Despite the fact that sales are going well, Storebrand is still showing a weaker performance in the second quarter than in the previous year.
Second-quarter earnings from the insurance company show a consolidated result after the second quarter of NOK 578 million and NOK 1311 million so far this year. Operating profit for the second quarter amounted to NOK 474 million, a decrease compared to NOK 645 million in the second quarter of 2018.
On average, analysts expected operating profit in the second quarter of NOK 579 million and pre-tax profit of NOK 589 million. CEO Odd Arild Grefstad is still satisfied with the results.
– Storebrand delivers satisfactory core results tailored to the cost and restructuring costs. The sale is good and we have won many new customers in Norway and Sweden who are looking forward to the welcome in the second half, according to a stock market announcement on Friday morning.
The focus on cost control is still strong, and during the second quarter the company has carried out a number of restructuring, resulting in a one-time cost of NOK 45 million.
In the first quarter, Storebrand reinvested the consolidated profit of NOK 733 million. Operating profit for the first quarter was NOK 531 million, profit before tax of NOK 635 million. This was down from NOK 866 million in the first quarter of 2018.
Good sales and new market
Storebrand has decided to enter the market for professional pensions in the public sector, which is the market currently covering its own pension funds and Kommunal Landspensjonskasse (KLP).
The company writes in the stock exchange announcement that sales went well in the second quarter, with a rise in new sales of 38 percent in Swedish business compared to last year. The positive development of financial markets in the second quarter also contributed to an increase in total assets to NOK 752 billion with NOK 707 billion in the second quarter of 2018.