Storebrand (Buy, TP: NOK118.00) - Further insurance repricing needed
Cash-equivalent earnings before amortisation were 13% higher in Q4 YOY despite the soft trend within Insurance. Repricing measures were taken throughout 2023 and as part of the 1 January renewal, with management expecting the targeted profitability to be reached in 2025. The board proposed a new NOK400m buyback programme, with the remaining NOK1.1bn to come after the AGM. We reiterate our BUY, but have cut our 2025e EPS by 3% and our target price to NOK118 (120).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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