1 | Q4 | Q3 | 2022 | 2021 | 2021 |
| Fee and administration income | 1,174 | 1,130 | 1,136 | 1,748 | 1,182 | 3,440 | 3,467 | 5,215 |
| Operational cost | -763 | -718 | -702 | -838 | -716 | -2,183 | -2,089 | -2,927 |
| Operating profit | 410 | 412 | 434 | 910 | 466 | 1,256 | 1,378 | 2,288 |
| Financial items and risk result life | -9 | -20 | -30 | 6 | 9 | -60 | 60 | 67 |
| Profit before amortisation | 401 | 392 | 404 | 916 | 476 | 1,197 | 1,438 | 2,355 |
The Savings segment reported a profit before amortisation of NOK 401m (NOK 476m) in the 3rd quarter and NOK 1,197m (NOK 1,438m) year to date. Underlying growth continues to be strong, but negative market returns have led to a decline in assets under management this year. Danica is included in Norwegian Unit Linked as of the 3rd quarter this year with a profit contribution of NOK 11m.
The fee and administration income in the Savings segment amounted to NOK 1,174m (NOK 1,182m) in the 3rd quarter and NOK 3,440m (NOK 3,467m) year to date. When adjusting for Danica, non-recurring elements and currency effects, the overall income within Savings remained stable year to date. Income in Asset Management and the Bank grew 5% and 18% respectively year to date, adjusted for a reallocation of fees of NOK 17m in the 1st quarter from Asset Management to Unit Linked Norway. Earned but not booked performance related income in Asset Management amounted to NOK 19m (NOK 134m) in the quarter and NOK 66m (NOK 363) year to date. Within Unit Linked, falling equity markets and lower fee margins from the introduction of Individual Pension Accounts in 2021 have resulted in income decline during the year. In Norway, income fell by 13%, adjusted for Danica and the reallocation effect mentioned above. In Sweden, income fell by 8% adjusted for currency effects and a transaction fee income amounting to SEK 37m last year.
The resulting fee margin in Unit Linked Norway was 0.69% (0.70%) in the quarter, up from 0.62% in the previous quarter. Adjusted for Danica, the fee margin was 0.65% in the quarter. In Sweden, the margin was stable at 0.68% (0.75%) compared to last quarter. The fee margin in Asset Management was 0.18% (0.18%) in the quarter. The Bank's net interest income was 1.20% (1.22%) in the 3rd quarter, up from 1.16% last quarter.
Operational cost amounted to NOK -763m (NOK -716m) in the 3rd quarter and NOK -2,183m (NOK -2,089m) year to date. Performance related costs in funds with performance fees amounted to NOK -8m (NOK -64m) in the quarter and NOK -25m (NOK -159m) year to date. Danicas cost amounted to NOK 50m in the quarter. Adjusted for these and for currency effects, the operational cost increased by 10% in the quarter and 11% year to date. The increase is attributed to growth initiatives in the business and digital investments.
The financial result was NOK -9m (NOK 9m) in the 3rd quarter and NOK -60m (NOK 60m) year to date. The loss in the first half of the year stems primarily from lower mark to market values on credit bonds from wider spreads, and changes in the value of fixed-rate mortgages in Storebrand Bank due to higher interest rates.
Unit Linked premiums increased to NOK 6.3bn (NOK 5.2bn). Adjusted for premiums in Danica, premiums increased to NOK 5.6bn. Net inflow amounted to NOK 2.5bn (NOK -2.0bn) in the 3rd quarter and NOK 4.3bn (NOK -2.2bn) year to date. Total assets under management in Unit Linked increased to NOK 302bn (NOK 296bn) from NOK 276bn last quarter. Of these, NOK 26bn are managed in Danica.
In the Norwegian Unit Linked business, assets under management increased to NOK 170bn (NOK 151bn), supported by the acquisition of Danica. Weak market developments have reduced assets by NOK 4bn in the quarter (-3%) and by NOK 19bn year to date (-12%). However, underlying growth continues with a net inflow of NOK 1.9bn in the quarter and NOK 4.4bn year to date, driven by growth in occupational pension premiums, new sales, and limited pension payments due to the young nature of the product. Storebrand is the largest provider of Defined Contribution pensions in Norway, with a market share of 31% of gross premiums written (at the end of the 2nd quarter 2022 and with the inclusion of Danica).
In the Swedish market, SPP is the second largest provider of nonunionised occupational pensions with a market share of 12% measured by gross premiums written including transfers (at the end of the 2nd quarter 2022). Unit Linked assets under management remained stable during the quarter and amounted to SEK 135bn, but decreased by SEK 8.4bn (-6%) from the 3rd quarter last year, primarily due to weak market developments. The underlying growth is driven by strong growth in sales (APE), amounting to SEK 588m (SEK 493m) in the quarter and SEK 2,076m (SEK 1,485m) year to date. The transfer balance has stabilised and net inflow amounted to SEK 0.5bn (SEK -1.8bn) in the 3rd quarter.
Assets under management in Storebrand Asset Management decreased during the quarter by NOK 7.6bn (-1%) to NOK 1,001bn and decreased by NOK 57.3bn (-5%) from the same quarter last year due to negative market returns. The net flow in the quarter was NOK -2bn, but the net inflow year to date amounted to NOK 7bn.
The bank lending portfolio increased by NOK 2.3bn (4%) to NOK 64.9bn during the quarter and by NOK 9.2bn (17%) from the same quarter last year. The growth is attributed to improved sales. The portfolio consists of low-risk home mortgages with an average loan-to-value (LTV) of 57%. NOK 17bn of the mortgages are booked on the balance sheet of Storebrand Livsforsikring AS.
| 2022 | 2021 | ||||
|---|---|---|---|---|---|
| NOK million | Q3 | Q2 | Q1 | Q4 | Q3 |
| Unit linked Reserves | 302,337 | 276,319 | 291,036 | 308,351 | 295,790 |
| Unit linked Premiums | 6,278 | 5,333 | 5,288 | 5,350 | 5,201 |
| AuM Asset Management | 1,001,100 | 1,008,705 | 1,039,654 | 1,096,556 | 1,058,435 |
| Retail Lending | 64,879 | 62,559 | 59,223 | 57,033 | 55,663 |
The Insurance segment provides health insurance in the Norwegian and Swedish corporate and retail markets, 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.
| 2022 2021 |
01.01 - 30.09 | |||||||
|---|---|---|---|---|---|---|---|---|
| NOK million | Q3 | Q2 | Q1 | Q4 | Q3 | 2022 | 2021 | 2021 |
| Insurance premiums f.o.a. | 1,613 | 1,449 | 1,397 | 1,366 | 1,336 | 4,459 | 3,809 | 5,175 |
| Claims f.o.a. | -1,131 | -1,019 | -1,032 | -1,059 | -995 | -3,182 | -2,915 | -3,974 |
| Operational cost | -284 | -260 | -251 | -253 | -207 | -794 | -622 | -875 |
| Operating profit | 198 | 170 | 114 | 54 | 135 | 483 | 272 | 326 |
| Financial result | 11 | -1 | -5 | 6 | 27 | 5 | 91 | 97 |
| Contribution from SB Helseforsikring AS | 7 | 0 | -7 | -9 | 13 | 0 | 26 | 17 |
| Profit before amortisation | 210 | 169 | 109 | 61 | 162 | 487 | 363 | 423 |
| Claims ratio | 70% | 70% | 74% | 78% | 74% | 71% | 77% | 77% |
| Cost ratio | 18% | 18% | 18% | 19% | 15% | 18% | 16% | 17% |
| Combined ratio | 88% | 88% | 92% | 96% | 90% | 89% | 93% | 94% |
Insurance premiums f.o.a. amounted to NOK 1,613m (NOK 1,336m) in the 3rd quarter and NOK 4,459m (NOK 3,809m) year to date, corresponding to an increase of 21% compared to the same quarter last year and an increase of 17% year to date. Adjusted for Danica, insurance premiums f.o.a. increased by 14% compared to the same quarter last year.
Profit before amortisation amounted to NOK 210m (NOK 162m) in the 3rd quarter and NOK 487m (NOK 363m) year to date. Danica contributed with NOK 29m to the profit in the quarter. The total combined ratio was 88% (90%) in the 3rd quarter and 89% (93%) year to date. The result is better than the target combined ratio of 90-92%. Improving labour market conditions in the economy, after the removal of infection controls, seem to improve disability levels in Norway. However, future developments remain uncertain.
Within 'P&C & Individual life', strong growth continued with premiums f.o.a. growing 22% in the 3rd quarter compared to last year. The profit before amortisation was NOK 110m (NOK 168m) in the 3rd quarter and NOK 302m (NOK 339m) year to date. The claims ratio was 67% (61%) in the 3rd quarter and 66% (65%) year to date. A few large claims in corporate P&C, and slightly higher disability levels, weakens the result in the quarter. Operational cost increased to NOK -209m (NOK -144m) in the 3rd quarter and NOK -575m (NOK -433m) year to date due to growth and increased activity. Altogether, the product segment delivered a combined ratio of 89% (79%) in the 3rd quarter and 88% (86%) year to date.
'Health and Group life' reported a profit before amortisation of NOK 17m (NOK -24m) in the 3rd quarter and NOK 26m (NOK - 21m) year to date. Measures, including repricing, have been taken to improve the robustness and profitability in the Group Life product, which has given generated a profit in the quarter and year to date. The Health insurance business also delivered a positive result in the quarter, but NOK 0m (NOK 26m) year to date. The weak but improving result is due to higher claims in the Norwegian business. The products reported an improvement in the combined ratio to 97% (122%) in the 3rd quarter and 98% (112%) year to date.
The result for 'Pension related disability insurance Nordic' was NOK 82m (NOK 18m) in the 3rd quarter and NOK 160m (NOK 44m) year to date. While the Norwegian business experienced increases in disability claims in the beginning of the year, partly due to aftereffects from the pandemic on the labour market, the development in the last two quarters is positive. Measures to improve profitability, including repricing, also contribute to the positive result development. In the Swedish business, the result is driven by low claims and run-off gains. Altogether the combined ratio was 78% (95%) in the 3rd quarter and 85% (96%) year to date.
The cost ratio was 18% (15%) in the 3rd quarter and year to date, with cost amounting to NOK -284m in the 3rd quarter and NOK - 794m year to date. The higher cost level is driven by the growth in the business, including sales commissions increasing in line with the growth in sales.
The Insurance investment portfolio is primarily invested in fixed income securities with short to medium duration and achieved a financial return of 0.5% in the 3rd quarter and 1.4% year to date. With higher rates, the return on the insurance investment portfolio is expected to increase in the coming quarters.
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 3rd quarter, 51% of the insurance portfolio is within 'P&C & Individual Life'. Storebrand was the fastest growing company within Norwegian retail P&C in 2021 in terms of written premiums and now holds a
market share of 6.1% as of the 2nd quarter compared to 5.7% a year earlier.
Overall growth in annual portfolio premiums amounted to 22% compared to the same quarter last year, and 15% when adjusted for Danica. Growth in 'P&C & Individual life' amounted to 23% and is driven by strong contribution from sales agents, distribution, partnerships and Danica. 'Health & Group life' grew by 17%, driven by price adjustments, and 'Pension related disability insurance' grew by 26%, driven by price adjustments and salary increases, and the acquisition of Danica. Overall, double digit growth is expected to continue within Insurance in the coming years.
| 2022 | 2021 | ||||
|---|---|---|---|---|---|
| NOK million | Q3 | Q2 | Q1 | Q4 | Q3 |
| P&C & Individual life | 3,889 | 3,512 | 3,395 | 3,301 | 3,160 |
| Health & Group life* | 2,056 | 2,006 | 1,939 | 1,775 | 1,752 |
| Pension related disability insurance Nordic | 1,703 | 1,487 | 1,457 | 1,369 | 1,351 |
| Total written premiums | 7,648 | 7,005 | 6,791 | 6,445 | 6,263 |
| Investment portfolio** | 10,766 | 10,181 | 10,003 | 9,584 | 9,879 |
* Includes all written premiums in Storebrand Helseforsikring AS (50/50 joint venture with Munich Health).
** Ca. NOK 2,8bn 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.
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.
| 2022 | 2021 | 01.01 - 30.09 | Full year | |||||
|---|---|---|---|---|---|---|---|---|
| NOK million | Q3 | Q2 | Q1 | Q4 | Q3 | 2022 | 2021 | 2021 |
| Fee and administration income | 398 | 395 | 391 | 418 | 423 | 1,184 | 1,213 | 1,631 |
| Operational cost | -208 | -206 | -202 | -248 | -217 | -617 | -641 | -890 |
| Operating profit | 190 | 189 | 189 | 169 | 206 | 567 | 572 | 741 |
| Risk result life & pensions | 74 | 54 | 82 | 63 | 70 | 210 | 124 | 187 |
| Net profit sharing | -116 | 11 | -39 | 253 | 38 | -143 | 251 | 504 |
| Profit before amortisation | 148 | 254 | 232 | 485 | 315 | 633 | 946 | 1,432 |
Guaranteed pension achieved a profit before amortisation of NOK 148m (NOK 315m) in the 3rd quarter and NOK 633m (NOK 946m) year to date.
Fee and administration income was stable at NOK 398m (NOK 423m) in the 3rd quarter and NOK 1,184m (NOK 1,213m) year to date. The majority of the guaranteed products are closed for new business and are in long term run-off. However, Public Occupational Pensions (reported as Defined Benefit Norway) is a growth area.
Operational cost amounted to NOK -208m (NOK -217m) in the 3rd quarter and NOK -617m (NOK -641m) year to date.
