Storebrand (1K) | Buy (Not Rated) | More than a life insurer

Research evidence excerpt

Storebrand (1K) | Buy (Not Rated) | More than a life insurer

Storebrand Buy | Target Price: NOK216.00

Investment summary

Storebrand offers one of the most differentiated business models within the European

insurance sector, combining occupational pensions, asset management, banking, and

growing non-life operations within a highly capital-efficient structure.

Over the past decade, the group has gradually transformed from a traditional

guaranteed pension provider into a more scalable and capital-light savings platform,

primarily driven by strong growth in unit-linked pensions and asset management.

Currently, around 70% of reserves are linked to unit-linked products versus c. 30% a

decade ago, significantly improving the group’s capital efficiency, earnings quality, and

shareholder return potential.

We believe Storebrand remains well positioned to benefit from long-term growth in

Nordic occupational pensions and savings. In Norway, the ongoing shift from

guaranteed products toward unit-linked pensions continues to support strong reserve

growth, while Storebrand maintains a leading market position within private

occupational pensions.

Although competition has intensified in recent years, particularly following the

introduction of new regulation allowing customers to transfer pension assets more

freely, we view the market as increasingly becoming a scale- and distribution-driven

business rather than a structurally weaker market. Importantly, underlying market

growth remains strong, and Storebrand continues to operate from a position of

significant scale across both Norway and Sweden.

At the same time, profitability drivers are becoming increasingly diversified. Asset

management scalability is improving, supported by operational efficiencies, while the