Storebrand Asa Unsp/Adr

Good morning, ladies and gentlemen, and welcome to Storbrand's second quarter result presentation. As usual, our CEO, Adarel Grestad, will present the key highlights of the quarter, followed by CFO Lars Løddesøl, who will dive deeper into the numbers. At the end of the presentation, participants in the team's webinar will have a chance to ask questions. Details on how to join the webinar are found on the investor relations website. But without further ado, I give the word to our CEO, Odaril Grefstad.

Thank you, Johannes, and good morning, everyone. Let's look at the second quarter's highlights. Storbrand Group's cash-based earnings amounted to 2,249 million in the quarter, while the operating result was 819 million, up by 38% year-on-year. Even with insurance results still on the soft side, we deliver a very strong overall operating result, which was driven by continued robust growth across the business and a strong cost development. The financial result of 1,431 million was made up of 1,047 million from the sale of the health insurance businesses and an improved financial result from increased return on net financial assets. Furthermore, we continue to deliver a robust solvency ratio of 191% in the second quarter. On the capital management side, we are this year executing a 1.5 billion buyback program and have completed 800 million in share buybacks during the first half. In the next two quarters, shares worth 700 million will be bought back as we continue our program. The planned full year amount of 1.5 billion is fully reflected in the solvency ratio we report today. As some of you are well familiar with, Storbrand aims to take three commercial positions in the market we operate in. A, to be the leading provider of occupational pensions in both Norway and Sweden. B, to be a Nordic powerhouse in asset management. And C, to be a fast-growing challenger in the Norwegian retail market for financial services. These positions are strengthened by our strategic enablers, people, sustainability and digital frontrunner, together unlocking additional growth. Let me now turn to how we have succeeded in developing our commercial positions in the quarter. I am very pleased to say that we still deliver strong double-digit growth across all business lines. We see structural growth within UnitLinked, where volumes have grown by 19% year-over-year, corresponding to absolute growth of 68 billion in reserves. We also see that the strong long-term growth in asset management continues. In this segment, total asset management grew by 14% compared to second quarter 2023, while net flow during the quarter stood at 7 billion. Within insurance, we continue to gain market share. In addition, we see the effect of increased prices in premium volumes with a total growth rate of 16%. We are still not pleased with overall profitability, but we are on the right path to achieve a combined ratio below 92% in 2025. Lastly, the loan balance in retail banking is increasing at an annual growth rate of 13%, and Storbrand is gaining market share. This shows that we are succeeding in being a fast-growing challenger in the Norwegian retail market. Now, let me give you an update on some other key developments that affect our business in the quarter. I'll start with an update on three important themes for the business before moving on to two acquisition announcements in the quarter. Within sustainability, we are pleased to see that our efforts are recognized. During the quarter, Storbrand was recognized by Time magazine as the most sustainable company in Norway and among the top 50 in the world across all industries. The assessment was based on our sustainability reporting, detailing Storbrand's goals and results across various ESG metrics. Within risk and capital management, we reached an important milestone this quarter when we submitted our internal solvency model application to the Norwegian FSA. This has been a thorough process and we have already used the model for a long time in our own solvency and risk assessment. The main reason for having an internal model is to better understand the risk in the business and make the right decisions for capital allocation. Let me lastly give you a quick update on the public sector. As some of you may remember, ESA gave preliminary views on the issues raised in the public procurement case in a letter to Norwegian authorities during the first quarter. ESA's view was that public sector occupational pension contracts fall within the scope of public procurement law, and that the lack of tender processes in this market constitutes a failure to meet relevant EEA laws. During the second quarter, the Norwegian government responded to ESA's preliminary view. The government's letter to ESA did not represent new arguments or views compared to previous submissions. Storbrand therefore expects ESA to initiate infringement proceedings in the public procurement case. The quarter was also eventful on the M&A side. Storbrand announced two acquisitions in addition to concluding the divestment of the health business. I will now spend a little more time on the two acquisitions. On June 26, Storbrann entered into an agreement to acquire an additional 50% of the shares in the Danish Infrastructure Fund Manager, AIP Management, to reach an ownership of 60%. Founded by PKI, a Danish pension company and headquartered in Copenhagen, AIP has an experienced management team and has total commitments from investors of €8 billion. AIP specializes in energy and infrastructure investments that facilitate the green transition in Europe and North America. AIP operates in an attractive market with strong growth prospects. At the macro level, there is a substantial need for infrastructure investments. As the world accelerates its green transition, investments required by private investors between now and 2040 is estimated to $15 trillion. As an asset class, infrastructure offers stable returns, a long duration on the client relationship, and low market correlation. AIP has a strong position in this space that would have been both capital and time consuming to build in-house. The acquisition demonstrates how Storbrand builds a truly Nordic powerhouse in asset management and significantly expands our strong offering across the alternative spectrum, consisting of infrastructure, private equity, real estate and private debt. I now believe that we have the right capabilities within the alternative space, broadening our presence in the Nordics. The acquisition will strengthen asset management in storbrand infrastructure by 10 times, in storbrand alternatives by 50%, and the total storbrand group assets under management to approximately 1,400 billion NOK. The acquisition provides an opportunity to realize earnings growth by further growing and commercializing AIP together with a dedicated management team and existing owners. Storbrand also acquired its own headquarters, Storbrand Lysaker Park, in the quarter, at a gross property value of just below 1.7 billion. I am very pleased to see that this is now closed and that we have found a long-term headquarters solution for the company that is beneficial for shareholders and the organization. A wide market search has been conducted, but options were considered not to fulfill Storbrand's needs for the future. Compared to other options, we estimate to save up to 100 million annually in operational cost. And we also see opportunities to develop the building to further increase value for shareholders. And with that, I give the word back to you, Johannes.

Thank you, Odariel. Now, let's take a closer look at the numbers. Lars, please go ahead.