Welcome to Storebrand's Capital Markets Day. We have really been looking forward to this. It's great to see so many of you here at our headquarters, and a warm welcome to everyone following us on stream. While today's presentations are led by us in the executive management team, the true force behind our ability to deliver on our ambitions lies in the collective expertise, commitment, and passion within all of us who work at Storebrand, and what unites us across businesses, national borders, is our core, the essence of who we are and aspire to be for our customers, our employees, shareholders, and the world around us. We are in business to create a brighter future. This shared purpose is what fuels our long-term value creation and enables us to adapt, grow, and lead by integrity. We know that purpose-driven organizations grow faster, are more adaptable, and create greater value.
At Storebrand, we don't just believe in our mission. We invest in it. The majority of my 2,500 colleagues are shareholders in Storebrand, a clear signal that we are deeply committed to the long-term success of this company and what unites us: creating a brighter future. We have an exciting agenda ahead of us today, and let me lead you through it. First, our CEO, Odd Arild Grefstad, will take the stage to present the group strategy, the direction that will guide us into the future. Members of the executive management team will share insights on three key areas: Savings, Insurance, and Guaranteed Products. These presentations will follow the same structure that you recognize from our financial reporting. Finally, our CFO, Kjetil Krøkje, will summarize what all this means in terms of financial ambitions and capital allocation.
And we'll wrap it up with a Q&A session, giving you the chance to ask questions. So let's get started, and let me introduce on the stage our CEO, Odd Arild .
Thank you, Tove. As we open this year's Capital Markets Day, I want to start with one clear message. Storebrand is built for the long run, with a strong commitment to creating value. Today, you will see a long-term growth strategy, a strategy that positions Storebrand for success the next decade. We will spend time on the financial targets for the three-year strategy period. But just as important is the bigger picture: the future-focused Nordic savings and insurance group we are building. Let's now look at how far we have come. Storebrand has reinvented itself many times. That journey has shaped who we are today. We began as a Norwegian fire insurance company back in 1767. Today, we are a leading Nordic financial service group shaped by the needs of our customers and society.
Since 2012, we have followed a strategy to grow our savings and insurance operations, and the impact shows. Back in 2012, Guaranteed made up almost two-thirds of our results. Today, savings and insurance are roughly two-thirds of the earnings. This is driven by a five-fold increase in these areas. The shift has made expected earnings more resilient, with a greater share from long-term savings and short-tailed risk, and this lays the foundation for the momentum we are now seeing. We hold leading positions in Unit Linked and asset management, two areas supported by long-term growth drivers, and we are increasing our market share in Norwegian insurance and retail banking. As a result of this growth, group profit has exceeded the NOK 5 billion ambition from the Capital Markets Day back in 2023. Return on equity is well ahead of our target of 14%.
And we expect dividends to increase to about NOK 5.4 per share this year. This represents a 15% annual growth the last years. And for the third year in a row, we are doing NOK 1.5 billion of share buybacks. Over the past decade, we have transformed the company. We now have a resilient balance sheet and more room to distribute capital. And we enter the next decade from the strongest position in our history. With that in mind, let me turn to our strategy and to our ambitions for the years ahead. As we look ahead, I will start with the external forces impacting our business. Then I will move to our group strategy. I will focus on the strategic enablers and the synergies across the group. And last, I will explain what this means for value creation and financial targets.
But let me begin with the Nordic macro backdrop. The Nordic region remains highly attractive for long-term savings and insurance. Public finances are in good shape, and the region has solid fiscal headroom compared to other markets. This allows for stable frameworks for pensions and long-term savings at a time when other countries face tight budgets and higher taxes. The Nordics are also known for stability, high income, and high trust. This makes the region one of the most predictable long-term savings markets in the world. Norway's policy rate remains at a high level. Digitalization is advanced, and customer adoption is fast. For long-duration business like Storebrand, this environment is a clear advantage. At the same time, megatrends are changing our markets and customer expectations. AI is set to benefit financial services more than most sectors. Storebrand is digital, rich in data, and process-driven. We are well placed to benefit.
The demographic landscape is changing. An increasing number of people is growing older. In addition, financial responsibility is moving from the state and collective providers to the individual. The result of these trends is increasing the need for long-term savings. These megatrends create exciting opportunities, and Storebrand has a unique starting point to take advantage of these trends. This brings me to how we are positioning the company to do exactly that. As many of you are familiar with, our strategy focuses on scaling our capital-light front book business. This strategy is anchored in three commercial positions. One, to be a leading provider of occupational pension in Norway and Sweden. Two, to be a Nordic powerhouse in asset management. And three, to be a challenger in the financial retail market in Norway. This strategy is powered by three strategic enablers: people first, leadership in sustainability, and digital front-runner.
We also benefit from strong group synergies in revenue, cost, and capital. I'll talk about these synergies in a moment, but first, I will take you through the enablers. We have been a pioneer in sustainable finance for 30 years, and we have stayed committed in good times and in hard times. This gives us a clear view of risk and helps us deliver better risk-adjusted returns. We do this because it creates value for society, for customers, and for shareholders. Our progress on sustainability shows in numbers, and we continue to lift our targets for sustainable investments. We also strengthen our effort in sustainability in other areas. Within insurance, our health concept, VEL, is a strong example. It helps employees stay healthy and return to work faster. We are now implementing VEL from pilot to an integrated part of our disability insurance offering from 2026.
