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Investing.com -- Shares of Storebrand ASA rose over 2% on Wednesday after the Norwegian insurer posted third-quarter 2025 results that beat forecasts, driven by better performance in its Insurance and Savings segments and improved cost control.
Operating earnings were “decisively ahead, by 9%, primarily from the Savings and Insurance segments,” Jefferies said in a note.
The brokerage added that “growth remained in double digits across the business.” The combined ratio improved to 89%, two percentage points better than expected, following repricing measures.
That marked progress from 97% and 91% in the first and second quarters, respectively. The nine-month combined ratio stood at 92%, placing the group within its full-year target range of 90% to 92%.
Storebrand ASA ( last closed at NOK154.20, valuing the company at NOK67.2 billion ($6.7 billion). Jefferies maintained a “hold” rating on the stock with a price target of NOK140, representing a potential downside of 9%.
Jefferies said cash-equivalent earnings from operations for the quarter beat expectations by 8.9%, while the insurance result rose 8.7% above estimates.
Operational expenses were 2.5% lower than forecast. Financial items and risk results were 27.2% higher than projected, including “a NOK70 million positive one-off relating to the revaluation of earn-out liabilities for the AIP Management acquisition.” Adjusted cash earnings per share were up 17.1%.
By business segment, Savings outperformed by 16.8% and Insurance by 19.3%. The Pension segment missed expectations by 11.7%, and the Other was up 8.3%. Profit before tax exceeded estimates by 8.2%, while profit after tax was 9.8% higher. Fee income missed by 0.6%, and amortization costs were 66.2% above forecasts.
“The one negative in today’s print is the solvency miss by 4%pts, owing to model changes (-2%pts) and business mix (-3%pts),” Jefferies said.
The Solvency II ratio stood at 195%, compared with consensus expectations of about 199%. The firm added that a higher allocation to equities contributed to the solvency gap.
The analysts also pointed to weather losses of NOK50 million, equal to roughly two percentage points, which “could be a slight drag in 4Q.”
Despite that, Jefferies said the company’s operational improvement places it back on track within its targeted profitability range.