The first dividend in six years from Storebrand – Dagens Næringsliv

Finance

After six years can Storebrands shareholders enjoy a dividend from the company.

Published: 08.02.2017 — 07:33 Updated: 08.02.2017 — 09:22

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For the first time since the 2011 pay Storebrand out dividends. The dividend for 2016 is 1,55 euros per share. Analysts TDN Finans has talked with were waiting in advance a dividend of 1.10 crowns per share.

Pension and forsikringsleverandøren – that in the year fill the 250-year – put forward a konsernresultat of 2.5 billion before tax for 2016.

– Storebrand delivers a good result characterised by growth in the pension and banking, strong cost control and good finansresultater. We have been successful with the implementation of the planned measures and strengthened the group’s financial strength. It is very gratifying that we’re now paying dividends for the first time in several years, says ceo Odd Arild Grefstad.

Storebrand is the company on the Oslo stock Exchange that has the highest number of shareholders. These can now expect a total payout of just over nok 700 million,

Promises more dividends

Storebrand has spent the last few years to strengthen the capital of the company to meet the requirements within the so-called Solvency II framework, as well as set aside more funds to pensions because norwegians live longer.

– After the recent years of targeted efforts to strengthen the solvensmarginen and oppreserveringen for increased life expectancy, will pay us dividends for the first time since 2011. We expect a gradual increase in the dividend over the next few years, says Grefstad.

According to the accounting report are expected for 2017, a yield of over 35 per cent of the konsernresultatet before amortisation after tax. For 2016, it was the figure of 2.1 billion.

Storebrand, profit for the year 2016 (in MNOK)	2016	2015	Change
Revenue	54772	41945	30,6%
Operating profit (ebit)	2913	-42	%
Profit before tax	2506	-438	%

Good year for the pensjonsparere

Storebrand sitting with staggering 258 billion in so-called guaranteed pension. This is the means that the company each year must manage as if all pensions were to be paid out at the same time, even though it may be 20-30 years until the customer actually goes off like a pensioner.

But the number is decreasing. It is a defined contribution plan which is the most commonly used pension scheme with the company now. It puts the employer of a certain amount per worker each year. It is the worker who has the risk of what kind of return the pension funds get. The money deposited in the share and interest.

– last Year was a good year for workers with a defined contribution plan. Storebrands three most common spareprofiler for the defined contribution plan, Cautious, Balanced and Aggressive, had a return in 2016, respectively to 5.0 %, 7,4 % and to 9.6 %. This is a competitive rate of return and well above inflation and wage growth. It is gratifying for pensjonskundene our, says Grefstad.

• the Group offers a range of products and services within the life and pensions, asset management, general insurance and bank businesses, public agencies and private individuals. The core product is the pension.
• Storebrand has about 40 000 corporate customers and 1.9 million retail customers, and is Norway’s biggest private money manager with over 570 billion under management.
• Storebrands-largest shareholder is the government pension fund norway with close to 13 per cent.

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To offer green mortgages

Storebrand was voted the world’s second most sustainable company at the World Economic Forum in Davos in January. The company has long offered a sustainable fund. Now customers have the opportunity to borrow and insure themselves on a “greener” way.

– In addition to Storebrands world leading position in sustainable asset management, we are launching now new sustainable products, sustainable mortgages and greener husforsikring. -We want to help new and existing customers in a more sustainable direction, so that the lighter can reduce greenhouse gas emissions, not only on housing, beef and cars, but also stock exchange, says Grefstad.

Buy, buy, buy

Danske Bank Markets wrote in an update before the quarterly report that they still see the upside in the Storebrand share. This is mainly driven by an expected return to the dividend, less demanding solvenskrav because of higher interest rates in Norway, but also the possibility of structural measures.

Of the eleven analysts recommend eight the purchase of the Storebrand shares, while one has a hold/neutral recommendation and two recommend selling the stock.