You will hear more about this from my colleagues. And speaking of my colleagues, I'm very proud of our experienced management team. Together, we have more than 140 years of combined experience at Storebrand, each with a strong track record from key roles. Attracting and developing talent is essential for high-performance culture. This team reflects our long-term focus on leadership development and succession planning. Three of the seven members have been part of our trainee program. The top management team received 25%-35% of their compensation in locked-up shares. This ensures common objective and strong alignment with shareholders. While this team sets the direction, the real engine of Storebrand is all our employees. They shape our unique culture and drive the company forward. We will now hear from Jarle Roth, our Chairman, on what makes Storebrand culture unique.
After that, Trygve will present our third strategic enabler, Digital, before I return to conclude the group strategy section.
Thank you. As Chair of the Board, I'm honored to address you today at this important event for Storebrand. Having spent decades leading organizations across international markets and various industries, I have come to understand what truly sets exceptional companies apart and what sustained success generally means. It stems from a clear vision and leadership, steadfast integrity, and the relentless drive for excellence in execution among talented individuals. What truly sets Storebrand apart and what competitors cannot imitate is the culture. Our culture is built on the long-term and collective performance, teamwork, shared goals, and a focus on what we can achieve together. The achievement speaks for themselves. In the past 10 years, Storebrand has continuously delivered double-digit growth, outperformed benchmarks in share price, and achieved top-tier employee scores. This is the result of disciplined strategy execution, operational excellence, and a management team that anticipates change and adapts.
At the same time, we recognize that there is always room for improvement, and we are working continuously to address these challenges, whether it is improved customer satisfaction, customer journeys, or service offerings. Looking forward, Storebrand stands stronger than ever. Our robust financial position and proven business model give us the opportunity to navigate uncertainty with confidence. As Chair, I take great pride in Storebrand's progress and the extraordinary people driving our success. I'm confident that together, we will continue to set new standards for value creation, resilience, and responsible leadership. The future is bright for our customers, our employees, our shareholders, and for Storebrand as a leading Nordic savings and insurance group. To the shareholders and other stakeholders following Storebrand, thank you for your trust and your commitment, and for following the 2025 Capital Markets Day.
A clear message there from our chairman, and if culture is at the core of Storebrand, digital is our engine. Technology forms the backbone of financial services, and it's a key enabler in Storebrand's strategy. As a company, we already operate in a branchless and technology-driven world. Our ability to lead digitally is critical for driving growth and creating long-term value. In recent years, we have transformed from a traditional infrastructure and siloed operations to a modern platform and a business-focused digital organization. We have invested purposefully in modern technology, digital competency, automation, and AI to accelerate our digital journey. On the platform side, we are running on a scalable and secure foundation. Our cloud migration has cut costs and improved stability. We have built out advanced cyber capabilities, responsive detection engineering, proactive threat mitigation, and compliance with emerging regulations like DORA.
On this foundation, we run business platforms that enable growth and expansion. We have consolidated and modernized our platforms for asset management and pensions in Sweden. In Norway, our pension business runs on one unified platform. A single, holistic cloud-based CRM system covers all businesses in the group. This has enabled us to integrate a range of acquisitions quickly and efficiently, unlocking synergies and supporting expansion into new markets such as public pensions. Storebrand has a long history with advanced analytics and machine learning. Years of experimentation and integration across our core businesses have given us a solid foundation for AI. This has led us to a disciplined approach, focusing relentlessly on value creation and avoiding big bets on hype, prioritizing high-potential platforms and scalable use cases with clear commercial goals.
In customer service, GenAI agents now handle over half of chatbot traffic, speaking natural language with our customers, and in some cases, even performing controlled operations on their behalf. For these conversations, customer satisfaction is up 43%, and escalations to human advisors have dropped significantly. In insurance operations, AI now automates 67% of back-office cases for the private market, optimizing costs and enabling a win-back team to retain over NOK 100 million this year. As we can see, our lean commercial approach to AI is generating tangible value with a clear path to further scale. Our digital organization is fully aligned with each of the group's four profit and loss areas, operating on a one-to-one basis with shared financial targets. By leveraging cross-cutting capabilities such as AI, cloud, cybersecurity, and CRM, we avoid duplicate functions and drive synergies that amplify value for the entire organization.
We've established strong governance over all technology investments, embedding them within commercially aligned digitalization programs, allowing us to focus on what matters most: clear commercial priorities and disciplined execution. Our end goal is clear, and this slide shows proofs of our progress towards our digital vision: delivering consistently top-ranked digital solutions, shifting to digital distribution of our products, and driving end-to-end automation of back-end processes. Going forward, having modernized our platforms for asset management and pensions, we will now rewire our insurance technology stack, renewing the core and leveraging technology to drive better performance in risk selection and underwriting, more effective distribution, and faster, more efficient claims handling. We will continue to expand Kron, broadening the offering and deepening engagement with customers as the market becomes more individualized and more digital.
We will continue to build out scalability through automation across the group, where we believe AI, with our disciplined and value-driven approach, will present significant opportunities. Together, these steps ensure we continue our digital journey to build the digital, data-driven, and scalable Storebrand for the future. Now, back to you, Odd Arild.
Thank you, Trygve. Let me now turn to our group synergies. Like the strategic enablers, our synergies in revenue, cost, and capital are key to deliver our strategy. Let's start with revenue synergies. Our broad customer base is a powerful growth engine. One example is the 540,000 members we have in the Norwegian corporate pension schemes. The business has a solid inflow of new members every year. This adds a stable flow of cross-sale opportunities for individual pensions, savings, and insurance products.
