Storebrand operating earnings rise 7% to record despite fall in cash earnings
Key Facts
Norway's Storebrand reported a 7% year-on-year rise in cash equivalent earnings from operations to a record 1,162 million Norwegian kroner in the third quarter of 2026, according to its earnings statement. The operational improvement was accompanied by growth in the insurance result, while cash equivalent earnings after tax declined from the corresponding period. Analysts' average forecast for operating cash earnings was 1,157 million kroner, according to the analyst consensus published by the company for the same quarter. The reported operating result therefore exceeded the average forecast while also posting year-on-year growth. The group presents this measure in its alternative income statement as cash equivalent earnings from operations, according to its quarterly report.
In insurance, the result reached 895 million Norwegian kroner in the third quarter, according to the earnings statement, against analysts' average forecast of 848 million kroner in the consensus published by the company. The result rose 28% from the third quarter of the previous year, according to the quarterly report, outpacing growth in the group's operating earnings. The insurance segment recorded a combined claims and expense ratio of 87% during the period, according to the statement. The company attributed growth in the insurance result primarily to increased market share and a lower claims ratio in the retail market. Storebrand summarised these factors in its statement as "market share gains and a lower claims ratio," linking the improved result to market expansion and claims performance in its retail business.
By contrast, the quarterly report showed cash equivalent earnings before amortisation falling to 1,517 million Norwegian kroner in the third quarter of 2026. The group had reported 1,586 million kroner on the same measure in the third quarter of 2025, putting the current result below its year-earlier level. Cash earnings before amortisation also fell short of analysts' average forecast of 1,593 million kroner, according to the third-quarter earnings consensus. Cash equivalent earnings after tax declined to 996 million kroner from 1,189 million kroner in the corresponding period, according to the report. Financial items and the life risk result also fell to 355 million kroner from 495 million kroner in the third quarter of the previous year.
On capital, Storebrand's solvency ratio stood at 200% at the end of the third quarter of 2026, according to supplementary information accompanying the results. This figure refers to the solvency ratio under the European insurance solvency framework, as stated in the group's disclosure. The ratio remained at its level at the end of the second quarter of the same year, unchanged between the periods, according to the quarterly comparison published by the company. Stable solvency coincided with higher operating cash earnings and lower cash earnings after tax during the third quarter, according to the earnings disclosures. Storebrand shares are listed on the Oslo Stock Exchange under the ticker STB, according to the share information page on the Norwegian group's investor relations website.
After the end of the reporting period, Storebrand completed its acquisition of Knif Trygghet Forsikring, according to its results presentation to analysts. The presentation gave the completion date as 16 October 2026, after the end of the third quarter covered by the reported results. The acquisition was completed after the required regulatory approvals were obtained, according to the company. The group expects to merge the acquired company with Storebrand Forsikring during 2027, according to the same results presentation. Completion of the acquisition thus precedes the merger Storebrand expects the following year, among the developments the group outlined for its insurance business after the quarter ended.
In its capital distribution plans, Storebrand's board intends to propose a cash dividend of around 6 Norwegian kroner per share for the 2026 financial year, according to the quarterly report. The board made the proposal subject to market conditions and the necessary approvals, according to the company's account of the planned dividend proposal. The board also intends to propose share buybacks worth 2.0 billion Norwegian kroner during 2027, according to the results presentation to analysts. The planned buyback proposal is also subject to market conditions and the necessary approvals, while the cash dividend relates to earnings for the preceding financial year. For upcoming disclosures, the financial calendar published on the investor relations website schedules the release of fourth-quarter 2026 results for 10 February 2027.