Storebrand Q1 2025 presentation: 8% profit growth amid market volatility

Introduction & Market Context

Storebrand ASA (OSE:STB) presented its first quarter 2025 results on May 7, showcasing resilient performance despite challenging market conditions. CEO Odd Arild Grefstad and CFO Lars Aa. Løddesøl highlighted how the company navigated manageable market volatility while maintaining strong customer support.

The presentation emphasized Storebrand’s ability to weather market uncertainty through diversified assets under management (AuM) and structural growth drivers in its unit linked business. The company maintained a customer availability rate of more than 90% with response times under one minute during March, while increasing client meetings by 25% month-over-month.

As shown in the following chart, Storebrand has maintained a well-diversified asset allocation strategy, with equities comprising 47% of AuM, bonds 31%, alternatives 20%, and other investments 2%:

Quarterly Performance Highlights

Storebrand reported a group result of NOK 1,167 million for Q1 2025, representing an 8% increase compared to NOK 1,082 million in Q1 2024. The company achieved 13% growth in assets under management, reaching NOK 1,442 billion, while unit linked reserves grew by 9% and insurance premiums increased by 21%.

The following slide summarizes the key financial metrics for the quarter:

The company demonstrated strong growth across all business segments. In the savings (non-guaranteed) segment, fee and administration income increased by 19% from Q1 2024, or 11% when adjusted for the acquisition of AIP Management. The retail banking segment, including Kron, saw a 73% increase in result contribution compared to Q1 2024, with Kron AuM growing 47% year-on-year to approximately NOK 24 billion.

The insurance segment also performed well, with portfolio premiums in retail insurance increasing by 24% since Q1 2024, driven by successful repricing and strong distribution. Storebrand’s market share in retail P&C insurance reached 7.1%, up from 6.5% in the same quarter last year.

This chart illustrates the double-digit growth across Storebrand’s key business segments:

Strategic Initiatives

Storebrand continues to strengthen its position as a leading provider of occupational pensions in Norway and Sweden. Results in unit linked Norway increased by 9% compared to Q1 2024, and the company established a distribution partnership with Danske Bank (CSE:DANSKE) in Sweden. Additionally, public occupational pension mandates of NOK 4.5 billion won in 2024 were mostly transferred to Storebrand in Q1 2025.

The company’s asset management division maintained its position as a Nordic powerhouse, with positive net flow in Q1 driven by contributions from the captive unit-linked business. While the acquisition of AIP Management had a negative effect of approximately NOK 20 million on the operational result in the quarter, a positive result contribution is expected for the full year.

Storebrand’s share buyback program remains a key element of its capital allocation strategy. The company executed NOK 0.3 billion in share buybacks during Q1 2025, with plans to reach the annual target of NOK 1.5 billion. The long-term ambition is to increase annual buybacks to NOK 3.8 billion by 2030.

The following chart details the executed and planned share buybacks:

Forward-Looking Statements

Storebrand maintained a strong solvency position with a ratio of 198% at the end of Q1 2025. The solvency ratio was positively affected by strong post-tax results in the quarter, partially offset by regulatory assumptions and the deduction of NOK 750 million of share buybacks initiated during the period.

The company’s key financial figures demonstrate a solid foundation for future growth:

Storebrand continues to focus on its three strategic pillars: being a leading provider of occupational pensions in Norway and Sweden, a Nordic powerhouse in asset management, and a growing challenger in the Norwegian retail market. These are supported by strategic enablers including people-first approach, leadership in sustainability, digital innovation, and disciplined capital allocation.

The management team, including CEO Odd Arild Grefstad and CFO Lars Aa. Løddesøl, remains committed to delivering on the company’s long-term ambitions:

Storebrand’s Q1 2025 results demonstrate the company’s ability to generate consistent growth across its business segments while navigating market volatility. With a strong solvency position, ongoing share buyback program, and clear strategic direction, Storebrand appears well-positioned to continue its growth trajectory throughout 2025 and beyond.

Full presentation:

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