Steady capital generation
We forecast Q3 adj. EPS of NOK1.2, just above the normalised level due to a slight narrowing in investment-grade credit spreads and positive equity market developments (results due at 7:30 CET on 25 October). We expect the Solvency II ratio (excluding transitional rules) to rise from 152% in Q2 to 156% in Q3 on earnings generation and unchanged interest rates QOQ, and a 1%-point positive effect from internal measures. Our 2018–2019 EPS estimates are virtually unchanged. We continue to find Storebrand attractive, and reiterate our BUY recommendation with a NOK80 target price.Storebrand ASA is the parent company in a financial group. Co. is a provider of pension savings. Co. provides range of products within life insurance, property and casualty insurance, asset management and banking, to companies, public sector entities and private individuals. Co.'s corporate organization includes the business areas of Savings, which comprises of non-guaranteed Defined Contribution in Norway and Sweden, Asset Management and Bank products to the retail market; Insurance, which includes Co.'s risk products; Guaranteed Pensions, which includes long-term pension savings products that give customers a guaranteed rate of return; and Other.
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
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