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Research Tree provides access to ongoing research coverage, media content and regulatory news on STOREBRAND ASA. We currently have 7 research reports from 1 professional analysts.
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Shareholders will, finally, be remunerated
27 Oct 16
Storebrand announced a group profit after tax of NOK441m for Q3 16, a significant jump relative to the same period in 2015 (NOK64m). The 9M 16 earnings reached NOK1,466m, +152.3% yoy. The group’s results before amortisation and longevity for Q3 was NOK690m vs. NOK272m in Q3 15 (NOK2,034m for the 9M 16 vs. NOK1,487m in 9M 15). These good figures were driven by the Guaranteed pension, which recorded a new surprisingly good Q3 with huge growth in its underlying earnings to NOK126m. However, since the beginning of the year, this business is still recording a drop of 13.9% to NOK378m. The Savings (non-guaranteed) business posted a decline of 6.8% in underlying profit relative to Q3 16 to NOK246m (+6.3% to NOK766m ytd). Premiums reached NOK3,444m (+7.4% yoy) and total reserves stood at NOK131,571m. AuM grew to NOK570.3bn. The lending portfolio in the retail market is developing positively and grew by NOK5.4bn ytd. The Insurance segment showed a significant 35.8% increase in underlying earnings to NOK163m (-7% to NOK438m in 9M 16), with a combined ratio of 91%. Premiums were up by 5.5% to NOK4,511m in the Q3 16. The Other segment’s result has also contributed to the improvement in the insurer’s performance with a new excellent Q3 16 underlying earnings (NOK453m in the 9M 16). Efficiency was enhanced, with a limited increase in the operational cost in Q3 16 by 5.5% to NOK797m (-2.4% ytd to NOK2,299m) and an excellent financial result (NOK542m ytd). The Storebrand Life Insurance Group’s solvency II margin was 165% with transitional rules. Without them, the capital position is weaker with a solvency II ratio of 131%. Dividends will normally be more than 35% of the group result before amortisation and after tax. A minimum half dividend is expected for 2016. Share buy-backs could also be implemented.
The insurer did not miss its targets
14 Jul 16
Storebrand today announced a group profit after tax of NOK715m for Q2 16, a 177.1% improvement relative to the same period in 2015. The H1 16 earnings reached NOK1,025m, +98.2% yoy. The group’s results before amortisation and longevity for Q2 was NOK798m vs. NOK610m in Q2 15 (NOK1,344m for the H1 16 vs. NOK1,215m in H1 16). These good figures were driven by a resilient Savings (non-guaranteed) business which recorded a modest 1.7% growth in underlying profit relative to Q2 16 to NOK241m (+14.3% to NOK520m in H1 16) and the Guaranteed pension which recorded a surprisingly good Q2 with 29.5% growth in its underlying earnings to NOK237m. However, since the beginning of the year, the Guaranteed business has still recorded a drop of 39.8% to NOK252m. The Insurance segment continues to suffer with a new decrease in underlying earnings of 20.3% to NOK153m (-21.7% to NOK275m in H1 16). The Other segment’s result has also contributed to the improvement in the insurer’s performance with an excellent Q2 16 underlying earnings (NOK297m in the H1 16). Efficiency was improved, with a double-digit decrease in operational cost in Q2 16 to NOK698m (-13% yoy) and a resilient financial result (NOK200m). The Storebrand Life Insurance Group’s solvency II margin was 172% with transitional rules. Without them, the capital position is weaker with a solvency II ratio of 122%.
Promising Q1 16
27 Apr 16
Storebrand today announced a group profit after tax of NOK311m for Q1 16, a 20.5% improvement relative to the same period in 2015. The Q1 result before amortization amounted to NOK546m, an increase of 21.3% year-on-year. However, these good figures were driven by Savings (non-guaranteed) business which recorded 27.9% growth in underlying profit relative to Q1 15 while all other business areas recorded a drop, especially guaranteed pension (NOK15m in Q1 16 vs. NOK236m in Q1 15) and Insurance (NOK122m in Q1 16 vs. NOK159m in Q1 15). For the latter, premium income rose by 9.2% to NOK947m, while the combined ratio stood at 92% (90% a year before). Despite relatively resilient sales (-6.4% to NOK404m) and cost control (-2.1% to NOK271m), guaranteed pensions recorded a weak performance given the fall in interest rates caused by the negative impact on the Swedish business. The Storebrand Life Insurance Group’s solvency II margin was 175% in Q1 16 vs. 168% in December 2015.
Shareholders likely to wait until 2016 for the dividend
17 Feb 16
Storebrand’s Q4 15 net premiums income decreased by 5.3% to NOK5,465m, but the insurer succeeded in ending the year with a slight 0.9% increase to NOK25,220m. The Q4 15 result before amortisation came to NOK-1,087m (vs. a NOK923m in the same period in 2014) and NOK-438m ytd (vs. €2,601m in 2014). If we do not take the impact of reserve strengthening into account, the result would have been NOK275m in Q4 15 and NOK1,044m for the full year. Operating costs reduced by 9.6% in Q4 15 to NOK14,652m, allowing ytd costs to stand at NOK41,947m (-30.8% yoy). Net profit recorded a 13.9% increase in Q4 15 to NOK801m but a 33.7% decline ytd to NOK1,382m. The group’s solvency margin stood at 168% at the end of 2015. Capital adequacy and core capital adequacy reached 14.3% and 11.9%, respectively. At the end of 2015, NOK1.8bn has been allocated to reserves for increased longevity. The board proposed that no dividend should be paid for 2015, but plans to pay a dividend for 2016.