As an example, we have, the last two years, increased the share of retail customers coming from these corporate pension schemes from 20%-25%. And with our initiatives, like integrating offerings in Kron, this should continue to increase in the years ahead. We used shared capabilities in digital, people, and finance to gain scale. This avoids duplication and shares best practice. We also create operational leverage from consolidating NOK 1.6 trillion of internal and external capital on a single asset management platform. Having captive capital comes with several advantages. We see customer needs early and have cornerstone investors available to launch new strategies. Our diversified business model gives clear capital synergies. The synergies reduce our solvency capital requirements. In non-life, diversification effects cut capital needs by around 75%. These effects are expected to remain well past 2035.
This is because market risk will still be Storebrand's dominant risk factor also in 2035. As a result, we run a business with low capital needs and the Solvency II, and with an effective use of shareholder capital. Now, let me turn to how our strategic initiatives and ambitions, starting with the financial targets for the upcoming strategy period. We raise our result targets to NOK 7 billion for 2028. We lift our return on equity target to 17%. We aim to achieve double-digit dividend growth, starting with roughly 15% uplift for the current year. We stick to our long-term share buyback commitment and today announce our intention of executing NOK 2 billion in 2026. While we raise our ambitions for returns and shareholder distribution towards 2028, we remain just as focused on long-term growth over the next decade. I want to highlight three very important areas to achieve this.
Let me start with retail savings. In 2023, we acquired the savings platform Kron. It is now fully integrated with pensions and Storebrand funds on the platform. Kron has become one of our fastest-growing areas, with highest customer satisfaction in the market. Now, we want to make Kron our full retail savings platform with more functionality and market-leading customer engagement. The second area is Insurance. We are investing in better technology, stronger distribution, and best-practice pricing and underwriting teams. This will support profitable growth and strengthen quality and customer satisfaction. The third area is our Unit Linked and asset management. We are working to increase scalability in these businesses. In asset management, we will make better use of our platform and significantly improve cost- income the next years. Now, let us explore what this implies for Storebrand over the next 10 years.
Storebrand is present in savings markets that are growing structurally faster than inflation. And on top of that, we see increasing market share in retail, banking, and insurance. And we have several growth initiatives built from our core. This gives solid earnings growth potential well past 2028. And with the ongoing buyback program, growth per share will be even higher. As these initiatives unfold, we expect a future Storebrand with a larger share of earnings from insurance and retail. And let me finish with one very important point. Storebrand offers a unique combination that few others can match. We have high growth, increasing return on capital, and attractive yield. I will now hand over to my colleagues who will take you through Storebrand in line with our external reporting format, starting with the leaders within our savings business. And first up is Jan Erik, the CEO of Storebrand Asset Management.
Thank you, Odd Arild. Storebrand has three reporting segments: Savings, Insurance, and Guaranteed. The Savings segment itself consists of asset management, Unit Linked Sweden and Norway, and retail banking. Let me highlight three key takeaways from the savings segment. First, we hold strong positions in attractive and growing markets. We aim to improve our cost- income ratio across all savings segments. Together, this has the potential to drive double-digit growth in operating result. Let me now go deeper into the core of the savings segment, asset management. The current state of the business, the ambitions in the strategy period, and the long-term opportunities as a Nordic powerhouse in asset management. Our asset management business has been through a strong transformation from an internal asset manager to a strategic area for commercial growth in the Storebrand group.
We are recognized as a front-runner in the Nordics and have a clear commitment to future growth, both as a local partner and a Nordic partner for clients. I'm proud to be part of this journey, and I do believe we have what is needed for future success. We observe that competitors are racing their Nordic ambitions, yet we remain confident in our future success. Firstly, we have the capabilities to fill the role as a strategic partner for our clients. Secondly, we have a clear position on sustainable investments. Thirdly, we have an engaged workforce and a strong ability to attract and retain people. We have demonstrated a strong ability to grow. Since 2015, we have grown our assets under management 3x , and we now manage NOK 1.6 trillion. We have grown the non-captive part of the business almost 6x .
This has transformed our revenue composition, and the non-captive business now makes up roughly 70% of revenues. Still, as Odd Arild mentioned, the captive capital is key to realize scale, and it plays an important role as a cornerstone investor and a foundation for non-captive growth and innovation. The strong growth has been driven by markets and organic growth and from active use of M&A to build strategic capabilities. While continuously growing the core fund business, we have added capabilities in the alternatives space. We now cover most key asset classes and strategies for institutional and wealth clients and can service clients as a strategic partner. Building on this foundation, our focus is in the upcoming strategy period on organic growth. Currently, we hold the position as one of the five largest asset managers in the Nordics, a position we are proud to hold and motivated to improve.
The Nordic profit pool is significant and represents a substantial growth potential. We currently hold a strong position in Norway in all asset classes. However, in Sweden, Denmark, and other Nordic markets, there are ample growth opportunities. In the strategy period, we have two key drivers for scale and scalability. Firstly, we target to continue our top-line growth and to maintain overall revenue margins through alternatives and strong active strategies. We intend to improve the operating leverage and scalability, as Odd Arild mentioned. We have demonstrated scalability in our business, but we have also invested in future growth, both organically and through the acquisitions we have made. Over the next years, we will streamline the business and further to demonstrate even greater scalability. One of the key challenges in the asset management industry today is the pressure on revenue margins.
Capital flowing into low-margin products, institutional investors increasing their bargaining power, and transparency on fees are all factors driving realized revenue margins down. Despite this, we have maintained relatively healthy margins and believe that especially our strong offering in alternatives will be key to maintaining margins going forward. It is, of course, also important to keep up the performance of our active products as they also make a significant contribution to the overall margin. We, and many advisors, believe that growth in alternative assets is the key trend that will continue. In 2024, alternative assets generated more than 50% of global asset management revenues, while only representing 20% of global AUM. Alternatives typically provide higher revenue margins, and it is important for us to maintain our current share of alternatives through successful fundraising in these strategies.
