Storebrand ASA

Storebrand reported quarterly result of NOK 1,799,000,000, up 26% year on year, and earnings from operations up 17%. EPS was NOK 3.43, up 19% year on year; annualized cash ROE was 20% and trailing 12-month ROE was 16%. Fee and administration income was NOK 2,031,000,000, down 2% year on year; operational costs were NOK 1,801,000,000, up less than 3%; and financial and risk results were NOK 680 million, up from NOK 474 million. Segment results were savings NOK 708 million (+12%), insurance NOK 480 million (from NOK 289 million), guaranteed NOK 424 million (+19%), and other NOK 187 million. Solvency margin ended at 200%, down from 206% in Q1. Guidance: 2026 operational costs are still expected at around NOK 7.3 billion to NOK 7.4 billion before currency and performance-related costs. Management also said the 2028 ambition remains NOK 7 billion in result and 17% cash ROE, and that 2026 share buybacks are NOK 2 billion in total, with at least NOK 1.5 billion annually from 2027 to 2030.

Odd Arild Grefstad framed the quarter as broad-based progress on top of strong momentum from last year, highlighting the record group result, strong insurance performance, and equity-market support. He emphasized Storebrand’s strategic focus on capital-light growth in occupational pension, Nordic asset management, and Norwegian retail financial services, and said the company is gaining share while staying profitable. His tone was confident and constructive, with repeated references to structural growth, sustainability recognition, and strong capital distribution capacity.

Kjetil Krøkje focused on the mechanics behind the quarter: NOK 1.799 billion in result, NOK 3.43 EPS, 20% annualized cash ROE, and 200% solvency. He noted that fee income was softer at NOK 2.031 billion because of weaker performance fees, lower bank income, and FX, while costs of NOK 1.801 billion were still in line with expectations; for 2026, he kept the operational cost guide at around NOK 7.3 billion to NOK 7.4 billion. He also pointed to robust company-capital returns, NOK 6.1 billion of holding-company liquidity, and a new NOK 1 billion buyback tranche, while saying the flexible guarantee rule change likely implies a mid-single-digit solvency impact.

Analysts focused on insurance profitability, the quality of the combined ratio, disability risk, growth versus pricing, and the impact of the new flexible guarantee rules. Management said more than 2/3 of insurance growth came from volume, with pricing making up about 1/3, and described the 87% quarterly combined ratio as a reasonable read on the business, while reiterating the long-standing goal of around 90% combined ratio with double-digit growth. On disability, they acknowledged elevated levels in Norway, noted reserve strengthening in group life, but said recent trends may be improving; on guaranteed/payed-up policies, they said the rule change should increase appetite for risk and potentially boost profit sharing, but it is still too early to quantify precisely. On Knif, management disclosed NOK 792 million of gross premiums, a 55% gross claims ratio, an 88% combined ratio, and just under NOK 60 million of after-tax profit last year.