A zero-sum game ?
29 Jan 16
Storebrand announced that it implemented several measures in 4Q 15 aimed at strengthening its Solvency II margin but with a neutral effect on the Group’s profit after tax. The estimated Solvency II margin as of year-end 2015 is about 160% with transition rules (120% without). The Norwich insurer has also changed the interest rate curve used to discount the liabilities in its Swedish neutral effect on net earnings subsidiary SPP to one similar to the interest rate curve used in the pan-European Solvency II regulation. The expected negative accounting effect of this change, combined with other assumption changes, is approximately NOK300m. Another important decision has been taken by the insurer concerning the strengthening of its longevity reserve. In Q3 15, the remaining direct result contribution for this purpose was estimated at NOK1.4bn until 2020. Storebrand has decided to charge the entire amount to the 4Q 15 result, alongside restructuring costs caused by previously-announced staff reductions in Norway and Sweden (NOK100m) and the negative effect of weak disability results (NOK100m). p=. !impact.bmp!
Navigating an environment of record low rates
28 Oct 15
Storebrand’s net premiums income increased by 13% to NOK5,954m in Q3 15, allowing the insurer to make up the backlog recorded in Q1 15. Ytd sales amounted to NOK19,994m, +2.8% yoy. Banking activities' income posted new quarterly and annual decreases to NOK92m (-16.3% year-on-year) and NOK281m (-20.2% year-on-year), respectively. The Q3 15 result before amortisation came to NOK176m (-72.1% relative to the same period in 2014) and NOK1,085m ytd (-48.6% year-on-year). Operating costs reduced by 38.5% in 9M 15 to NOK27,294m. Net profit recorded an 84.3% drop in Q3 15 to NOK59m and a 59% decline ytd to NOK560m. The Storebrand Life Insurance Group’s solvency margin stood at 179% at the end of 9M 15, a reduction of 4% since the beginning of the year. Capital adequacy and core capital adequacy reached 13.6% and 11.6%, respectively. At the end of 9M 15, NOK8.3bn has been allocated to reserves for increased longevity and the remaining required strengthening of reserves is NOK4.1bn.
Positive returns from all asset classes in Q316
28 Nov 16
Tetragon Financial Group (TFG) reported fair value earnings of US$49.7m for the third quarter of 2016, with positive contributions made by all asset classes. NAV total return was 1.3% for the quarter and 7.8% for the nine months to 30 September 2016. Having completed a US$100m tender offer in June 2016, TFG commenced a US$50m tender offer on 9 November 2016, which should be meaningfully accretive to NAV per share given the current wide share price discount to NAV. Consistent with previous years, the third interim dividend was held in line with the second interim, confirming TFG’s 5.9% yield.
N+1 Singer - Morning Song 30-11-2016
30 Nov 16
Sanderson has delivered full year results in line with expectations and the 19 October trading update after a strong finish to the year compensated for a slower start. A healthy level of pre-contracted recurring revenue (50%), incremental sales to existing customers and new customer wins at higher average order values helped deliver solid revenue growth in both the Digital Retail (+9%) and Enterprise (+12%) divisions. A decent order book and good sales momentum suggest that the company is on track to deliver on unchanged profit expectations for the current year. We continue to view the valuation (FY17 EV/EBITDA 8.6x) as undemanding given an attractive combination of accelerating growth potential, strong cash generation and growing dividends.
VPC Speciality Lending Investments PLC – sticking to your knitting pays dividends
05 Dec 16
A 25% discount on a dividend paying vehicle suggests either (a) lack of belief in the NAV, (b) lack of belief in the dividend, (c) concerns over future delivery, (d) a shareholder’s base not normally exposure to “closed end structures” or (e) some combination of (a) to (d). We had a first meeting with the management team and London representative of VPC Speciality Lending to try to better understand why the share price had fallen quite so much.
N+1 Singer - Grainger - Final results in line, further progress on PRS investment pipeline
01 Dec 16
Grainger has reported FY16 final results this morning with key NNNAV and recurring PBT metrics in line with our forecasts. Sales performance and rental income growth was strong in H2, as previewed in the positive FY trading update driving our 19% PBT upgrade in early October (11/10). The PRS investment pipeline continues to grow now standing at £389m secured and £347m in legals as Grainger pursues an £850m investment target by 2020. A 3.05p final dividend is in line with the revised policy to distribute 50% net rental income. The shares continue to trade on a significant, and unwarranted, 20%+ discount to NNNAV. We reiterate our BUY recommendation.
Panmure Morning Note 30-11-2016
30 Nov 16
Brewin Dolphin’s results for FY16 are a mixed bag, with most numbers beating consensus but the key numbers failing to beat management’s KPIs. So although AUM is up more than 10% and revenue/adjusted PBT/EPS/DPS beat consensus estimates, in our view the continuing struggle to increase revenue and expand margins could weigh on the valuation. Despite this, our investment case is unchanged and we retain our Buy recommendation and price target of 320p.