The operating profit was stable and amounted to NOK 190m (NOK 206m) in the 3rd quarter and NOK 567m (NOK 572m) year to date.
The risk result increased to NOK 74m (NOK 70m) in the 3rd quarter and NOK 210m (NOK 124m) year to date. Improving disability risk results in Norwegian Paid-up policies is the main contributor to the result in the quarter and year to date. The Swedish products also continued to report positive risk results.
Net profit sharing amounted to NOK -116m (NOK 38m) in the 3rd quarter and NOK -143m (NOK 251m) year to date. Falling equity markets and lower mark-to-market valuations of fixed income investments due to rising interest rates and wider credit spreads have resulted in weak investment returns so far this year. In Norway, the returns have been absorbed by customer buffers. Net profit sharing has been marginal, amounting to NOK 10m (NOK 21m) in the 3rd quarter and NOK 5m (NOK 56m) year to date. The main impact on the result to shareholders in the 3rd quarter and year to date has been in the Swedish portfolio with net profit sharing amounted to NOK -126m (NOK 18m) in the quarter and NOK -148m (NOK 195m) year to date. The main driver for the negative result in the quarter is a decrease in the volatility adjustment of 15bps which increases the deferred capital contribution (DCC). Indexation fees and profit sharing in SPP are unchanged in the quarter and amount to NOK 48m year to date.
The majority of the guaranteed products are in long term run-off as pension payments are paid out to policyholders. Most customers have switched from guaranteed to non-guaranteed products.
As of the 3rd quarter, customer reserves of guaranteed pensions amounted to NOK 275bn. This is in line with previous quarter and a decrease of NOK -16bn since the beginning of the year. Net flow of guaranteed pensions amounted to NOK -2.8bn in 3rd quarter and NOK -8.0bn year to date. As a share of the total balance sheet, guaranteed reserves amounted to 47.7% (49.7%) at the end of the 3rd quarter.
A growth area for Storebrand is public sector occupational pensions, where Storebrand won its first mandates in 2020. The public sector effort has been the driver for a net increase in Defined Benefit reserves in the Norwegian business over the last years. Mandates amounting to an estimated NOK 5.5bn of reserves were won in 2021, most of which has been transferred to Storebrand in the first half of 2022. Public sector mandates are typically assigned in the second half of the year.
Paid-up policies are experiencing some growth over time as active Defined Benefit contracts eventually become Paid-up policies. Reserves amounted to NOK 143bn as of the 3rd quarter, a decrease of NOK 6.4bn in 2022. The decrease is primarily attributed to drawdowns on pensions by policy holders of NOK - 5.2bn year to date, and a decrease in market value adjustment reserve due to financial market developments.
Guaranteed portfolios in the Swedish business totalled NOK 82bn as of the 3rd quarter, a decrease of NOK 11.4bn in the first half of the year mainly driven by lower mark-to-market valuations of assets and liabilities. A run-off portfolio amounting to NOK 2.3bn in reserves, including NOK 570 of conditional bonuses, was transferred to SPP in the quarter.
Storebrand's strategy is to have solid buffer capital levels in order to secure customer returns and shield shareholder's equity under turbulent market conditions. Buffer capital (excluding excess value of bonds at amortised cost) decreased by NOK 0.9bn to NOK 23.6bn in the 3rd quarter, and by NOK 10.1bn year to date as a result of falling equity markets, rising interest rates, and wider credit spreads. As a share of guaranteed reserves, buffer capital levels in Norwegian products still amount to 6.2% (10.8%) and 18.2% (15.5%) in Swedish products. This does not include offbalance sheet excess values of bonds at amortised cost, which at the end of the 3rd quarter amounted to a deficit of NOK -13.2bn from a surplus of NOK 3.4bn at the end of last year. The deficit indicates that the reinvestment yield in the market is currently higher than the average yield in the portfolio. As bonds at amortised cost mature, their excess values will trend to zero.
| 2022 | 2021 | ||||
|---|---|---|---|---|---|
| NOK million | Q3 | Q2 | Q1 | Q4 | Q3 |
| Guaranteed reserves | 275,623 | 274,918 | 281,474 | 290,862 | 292,161 |
| Guaranteed reserves in % of total reserves | 47.7% | 49.9% | 49.2% | 48.5% | 49.7% |
| Net flow of premiums and claims | -2,812 | -2,564 | -2,609 | -2,735 | -2,877 |
| Buffer capital in % of customer reserves Norway | 6.2% | 6.9% | 8.6% | 11.2% | 10.8% |
| Buffer capital in % of customer reserves Sweden | 18.2% | 17.5% | 17.9% | 17.8% | 15.5% |
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.
| 2022 | 2021 | 01.01 - 30.09 | Full year | |||||
|---|---|---|---|---|---|---|---|---|
| NOK million | Q3 | Q2 | Q1 | Q4 | Q3 | 2022 | 2021 | 2021 |
| Fee and administration income | 6 | 4 | 6 | 8 | 6 | 15 | 13 | 21 |
| Operational cost | -87 | -70 | -64 | -103 | -52 | -222 | -142 | -246 |
| Operating profit | -82 | -66 | -59 | -96 | -46 | -207 | -129 | -225 |
| Financial items and risk result life | -7 | -172 | -57 | 0 | 6 | -236 | 518 | 518 |
| Profit before amortisation | -89 | -238 | -116 | -95 | -40 | -443 | 388 | 293 |
| 2022 | 2021 | 01.01 - 30.09 | Full year | |||||
|---|---|---|---|---|---|---|---|---|
| NOK million | Q3 | Q2 | Q1 | Q4 | Q3 | 2022 | 2021 | 2021 |
| Fee and administration income | -70 | -73 | -75 | -66 | -67 | -218 | -195 | -260 |
| Operational cost | 70 | 73 | 75 | 66 | 67 | 218 | 195 | 260 |
| Financial items and risk result life | ||||||||
| Profit before amortisation |
The Other segment reported a profit before amortisation of NOK -89m (NOK -40m) in the 3rd quarter and -443m (NOK 388m) year to date. The loss this year stems primarily from operational cost in the holding company Storebrand ASA, and negative returns on investments in company portfolios due to mark-to-market valuations from wider credit spreads. Correspondingly, the running yield has increased. The result year to date in 2021 includes a positive financial result of NOK 546m from the divestment of AS Værdalsbruket.
The financial result for the Other segment includes the company portfolios of SPP and Storebrand Life Insurance, and the financial result of Storebrand ASA. The financial result for the Other segment amounted to NOK -7m in the 3rd quarter and -236m year to date, primarily due to weak investment returns from wider credit spreads. The investments in the company portfolios are primarily in interest-bearing securities in Norway and Sweden. The Norwegian company portfolio achieved a return of 0.3% in the 3rd quarter and 0.3% year to date, while the Swedish company portfolio reported a return of 0.2% in the 3rd quarter and -2.2% year to date.
The Storebrand Life Insurance Group is funded by a combination of equity and subordinated loans. Interest expenses in the quarter amounted to NOK -116m. Given the interest rate level at the end of the 3rd quarter, interest expenses of approximately NOK - 150m per quarter are expected going forward. The company portfolios in the Norwegian and Swedish life insurance companies and the holding company amounted to NOK 30.0bn at the end of the quarter.
Continuous monitoring and active risk management is core to Storebrand's business. Risk and capital adequacy are monitored at both Group level and in the legal entities. Regulatory requirements for capital adequacy and risk management follow the legal entities. This section is thus divided by legal entities.
Storebrand uses the standard model for the calculation of Solvency II. The Storebrand Group's target solvency ratio is 150%- 180%. This includes the use of the transitional rules, but with the current balance sheet in the current interest rate environment, Storebrand does not benefit from any transitional capital.
The solvency ratio was 174% at the end of the 3rd quarter, a decrease of 21 percentage points from the previous quarter. The level is in the upper end of the targeted range of 150-180%. The completion of the Danica acquisition detracted 6 percentage points from the solvency ratio at the beginning of the quarter. Negative market returns from wider credit spreads and falling equity markets detracted 5 percentage points from the solvency ratio. Regulatory factors, including a significantly reduced volatility adjustment (VA) but a lower symmetric equity stress adjustment (SA), detracted a net amount of 10 percentage points. Group profit after tax equalled approximately the amount of capital set aside for dividends for a net zero effect on the solvency ratio.
Storebrand is a blend of fast-growing capital-light business that delivers high returns on equity, and capital-intensive run-off business with low returns on equity. The back book of guaranteed business ties up more than three quarters of the Group's capital, delivering an estimated return on equity of 2% over the last twelve months, whereas the front book, the "future Storebrand" delivered an estimated return on equity of 39%1 . Large variations in the estimated pro forma return on equity in the front book are expected as earnings are market dependent, while the capital base is primarily related to mortgage lending in the bank and to insurance. Overall, the Group's return on equity year to date (adjusted for amortisation) was 7.8% on an annualised basis. As the business mix shifts, the return on equity is expected to reach the targeted 10% on a sustainable basis from 2023 onwards.
Storebrand ASA (holding company) held liquid assets of NOK 5.1bn at the end of the 3rd quarter. Liquid assets consist primarily of short-term fixed income securities with a high credit rating and bank deposits. Storebrand ASA's total interest-bearing liabilities were NOK 0.5bn at the end of the 2nd quarter. The next maturity date for bond debt is in Sept 2025, when NOK 0.5bn matures. In addition to the liquidity portfolio, the company has an unused credit facility of EUR 200m that runs until December 2025.
Storebrand ASA owned 6,447,486 of the company's own shares at the end of the 3rd quarter, representing 1.37% of the share capital, following repurchases under Storebrand's buyback program which was initiated on 18 July. The program was completed on 21 October. The total number of shares purchased under the program was 6,477,024 for a total consideration of NOK 500 million. Following the transactions, Storebrand ASA owned a total of 7,764,226 own shares, representing 1.65% of Storebrand ASA's share capital. The shares purchased under the program will be redeemed (i.e. cancelled) upon approval from Storebrand ASA's General Meeting in 2023.
The Solidity capital3 measures the amount of IFRS capital available to cover customer liabilities. The solidity capital amounted to NOK 46.9bn at the end of 3rd quarter 2022, a decrease in the 3rd quarter by NOK 3.5bn and by NOK 27.2bn year to date. The change in the quarter and year to date is primarily due to increased interest rates and decreased customer buffers, primarily in Norway.
1 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. 2 Storebrand Livsforsikring AS and SPP
3 Consists of equity, subordinated loan capital, market value adjustment reserve, risk equalisation reserve, unrealised gains/losses on bonds and loans at amortised cost, additional statutory reserves, conditional bonuses
Additional staturory reserves in % of customer funds with guarantee
The market value adjustment reserve and bufferfund decreased during the 3rd quarter by NOK 0.6bn and NOK 4.9bn year to date. At the end of 3rd quarter, the market value adjustment reserve and bufferfund amounted to NOK 1.4bn, corresponding to 0.9% (1.2% at the end of 2nd quarter) of customer funds with a guarantee. New business transferred in contributed positively with NOK 0.8bn to the bufferfund year to date.
The additional statutory reserves amounted to NOK 9.9bn at the end of the 3rd quarter, corresponding to 6.2% (6.3% at the end of the 2nd quarter) of customer funds with guarantee. Investment returns in customer portfolios which were lower than the guaranteed interest rate decreased reserves by NOK 1.3bn in the 3rd quarter and NOK 3.2bn year to date. In connection with the implementation of the bufferfund in Public Occupational Pensions at the start of the year, NOK 1bn was transferred between market value adjustment reserve and additional statutory reserves.
Altogether, the customer buffers amounted to 7.0% (7.5% at the end of the 2nd quarter) of customer funds with guarantee at the end of 3rd quarter.
The excess value of bonds and loans valued at amortised cost decreased by NOK 3.6bn in the 3rd quarter and NOK 16.6bn year to date due to higher interest rates, and amounted to NOK -13.2bn at the end of the 3rd quarter. Excess values are not included in the financial statements, but are part of the Solvency 2 calculation.
Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022
Customer assets decreased in the 3rd quarter by NOK 3.8bn and by NOK 18.8bn year to date, amounting to NOK 337bn at the end of the quarter. Customer assets within non-guaranteed savings decreased by NOK 2.2bn during the 3rd quarter and by NOK 14.2bn year to date, amounting to NOK 144bn at the end of the 3rd quarter. Guaranteed customer assets decreased by NOK 1.5bn in the 3rd quarter and by NOK 4.6bn year to date, amounting to NOK 193bn at the end of the quarter.
Customer assets in Danica amounted to NOK 27bn at the end of the 3rd quarter 2022, of which assets in non-guaranteed savings amounted to NOK 26bn and NOK 1bn in guaranteed customer assets.
Conditional bonuses in % of customer funds with guarantee
The buffer capital (conditional bonuses) amounted to SEK 12.4bn (SEK 12.8bn) at the end of the 3rd quarter.
Customer assets amounted to SEK 215bn (SEK 226bn) at the end of the 3rd quarter, corresponding to a decrease of SEK 11bn over the last year. Customer assets within non-guaranteed savings amounted to SEK 135bn (SEK 145bn) at the end of the 3rd quarter, which is a decrease of SEK 10bn compared to the same quarter last year. Guaranteed customer assets decreased by SEK 1bn in the same period and amounted to SEK 80bn (SEK 81bn) at the end of the 3rd quarter.
Loans outstanding increased by NOK 1.5 billion during the quarter. The home mortgage portfolio managed on behalf of Storebrand Livsforsikring AS decreased by NOK 0.9 billion during the quarter. The combined portfolio of loans in Storebrand Bank and Storebrand Livsforsikring increased by NOK 2.3 billion during the quarter and by NOK 7.9 billion year to date.
