STOREBRAND ASA: Results for the 4th Quarter 2020
Leading the Way in Sustainable Value Creation – Strongest Quarter on Record
- Group profit[1] of NOK 1,225m in the 4th quarter, strongest on record
- Solvency II ratio 178%
- Proposed dividend of NOK 3.25 per share
- Total Assets under Management (AuM): NOK 962bn, 16% growth y/y
– The Storebrand Group delivers its strongest quarter on record, driven by continued growth in assets under management and insurance premiums. The Group's profit grew by 19 per cent to NOK 1,225 million in the fourth quarter, compared to last year. Underlying growth within the core business Savings and Insurance, a strong insurance result and positive returns from financial markets, as well as disciplined cost control, contributed to the growth in profit, Odd Arild Grefstad, CEO of Storebrand Group said.
Dividend
The board proposes an ordinary dividend of NOK 3.25 per share for 2020, corresponding to a pay-out ratio of 65%.
Strong Growth in Core Business
Total assets under management increased by NOK 42 billion (4.6%) to NOK 962 billion in the 4th quarter, and by NOK 131 billion (16%) compared to last year. Solid market returns and sales drive growth. Unit Linked reserves increased by 22% in 2020. Within Insurance, annual premiums grew by 18% in 2020, driven especially by growth in retail P&C insurance. Combined ratio in the Insurance segment was 87% in the quarter.
Improved Solvency Ratio
The solvency ratio was 178% at the end of 2020, an increase of 2 percentage points from the end of 2019. This is well above the targeted level of more than 150%. The Solvency ratio without transitional rules was 166%, corresponding to an increase of 16 percentage points from last quarter. A higher interest rate level, positive investment returns, as well as a strong Group profit after tax strengthened the solvency ratio in the quarter.
World Leader in Sustainability and New Climate Targets
Storebrand was recently ranked the world’s most sustainable company in the insurance category in the Global 100 ranking by Corporate Knights for the second consecutive year. Storebrand was also included in the Dow Jones Sustainability Index in the fourth quarter, placing the Group as one of the world's top 10 per cent most sustainable listed companies.
– Storebrand's results on the Global 100 ranking and Dow Jones Sustainability Index are important recognitions of our long term, systematic work on sustainability. We will continue to improve and excel. The Group's strategy is to 'Lead the Way in Sustainable Value Creation'. The Group has committed to transition the investment portfolios to net-zero GHG emissions by 2050. As part of the commitment, Storebrand has recently set intermediate targets for investments towards 2025, said Group CEO Odd Arild Grefstad.
The Group aims to reduce direct GHG emissions from total equity, corporate bonds and real estate investments by 32% by 2025, as well as increase investments in solution companies by 15% in the same period.
Key Figures in the Quarter:
(Q4-2019 in brackets)
- Solvency ratio 178% (176%)
- Earnings per share, adjusted for amortisation NOK 2.13 (NOK 1.68)
- Equity NOK 35,923m (NOK 33,398m)
- Assets under management NOK 962bn (NOK 831bn)
Activities related to the 4th Quarter 2020
07:00 CET: Release of stock exchange notification. Press release, quarterly report and analyst presentation will be available at www.storebrand.no/ir.
08.30 CET: Live press and analyst conference in English in a combined webcast and conference call. The presentation will be available on demand afterwards. Participants who would like to ask questions at the end of the presentation must dial-in to the conference call. We kindly ask media with separate interview requests to contact SVP Communications, Margrethe Assev, in advance. Reporters will be contacted after the conference.
To join the call, please dial your preferred number five minutes before the presentation starts and quote "Storebrand Q4" when prompted by the operator.
Dial in number(s):
Norway: +47 2 156 3318
UK: +44 (0) 33 0551 0200
Denmark: +45 3272 9273
Finland: +358 9 2319 5437
France: +33 (0) 1 7037 7166
Germany: +49 (0) 30 3001 90612
Sweden: +46 (0) 8 50520424
USA: +1 212 999 6659
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:
SVP Communications, Margrethe Assev:
margrethe.assev@storebrand.no or (+47) 951 55 056
Storebrand's ambition is to provide our customers with financial freedom and security by being the best provider of long-term savings and insurance. Storebrand will deliver sustainable solutions adapted to the customer's individual situation, so that each person receives a better pension in a more sustainable world. Storebrand has about 40.000 corporate customers and 2 million individual customers, and has its headquarter at Lysaker outside of Oslo, Norway. Storebrand manages NOK 962 bn and is one of the largest asset managers in the Nordics. Storebrand (STB) is listed on Oslo Stock Exchange. Visit us at www.storebrand.no and follow us on Twitter: @Storebrand_no This announcement is subject to information pursuant to the Securities Trading Act § 5-12.
[1]
Earnings before amortisation and tax. www.storebrand.no/ir provides an overview of APMs used in financial reporting.