Storebrand ASA Q2 2020 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Hskon Astrup - DNB Markets, Research Division - Analyst : So 2 questions from me, the first one on solvency. So can you remind us of what management's actions available to improve the solvency ratio from the current level? And should we expect that we use some of these measures during the second half of this year? That was the first question. And the second question on dividends, so we are quite clear that we don't have the intention to paying dividend for 2020. At the same time, we know that on a regional -- currently is quite negative towards dividend payments. So based on your dialogue with the regulator, what conditions need to be met before you need to pay a dividend for 2020?

Question: Vegard Toverud - Pareto Securities, Research Division - Analyst : I also have some questions here on solvency. I wondered if you could give us some more details on the 6 percentage point impact from asset allocation and how potentially you see that developing into the next quarter. That's the first. I have a couple of follow-up questions as well.

Question: Vegard Toverud - Pareto Securities, Research Division - Analyst : Okay. Very, very clear. You have discussed the difference between the transitional arrangement and the underlying solvency. You are looking at it. The Board has presented and discussing it, and I believe that, that is previously -- as I was saying, has also looked at both numbers in addition to a lot of other numbers, of course. When these discussions have been had on the number of the transitional arrangements, have there been any anchoring towards any specific numbers, such as 100% or 135%? Or has there not been any such anchoring?

Question: Vegard Toverud - Pareto Securities, Research Division - Analyst : I understand that, and I believe also that the number with the transition is the most important number here. But still, as you told us yourselves earlier that the number also without transitional arrangements are being discussed. When you are discussing it, are you looking at any specific numbers or any thresholds for the number without the transitional arrangements as well? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JULY 15, 2020 / 8:00AM, STB.OL - Q2 2020 Storebrand ASA Earnings Call

Question: Vegard Toverud - Pareto Securities, Research Division - Analyst : Okay. And then just lastly, could you give us some update on estimates now on what the solvency built will be going forward per annum, preferably with or without business?

Question: Vegard Toverud - Pareto Securities, Research Division - Analyst : Okay. But to give you then a number. If you're saying that you're building 10 and you're using 5 for normal dividend and you are using then maybe 2 to 3 to account for the lower impact from the transitional arrangement, that would mean that you're building 2 to 3 percentage points of solvency capital going forward per annum, given that the market stayed the same.