The bank group has had an increase in the risk-weighted balance sheet of NOK 2.7 billion year to date. The Storebrand Bank Group had a net capital base of NOK 3.6 billion at the end of the 3rd quarter. The capital adequacy ratio was 20.3% and the Core Equity Tier 1 (CET1) ratio was 14.4% at the end of the quarter, compared with 20.3% and 15.4% respectively at the end of 2021. The combined requirements for capital and CET1 were 16.3% and 12.8% respectively at the end of the 3rd quarter.
Storebrand follows a two-fold strategy that gives a compelling combination of self-funded growth in the front book, i.e. the growth areas of the "future Storebrand", and capital return from a maturing back book of guaranteed pensions.
Storebrand aims to be (a) 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, customer base, cost and data synergies across the Group provide a solid platform for profitable growth and value creation.
At the capital markets day in December 2020, Storebrand announced an ambition to achieve a profit before amortisation and tax of about NOK 4bn in 2023. The profit ambition was reached in 2021, helped by gains from the sale of AS Værdalsbruket and strong performance in funds with performance fees. The full economic effect of individual pension accounts is expected to give a negative result contribution of NOK 100m in 2022. On the other hand, the contribution from acquisition of Danica will have full effect from 2023. Weak market returns in 2022 have lowered assets under management, a primary source of income for the Group. However, strong growth across the Group provides a solid platform for profitable growth in the coming years and Storebrand maintains the profit ambition set out for 2023.
Storebrand continues to manage capital and a back book with guaranteed products 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 capital-efficient manner. In 2020, Storebrand announced that the goal is to release an estimated NOK 10bn of capital by 2030.
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 doubledigit growth in assets under management are expected during the next years. Individual Pension Accounts (IPA), introduced in 2021, have merged individuals' contracts into one account leading to a new and lower lever for fee margins for the product in 2022 and onwards. The product's profit is expected to decline in 2022, before recovering to previous levels in 2023 through strong underlying growth as well as measures to increase profitability. 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. In July 2022, Storebrand acquired Danica in Norway, which holds a market share of 5% in Defined Contribution pensions. This will strengthen Storebrand's presence in the segment for small and medium sized businesses, and it will increase Storebrand's distribution capacity of both Defined Contribution pensions and personal risk products.
In the coming years, Storebrand is also looking to leverage customer, product and capital synergies by expanding our insurance offering to corporate clients within P&C. This will generate an additional income stream for the Group.
As a leading occupational pension provider in the private sector, Storebrand also has a competitive offering to the public sector market. Premiums in the public sector pension market are growing and it is larger in reserves than the private sector. This represents a potential additional source of revenue generation for Storebrand. The ambition is to gain 1% market share annually, or approximately NOK 5bn in annual net inflow.
In Sweden, SPP has become a significant profit contributor to the Storebrand Group, driven by earnings growth and ongoing capital release. Growth is expected to continue, driven by an edge in digital and ESG-enhanced solutions, and a strong market position. The market is expected to grow about 8% annually, supported by increasing transfer volumes. Going forward, SPP's ambition is to grow faster than the market, partly through capturing a large share of transfers.
Overall reserves for guaranteed pensions are expected to start decreasing in the coming years. Guaranteed reserves represent a declining share of the Group's total pension reserves and amounted to 47.7% of the pension reserves at the end of the quarter, 2 percentage points lower than a year ago. Storebrand's strategy is to secure customer returns and shield shareholder's equity under turbulent market conditions by building customer buffers. With rising interest rates in 2022 to a level above the interest rate guarantee, the prospects have increased for profit sharing with customers when a satisfactory level for the buffer capital is reached in the coming years.
In addition to managing internal pension funds, Storebrand Asset Management is growing its external mandates from institutional and retail investors, both in the Nordics and across Europe. Storebrand has a full product range including index, factor and active management. We are also one of the strongest providers of alternative assets in the Nordic region, an asset class offering prospects of higher margins. In the 3rd quarter 2021, Storebrand acquired real estate manager Capital Investment in Denmark to expand our offering of alternative assets. In combination with a strong track record with ESG-enhanced mutual funds, Storebrand is aiming to capitalise on these two trends. The overall ambition is to grow assets under management by NOK 250bn in the period 2021-2023, while maintaining a stable fee margin.
The individualisation of the market for pension and savings is expected to further increase and may be reinforced by the introduction of individual pension accounts in Norway. Retail has already become an increasingly larger part of Storebrand, contributing around 20% to the overall Group profit. In 2021, Storebrand received 62,000 new retail customers, corresponding to a 16% increase. P&C insurance has been an important area for growth. Own sales channels and distribution partnerships will continue to support growth. The ambition is to grow more than 10% annually within savings, mortgage lending and insurance. In September 2022, Storebrand announced that it will strengthen its retail savings offering by acquiring the fast growing Norwegian fintech company Kron, subject to regulatory approval. The acquisition will combine Kron's user experience with Storebrand's product platform and distribution.
Adjusted for acquisitions, currency and performance related cost, the Group has reported flat nominal cost from 2012-2020. In 2021, Storebrand delivered on the ambition to keep cost at NOK 4.4bn. The underlying cost base is expected to grow to approximately NOK 4.9bn in 2022. This is partly explained by investments in profitable growth, including public occupational pensions and our P&C offering in the market for small and medium sized enterprises, as well as newly acquired Capital Investment. Together, these growth initiatives are expected to increase costs by NOK 400m. Should the growth not materialise, management has contingency plans in place to cut costs. High inflation rates, particularly wage inflation, is expected to increase the cost base by NOK 100m. Acquired business such as Danica and fund performance related costs will add to the total cost base.
Our risk management framework is designed to take appropriate risk in order to deliver returns to customers and shareholders. At the same time, the framework shall ensure that we shield our customers, shareholders, employees and other stakeholders from undesirable incidents and losses. The framework covers all risks that Storebrand may be exposed to. In 2022, the outbreak of war on the European continent has led to increased geopolitical and economic uncertainty, resulting in increased financial market volatility and increased risk monitoring in the Group.
Financial market risk is the Group's biggest risk, but main risks also include business risk, insurance risk, counterparty risk, operational risk, climate risk and liquidity risk. In the Board's selfassessment of risk and solvency (ORSA) process, developments in interest rates, credit spreads, and equity and property values are considered to be the biggest risks that influence the solvency of the Group. Should the economic situation worsen, and financial markets deteriorate, investment losses may occur from reduced valuations of such instruments. Under prevailing market conditions, model-based valuations of financial instruments (Level 3) such as investment property, contain greater uncertainty than usual.
The customer buffers limit the financial risk to shareholders and policyholders in turbulent financial markets by absorbing investment losses. With 9% of customer buffers as a share of customer reserves, Storebrand effectively has NOK 24bn more in customer assets than guaranteed liabilities. However, customer buffers have decreased from 13% at the start of the year, and there is an annual limit to the amount of additional statutory reserves (ASR) that can be used. The available annual ASR will be reset at the turn of the year and increase the buffer capital's capacity to absorb potential investment losses. Storebrand operates an active risk based financial management strategy to optimize customer returns and shareholders risk.
Inflation expectations have risen in much of the world, including in Norway and Sweden, as a consequence of global supply chain risk and increased food and energy costs. High and rapidly rising inflation rates may increase costs and insurance claims in Storebrand. However, pension liabilities (payments) are not inflation linked, limiting the impact of inflation on the Group's liabilities. Pension premiums and some insurance premiums are directly linked to wage inflation, which could automatically result in premium growth. Other products, including P&C insurance, will have to be repriced to mitigate the negative effects of inflation.
A consequence of higher inflation may be rising interest rates, as seen in first 9 months of 2022. Higher interest rates strengthen Storebrand's balance sheet and improves our ability to fulfil guaranteed pension liabilities in the long run, which also strengthens the solvency ratio and reduces solvency risk. However, the immediate short-term impact may be mark-tomarket losses on fixed income investments and insufficient investment returns to fulfil the annual guarantee in a single year. To reduce the financial impact to shareholders from rising interest rates, Storebrand has made adjustments to the investment portfolios by shortening the duration on mark-to-market bonds, and has over time built a robust portfolio of long-duration bonds at amortised cost which is not affected in the accounts by rising rates. Storebrand has also prioritised building buffer capital from excess returns over many years.
In the long term, low interest rates represent a risk for products with guaranteed high interest rates. The level of the average annual interest rate guarantee is gradually reduced as older policies with higher guarantees are phased out. To reduce the risk, Storebrand has over time reduced the asset-duration mismatch in the Norwegian portfolio and has an asset-duration matched portfolio in Sweden. Customer buffers also increase the expected booked returns in Norway and can compensate for a shortfall in returns in a low-rate environment, limiting the financial risk to shareholders and policyholders.
Increased longevity and development in disability are the main insurance risk factors for the Group. A weakening of the Norwegian economy that leads to higher unemployment may lead to higher disability levels, which can result in increased claims. The Covid-19 pandemic led to increased uncertainty in disability and related claims. The removal of infection controls in 2022 seems to have improved disability levels, but Storebrand continues to monitor the development closely.
Operational risk could also affect the Group adversely. As a consequence of increased geopolitical uncertainty in 2022, Storebrand has been on heightened alert with increased monitoring of suppliers and value chains, cyber risk, and antimoney laundering (AML). Several regulatory processes, both on the domestic and international level, with potential implications for capital, customer returns and commercial opportunities are also described below in a separate section.
Changes have been made to the Norwegian tax legislation for the insurance industry over many years. Storebrand and the Norwegian Tax Administration have interpreted some of the legislation changes and the associated transitional rules differently. Consequently, Storebrand has three uncertain tax positions with regards to recognised tax expenses. These are described in more detail in note 9. Should Storebrand's interpretation be accepted in all three cases, an estimated positive tax result of up to NOK 2.2bn may be recognised. Should all the Norwegian Tax Administration's interpretations be the final verdict, a tax expense of NOK 1.7bn could be recognised. The timeline for settling the process with the Norwegian Tax Administration might take several years. If necessary, Storebrand will seek clarification from the court of law on the matter.
New legislation has made occupational pension contributions mandatory for all employees, regardless of age or employment fraction. The legislation has been implemented this year, with a transition period that ended 1 July 2022. As of 30 September 2022, the number om employees covered by defined contribution schemes has increased to 1.85 million, from 1.57 million at the start of the year. It is estimated that the changes will increase total savings in the Defined Contribution pension market by about NOK 3bn per year, of which Storebrand expects to receive its market share of premiums of 31% (including Danica).
A report proposing changes in the Norwegian National Insurance Pension Scheme was delivered to the Government in June 2022 and has received public consultation. Among the proposals is an automatic adjustment of the earliest possible retirement age as longevity expectations increase. The report states that age limits in occupational and individual pension schemes should be adjusted accordingly. The Government will now work on a bill to parliament to follow up on the proposals.
Storebrand has filed two complaints to the EFTA Surveillance Authority (ESA) in an effort to improve the competitive landscape for Public Occupational Pensions, which is effectively a monopolistic market today. Storebrand has claimed that municipalities, regional health authorities (RHFs) and hospitals have entered into occupational pension contracts in breach of the rules on public procurement. Storebrand has also claimed that municipalities, RHFs and hospitals have granted KLP State aid in violation of Article 61 of the 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.
The European Commission presented proposals for changes in the Solvency II standard model in September 2021. The Commission's proposals differ significantly compared to earlier proposals from The European Insurance and Occupational Pension Authority (EIOPA).
The main purpose of the revision is to ensure that insurance companies continue to invest in accordance with the political priorities of the EU, especially with regards to financing the post Covid-19 recovery by facilitating long-term investments and increasing the capacity to invest in European business. The Commission emphasises the insurance sector's important role when it comes to financing the green transition and helping society to adapt to climate change. The review intends to correct deficiencies in current regulation and make the insurance sector more robust.
Storebrand currently applies the standard model. In the review, changes to the interest rate risk module could increase the solvency capital requirement for Norwegian and Swedish insurers. The Commission's proposals appear more representative for Norwegian interest rates than earlier proposals from EIOPA. The Commission also proposes changes that could have offsetting effects to increased capital requirements, such as a reduced risk margin. Several changes are proposed in the calculation of the volatility adjustment as well as an increased interval for the symmetric adjustment for equity risk. As they are currently outlined, the Commission's proposals are not expected to have a significant overall impact on Storebrand's solvency ratio.
The Commission has not outlined a timeline for the further process on adapting changes in the standard model. We expect final conclusions to be drawn by the Commission, the Parliament and the Council in 2022. This will be followed by work on delegated acts and guidelines. Changes are not expected to enter into force until 2024-2025. The Commission will consider a phasing-in period of five years for new rules related to the calculation of interest rate risk and the new extrapolation method for interest rates will be phased in gradually until the end of 2031.
A new accounting standard for insurance contracts, IFRS 17, is set to be implemented in 2023. The purpose is to introduce common accounting rules for insurance contracts and improve the comparability of financial statements. IFRS 17 entails, among other things, fair value measurement of liabilities, grouping of insurance contracts based on risk characteristics, internal management and issue date, income recognition over the contract period rather than upfront, and an amendment of the profit and loss statement. Storebrand will implement IFRS 9 for financial instruments at the same time.
For Storebrand's consolidated financial statements, the new standards will lead to changes in the recognition, measurement and presentation of insurance contracts, classification of fixed income investments and how profits are recognised. A new balance sheet item called Contractual Service Margin (CSM), representing the unearned profits of insurance contracts, will be introduced as part of the transition to IFRS 17. Amortisations of CSM will be recognised as income as the service is provided. Storebrand expects that the transition to IFRS 17 will result in a portion of today's equity to become CSM. Estimated effects for Storebrand will be presented closer to implementation.