Despite some recent headwinds in both infrastructure and private equity, alternatives are expected to continue to grow, and investor sentiment is positive. 40%-50% of investors intend to increase their allocations. We have made targeted investments in our alternative assets platform, ensuring we are well-positioned to meet client needs across three core areas: infrastructure, private equity, and real estate. In private debt, we cover asset-backed credits for the captive portfolio and use external partners beyond that. Through AIP, we offer clients access to infrastructure projects that are not only financially attractive but also support the energy transition to a more sustainable economy. The investments required in these transitions are significant. Our real estate arm, Storebrand Real Estate, manages a portfolio with a strong presence in key Nordic capitals.
The acquisition of Capital Investment has been key to build a truly Nordic platform and expand our institutional Danish and international network of investors. Cubera, acquired in 2019, provides both Nordic and international private equity programs and has a long history of delivering best-in-class returns. With over 500 investments and a focus on secondary markets and co-investment opportunities, Cubera is a key pillar in our alternatives offering. The alternatives profits are inherently more dependent on specific fundraising efforts. There is a positive underlying trend, but also peaks in 2026 and 2028 in the strategy period related to commitments for AIP's infrastructure fund in 2026 and the launch of Cubera's next secondary fund towards 2028. Scalability is a well-recognized challenge for the industry. Increasing regulatory requirements, complexity in distribution, and historically lower returns on digital investments are factors that are limiting the bottom-line effect from volume growth.
Despite this, we have managed to scale the underlying conventional business. However, the scalability overall has been somewhat diluted by investments in alternatives, as I mentioned, and fundraising capacity. It is a key priority to demonstrate even greater scalability for the total asset management platform going forward, and given normal market conditions, we anticipate, as Odd Arild mentioned, a clear improvement in the cost- income ratio and cost relative to AUM. We have initiated a multilevel program in order to succeed with greater scalability. These ongoing efforts are an important part of our longer-term strategy, preparing us for a continued profitable growth. While the strategy period highlights top-line growth and scalability of the business, we are also looking further into the future with a 10-year perspective. Going forward, capturing larger share in the Nordic market is a key ambition, especially in Sweden and Denmark.
We have a strong starting point in the Swedish market, being one of the larger conventional asset managers with more than SEK 500 billion in Swedish domiciled mutual funds. However, there are very clear long-term growth opportunities in the Swedish market, both in new client segments and asset classes that are currently untapped. We also have a strong starting point in the Danish market, especially within alternatives. And we believe we can widen our footprint in the conventional space and broaden our client relationships. Our financial ambitions sum it all up. Towards 2028, we target a 7%-9% growth in AUM and to improve the cost- income margin with more than 5 percentage points. This lends itself to a strong double-digit growth in operating result. I hope this was informative, and I will now hand it over to the head of the Swedish Unit Linked business, Jenny.
Thank you, Jan Erik.
Ladies and gentlemen, we will now review the savings segment from a Swedish perspective. Some key takeaways from this 10 minutes is that SPP has constantly delivered strong value creation. We believe Sweden is an attractive market opportunity for the group, and we are now setting the course for the next three years with the ambition of achieving double-digit profit growth within the segment. First, a short introduction and setting the scene. SPP, as many of you know, is a Swedish life and pension company, a platform part of the Storebrand Group since 2007. Our core focus is on pension and long-term savings, primarily through Unit Linked insurance, complemented by additional products for employers and their employees. We have a multi-channel distribution strategy with strong partner integration abilities, alongside with high ambitions as a digital front-runner. Our business is founded on strong group synergies.
Most of our pension products are based on our in-house asset management, well recognized for robust return and sustainable brand, so first, a quick touch on the external perspective and a market outlook. The Swedish life and pension market has demonstrated sustained double-digit compound annual growth, a trajectory we anticipate will persist. Structural market expansion is driven by demographic shifts, regulatory reforms, and an increased demand for private pension solutions. People are expected to work longer, increase private savings, and also now have greater flexibility in pension withdrawal planning due to new regulations. The Swedish market, with a total addressable size larger than the rest of the Nordics combined, offers compelling growth prospects and expansion opportunities, so we believe the market is attractive, then an internal perspective reflecting on our own progress in this market. We have demonstrated robust double-digit premium growth and positive net flows.
We have maintained a strong focus on operational efficiency and scalable growth, which will continue onwards to respond to market margin pressure. Over the past decade, assets under management has doubled, while total cost levels have decreased. Looking closer on cost, we can split them into operational cost and acquisition cost. Operational cost is linked to running the business, and as you can see here on the right, the cost in relation to assets under management has more than halved during this period. On acquisition cost, growth in premium income has been achieved at significantly lower cost levels, thanks to more efficiency both for external distribution partners and more efficient internal sales channels. Our scalable platform will continue to be a key driver of efficiency improvements. Over the time, our portfolio has also shifted. The legacy book with high guarantees has declined, replaced by capital- light front book.
Today, the total portfolio consists of more than 80% of capital-l ight front book business. This shift has enabled us to upstream capital to the group. Since 2015, the entire annual result has been distributed with additional capital release paid out. So, the acquisition of SPP back in 2007 has been an attractive asset from a group perspective. We have benefited from and contributed to strong group synergies. Increased profitability and lower capital requirement have led to strong development in return on equity. So, to summarize where we come from, we have delivered scalable growth. We have increased operational efficiency and increased profitability. The internal operating model has, over the last year, transformed into an agile digital workforce with cross-functional competences to accelerate speed and accuracy. Speed and accuracy is key. This is a solid foundation for the next phase of growth and value creation.
