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Investing.com -- Storebrand ASA (OL:STB) on Friday posted a second-quarter profit of NOK 1.43 billion, up from NOK 1.20 billion a year earlier, as improved insurance performance and steady growth across business segments lifted results, sending shares up over 3%.
Storebrand also said it would begin the second tranche of its share buyback program, amounting to NOK 750 million.
The tranche is part of a NOK 1.5 billion repurchase plan for 2025, of which the first half was completed on June 26. The current tranche will run through December 19.
Operational profit rose 16% year-over-year to NOK 953 million, which the company said was a record high.
Return on equity reached 18% in the quarter. Fee and administration income came in at NOK 2.07 billion, a 10% increase compared with the second quarter of 2024, supported by growth in the savings segment across unit linked products, asset management and retail banking.
Total (EPA:TTEF) assets under management reached NOK 1.51 billion at the end of the quarter, up 16% from a year earlier, helped by the acquisition of AIP Management. Storebrand Bank’s loan book rose 12% year-over-year to NOK 92 billion.
The insurance business posted a combined ratio of 91%, an improvement from 97% in the first quarter.
Premiums in the insurance portfolio increased 21% year-over-year to NOK 9.9 billion. Storebrand’s market share in the Norwegian retail property and casualty insurance market rose to 7.4%, up from 7.1% in the previous quarter.
Financial items and risk results added NOK 474 million in the quarter, up from NOK 384 million a year earlier. Net profit sharing contributed NOK 172 million.
The company reported a solvency ratio of 200%, compared with 191% in the same period last year. Storebrand said this remains above its 175% overcapitalization threshold.
Adjusted earnings per share were NOK 2.87, down from NOK 4.59 in the second quarter of 2024. Equity rose to NOK 31,609 million, from NOK 29,986 million a year ago.
Storebrand plans to continue annual share repurchases of NOK 1.5 billion through 2030, totaling NOK 12 billion. The company also intends to increase dividends. A strategic and financial update is scheduled for Capital Markets Day on December 10.