Whether IFRS 17 is implemented in the statutory reporting requirements is decided by national regulations in each country. Storebrand will only implement IFRS 17 in the statutory reporting for Storebrand Forsikring AS (the P&C Insurance business). For the remaining companies within Storebrand Group, including the life insurance companies, the statutory reporting will remain unchanged from today. The Ministry of Finance has also passed a regulation allowing for the continued use of amortised cost valuation of assets in both customer accounts and life insurance companies' financial statements when IFRS 9 is implemented.
The implementation of IFRS 9 and IFRS 17 is not expected to significantly affect the solvency calculations nor the Group's dividend capacity.
The European Union's Action Plan on Sustainable Finance aims to contribute to realising the Paris goals of reduced carbon emissions. It intends to increase the share of sustainable investments, promote long-termism and clarify which financial products are actually sustainable. This is followed by new regulation to increase investments in sustainable activities and increase the resilience of the financial system when it comes to climate risk. New legislation introducing the EU Taxonomy on classification of sustainable activities and regulation on climaterelated disclosures in Norwegian law was passed in December 2021. The new rules for sustainable finance will establish standards for sustainable asset management, as well as clarify disclosure and customer information requirements. The development should result in a higher quality of financial and nonfinancial reporting, give better information to key stakeholders, and make it easier to compare data across the financial sector.
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 future capital release from the guaranteed book. The Board's ambition is to pay a gradually and growing ordinary dividend. When the solvency margin is sustainably above 180% without material use of transitional capital, 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 longterm run-off.
Storebrand's dividend policy is stated as following:
Storebrand aims to pay an ordinary dividend of more than 50% of Group result after tax. 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 180%, the Board of Directors intends to propose special dividends or share buy backs.
Lysaker, 25 October 2022
| Q3 | 01.01 - 30.09 | Full year | |||
|---|---|---|---|---|---|
| NOK million Notes |
2022 | 2021 | 2022 | 2021 | 2021 |
| Premium income | 11,581 | 11,992 | 36,240 | 40,212 | 53,681 |
| Net income from financial assets and real estate for the company: | |||||
| - equities and fund units at fair value | 10 | 8 | -7 | 29 | 37 |
| - bonds and other fixed-income securities at fair value | 86 | 75 | -160 | 200 | 220 |
| - derivatives at fair value | -56 | -4 | -45 | 38 | 94 |
| - loans at fair value | 17 | 5 | 4 | 5 | 3 |
| - bonds at amortised cost | 53 | 51 | 132 | 159 | 220 |
| - loans at amortised cost | 315 | 186 | 791 | 525 | 720 |
| - profit from investments in associated companies/joint ventures | -10 | 14 | -5 | 28 | 30 |
| Net income from financial assets and real estate for the customers: | |||||
| - equities and fund units at fair value | 45 | 2,826 | -29,777 | 34,640 | 53,776 |
| - bonds and other fixed-income securities at fair value | -225 | 289 | -3,403 | 700 | 780 |
| - derivatives at fair value | -7,829 | -1,739 | -26,375 | -2,918 | -2,834 |
| - loans at fair value | 6 | 8 | 23 | 17 | 26 |
| - bonds at amortised cost | 910 | 1,010 | 2,751 | 3,028 | 4,101 |
| - loans at amortised cost | 171 | 94 | 392 | 215 | 275 |
| - properties | -128 | 468 | 958 | 1,551 | 2,164 |
| - profit from investments in associated companies/joint ventures | -163 | 116 | -12 | 247 | 790 |
| Other income | 1,346 | 1,203 | 3,672 | 3,944 | 5,698 |
| Total income | 6,128 | 16,602 | -14,819 | 82,622 | 119,781 |
| Insurance claims | -10,087 | -14,518 | -29,797 | -37,048 | -52,529 |
| Change in insurance liabilities | 2,548 | -22 | 39,176 | -34,782 | -50,615 |
| Change in capital buffer | 4,077 | 567 | 12,893 | -2,434 | -4,827 |
| Operating expenses 8 |
-1,557 | -1,400 | -4,447 | -4,090 | -5,784 |
| Other expenses | -141 | -146 | -377 | -641 | -836 |
| Interest expenses | -298 | -170 | -755 | -491 | -686 |
| Total expenses before amortisation | -5,458 | -15,689 | 16,694 | -79,486 | -115,278 |
| Group profit before amortisation | 670 | 912 | 1,874 | 3,136 | 4,503 |
| Amortisation of intangible assets | -159 | -133 | -436 | -387 | -527 |
| Group pre-tax profit | 511 | 779 | 1,439 | 2,749 | 3,976 |
| Tax expenses 9 |
-125 | -181 | 247 | -536 | -846 |
| Profit/loss for the period | 386 | 598 | 1,685 | 2,213 | 3,130 |
| Profit/loss for the period attributable to: | |||||
| Share of profit for the period - shareholders | 382 | 596 | 1,677 | 2,206 | 3,121 |
| Share of profit for the period - hybrid capital investors | 4 | 2 | 9 | 7 | 9 |
| Total | 386 | 598 | 1,685 | 2,213 | 3,130 |
| Earnings per ordinary share (NOK) | 0.82 | 1.28 | 3.57 | 4.73 | 6.68 |
| Average number of shares as basis for calculation (million) | 469.7 | 466.1 | 467.1 | ||
| Q3 | 30.09.22 | Full year | |||
|---|---|---|---|---|---|
| NOK million | 2022 | 2021 | 2022 | 2021 | 2021 |
| Profit/loss for the period | 386 | 598 | 1,685 | 2,213 | 3,130 |
| Actuarial assumptions pensions own employees | -1 | -2 | -4 | -8 | 131 |
| Fair value adjustment of properties for own use | 17 | 4 | 58 | 73 | 139 |
| Other comprehensive income allocated to customers | -17 | -4 | -58 | -73 | -139 |
| Tax on other comprehensive income elements not to be reclassified to profit/loss |
8 | ||||
| Total other comprehensive income elements not to be reclassified to profit/loss |
-1 | -2 | -5 | -8 | 140 |
| Exchange rate adjustments | 34 | -20 | -69 | -102 | -167 |
| Gains/losses from cash flow hedging | -7 | -7 | -25 | -32 | -52 |
| Total other comprehensive income elements that may be reclassified to profit/loss |
27 | -27 | -94 | -134 | -219 |
| Total other comprehensive income elements | 27 | -29 | -98 | -141 | -79 |
| Total comprehensive income | 412 | 569 | 1,587 | 2,072 | 3,051 |
| Total comprehensive income attributable to: | |||||
| Share of total comprehensive income - shareholders | 409 | 567 | 1,578 | 2,065 | 3,042 |
| Share of total comprehensive income - hybrid capital investors | 4 | 2 | 9 | 7 | 9 |
| Total | 412 | 569 | 1,587 | 2,072 | 3,051 |
| NOK million Notes |
30.09.22 | 30.09.21 | 31.12.21 |
|---|---|---|---|
| Assets company portfolio | |||
| Deferred tax assets | 970 | 1,287 | 1,104 |
| Intangible assets and excess value on purchased insurance contracts | 7,648 | 6,898 | 6,667 |
| Tangible fixed assets | 1,228 | 1,287 | 1,266 |
| Investments in associated companies and joint ventures | 456 | 346 | 387 |
| Financial assets at amortised cost: | |||
| - Bonds 7 |
11,703 | 11,579 | 12,955 |
| - Loans to financial institutions 7 |
170 | 56 | 67 |
| - Loans to customers 7, 10 |
50,367 | 38,202 | 38,503 |
| Reinsurers' share of technical reserves | 25 | 45 | 32 |
| Accounts receivable and other short-term receivables | 12,959 | 11,117 | 11,024 |
| Financial assets at fair value: | |||
| - Equities and fund units 7 |
475 | 525 | 543 |
| - Bonds and other fixed-income securities 7 |
24,616 | 29,142 | 27,706 |
| - Derivatives 7 |
560 | 956 | 903 |
| - Loans to customers 7, 10 |
316 | 707 | 489 |
| Bank deposits | 4,619 | 4,465 | 3,543 |
| Minority portion of consolidated mutual funds | 52,411 | 55,046 | 54,912 |
| Total assets company portfolio | 168,523 | 161,657 | 160,101 |
| Assets customer portfolio | |||
| Investments in associated companies and joint ventures | 8,664 | 6,608 | 7,141 |
| Financial assets at amortised cost: | |||
| - Bonds 7 |
110,296 | 106,658 | 104,974 |
| - Bonds held-to-maturity 7 |
7,548 | 10,071 | 8,441 |
| - Loans to customers 7, 10 |
18,652 | 22,541 | 23,051 |
| Reinsurers' share of technical reserves | 272 | 13 | 13 |
| Investment properties at fair value 7 |
33,918 | 32,385 | 33,376 |
| Properties for own use 7 |
1,746 | 1,618 | 1,659 |
| Accounts receivable and other short-term receivables | 926 | 792 | 638 |
| Financial assets at fair value: | |||
| - Equities and fund units 7 |
268,450 | 263,981 | 277,783 |
| - Bonds and other fixed-income securities 7 |
131,380 | 138,299 | 140,810 |
| - Derivatives 7 |
2,374 | 4,038 | 2,916 |
| - Loans to customers 7, 10 |
7,225 | 7,823 | 7,443 |
| Bank deposits | 5,652 | 8,145 | 6,443 |
| Total assets customer portfolio | 597,104 | 602,973 | 614,689 |
| NOK million Notes |
30.09.22 | 30.09.21 | 31.12.21 |
|---|---|---|---|
| Equity and liabilities | |||
| Paid-in capital | 13,169 | 13,192 | 13,192 |
| Retained earnings | 23,879 | 23,317 | 24,291 |
| Hybrid capital | 327 | 226 | 226 |
| Total equity | 37,375 | 36,735 | 37,709 |
| Subordinated loans 6,7 |
11,890 | 12,334 | 11,441 |
| Customer buffer 11 |
23,543 | 31,636 | 33,693 |
| Insurance liabilities | 565,282 | 565,153 | 575,457 |
| Pension liabilities | 187 | 339 | 181 |
| Deferred tax | 1,408 | 954 | 832 |
| Financial liabilities: | |||
| - Loans and deposits from credit institutions 6,7 |
38 | 202 | 502 |
| - Deposits from banking customers 7 |
19,236 | 16,776 | 17,239 |
| - Securities issued 6,7 |
31,416 | 25,878 | 24,924 |
| - Derivatives company portfolio | 660 | 164 | 208 |
| - Derivatives customer portfolio | 10,491 | 1,592 | 1,840 |
| - Other non-current liabilities | 1,173 | 1,240 | 1,210 |
| Other current liabilities | 10,516 | 16,581 | 14,643 |
| Minority portion of consolidated mutual funds | 52,411 | 55,046 | 54,912 |
| Total liabilities | 728,251 | 727,895 | 737,081 |
| Total equity and liabilities | 765,627 | 764,630 | 774,790 |
| Majority's share of equity | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| NOK million | Share capital 1) |
Own shares |
Share premium |
Total paid in equity |
Currency translation differences |
Other equity 2) |
Total retained earnings |
Hybrid capital 3) |
Total equity |
| Equity at 31 December 2020 | 2,339 | -2 | 10,521 | 12,858 | 1,208 | 21,631 | 22,839 | 226 | 35,923 |
| Profit for the period | 3,121 | 3,121 | 9 | 3,130 | |||||
| Total other comprehensive income elements |
-167 | 87 | -79 | -79 | |||||
| Total comprehensive income for the period |
-167 | 3,208 | 3,042 | 9 | 3,051 | ||||
| Equity transactions with owners: | |||||||||
| Own shares | -7 | -7 | -97 | -97 | -104 | ||||
| Issue of shares | 21 | 320 | 341 | 341 | |||||
| Hybrid capital classified as equity | 2 | 2 | 2 | ||||||
| Paid out interest hybrid capital | -9 | -9 | |||||||
| Dividend paid | -1,513 | -1,513 | -1,513 | ||||||
| Other | 18 | 18 | 18 | ||||||
| Equity at 31 December 2021 | 2,360 | -9 | 10,842 | 13,192 | 1,041 | 23,249 | 24,291 | 226 | 37,709 |
| Profit for the period | 1,677 | 1,677 | 9 | 1,685 | |||||
| Total other comprehensive income elements |
-69 | -29 | -98 | -98 | |||||
| Total comprehensive income for the period |
-69 | 1,647 | 1,578 | 9 | 1,587 | ||||
| Equity transactions with owners: | |||||||||
| Own shares | -23 | -23 | -340 | -340 | -363 | ||||
| Hybrid capital classified as equity | 2 | 2 | 100 | 102 | |||||
| Paid out interest hybrid capital | -8 | -8 | |||||||
| Dividend paid | -1,646 | -1,646 | -1,646 | ||||||
| Other | -6 | -6 | -6 | ||||||
| Equity at 30 September 2022 | 2,360 | -32 | 10,842 | 13,169 | 972 | 22,907 | 23,879 | 327 | 37,375 |
1) 471 974 890 shares with a nominal value of NOK 5.