Our objectives onwards then, focusing on maintaining our existing business while laying the groundwork for further deliveries of profitable growth. We are evolving from a niche Unit Linked position in Sweden with new capacity to expand and increase addressable market within the life and pension space. This means that we will maintain core business qualities but add savings product capabilities to address additional segments' needs of long-term savings. Looking then towards the strategy period ahead of us, we are charting a new course to expand our life and pension footprints in Sweden. We have set clear ambitions, and this journey has already underway. It's building on the objectives articulated at the previous capital markets day. We will accelerate from three strategic pillars. One is leveraging a strong market position, including strengthened distribution capacity.
We will expand value proposition to address targeted segments' need and, of course, continue managing cost and operational excellence to sustain created value. Clear commercial initiatives underpin the strategic pillars, and I would like to highlight a few examples for you. This will pave the way forward, and one of them is that we have significantly increased brand awareness and preferences, driving progress in key segments during the last year. This will fuel our conversion ability onwards. We have strong partner integration capabilities already, and we have now announced a partnership with Danske Bank as a new distribution partner, enabling broader market reach and new growth opportunities. This means a strengthened capacity into the SME segment, as well as added value proposition for individual customers.
Our core value proposition targeting employers and their employees has evolved through smart digital solutions that streamline the customer journey, which will boost efficiency and strengthen our competitive edge. Our new Capital Light Guaranteed savings product that will be reviewed by Vivi in the Guaranteed session later has already surpassed SEK 1 billion in assets, its first year. It demonstrates growth potential and client demand. We are also advancing group initiatives in data and AI to further enhance scalability and operational efficiency. Just during the current year, 26,000 cases have been processed through robotics instead of manual people. So, that was a few examples of our ongoing commercial initiatives for the three years to come, and if we look even further ahead to what we call the future of SPP, we see opportunities to expand our presence in the Swedish market further.
New capabilities provide additional options for extended market footprint nearby pension and savings segments. By building the digital machine with a fully digital servicing model, we aim to deliver superior customer and partnership value, drive transformation, and unlock new revenue streams. A mature and fragmented local market presents also opportunities for consolidation, and we believe SPP is well positioned to play a key proactive role in this evolving ecosystem, so in conclusion, our overall targets for the savings segments in Sweden are continued double-digit top-line growth and positive net flows leading to robust assets under management growth, relentless focus on operational leverage for reducing cost-income. All of this leads to our stated key target: 10% profit growth for the segment in Sweden, and this is based on maintaining our current core business while we are expanding our footprint into growing life and pension markets, so thanks for paying attention.
Now over to you, Vivi, for the Unit Linked business in Norway.
Thank you, Jenny. It's my pleasure to present the growing and attractive Norwegian Unit Linked business. I'll start by giving you an overview of our business before I move on to the structured growth in the Norwegian market. After that, and as a key part of this session, I will focus on our performance the last few years and our strategy and efforts in this market going forward. We are the leading player in Norway's Unit Linked market, managing NOK 222 billion in occupational pensions, which constitutes a 28% market share. Furthermore, we have NOK 50 billion in retail savings. These positions are supported by a strong value proposition. We have the most liked investment app, Kron, which was recently launched for pension customers.
We have market-leading digital platform and services, as well as a comprehensive range of pension investment profiles with strong investment performance. In addition, we have Norway's most satisfied corporate customers. As you may recall from our previous Capital Markets Day, this slide outlines the key elements of the Norwegian pension system. The occupational market consists of three distinct segments and product types, amounting to nearly NOK 2.5 trillion in total. In the following section, I will focus on the strategically important private sector defined contribution market, the upper part of this overview. Later, in the Guaranteed session, we will revisit the defined benefit and public sector pension segments. Defined contribution schemes were introduced in Norway in 2001, a short time frame in pension terms, meaning that only a small portion of pension assets are currently in the payout phase.
Today, more than 2 million employees hold individual pension accounts, and the market has reached NOK 740 billion. These assets cannot be withdrawn before retirement, creating a stable and highly resilient asset under management base. We expect annual contributions to exceed pension payments in about 20 years going forward. And at that point in time, investment returns will still involve asset growth in the market. With the individual pension account reform back in 2021, employees were allowed to select their own pension provider. Currently, this segment amounts to roughly 10% of the total assets under management. Another key factor that will add to future market growth is policy initiatives to increase the mandatory minimum savings rate. It is currently at 2% and has been unchanged since the introduction of defined contribution. While average contributions are higher, more than 600,000 employees still receive only the minimum contribution.
We continue to deliver strong and consistent performance. Over the last 12 months, earnings reached NOK 703 million, representing a 23% annual increase since 2023. Most assets are managed by Storebrand Asset Management, creating synergies that reinforce group profitability. Assets under management have grown by 18% annually since 2023, supported by solid pension premiums, favorable markets, development, and strong investment returns. The revenue model combines fixed administration fees and assets under management fees. As assets scale, margins will decline due to the fixed fees. At the same time, the industry continues to face pressure from falling management fees and a shift towards index investments. As you can see, we have achieved material improvements in the cost-income ratio, driven by disciplined cost management and ongoing efforts within efficiency, automation, and scalability. With further initiatives underway, we are well positioned to sustain strong profitability and resilience in a competitive landscape.
Going forward, the defined contribution market will remain a core pillar of our growth strategy. In the near term, we will defend and strengthen our position despite intensified competition from retail-focused providers. We will leverage scale through further automation, digitalization, and operational efficiency. With that in mind, we will now turn to the two key drivers underpinning our competitive position, starting with our efforts to maintain our strong market position. We will maintain our leadership in the defined contribution market by excelling in both the self-selected segment and the corporate business-to-business market. We are executing several strategic and operational initiatives to deliver on this ambition, and let me highlight three of them. First, we are a specialist in pension and savings, offering a uniquely comprehensive product range.
