STOREBRAND ASA: Capital Update presentation today at 09:00 CET
Capital Update 2022: Enhanced Shareholder Value in a Higher Interest Rate Environment
Storebrand is hosting a Capital Update presentation today at 09:00 CET, focusing on what today's higher interest rate environment means for Storebrand's investments in guaranteed products, the balance sheet and solvency position, and capital and cash generation. Storebrand will also provide a high level introduction to IFRS 17 and what it means for the company's financial reporting.
"The Storebrand of the future is growing rapidly and profitably. We are well on track to deliver on the growth targets we set out for 2021-2023, and our profit ambition of NOK 4 billion in 2023, despite a period with a challenging macro environment in the world. Our business mix is diverse and robust, and is becoming ever more capital light. At the same time, today's higher interest rate level is helpful for our customers with guaranteed pension products, which is positive for our business. We expect increased capital and free cash flow generation going forward, which we will deploy in a disciplined manner to increase returns to shareholders," says CEO Odd Arild Grefstad.
Higher capital and cash generation is expected, with a compelling combination of earnings growth, and capital release from the run-off of guaranteed business. Storebrand therefore reaffirms its commitment to deliver growing ordinary dividends to shareholders. In addition, the ambition is to return NOK 10 billion through share buybacks by 2030, subject to a solvency ratio above 175%, while simultaneously generating additional capital.
With the continued shift in business mix, Storebrand announces an updated dividend policy today, which lowers the solvency threshold for overcapitalisation to 175%.
Storebrand's new dividend policy is:
Storebrand aims to pay an ordinary dividend of more than 50% of Group profit 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 ratio above 150%. If the solvency ratio is above 175%, the Board of Directors intends to propose special dividends or share buybacks.
During the presentation, Storebrand will also address new accounting standards that will be implemented next year for insurance contracts (IFRS 17) and financial instruments (IFRS 9). This does not change Storebrand's business, or underlying value creation, but provides an additional source of information and disclosure. Storebrand will simultaneously continue its current reporting, focusing on cash earnings, solvency capital generation, and the ability to convert earnings to free cash flow for shareholders.
The presentation is expected to last for approximately 45 minutes, followed by a Q&A session until 10.30.
The presentation and participation details can be found on https://www.storebrand.no/en/investor-relations/capital-update-2022
Lysaker, 8 December 2022
For further inquiries, please contact:
Group Head of Strategy, Finance and M&A, Kjetil Ramberg Krøkje:
kjetil.r.krokje@storebrand.no or (+47) 934 12 155
Head of Investor Relations and Rating, Daniel Sundahl:
daniel.sundahl@storebrand.no or (+47) 913 61 899
Media requests:
Senior Communications Advisor, Stig-Øyvind Blystad:
stig-oyvind.blystad@storebrand.no or (+47) 918 47 226
Storebrand is a Nordic financial group, delivering increased security and financial wellness for people and companies. We offer sustainable solutions and encourage our customers to take good economic decisions for the future. Our purpose is clear: we create a brighter future. Storebrand has about 55.000 corporate customers, 2.2 million individual customers and manages NOK 1,001 billion. The Group has its headquarter at Lysaker outside of Oslo, Norway. Storebrand (STB) is listed on Oslo Stock Exchange.
This is information is pursuant to the EU Market Abuse Regulation and subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act.