2) Includes undistributable funds in the risk equalisation fund amounting to NOK 761 million and security reserves/natural perials capital amounting NOK 179 million. 3) Perpetual hybrid tier 1 capital classified as equity.
| Equity at 31 December 2020 | 2,339 | -2 | 10,521 | 12,858 | 1,208 | 21,631 | 22,839 | 226 | 35,923 |
|---|---|---|---|---|---|---|---|---|---|
| Profit for the period | 2,206 | 2,206 | 7 | 2,213 | |||||
| Total other comprehensive income elements |
-102 | -40 | -141 | -141 | |||||
| Total comprehensive income for the period |
-102 | 2,167 | 2,065 | 7 | 2,072 | ||||
| Equity transactions with owners: | |||||||||
| Own shares | -7 | -7 | -97 | -97 | -104 | ||||
| Issue of shares | 21 | 320 | 341 | 341 | |||||
| Hybrid capital classified as equity | 2 | 2 | 2 | ||||||
| Paid out interest hybrid capital | -6 | -6 | |||||||
| Dividend paid | -1,513 | -1,513 | -1,513 | ||||||
| Other | 22 | 22 | 21 | ||||||
| Equity at 30 September 2021 | 2,360 | -9 | 10,842 | 13,192 | 1,106 | 22,212 | 23,317 | 226 | 36,735 |
| 01.01 - 30.09 | ||
|---|---|---|
| NOK million | 2022 | 2021 |
| Cash flow from operating activities | ||
| Net receipts premium - insurance | 25,338 | 23,613 |
| Net payments claims and insurance benefits | -17,414 | -15,458 |
| Net receipts/payments - transfers | -1,518 | -3,824 |
| Other receipts/payments - insurance liabilities | 29,836 | 3,715 |
| Receipts - interest, commission and fees from customers | 972 | 669 |
| Payments - interest, commission and fees to customers | -30 | -24 |
| Taxes paid | -1,036 | -331 |
| Payments relating to operations | -4,739 | -4,213 |
| Net receipts/payments - other operating activities | 3,407 | 3,323 |
| Net cash flow from operations before financial assets and banking customers | 34,816 | 7,470 |
| Net receipts/payments - loans to customers | -7,054 | -6,376 |
| Net receipts/payments - deposits bank customers | 1,937 | 1,247 |
| Net receipts/payments - securities | -26,696 | -9,245 |
| Net receipts/payments - investment properties | 658 | 402 |
| Receipts - sale of investment properties | 633 | 738 |
| Payments - purchase of investment properties | -1,022 | -995 |
| Net change in bank deposits for insurance customers (bank deposit in customer portfolio) | 811 | 2,032 |
| Net cash flow from financial assets and banking customers | -30,733 | -12,197 |
| Net cash flow from operating activities | 4,083 | -4,727 |
| Cash flow from investing activities | ||
| Receipts - sale of subsidiaries | 815 | |
| Payments - purchase of subsidiaries | -2,402 | -393 |
| Net receipts/payments - sale/purchase of fixed assets | -98 | -244 |
| Net receipts/payments - sale/purchase of associated companies and joint ventures | -631 | -1 |
| Net cash flow from investing activities | -3,131 | 178 |
| Cash flow from financing activities | ||
| Receipts - new loans | 7,950 | 7,528 |
| Payments - repayments of loans | -5,413 | -1,630 |
| Payments - interest on loans | -373 | -170 |
| Receipts - subordinated loans | 1,048 | 4,211 |
| Payments - repayment of subordinated loans | -249 | -373 |
| Payments - interest on subordinated loans | -356 | -356 |
| Receipts - loans to financial institutions | 8,684 | 3,034 |
| Payments - repayments of loans from financial institutions | -9,148 | -4,484 |
| Receipts - issuing of share capital / sale of shares to employees | 44 | 45 |
| Payments - repayment of share capital | -403 | -144 |
| Payments - dividends | -1,646 | -1,513 |
| Receipts - hybrid capital | 100 | |
| Payments - interest on hybrid capital | -8 | -6 |
| Net cash flow from financing activities | 231 | 6,139 |
| Net cash flow for the period | 1,182 | 1,591 |
| Cash and cash equivalents at the start of the period | 3,611 | 2,878 |
|---|---|---|
| Currency translation cash/cash equivalents in foreign currency | -4 | 53 |
| Cash and cash equivalents at the end of the period 1) | 4,789 | 4,521 |
| 1) Consists of: | ||
| Loans to financial institutions | 170 | 56 |
| Bank deposits | 4,619 | 4,465 |
| Total | 4,789 | 4,521 |
1
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 full annual financial statements.
A description of the accounting policies applied in the preparation of the financial statements are provided in the 2021 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 2022 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 2021 annual report in note 2, insurance risk in note 7 and valuation of financial instruments at fair value is described in note 13.
Storebrand Livsforsikring AS has purchased Storebrand Danica Pensjonsforsikring AS. Danica is the 6th largest provider of Defined Contribution pensions in Norway with 5% market share. In addition to managing NOK 22 billion in defined contribution pension funds for 14,000 companies and 98,000 active members, Danica manages NOK 6 billion in private savings and a small portfolio of guaranteed products of NOK 1 billion. Total asset under management amount to approximaterlig NOK 30 billion. Danica also offers commercial and private risk products, with a total of NOK 30 million in annual premiums. The transaction was completed on 1 July 2022.
The transaction was first known 20. December 2021, and approved by the Norwegian Financial Supervisory Authority and the Norwegian Competition Authority in June 2022. In connection with the purchase, the company has changed name to Storebrand Danica Pensjonsforsikring AS. The plan is to complete a mother-daugther merger in the first quarter of 2023.
| NOK million | Booked valuue - Company |
Excess value upon |
Book values |
|---|---|---|---|
| - Distribution | 809 | 809 | |
| - Customer relationships | 260 | 260 | |
| - IT systems | 21 | -21 | |
| Total intangible assets | 21 | 1,048 | 1,069 |
| Financial assets | 28,479 | 28,479 | |
| Other assets | 313 | 313 | |
| Bank deposits | 362 | 362 | |
| Total assets | 29,174 | 1,048 | 30,222 |
| Liabilities | |||
| Insurance liabilities | 27,724 | 73 | 27,798 |
| Current liabilities | 282 | 282 | |
| Deffered tax | 24 | 267 | 291 |
| Net identifiable assets and liabilities | 1,144 | 708 | 1,852 |
| Goodwill | 196 | ||
| Fair value at acquisition date | 2,048 | ||
| Cash payment | 2,048 | ||
| Income statement | |||
| NOK million | After acquisition |
Before acquisition |
1) According to the groups statement, Income contains premiums, net financial result and other income
2) According to the groups statement, Profit contains premiums, claims, changes in insurance obligations, financial result and other income and expences
Income 1) 647 -782 Profit 2) 35 29
Storebrand Asset Management AS acquired 3 100 000 shares in Quantfolio AS on 11 January 2022 at a purchase price of NOK 65 million. This represents 34.13% of the ownership interest in the company.
SPP Pension & Försäkring has on 8th of July 2022 purchased S:t Erik Livsförsäkring AB. The purchase price was SEK 260 million. The excess value is allocated to customer relationships. The company handles the City of Stockholm's commitment to the employees within the Stockholm Stadshus AB group and manages approx. SEK 2.5 billion distributed among 5 000 insured.
| NOK million | Booked valuue - Company |
Excess value upon |
Book values |
|---|---|---|---|
| - Customer relationships | 30 | 30 | |
| Total intangible assets | 30 | 30 | |
| Financial assets | 2,289 | 2,289 | |
| Other assets | 32 | 32 | |
| Bank deposits | 382 | 382 | |
| Total assets | 2,703 | 30 | 2,733 |
| Liabilities | |||
| Insurance liabilities | 2,443 | ||
| Deffered tax | 30 | ||
| Net identifiable assets and liabilities | 230 | 30 | 260 |
| Cash payment | 260 |
| NOK million | After acquisition |
Before acquisition |
|
|---|---|---|---|
| Income 1) | -138 | -160 | |
| Profit 2) | 2 | -26 |
1) According to the gorups statement, Income contains premiums, net financial result and other income
2) According to the groups statement, Profit contains premiums, claims, changes in insurance obligations, financial result and other income and expences
Storebrand's operation includes the segments Savings, Insurance, Guaranteed Pension and Other.
The savings segment includes products for retirement savings with no interest rate guarantees. The segment consists of defined contribution pensions in Norway and Sweden, asset management and retail banking products. In addition, certain other subsidiaries in Storebrand Livsforsikring and SPP are included in Savings.
The insurance segment provides health insurance in the Norwegian and Swedish corporate and retail markets, P&C insurance and personal risk products in the Norwegian retail market in addition to employer's liability insurance and pension-related insurance in the Norwegian and Swedish corporate markets.
The guaranteed pension segment includes long-term pension saving products which provides customers a guaranteed rate of return. The area includes defined benefit pensions in Norway and Sweden, paid-up policies and individual capital and pension insurances.
The result for Storebrand ASA is reported under Other, as well as the result for the company portfolios of Storebrand Livsforsikring and SPP. The elimination of intra-group transactions is also included in the Other segment.
Profit in the segments are reconciled with the corporate profit and loss account before tax. The corporate profit and loss account include gross income and gross expenses linked to both the insurance customers and owners. The various segments are to a large extent followed up on net profit margins, including risk and administration results. The profit lines that are used in segment reporting will therefore not be identical with the profit lines in the corporate profit and loss account.
A description of the most important differences is included in the 2021 annual report in note 4 Segment reporting.
| Q3 | 01.01 - 30.09 | Full year | |||
|---|---|---|---|---|---|
| NOK million | 2022 | 2021 | 2022 | 2021 | 2021 |
| Savings | 401 | 476 | 1,197 | 1,438 | 2,355 |
| Insurance | 210 | 162 | 487 | 363 | 423 |
| Guaranteed pension | 148 | 315 | 633 | 946 | 1,432 |
| Other | -89 | -40 | -443 | 388 | 293 |
| Group profit before amortisation | 670 | 912 | 1,874 | 3,136 | 4,503 |
| Amortisation of intangible assets | -159 | -133 | -436 | -387 | -527 |
| Group pre-tax profit | 511 | 779 | 1,439 | 2,749 | 3,976 |
| Savings Insurance |
Guaranteed pension | |||||
|---|---|---|---|---|---|---|
| Q3 | Q3 | Q3 | ||||
| NOK million | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 |
| Fee and administration income | 1,174 | 1,182 | 398 | 423 | ||
| Insurance result | 482 | 342 | ||||
| - Insurance premiums for own account | 1,613 | 1,336 | ||||
| - Claims for own account | -1,131 | -995 | ||||
| Operating expense | -763 | -716 | -284 | -207 | -208 | -217 |
| Operating profit | 410 | 466 | 198 | 135 | 190 | 206 |
| Financial items and risk result life & pension | -9 | 9 | 11 | 27 | -42 | 109 |
| Group profit before amortisation | 401 | 476 | 210 | 162 | 148 | 315 |
| Amortisation of intangible assets 1) | ||||||
| Group pre-tax profit |
| Other | Storebrand Group | |||
|---|---|---|---|---|
| Q3 | Q3 | |||
| NOK million | 2022 | 2021 | 2022 | 2021 |
| Fee and administration income | -64 | -61 | 1,507 | 1,544 |
| Insurance result | 482 | 342 | ||
| - Insurance premiums for own account | 1,613 | 1,336 | ||
| - Claims for own account | -1,131 | -995 | ||
| Operating expense | -17 | 15 | -1,272 | -1,124 |
| Operating profit | -82 | -46 | 717 | 762 |
| Financial items and risk result life & pension | -7 | 6 | -47 | 151 |
| Group profit before amortisation | -89 | -40 | 670 | 912 |
| Amortisation of intangible assets 1) | -159 | -133 | ||
| Group pre-tax profit | 511 | 779 |
| Savings | Insurance | Guaranteed pension | ||||
|---|---|---|---|---|---|---|
| 01.01 - 30.09 | 01.01 - 30.09 | 01.01 - 30.09 | ||||
| NOK million | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 |
| Fee and administration income | 3,440 | 3,467 | 1,184 | 1,213 | ||
| Insurance result | 1,277 | 894 | ||||
| - Insurance premiums for own account | 4,459 | 3,809 | ||||
| - Claims for own account | -3,182 | -2,915 | ||||
| Operating expense | -2,183 | -2,089 | -794 | -622 | -617 | -641 |
| Operating profit | 1,256 | 1,378 | 483 | 272 | 567 | 572 |
| Financial items and risk result life & pension | -60 | 60 | 5 | 91 | 66 | 375 |
| Group profit before amortisation | 1,197 | 1,438 | 487 | 363 | 633 | 946 |
| Amortisation of intangible assets 1) | ||||||
| Group pre-tax profit |
| Other | Storebrand Group | |||
|---|---|---|---|---|
| 01.01 - 30.09 | 01.01 - 30.09 | |||
| NOK million | 2022 | 2021 | 2022 | 2021 |
| Fee and administration income | -203 | -181 | 4,421 | 4,499 |
| Insurance result | 1,277 | 894 | ||
| - Insurance premiums for own account | 4,459 | 3,809 | ||
| - Claims for own account | -3,182 | -2,915 | ||
| Operating expense | -4 | 52 | -3,598 | -3,301 |
| Operating profit | -207 | -129 | 2,099 | 2,092 |
| Financial items and risk result life & pension | -236 | 518 | -225 | 1,043 |
| Group profit before amortisation | -443 | 388 | 1,874 | 3,136 |
| Amortisation of intangible assets 1) | -436 | -387 | ||
| Group pre-tax profit | 1,439 | 2,749 |
1) Amortisation of intangible assets are included in Storebrand Group
| Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | |
|---|---|---|---|---|---|---|---|---|
| NOK million | 2022 | 2022 | 2022 | 2021 | 2021 | 2021 | 2021 | 2020 |
| Group | ||||||||
| Earnings per ordinary share 1) | 3.57 | 2.75 | 1.88 | 6.68 | 4.73 | 3.46 | 0.94 | 5.02 |
| Equity | 37,375 | 37,268 | 38,430 | 37,709 | 36,735 | 35,823 | 36,069 | 35,923 |
| Savings | ||||||||
| Premium income Unit Linked 2) | 6,279 | 5,333 | 5,288 | 5,350 | 5,201 | 5,316 | 5,346 | 5,163 |
| Unit Linked reserves | 302,337 | 276,319 | 291,036 | 308,351 | 295,790 | 295,195 | 278,702 | 133,262 |
| AuM asset management | 1,001,100 1,008,705 1,039,654 1,096,556 1,058,435 | 1,037,47 | 987,397 | 962,472 | ||||
| Retail lending | 64,879 | 62,559 | 59,223 | 57,033 | 55,663 | 0 54,288 |
51,594 | 49,474 |
| Insurance | ||||||||
| Total written premiums | 7,648 | 7,005 | 6,791 | 6,445 | 6,263 | 6,133 | 5,745 | 5,037 |
| Claims ratio 2) | 70% | 70% | 74% | 78% | 74% | 74% | 82% | 70% |
| Cost ratio 2) | 18% | 18% | 18% | 19% | 15% | 17% | 17% | 17% |
| Combined ratio 2) | 88% | 88% | 92% | 96% | 90% | 91% | 98% | 87% |
| Guaranteed pension | ||||||||
| Guaranteed reserves | 275,623 | 274,918 | 281,474 | 290,862 | 292,161 | 294,909 | 286,410 | 287,614 |
| Guaranteed reserves in % of total reserves |
48% | 50% | 49% | 49% | 50% | 50% | 51% | 68% |
| Net transfer out of guaranteed reserves 2) | -2,812 | -2,564 | -2,609 | -2,735 | -2,877 | -2,551 | -2,107 | -2,872 |
| Capital buffer in % of customer reserves Storebrand Life Group 3) |
6.2% | 6.9% | 8.6% | 11.2% | 10.8% | 11.3% | 9.8% | 11.0% |
| Capital buffer in % of customer reserves SPP 4) |
18.2% | 17.5% | 17.9% | 17.8% | 15.5% | 15.1% | 14.1% | 11.4% |
| Solidity | ||||||||
| Solvency II 5) | 174% | 195% | 184% | 175% | 178% | 172% | 176% | 178% |
| Solidity capital (Storebrand Life Group 6) | 46,932 | 50,450 | 57,712 | 74,074 | 73,780 | 75,284 | 69,352 | 72,766 |
| Capital adequacy Storebrand Bank | 20.3% | 19.1% | 20.5% | 20.3% | 19.6% | 18.5% | 17.4% | 18.7% |
| Core Capital adequacy Storebrand Bank | 16.1% | 14.8% | 15.6% | 16.8% | 16.1% | 16.8% | 15.6% | 16.7% |
1) Accumulated
2) Quarterly figures
3) Additional statutory reserves + market value adjustment reserve
4) Conditional bonuses
5) See note 13 for specification of Solvency II
6) The term solidity capital encompasses equity, subordinated loan capital, the risk equalisation fund, the market value adjustment reserve, additional statutory reserves, conditional bonuses, excess value/deficit related to bonds at amortised cost and accrued profit
Risks are described in the annual report for 2021 in note 7 (Insurance risk), note 8 (Financial market risks), note 9 (Liquidity risk), note 10 (Credit risk) and note 11 (Risk concentrations).