This allows us to leverage scale and deliver high-quality experiences across all customer segments, from large corporates seeking a full-service solution to smaller companies preferring an easily accessible and off-the-shelf digital offering. Secondly, we operate a multi-channel distribution model. We have strong internal distribution capabilities through our own sales advisory, which we combine with leading digital sales solutions. It is complemented by external channels such as brokers and strategic partnerships. And thirdly, our distribution capitalizes on the Kron app, now fully pension-ready, as a key asset for distribution and retention in both corporate and individual segments. Our growth in the self-selected market is a strong example of this, where we currently hold a 21% market share, and new sales in 2025 is at the same level. And where most of our growth is through Kron, which has proven to be a highly scalable distribution platform.
Altogether, these key initiatives will give us the strength to sustain our market leadership and strong commercial success. In parallel with our growth ambitions, we plan on further improving the scalability of our pension platform. Following several successful improvement programs across core systems, IT, and automation, we are well positioned for the next phase of efficiency initiatives. We see additional potential in automation, including the use of artificial intelligence, and continue to drive operational excellence supported by a strong cost-conscious culture. Cost discipline remains a priority to ensure that top-line growth translates into earnings growth. And together with structural market growth, these initiatives will continue to strengthen our efficiency and improve key performance indicators on operational leverage. As this chart illustrates, the cost-income ratio has already declined materially in recent years, and we are fully committed to continue this positive trajectory going forward.
To sum up, our ambitions for the Unit Linked Norway are clear and firm. We aim to maintain our market-leading position and by that deliver 12%-14% volume growth, to improve our cost-income ratio by 2-4 percentage points, and to achieve 7%-9% annual growth in operating profits. I will now hand over to Camilla, who will cover the retail market. Thank you.
Thank you, Vivi. I will then sum up this part of the savings segment, and I will cover the results for the banking and retail savings now. Storebrand Bank has become a significant challenger in the Norwegian market, and over the past years, we've strengthened our position across mortgages, deposits, and savings. The mortgage market share has increased from just above 2% to roughly 3%, supported by volume growth and improved profitability.
Through the integration of Kron, we now combine a fully digital bank with Norway's leading digital savings platform, and this positions us in both the fast-growing savings market and the affluent segment. Our private banking offering combines Kron's digital strength with our banking advisory, scaling a business model aimed at capturing a larger share of the fast-growing wealth market in Norway. Mortgages represent a mature and steadily growing market, with growth rates closely linked to GDP, and where gaining market share gives us access to a large profit pool. The retail savings market is driven by strong underlying structural growth, with an ever-increasing number of Norwegians choosing to save in mutual funds and equities. We see that customers prefer digital platforms and self-directed pension and investment accounts. This is the environment that Kron is built for. In 2023, we committed to double-digit growth in mortgages, savings, and cash earnings.
And as you can see, we have delivered on all three commitments, driven by higher volumes and stable margins. Storebrand Bank is now a significant source of income for the group, with a healthier deposit-to-loan ratio and an improved net interest margin. Mortgage lending has been and will continue to be a main revenue stream for the bank. However, as I mentioned, over the next decade, we see savings and other capital-light revenue streams as ever more important. We have a clear advantage in capturing an unfair share of this growth, given the group's strength and position in fund management, pension, and insurance. Between 2026 and 2035, lending is expected to grow at a stable pace, and our savings ambition is to capture an increasing share of the growing market through scaling our savings and pension distribution and extracting leverage from platform economics.
As our income model is shifting, net interest income from mortgages and deposits remains important. At the same time, an increasing share will come from fee-based distribution driven primarily through deposits and savings through our Kron platform and banking advisory, and also from pensions and Unit Linked distribution. Cross-sales across the whole retail segment ensures synergy effects. The bank's role as a customer hub strengthens long-term customer retention and lifetime value. The Kron integration amplifies this by lowering acquisition costs and improving conversion across the group's product set. Kron is now the scalable digital core of our savings strategy. Three drivers matter most. The first driver is product distribution, with broad fund offering and engaging individual pension and long-term saving customers. Our hybrid model, where we combine Kron's digital journeys with private banking advisory for affluent customers, will enhance growth.
Second, Kron has the highest customer satisfaction in the Norwegian market, driving customer loyalty and engagement, and third, low marginal costs per new customer and continuous automation improve efficiency and enable scalability. In combination, this creates a capital-like growth engine aligned with the group's strategy. Three structural trends work in our favor: increased individualization of pension saving decisions, a stronger preference for self-service and own savings, demographic shifts and rising individual responsibility for retirement, rapid digitalization, and AI-driven personalization. Kron already supports pensions, mutual fund savings, and we launched private banking functionality just last week. The group's collective pension customers were able to check their pension schemes starting in September of this year, and already over 80,000 customers have used Kron to engage with their pension savings.
Looking ahead, Kron will support customers' daily banking needs, and further down the line, we plan to capitalize on the growing trend of retail securities brokerage. The potential is significant, and we have just gotten started. And with that, I'd like to summarize our ambitions across the entire savings segment for the group. Within asset management and the Unit Linked segments, we aim to deliver double-digit growth in operating profits driven by strong volume growth and improving cost-income ratio. Within retail banking and savings, we are further strengthening our position as one of the leading asset managers in the Nordics and shifting from building scale to extracting value in the retail banking segment. Our retail mortgage portfolio will continue to grow at a stable rate, supported by a strengthening deposit base. We now have meaningful scale in mortgages, deposits, and savings.
