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Investing.com -- Norwegian financial services group Storebrand ASA (OL:STB) reported first quarter 2025 results on Wednesday that fell short of analyst estimates, sending its shares down 2.6% in early trading on Wednesday.
The company posted a group profit of 1.17 billion Norwegian kroner ($110 million) for the quarter, up from 1.08 billion kroner in the same period last year but below consensus forecasts. Operational profit rose 16% YoY to 800 million kroner.
Total (EPA:TTEF) revenue grew 10% YoY to 1.997 billion kroner, driven by strong growth in asset management, unit-linked pensions and retail banking. Assets under management reached 1.44 trillion kroner, up 13% from a year ago but down 2% quarter-on-quarter due to currency effects.
Storebrand’s insurance segment saw premiums rise 21% YoY to 9.5 billion kroner. However, profitability remained below target with a combined ratio of 97%, compared to 98% in Q1 2024. The company maintained its 90-92% combined ratio goal for 2025.
The company reported a solvency ratio of 198%, up from 191% a year earlier. It executed 300 million kroner in share buybacks during the quarter as part of a 1.5 billion kroner program for 2025.
While Storebrand highlighted growth across its business segments, the earnings miss and ongoing profitability challenges in insurance likely contributed to the negative stock reaction following the results.