Note 5
Market risk means changes in the value of assets due to unexpected volatility or price changes in the financial markets. It also refers to the risk that the value of the insurance liability develops differently than the assets due to interest rate changes. The most significant market risks for Storebrand are interest rate risk, equity market risk, property price risk, credit risk and currency exchange rate risk.
For the life insurance companies, the financial assets are invested in a variety of sub-portfolios. Market risk affects Storebrand's income and profit differently in the different portfolios. There are three main types of sub-portfolios: company portfolios, customer portfolios without a guarantee (unit linked) and customer portfolios with a guarantee.
The market risk in the company portfolios has a direct impact on Storebrand's profit.
The market risk in customer portfolios without a guarantee (unit linked) is borne by the customers, meaning Storebrand is not directly affected by changes in value. Nevertheless, changes in value do affect Storebrand's profit indirectly. Income is based mainly on the size of the portfolios, while the costs tend to be fixed. Lower returns from the financial market than expected will therefore have a negative effect on Storebrand's income and profit.
For customer portfolios with a guarantee, the net risk for Storebrand will be lower than the gross market risk. The extent of risk sharing with customers depends on several factors, the most important being the size and flexibility of the customer buffers, and the level and duration of the interest rate guarantee. If the investment return is not sufficiently high to meet the guaranteed interest rate, the shortfall will be met by using customer buffers in the form of risk capital built up from previous years' surpluses. Risk capital primarily consists of unrealised gains, additional statutory reserves, and conditional bonuses. Storebrand is responsible for meeting any shortfall that cannot be covered by the customer buffers.
For guaranteed customer portfolios, the risk is affected by changes in the interest rate level. Rising interest rates are negative in the short term because resulting price depreciation for bonds and interest rates swaps reduce investment return and buffers. But long term, rising interest rates are positive due to higher probability of achieving a return above the guarantee.
The third quarter and the first three quarters of the year has been volatile for financial markets, with negative returns for most risk assets.
Going into 2022, inflation was already increasing due to supply-shortages and increased demand post Covid. The trend has been reinforced during the year, as the Ukraine war has led to a surge in energy and raw-material prices. This has led central banks to increase rates earlier and at a much faster pace than expected at the start of the year. Bank of Norway has increased the policy rate by 1.75 pp to 2.25 percent during the year and signal further increases to above 3 percent by mid-2023. The Swedish Riksbank increased the policy rate by 1.75 pp from zero during the year, of which 1.5 pp during the third quarter. The signal is for the rate to increase to approximately 2.5 pp by mid-2023.
The effects from Covid-19, the increase in inflation and the effects from the war in Ukraine going forward, implies that the risk may still be higher than normal market risk. Storebrand has risk management which through policies and principles handles and dampens the effect of volatile financial markets.
Global equities fell 4 percent in the third quarter and 22 percent year to date (as of 30 September). Norwegian equities fell 6 percent in the third quarter and 8 percent year to date. The credit spreads for corporate bonds continued to rise during the third quarter and rose strongly year to date.
Long-term interest rates continued to rise in the second quarter. The Norwegian 10-year swap-rate rose 0.2 pp in the third quarter to 3.5 percent. Year to date, the increase was 1.6 pp. The Swedish 10-year swap-rate rose 0.3 pp to 3.1 percent. Year to date, the increase was 2.1 pp. Short-term interest rates have increased even more, as the central banks continued to raise interest rates and signal further increases going forward. Most of the interest rate investments in the Norwegian customer portfolios are held at amortized cost. This dampens the effect from interest rate changes on booked returns. The amortized cost portfolio valuation in the accounts is now higher than fair value. For other bond investments and exposure towards interest rate swaps, the increase in interest rates have affected investment returns negatively. Higher interest rates are positive for reinvestment opportunities and for the solvency position.
The Norwegian krone weakened in the third quarter, particularly against the US dollar. Year to date, the Norwegian krone weakened 1 percent against the Swedish krone, 6 percent against the Euro and 21 percent against the US dollar. A high degree of currency hedging in the portfolio means that the exchange rate fluctuations have a modest effect on results and Storebrand's market risk.
Financial instruments valued at fair value level three are priced based on models. Examples of such financial instruments are investment property, private equity, and mortgages. The valuation models gather and employ information from a wide range of well-informed sources. There is greater uncertainty regarding the input factors and the valuation from these models than normal. Any continued spread of Covid-19, governmental measurements to contain the spread, the war in Ukraine, sanctions against Russia and rapid increase in inflation and interest rates, creates extra uncertainty for the economy and may have impact on the valuation of financial instruments. Valuation of investment property in particular, which is dependent on input factors from transactions as well as inflation and interest rate data, has become increasingly uncertain. There is a large range of possible outcomes for these input data and thus for the modelled prices. Hence, the values reflect management's best estimate, but contain greater uncertainty than in a normal quarter.
During the year, the investment allocation towards equities has been somewhat reduced because of normal risk management. Interest rate duration has been reduced, as higher rates give lower hedging needs against the liabilities and for the solvency position.
The market-based return for guaranteed customer portfolios in Norway in general was negative year to date, because of weak equity and credit markets and increased interest rates. The booked return in general was positive after use of customer buffers. The effect on the financial result is limited, but lower customer buffers increase the risk for the remaining part of the year. The return for guaranteed customer portfolios in Sweden was negative. The effect on the financial result was limited, as reduced value of the liabilities from higher interest rates compensated for lower asset values.
The return for the unit linked portfolios was generally negative, both in the first quarter and year to date, due to weak equity markets.
The tables show the fall in value for Storebrand Life Insurance and SPP's investment portfolios because of immediate changes in value related to financial market risk. The calculation is model-based, and the result is dependent on the choice of stress level for each category of asset. The stresses have been applied to the company portfolio and guaranteed customer portfolios as of 30 September 2022. The effect of each stress changes the return in each investment profile.
Unit linked insurance without a guaranteed annual return is not included in the analysis. For these products, the customers bear the market risk, and the effect of a falling market will not directly affect the result or buffer capital.
The amount of stress is the same that is used for the company's risk management. Two stress tests have been defined. Stress test 1 is a fall in the value of shares, corporate bonds, and property in combination with lower interest rates. Stress test 2 is a somewhat smaller fall in the value of shares, corporate bonds, and property in combination with higher interest rates.
| Stresstest 1 | Strestest 2 | |
|---|---|---|
| Interest level (parallel shiftt) | -100bp | +100bp |
| Equity | -20% | - 12 % |
| Property | - 12 % | - 7 % |
| Credit spread (share of Solvency II) | 50 % | 30 % |
Because it is the immediate market changes that are calculated, dynamic risk management will not affect the outcome. If it is assumed that the market changes occur over a period, then dynamic risk management would reduce the effect of the negative outcomes and reinforce the positive outcomes to some extent.
As a result of customer buffers, the effect of the stresses on the result will be lower than the values described in the tables. As of 30 September 2022, the customer buffers are of such a size that the effects on the result are significantly lower. But the risk is higher than at the start of the year, due to reduced customer buffers.
| Storebrand Livsforsikring | SPP Pension & Försäkring | |||||
|---|---|---|---|---|---|---|
| Sensitivity | NOK Million | Share of portfolio | NOK Million | Share of portfolio | ||
| Interest rate risk | 2,003 | 0.9% | -214 | -0.3% | ||
| Equtiy risk | -2,705 | -1.2% | -2,138 | -2.8% | ||
| Property risk | -2,943 | -1.3% | -1,331 | -1.7% | ||
| Credit risk | -1,075 | -0.5% | -690 | -0.9% | ||
| Total | -4,721 | -2.1% | -4,374 | -5.6% |
| Storebrand Livsforsikring | SPP Pension & Försäkring | |||||
|---|---|---|---|---|---|---|
| Sensitivity | NOK Million | Share of portfolio | NOK Million | Share of portfolio | ||
| Interest rate risk | -2,003 | -0.9% | 214 | 0.3% | ||
| Equtiy risk | -1,623 | -0.7% | -1,283 | -1.7% | ||
| Property risk | -1,717 | -0.8% | -776 | -1.0% | ||
| Credit risk | -645 | -0.3% | -414 | -0.5% | ||
| Total | -5,988 | -2.7% | -2,260 | -2.9% |
Stress test 2, which includes an increase in interest rates, makes the greatest impact for Storebrand Livsforsikring. The overall market risk is NOK 6.0 billion (NOK 6.2 billion as of 30 June 2022), which is equivalent to 2.7 (2.8) percent of the investment portfolio.
If the stress causes the return to fall below the guarantee, it will have a negative impact on the result. Similarly, if the customer buffer is not adequate the result will also be negatively impacted. Other negative effects on the result are a lower return from the company portfolio and that there is no profit sharing from paid-up policies and individual contracts.
For SPP it is stress test 1, which includes a fall in interest rates, that creates the greatest impact. The overall market risk is SEK 4.4 billion (SEK 4.6 billion as of 30 June 2022), which is equivalent to 5.6 (5.7) percent of the investment portfolio.
The buffer situation for the individual contracts will determine if all or portions of the fall in value will affect the financial result. If the portion of the fall in value cannot be covered by the customer buffer the result will be affected. In addition, the reduced profit sharing or loss of the indexing fees may affect the financial result.
Insurance risk is the risk of higher-than-expected payments and/or an unfavourable change in the value of an insurance liability due to actual developments deviating from what was expected when premiums or provisions were calculated. Most of the insurance risk for the group is related to life insurance. Changes in longevity is the greatest insurance risk for
Storebrand because higher longevity means that the guaranteed benefits must be paid over a longer period. There are also risks related to disability and early death.
The development of the insurance reserves is dependent on future scenarios and are currently more uncertain than normal. Storebrand will continue to monitor the development of Covid-19 and effects for the economy. A prolonged situation with high unemployment could lead to higher disability levels and increased reserves. However, the current insurance reserves represent Storebrand's best estimate of the insurance liabilities.