Kron gives Storebrand a clear structural advantage and differentiates us in a rapidly changing market. This positions us well to capture growth in the digital savings segment going forward. We will now have a 10-minute break before we return to the insurance segment. Thank you.
[Foreigh language ]
Welcome back. What you just saw was an introduction to our new disability prevention program, VEL, and more on this later. So now let's move on to the insurance segment. The insurance business is presented in line with the external reporting format, divided into corporate insurance and retail insurance. I will start with a brief overview of the entire segment, then move on to corporate insurance, and finally wrap up with a more in-depth view on retail. Storebrand's insurance business has become a sizable, diversified part of the group.
Premiums passed NOK 10 billion in Q3 this year, up about 20% year- on- year, driven by both price and volume growth across the segments. Growth is supported by a broad distribution model, strong partnerships, and solid in-house competencies. In the retail market, our Norwegian footprint keeps expanding, now at 7.7% market share and 350,000 customers. In the corporate segment, we hold a strong position in pension-related disability and are scaling our P&C offering, currently at roughly 2% of the market. The insurance portfolio has both grown significantly and undergone a shift in segment composition in the past eight years. The mix has shifted from about 55%-45%, respectively, corporate retail to 42%-58% today, with retail taking the larger role. Storebrand has executed a clear turnaround in the insurance segment after a couple of challenging years.
We are currently at 92% combined ratio as promised, while growing both market share in both retail and corporate segments. We are therefore on track to meet our 2025 combined ratio target, and we have exceeded our growth plans. Cash equivalent earnings before amortization and tax have risen 262% from 2023 - 2025. This uplift comes from rapid profitability actions: repricing, higher deductibles, tighter terms, and early disability prevention through our new concept, VEL, that you just saw in the video. We've tightened risk selection, reduced costs related to claims, and driven operational improvements across the business. This gives us a much stronger and more scalable platform for continued profitable growth. In sum, we now have a diversified portfolio across the group, and I will now look a bit closer at each of the segments, starting with a look at the corporate segment.
In Norway, 20% of people of working age, around 700,000, are outside of work or education, with disability benefits as the largest group. Mental health issues and fatigue are the main drivers behind rising sick leave and disability, and Norway stands out in Europe in negative terms. Our goal is to help employees on sick leave or disability to return to work and ideally support them before they reach that point. That's why we have launched Storebrand VEL, a preventative program that we built into our corporate disability products from 2026. Our CEO talked about VEL earlier today, and the aim is to strengthen inclusion, reduce long-term sickness, and support broader social sustainability. Storebrand pays out more than NOK 3 billion a year in disability pensions. Cutting disability by 5% through VEL would reduce payouts by roughly NOK 115 million.
Once fully scaled in early 2026, VEL will reach 40,000 corporates and 500,000 employees, making a measurable national impact. Corporate P&C has scaled fast. We guided for 25%-30% annual growth at the CMD two years ago, and we landed at 35%. The portfolio now exceeds NOK 600 million in portfolio premiums, about 2% market share, and 13,000 customers. Motor fleets and property make up most of the book. We see a huge potential to push harder and aim to double premiums by 2028 with 25%-30% annual growth, and our focuses are clear: strong risk frameworks in motor and property, more firepower distribution across agents, brokers, and direct channels, and digital development to support scale and sharpen our value proposition, and as you can see, we have an ambitious growth journey ahead of us. Now it's time for a deep dive in retail insurance.
The Norwegian retail market is big, steady, and profitable. Non-life premiums are about NOK 67 billion, with long-term mid-single-digit growth once recent price effects level out. Growth is driven by population gains, rising wealth, high insurance penetration, and regular repricing. Nordic markets share the same strengths: concentrated competition, disciplined players, and strong digital distribution. The top four hold roughly 80% of the market across Norway, Sweden, and Denmark, which keeps pricing rational and margins resilient. Since 2018, Storebrand has been the only player consistently gaining share, adding about 0.6 percentage points every year. In 2018, we shifted to a growth-focused strategy in retail. We expanded distribution through partners, brokers, digital channels, and built a tight agent force with significant reach. Partnerships with Norwegian organizations Huseierne, Akademikerne, and Coop further boosted our reach and visibility, and the insurance portfolio acquisition added scale and kickstarted our SME expansion.
In 2022 - 2025, we invested in rapid retail growth through agents that drove higher upfront acquisition costs, a deliberate choice to build long-term capacity. We're now moving from heavy investment to a more balanced, sustained growth. Scale benefits are already in place, and as the portfolio matures and digital and renewal-driven sales rise, acquisition costs will fall as a share of premiums. That shift will bring a structurally lower cost, lower claims ratio, and support stable, profitable growth ahead. In 2025, we adjusted our segment reporting to show the true performance of retail insurance. The picture since 2018 is quite clear: strong, consistent growth while keeping profitability intact. Retail is inherently more stable thanks to broad diversification, predictable personal line claims, and high renewal rates.
The claim cycle in 2023 - 2024 was tough for the whole market, with higher frequency, mainly driven by extreme weather and cost inflation in motor and property. We responded with pricing measures, tighter terms, and stronger underwriting. The portfolio is now back at normalized profitability levels. While growing fast and handling higher claims, we've also reshaped our cost base. Distribution spend within retail insurance rose from 4% of premiums in 2018 to 11% today, with no deferral, so the full cost is taken each year. At the same time, we built new capabilities in digital, pricing, underwriting, product, and control, and still managed to cut other costs by 5 percentage points since 2018 through scale. As the portfolio grows, we expect distribution and other costs to decline as a share of premium, given the scalability of the platform. We're pushing all main value drivers to scale even further.
