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Introduction & Market Context
Storebrand ASA (OB:STB) presented its second quarter 2025 results on July 11, showcasing robust performance across its business segments. The Norwegian financial services group reported significant growth in its core operations, with its stock price responding positively, rising 2.31% following the announcement.
The company, which positions itself as a "Sustainable Nordic Savings and Insurance Group," has delivered impressive year-to-date returns of 171.9%, substantially outperforming the broader market. This performance comes amid Storebrand’s continued execution of its strategic initiatives in savings, insurance, and asset management.
Quarterly Performance Highlights
Storebrand reported an operating profit of NOK 953 million for Q2 2025, representing a 16% year-over-year increase from the NOK 819 million recorded in Q2 2024. The group’s cash-equivalent earnings before amortization reached NOK 1,427 million, while cash-equivalent earnings after tax stood at NOK 1,159 million.
The company achieved an 18% return on equity in the second quarter, demonstrating strong profitability and efficient capital utilization. This performance was driven by robust operating and financial results across the business.
As shown in the following chart highlighting Q2 2025 results:
Assets under management (AuM) grew by 16% year-over-year to reach NOK 1,507 billion by the end of Q2 2025, setting a new record level for the company. This growth was supported by favorable financial markets during the quarter and strong contribution from outperformance in active funds, which generated performance-based income of NOK 91 million in Q2 and NOK 149 million year-to-date.
The following chart illustrates Storebrand’s impressive growth trajectory across its key business segments:
Strategic Initiatives & Business Growth
Storebrand continues to strengthen its market position across multiple segments. In the Norwegian retail property and casualty (P&C) insurance market, the company increased its market share to 7.4% in Q2 2025, up from 7.1% in the previous quarter. The insurance segment showed particularly strong growth, with portfolio premiums increasing by 21% year-over-year.
The company also announced an agreement to acquire the portfolio of Aspida Forsikring, an agency offering P&C insurance to the Norwegian corporate market. This acquisition is expected to add approximately 900 new customers with annual premiums of around NOK 40 million, further strengthening Storebrand’s position in the corporate insurance market.
In the following image, Storebrand outlines its strategic positioning as a sustainable Nordic financial services provider:
The retail banking segment also performed well, with the bank lending portfolio growing by 12% year-over-year to NOK 92 billion. Additionally, Storebrand has made its pension solution available in the Kron app to more than 500,000 pension customers, potentially unlocking additional growth and cross-sales opportunities.
Capital Management & Solvency
Storebrand maintained a strong solvency position, with a solvency ratio of 200% at the end of Q2 2025, well above its target of 150%. This robust capital position enables the company to continue executing its shareholder return program while investing in growth opportunities.
The company has executed NOK 750 million in share buybacks during the first half of 2025 and initiated another NOK 750 million tranche for the second half, in line with its annual buyback target of NOK 1.5 billion. Storebrand aims to complete NOK 12 billion in share buybacks by the end of 2030, as illustrated in the following chart:
The solvency position shows resilience against potential market fluctuations, with minimal sensitivity to interest rate changes. As demonstrated in the following sensitivity analysis, even significant market movements would have a limited impact on the company’s strong solvency ratio:
Insurance Performance
Storebrand’s insurance segment showed particularly strong results, with improved profitability driven by repricing and other strategic measures. The company maintained its combined ratio ambition of 90-92% for 2025, indicating disciplined underwriting and effective cost management.
The following chart illustrates the positive trend in insurance profitability:
Portfolio premiums in the insurance segment grew by 21% year-over-year, reaching nearly NOK 10 billion in annual premiums. This growth spans both the retail and corporate insurance markets, with the company actively expanding its presence in both segments.
Sustainability Progress
Storebrand continues to emphasize its commitment to sustainability, reporting progress toward its environmental and social targets. The company has achieved a 57% reduction in CO2 emissions and a 47% reduction in real estate emissions, demonstrating significant advancement toward its science-based targets.
The following image shows Storebrand’s sustainability progress:
The company has also increased its investments in sustainable solutions, which now represent 18% of its portfolio. Storebrand’s sustainability strategy includes a target of net-zero investment portfolios and a 50/50 gender balance in management positions.
Forward-Looking Statements
Storebrand reaffirmed its financial ambitions, targeting a group profit of NOK 5 billion and a return on equity exceeding 14%. CEO Odd Arild Grefstad expressed confidence in the company’s trajectory, stating, "Despite the market turbulence, Storebrand delivers a record strong operating result."
CFO Lars Aasulv Løddesøl added, "We are well on our way to deliver on our 2025 ambitions," highlighting the company’s progress toward its strategic goals. The management team emphasized growth potential in the insurance segment, with Grefstad noting, "We have not put a ceiling for our market share in insurance."
Storebrand announced its upcoming Capital Markets Day scheduled for December 10, 2025, where the company is expected to provide further insights into its strategic initiatives and long-term objectives.
While Storebrand’s Q2 2025 results demonstrate strong performance across all business segments, investors should consider potential risks including market volatility, regulatory changes, competitive pressures, economic downturns, and exchange rate fluctuations that could impact future results.
Full presentation:
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