At the start of the third quarter, Storebrand acquired Danica Pensjon, affecting the insurance risk. Other insurance risk was not materially changed during the first three quarters of the year.
| Book value | |||||||
|---|---|---|---|---|---|---|---|
| NOK million | Nominal | value Currency | Interest rate | Call date | 30.09.22 | 30.09.21 | 31.12.21 |
| Issuer | |||||||
| Perpetual subordinated loans 2) | |||||||
| Storebrand Livsforsikring AS | 1,100 | NOK | Variable | 2024 | 1,101 | 1,100 | 1,100 |
| Storebrand Livsforsikring AS 3) | 900 | SEK | Variable | 2026 | 886 | 897 | 876 |
| Dated subordinated loans | |||||||
| Storebrand Livsforsikring AS 3) 4) | 750 | SEK | Variable | 2021 | 754 | ||
| Storebrand Livsforsikring AS 3) 6) | 899 | SEK | Variable | 2022 | 886 | 1,000 | 976 |
| Storebrand Livsforsikring AS 3) | 900 | SEK | Variable | 2025 | 883 | 899 | 877 |
| Storebrand Livsforsikring AS 3) | 1,000 | SEK | Variable | 2024 | 983 | 1,001 | 976 |
| Storebrand Livsforsikring AS | 500 | NOK | Variable | 2025 | 500 | 499 | 499 |
| Storebrand Livsforsikring AS 5) | 650 | NOK | Variable | 2027 | 651 | ||
| Storebrand Livsforsikring 3) | 250 | EUR | Fixed | 2023 | 2,754 | 2,676 | 2,685 |
| Storebrand Livsforsikring AS 3) 5) | 300 | EUR | Fixed | 2031 | 2,420 | 2,933 | 2,876 |
| Storebrand Bank ASA | 150 | NOK | Variable | 2022 | 150 | 150 | |
| Storebrand Bank ASA | 125 | NOK | Variable | 2025 | 126 | 125 | 125 |
| Storebrand Bank ASA | 300 | NOK | Variable | 2026 | 300 | 300 | 300 |
| Storebrand Bank ASA | 400 | NOK | Variable | 2027 | 402 | ||
| Total subordinated loans and hybrid tier 1 capital | 11,890 | 12,334 | 11,441 |
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) The loan has been repaid on 11.10.21
5) Green bonds
6) The loan has partly been repaid on 19.05.22
| Total loans and deposits from credit institutions | 38 | 202 | 502 | |
|---|---|---|---|---|
| 2022 | 38 | 502 | ||
| 2021 | 202 | |||
| Call date | ||||
| NOK million | 30.09.22 | 30.09.21 | 31.12.21 | |
| Book value |
| Book value | |||
|---|---|---|---|
| NOK million | 30.09.22 | 30.09.21 | 31.12.21 |
| Call date | |||
| 2022 | 112 | 5,494 | 5,532 |
| 2023 | 4,761 | 4,761 | 3,282 |
| 2024 | 6,107 | 6,099 | 6,100 |
| 2025 | 8,342 | 5,647 | 6,139 |
| 2026 | 5,844 | 3,082 | 3,075 |
| 2027 | 5,513 | ||
| 2031 | 738 | 795 | 795 |
| Total securities issued | 31,416 | 25,878 | 24,924 |
The loan agreements contain standard covenants.
For issued covered bonds (OMF) that are allocated to Storebrand Boligkreditt's collateral pool, regulatory requirement for over-collateralisation of 105 per cent applies.
Storebrand ASA has an unused credit facility of EUR 200 million, expiration December 2025.
Note 7
Storebrand classify financial instruments valued at fair value in three different levels. The criteria for the classification and processes associated with valuing are described in more detail in note 13 in the annual report for 2021.
The company has established valuation models and gathers information from a wide range of well-informed sources with a view to minimize any uncertainty in the valuations.
| NOK million | Fair value 30.09.22 |
Book value 30.09.22 |
Fair value 31.12.21 |
Book value 31.12.21 |
|---|---|---|---|---|
| Financial assets | ||||
| Loans to and due from financial institutions | 170 | 170 | 67 | 67 |
| Loans to customers - corporate | 4,675 | 4,815 | 5,057 | 5,046 |
| Loans to customers - retail | 63,829 | 64,204 | 56,521 | 56,507 |
| Bonds held to maturity | 7,534 | 7,548 | 9,103 | 8,441 |
| Bonds classified as loans and receivables | 109,283 | 121,999 | 120,623 | 117,929 |
| Total financial assets 30.09.22 | 185,491 | 198,736 | ||
| Total financial assets 31.12.21 | 191,371 | 187,991 | ||
| Financial liabilities | ||||
| Debt raised by issuance of securities | 31,263 | 31,416 | 25,000 | 24,924 |
| Loans and deposits from credit institutions | 38 | 38 | 502 | 502 |
| Deposits from banking customers | 19,236 | 19,236 | 17,239 | 17,239 |
| Subordinated loan capital | 11,805 | 11,890 | 11,584 | 11,441 |
| Total financial liabilities 30.09.22 | 62,342 | 62,580 | ||
| Total financial liabilities 31.12.21 | 54,324 | 54,106 |
| Level 1 | Level 2 | Level 3 | |||
|---|---|---|---|---|---|
| NOK million | Quoted prices | Observable assumptions |
Non-observable assumptions |
30.09.22 | 31.12.21 |
| Assets: | |||||
| Equities and fund units | |||||
| - Equities | 30,887 | 16,451 | 837 | 48,175 | 40,707 |
| - Fund units | 202,317 | 18,433 | 220,750 | 237,619 | |
| Total equities and fund units 30.09.22 | 30,887 | 218,768 | 19,270 | 268,925 | |
| Total equities and fund units 31.12.21 | 40,071 | 223,201 | 15,054 | 278,326 | |
| Loans to customers | |||||
| - Loans to customers - corporate | 7,225 | 7,225 | 7,443 | ||
| - Loans to customers - retail | 316 | 316 | 489 | ||
| Total loans to customers 30.09.22 | 7,541 | 7,541 | |||
| Total loans to customers 31.12.21 | 7,932 | 7,932 | |||
| Bonds and other fixed-income securities | |||||
| - Government bonds | 13,788 | 9,356 | 23,144 | 31,148 | |
| - Corporate bonds | 44,309 | 8 | 44,317 | 55,354 | |
| - Collateralised securities | 4,559 | 4,559 | 5,550 | ||
| - Bond funds | 69,820 | 14,112 | 83,932 | 76,464 | |
| Total bonds and other fixed-income securities 30.09.22 |
13,788 | 128,088 | 14,120 | 155,996 | |
| Total bonds and other fixed-income securities 31.12.21 | 16,722 | 139,124 | 12,670 | 168,516 | |
| Derivatives: | |||||
| - Interest derivatives | -625 | -625 | 2,292 | ||
| - Currency derivatives | -7,593 | -7,593 | -519 | ||
| Total derivatives 30.09.22 | -8,217 | -8,217 | |||
| - of which derivatives with a positive market value | 2,934 | 2,934 | 3,820 | ||
| - of which derivatives with a negative market value | -11,151 | -11,151 | -2,048 | ||
| Total derivatives 31.12.21 | 1,772 | 1,772 | |||
| Properties: | |||||
| Investment properties | 33,918 | 33,918 | 33,376 | ||
| Properties for own use | 1,746 | 1,746 | 1,659 | ||
| Total properties 30.09.22 | 35,664 | 35,664 | |||
| Total properties 31.12.21 | 35,035 | 35,035 |
There is no significant movements between level 1 and level 2 in this quarter.
| Book value 30.09.22 | 837 | 18,433 | 7,541 | 8 | 14,112 | 33,918 | 1,746 |
|---|---|---|---|---|---|---|---|
| Other | -8 | -2 | 75 | 3 | |||
| Exchange rate adjustments | 24 | 60 | 92 | 102 | -23 | ||
| Transferred to/from non-observable assumptions to/from observable assumptions |
115 | 3,224 | 277 | 12,024 | |||
| Sales | -3 | -1,639 | -560 | -348 | -633 | ||
| Additions | 639 | 142 | 373 | 934 | 966 | 56 | |
| Net gains/losses on financial instruments | -289 | 2,012 | -261 | -277 | -11,252 | 33 | 51 |
| Book value 01.01.22 | 376 | 14,678 | 7,932 | 8 | 12,663 | 33,376 | 1,659 |
| NOK million | Equities | Fund units | Loans to customers |
Corporate bonds |
Bond funds | Investment properties |
Properties for own use |
As at 30.09.22, Storebrand Livsforisikring had NOK 8.397 million invested in Storebrand Eiendomsfond Norge KS and Ruseløkkveien 26 AS, Oslo. The investments are classified as "Investment in associated companies and joint ventures" in the Consolidated Financial Statements.
Sensitivity assessments of investments on level 3 are described in note 13 in the 2021 annual report. There is no significant changes in sensitivity in this quarter.
8
| Q3 | 01.01 - 30.09 | Full year | ||||
|---|---|---|---|---|---|---|
| NOK million | 2022 | 2021 | 2022 | 2021 | 2021 | |
| Personnel expenses | -742 | -676 | -2,098 | -1,974 | -2,725 | |
| Amortisation/write-downs | -97 | -72 | -261 | -214 | -329 | |
| Other operating expenses | -718 | -653 | -2,088 | -1,902 | -2,731 | |
| Total operating expenses | -1,557 | -1,400 | -4,447 | -4,090 | -5,784 |
Note
9
Tax
The effective tax rate is influenced by the fact that the Group has operations in countries with tax rates that are different from Norway and differences from currency hedging of the Swedish subsidiary SPP. The tax rate for companies' subject to the financial tax is 25 per cent. The Storebrand Group includes companies that are both subject to and not subject to the financial tax. Therefore, when capitalising deferred tax/deferred tax assets in the consolidated financial statements, the company tax rate that applies for the individual companies is used (22 or 25 per cent).
The tax rate for companies in Sweden is 20.6 per cent, but a majority of Storebrand's business related to occupational pension is subject to a standardized return tax on the assets managed on behalf of policyholders and not company tax. The expected tax rate from Storebrand's Swedish business is therefore lower than the company tax rate.
Storebrand has hedged part of the currency risk from the investment in the Swedish subsidiaries. Gains/losses on currency derivatives are taxable/deductible, while agio/disagio on the shares in the subsidiaries falls under the exemption method. Hence, large SEK/NOK movements will affect the Group tax cost.
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 probable that the Norwegian Tax Administration's interpretation will be accepted in a court of law. Any paid tax related to the uncertain tax positions is not recognized in the financial statements and is classified as receivables. Significant uncertain tax positions are described below.
revised best estimate, the difference between Storebrand's interpretation and the Norwegian Tax Administration's interpretation is approximately NOK 6.4 billion in an uncertain tax position. If Storebrand's interpretation is accepted, a deferred tax expense of approximately NOK 1.6 billion will be derecognised from the financial statements.
C. The outcome of the interpretation of tax rules for group contributions referred to above under (A) will have an impact when calculating the effect from the transitional rules for the new tax rules referred to under point (B). An equivalent interpretation to that described under (A) has been used as a basis in the financial statements when calculating tax input values on property shares owned by customer assets for 2016 and 2017. There is thus an uncertain tax position relating to the effect from the transitional rules described in (B). The received decision in April 2022 (described under (B)) has reduced the uncertain tax position and has led to a tax income of NOK 0.6 billion being booked in Q1 2022. This effect will depend on the interpretation and outcome of (A). If Storebrand's position is accepted under (A), Storebrand will recognise an additional tax income of approximately NOK 0.2 billion if Storebrand's position under (B) is accepted. If the Norwegian Tax Administration prevails with its argument under point (A), Storebrand will recognise a tax expense of approximately NOK 0.5 billion.
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 with the Norwegian Tax Appeals Committee is unclear, but if necessary, Storebrand will seek clarification from the court of law for the aforementioned uncertain tax positions.
| NOK million | 30.09.22 | 30.09.21 | 31.12.21 |
|---|---|---|---|
| Corporate market | 12,083 | 13,560 | 12,532 |
| Retail market | 64,574 | 55,802 | 57,042 |
| Gross loans | 76,657 | 69,362 | 69,574 |
| Write-down of loans losses | -97 | -88 | -88 |
| Net loans1) | 76,560 | 69,273 | 69,486 |
| 1) Of which Storebrand Bank | 47,677 | 38,908 | 38,992 |
| Of which Storebrand Livsforsikring | 28,883 | 30,365 | 30,494 |
| 30.09.22 | 30.09.21 | 31.12.21 |
|---|---|---|
| 63 | 33 | 48 |
| 29 | ||
| 88 | 71 | 77 |
| -17 | -16 | -18 |
| 71 | 55 | 59 |
| 26 | 38 |
1) The figures apply in their entirety Storebrand Bank
| 11 |
|---|
| NOK million | 30.09.22 | 30.09.21 | 31.12.21 |
|---|---|---|---|
| Additional statutory reserves | 9,942 | 13,218 | 13,602 |
| Market adjustment reserves 1) | 1,408 | 5,692 | 6,309 |
| Conditional bonuses | 12,193 | 12,725 | 13,781 |
| Total capital buffer | 23,543 | 31,636 | 33,693 |
1)Includes the occupational pensions buffer fund. The Norwegian parliament passed new legislation in December 2021, valid from 1.1.2022, regulating the buffer capital within public occupational pension schemes. The new legislation merges the market value adjustment reserves with the additional statutory reserves into a more flexible customer buffer fund which can cover negative returns. There is no cap on the size of the new buffer fund.
| NOK million | 30.09.22 | 30.09.21 | 31.12.21 |
|---|---|---|---|
| Unused credit facilities | 3,636 | 3,269 | 3,322 |
| Loan commitment retail market | 4,277 | 3,729 | 3,516 |
| Uncalled residual liabilities re limited partnership | 4,179 | 4,806 | 4,870 |
| Undrawn capital in alternative investment funds | 10,690 | 8,980 | 10,093 |
| Total contingent liabilities | 22,782 | 20,784 | 21,801 |
Guarantees essentially encompass payment and contract guarantees
Unused credit facilities encompass granted and any unused credit accounts and credit cards, as well as, any unused flexible mortgage facilities.
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 note 2 and note 44 in the 2021 annual report.
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.
Consolidation is carried out in accordance with Section 18-2 of the Norwegian Act relating to Financial Undertakings and Financial Groups. The solvency capital requirement and minimum capital requirement for the Group are calculated in accordance with Section 46 (1)-(3) of the Solvency II Regulations using the standard method.
Storebrand places particular emphasis on continually and systematically adapting the levels of equity in the Group. The level is adapted to the financial risk and capital requirements in the business, where growth and the composition of segments are important motivating factors for the need for capital. The purpose of capital management is to ensure an efficient capital structure and provide for an appropriate balance between in-house goals and regulatory and rating
company requirements. If there is a need for new capital, this is raised by the holding company Storebrand ASA, which is listed on the stock exchange and is the ultimate parent company.
The Storebrand companies are subject to various capital requirements depending on the type of business. In addition to the capital requirements for the Storebrand Group and insurance companies, the banking and asset management businesses have capital requirements in accordance with CRD IV. The companies in the Group governed by CRD IV are included in the group's solvency capital and solvency capital requirements with their respective primary capital and capital requirements.
Storebrand has the goal of paying a dividend of more than 50% of the Group profit after tax. The board has the ambition of ordinary dividends per share being, at a minimum, at the same nominal level as the previous year. The normal dividend is paid with a sustainable solvency margin of more than 150%. In second quarter, the Board applied to the Norwegian Financial Supervisory Authority (NFSA) for buy-back of own shares of NOK 500 million. As of Q3 2022 Storebrand has acquired own-shares of NOK 403 million during the buy-back program and will continue to buy back own-shares for the remaining NOK 97 million. The total decuction in solvency capital of buy-back of own shares is NOK 500 million. In general, equity in the Group can be controlled without material limitations if the capital requirement is met and the respective legal entities have sufficient solvency.
| 30.09.22 | 31.12.21 | |||||
|---|---|---|---|---|---|---|
| NOK million | Total | Group 1 unlimited |
Group 1 limited |
Group 2 | Group 3 | Total |
| Share capital | 2,360 | 2,360 | 2,360 | |||
| Share premium | 10,842 | 10,842 | 10,842 | |||
| Reconciliation reserve1) | 24,230 | 24,230 | 28,711 | |||
| Including the effect of the transitional arrangement | ||||||
| Counting subordinated loans2) | 10,032 | 1,934 | 8,098 | 10,860 | ||
| Deferred tax assets | 469 | 469 | 356 | |||
| Risk equalisation reserve | 837 | 837 | 616 | |||
| Deductions for CRD IV subsidiaries | -4,427 | -4,427 | -3,728 | |||
| Expected dividend | -1,234 | -1,234 | -1,645 | |||
| Total basic solvency capital | 43,109 | 31,770 | 1,934 | 8,936 | 469 | 48,369 |
| Subordinated capital for subsidiaries regulated in accordance with CRD IV |
4,427 | 3,728 | ||||
| Total solvency capital | 47,536 | 52,098 | ||||
| Total solvency capital available to cover the minimum capital requirement |
35,557 | 31,770 | 1,934 | 1,852 | 40,688 |
1) Deduction of buy-back of own shares of NOK 500 million
2) Excluding subordinated loan of NOK 883 million with call in November 2022
| NOK million | 30.09.22 | 31.12.21 |
|---|---|---|
| Market risk | 22,481 | 25,258 |
| Counterparty risk | 858 | 720 |
| Life insurance risk | 9,876 | 10,829 |
| Health insurance risk | 1,055 | 931 |
| P&C insurance risk | 642 | 590 |
| Operational risk | 1,485 | 1,550 |
| Diversification | -7,428 | -7,804 |
| Loss-absorbing ability defferred tax | -5,205 | -5,218 |
| Total solvency capital requirement - insurance company | 23,764 | 26,856 |
| Capital requirements for subsidiaries regulated in accordance with CRD IV | 3,558 | 2,944 |
| Total solvency capital requirement | 27,322 | 29,800 |
| Solvency margin | 174% | 175% |
| Minimum capital requirement | 9,262 | 10,738 |
| Minimum margin | 384% | 379% |
The Storebrand Group has also a requirement to report capital adequacy in a multi-sectoral financial group (conglomerate directive). The calculation in accordance with the Solvency II regulations and capital adequacy calculation in accordance with the conglomerate directive give the same primary capital and essentially the same capital requirements.
| NOK million | 30.09.22 | 31.12.21 |
|---|---|---|
| Capital requirements for CRD IV companies | 3,760 | 3,125 |
| Solvency capital requirements for insurance | 23,764 | 26,856 |
| Total capital requirements | 27,524 | 29,982 |
| Net primary capital for companies included in the CRD IV report | 4,427 | 3,728 |
| Net primary capital for insurance | 43,109 | 48,369 |
| Total net primary capital | 47,536 | 52,098 |
| Overfulfilment | 20,012 | 22,116 |
Under Solvency II, the capital requirement from the CRD IV companies in the Group is included in accordance with their respective capital requirements. In a multi-sectoral financial group, all the capital requirements of the CRD IV companies are calculated based on their respective applicable requirements, including buffer requirement for the largest company in the Group (Storebrand Bank). This increases the total requirement from the CRD IV companies in relation to what is included in the Solvency II calculation. As at 30 September 2022, the difference amounted to NOK 203 million.
14
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 23 and 46 in the 2021 annual report.
Storebrand has not carried out any material transactions other than normal business transactions with related parties at the close of the 3rd quarter 2022.
| Q3 | 01.01 - 30.09 | Full year | |||
|---|---|---|---|---|---|
| NOK million | 2022 | 2021 | 2022 | 2021 | 2021 |
| Operating income | |||||
| Income from investments in subsidiaries | 9 | 4,542 | |||
| Net income and gains from financial instruments: | |||||
| - equities and other units | -7 | -22 | -1 | -2 | |
| - bonds and other fixed-income securities | 9 | 9 | -12 | 33 | 39 |
| - financial derivatives/other financial instruments | |||||
| Other financial instruments | 1 | 204 | 204 | ||
| Operating income | 2 | 9 | -24 | 236 | 4,783 |
| Interest expenses | -4 | -4 | -18 | -13 | -18 |
| Other financial expenses | -2 | -20 | 93 | -55 | -79 |
| Operating expenses | |||||
| Personnel expenses | -13 | -11 | -38 | -33 | -44 |
| Other operating expenses | -46 | -31 | -124 | -89 | -136 |
| Total operating expenses | -58 | -41 | -161 | -121 | -180 |
| Total expenses | -64 | -66 | -87 | -190 | -277 |
| Pre-tax profit | -62 | -57 | -111 | 46 | 4,505 |
| Tax | 14 | 10 | 49 | 27 | -258 |
| Profit for the period | -48 | -47 | -62 | 73 | 4,248 |
| Q3 | 01.01 - 30.09 | Full year | |||
|---|---|---|---|---|---|
| NOK million | 2022 | 2021 | 2022 | 2021 | 2021 |
| Profit for the period | -48 | -47 | -62 | 73 | 4,248 |
| Other total comprehensive income elements not to be classified to profit/loss |
|||||
| Change in estimate deviation pension | 6 | ||||
| Tax on other comprehensive elements | -1 | ||||
| Total other comprehensive income elements | 4 | ||||
| Total comprehensive income | -48 | -47 | -62 | 73 | 4,252 |
| NOK million | 30.09.22 | 30.09.21 | 31.12.21 |
|---|---|---|---|
| Fixed assets | |||
| Deferred tax assets | 94 | 72 | 46 |
| Tangible fixed assets | 28 | 27 | 27 |
| Shares in subsidiaries and associated companies | 23,236 | 22,077 | 23,006 |
| Total fixed assets | 23,358 | 22,176 | 23,079 |
| Current assets | |||
| Owed within group | 135 | 4,542 | |
| Other current receivables | 15 | 15 | 15 |
| Investments in trading portfolio: | |||
| - equities and other units | 43 | 57 | 55 |
| - bonds and other fixed-income securities | 4,978 | 4,847 | 4,811 |
| - financial derivatives/other financial instruments | |||
| Bank deposits | 121 | 51 | 28 |
| Total current assets | 5,292 | 4,970 | 9,450 |
| Total assets | 28,650 | 27,145 | 32,530 |
| Equity and liabilities | |||
| Share capital | 2,360 | 2,360 | 2,360 |
| Own shares | -32 | -9 | -9 |
| Share premium reserve | 10,842 | 10,842 | 10,842 |
| Total paid in equity | 13,169 | 13,192 | 13,192 |
| Other equity | 14,731 | 12,595 | 15,128 |
| Total equity | 27,900 | 25,788 | 28,321 |
| Non-current liabilities | |||
| Pension liabilities | 142 | 157 | 142 |
| Securities issued | 501 | 1,001 | 1,001 |
| Total non-current liabilities | 642 | 1,158 | 1,143 |
| Current liabilities | |||
| Debt within group | 4 | 3 | 1,193 |
| Provision for dividend | 1,645 | ||
| Other current liabilities | 103 | 197 | 228 |
| Total current liabilities | 107 | 200 | 3,066 |
| Total equity and liabilities | 28,650 | 27,145 | 32,530 |
| NOK million | Share capital Own shares |
Share premium | Other equity | Total equity |
|
|---|---|---|---|---|---|
| Equity at 31. December 2020 | 2,339 | -2 | 10,521 | 12,609 | 25,467 |
| Profit for the period | 4,248 | 4,248 | |||
| Total other result elements | 4 | 4 | |||
| Total comprehensive income | 4,252 | 4,252 | |||
| Issues of shares | 21 | 320 | 341 | ||
| Provision for dividend | -1,640 | -1,640 | |||
| Own shares sold2) | -7 | -97 | -104 | ||
| Employee share2) | 4 | 4 | |||
| Equity at 31. December 2021 | 2,360 | -9 | 10,842 | 15,128 | 28,321 |
| Profit for the period | -62 | -62 | |||
| Total other result elements | |||||
| Total comprehensive income | -62 | -62 | |||
| Own shares bought back 2) | -26 | -377 | -403 | ||
| Own shares sold2) | 3 | 37 | 40 | ||
| Employee share2) | 5 | 5 | |||
| Equity at 30. September 2022 | 2,360 | -32 | 10,842 | 14,731 | 27,900 |
| 1) 471 974 890 shares with a nominal value of NOK 5. |
2) In 2022, Storebrand ASA has bought 5.160.284 own shares. In 2022, 552.574 shares were sold to our own employees. Holding of own shares 30. September 2022 was 6.447.486.
| Equity at 31. December 2020 | 2,339 | -2 | 10,521 | 12,609 | 25,467 |
|---|---|---|---|---|---|
| Profit for the period | 73 | 73 | |||
| Total other result elements | |||||
| Total comprehensive income | 73 | 73 | |||
| Issues of shares | 21 | 320 | 341 | ||
| Provision for dividend | 6 | 6 | |||
| Own shares bought back | -10 | -134 | -144 | ||
| Own shares sold | 3 | 37 | 40 | ||
| Employee share | 5 | 5 | |||
| Equity at 30. September 2021 | 2,360 | -9 | 10,842 | 12,595 | 25,788 |
| 01.01 - 30.09 | ||
|---|---|---|
| NOK million | 2022 | 2021 |
| Cash flow from operational activities | ||
| Net receipts/payments - securities at fair value | ||
| Net receipts/payments - securities at fair value | -123 | 88 |
| Payments relating to operations | -165 | -124 |
| Net receipts/payments - other operational activities | 4,414 | 3,125 |
| Net cash flow from operational activities | 4,126 | 3,089 |
| Cash flow from investment activities | ||
| Receipts - sale of subsidiaries | 202 | |
| Payments - purchase/capitalisation of subsidiaries | -1,510 | -1,674 |
| Net cash flow from investment activities | -1,510 | -1,473 |
| Cash flow from financing activities | ||
| Payments - repayments of loans | -500 | |
| Payments - interest on loans | -18 | -13 |
| Receipts - sold own shares to employees | 44 | 45 |
| Payments - buy own shares | -403 | -144 |
| Payments - dividends | -1,646 | -1,513 |
| Net cash flow from financing activities | -2,522 | -1,626 |
| Net cash flow for the period | 93 | -10 |
| Net movement in cash and cash equivalents | 93 | -10 |
| Cash and cash equivalents at start of the period | 28 | 61 |
| Cash and cash equivalents at the end of the period | 121 | 51 |
1
The financial statements are presented in accordance with the accounting policies applied in the annual financial statements for 2021. The accounting policies are described in the 2021 annual report. The financial statements are presented in accordance with the accounting policies applied in the annual financial statements for 2021. The accounting policies are described in the 2021 annual report.
Storebrand ASA does not apply IFRS to the parent company's financial statements.
2
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.
| Total 1) | 501 | 1,001 | 1,001 | |||
|---|---|---|---|---|---|---|
| Bond loan 2017/2022 | Variable | NOK | 500 | 500 | 501 | |
| Bond loan 2020/2025 | Variable | NOK | 500 | 501 | 501 | 500 |
| NOK million | Interest rate | Currency | Net nomial value |
01.01 - 30.09 2022 |
2021 | Full year 2021 |
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 2025.
13 April 2023 AGM 2023
26 October 2022 Results Q3 2022 8 December 2022 Capital Update Presentation 8 February 2023 Results Q4 2022
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 Daniel Sundahl Head of Investor Relations and Rating [email protected] +47 913 61 899
Storebrand ASA Professor Kohtsvei 9, P.O. Box 500, N-1327 Lysaker, Norway Phone +47 22 31 50 50
www.storebrand.com/ir
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