Our priorities are clear: keep growing profitably with a balanced distribution mix across external, internal, digital, and partner channels, tighten pricing and underwriting to protect margins, reduce claims costs through automation, smarter steering, and stronger procurement, and unlock more scale by automating sales, service, and operations, and I'll break these down in more detail next. We're keeping our growth ambitions high, and we will use all levers to drive it, but with a more balanced distribution mix. The external agent network is large enough, so the focus shifts to improving efficiency rather than adding capacity. Their share of sales will naturally decline as the mix matures. We'll grow inbound sales and expand in transaction channels like real estate and car dealerships. On top of that, we continue to benefit from strong group synergies, brand strength, an attractive customer base, and capital advantages, all supporting profitable growth going forward.
Our rapid growth naturally affects churn and claims ratios. A young portfolio has more new customers, and they come with higher churn, introductory discounts, and limited claims history. The mature part of the book already performs at our long-term targets. So, as growth normalizes and the share of new customers drops, the portfolio will price more accurately, and both claims ratio and retention will improve. In our pricing and underwriting, we've implemented differentiated tariffs that lift margins without losing our best customers. We're tightening across the board with sharper pricing, better claims insight, and closer tracking of inflation. A key driver is our new pricing engine, which lets us update tariffs faster and use a more granular risk segmentation. We've also strengthened the pricing and underwriting teams to push this further. On claims, our focus is efficiency and costs.
Most customers report digitally, but only a third of our claims are automated today. We're on our way toward 50% by 2028. Steering to preferred suppliers is around 90%, supported by digital guidance, especially in motor, and we continue to reduce cost and footprint by preventing claims where possible and pushing repair and reuse over replacement, and together, these enablers drive a steadily improving claims ratio going forward. Moving on to the cost ratio, we're lifting operational performance through scale automation and digital tools. This reduces admin and sales costs, speeding up processing and improving customer experience. Our automation robot, Bob, has taken over a big share of manual tasks, cutting FTE needs and delivering clear savings. As an example, the call center that sits up here needs 15 fewer FTEs, and we can keep growing without adding back office staff.
These initiatives have improved our cost ratio substantially, as illustrated on our previous slides, and the next step is upgrading customer interaction with full AI-driven service. As automation increases and processes keep improving, we're strengthening our margins and overall competitiveness, so to summarize the ambitions for the insurance segment as a whole going forward, we are targeting sustained double-digit growth of more than 10% annually. Our objective is to maintain our combined ratio at 90% or below. This approach is expected to support continued profitable expansion and enable us to further increase our market share. Thank you for your attention, and I will now proceed to the Norwegian and Swedish Guaranteed business, which will be presented by Vivi. Thank you.
Thank you, Camilla, and it's great to be back on the stage again. It's my pleasure to present the Guaranteed segment.
There are three key takeaways from our plans going forward. First, Closed Book portfolio remains profitable with an expected increase in profit sharing. Second, we are pursuing new Guaranteed business opportunities with significantly lower capital consumption. And third, we aim to further reduce capital intensity and improve return on equity. Let me now move to how we will succeed. Storebrand has a strong history in Guaranteed pensions with a large footprint across Norway and Sweden. We serve more than 1.1 million individuals and manage over NOK 300 billion in reserves. This is a financially healthy market that contributes solidly to both our life company earnings and asset management profits. Our legacy Guaranteed portfolio is largely closed for new sales. It is managed with strong discipline to protect shareholder equity and increase long-term value.
At the same time, we are developing new Guaranteed solutions with lower capital requirements than the Closed Book, allowing for profitable growth. We are operating in three segments of the Guaranteed market, including Defined Benefit and paid-up policies in Norway and Guaranteed products in Sweden. The Defined Benefit segment constitutes NOK 58 billion of reserves altogether. Roughly half of this segment is private sector Defined Benefit pensions. As most Norwegian corporations are now offering Defined Contribution, this part of the portfolio is in runoff. The other half is the fast-growing public sector, and I will revert to this opportunity in a moment. The largest segment is the paid-up policies of NOK 156 billion. These reserves stem from private sector Defined Benefit schemes and are mainly in the payout phase. We are also operating a Swedish Guaranteed business with NOK 89 billion of assets.
Altogether, the Guaranteed business in Norway and Sweden constitutes an important part of group earnings. Across the Guaranteed business, our ambition is to grow reserves both through the strategic period and over the longer term. The predictable runoff in the existing portfolio will be more than offset by growth in capital-efficient products in Norway and Sweden. Moreover, volumes are expected to grow significantly in case of the public sector transfer market becoming more open, which I will come back to soon. To explain the value creation potential for the Guaranteed business, we have illustrated four areas which might be of particular interest, both short and long term. These are: one, to increase value creation from existing closed business; two, being the preferred manager of closed corporate pension funds; three, to succeed as a challenger in the public sector; and four, growing capital-light Guaranteed savings in Sweden.
The existing Guaranteed business has generated results for many years and increasingly over the past years through profit sharing. A modest decline in operating results going forward is likely to be more than offset by increasing profit sharing from the Norwegian paid-ups portfolio. This means that results will increase for the strategy period in normalized markets. In Norway, many companies still operate closed pension funds dating back to when Guaranteed pensions were mandatory. These funds hold roughly NOK 270 billion in reserves. Companies are now facing challenges as assets decline while regulatory and operational complexity remains high. Consequently, several corporates are divesting these funds to free up regulatory capital and remove Guaranteed liabilities from their balance sheets. We have a strong track record as a partner in these transactions, having transferred NOK 8 billion of pension funds on capital-efficient terms.
To further support our growth ambitions, we see the public occupational pension market as an attractive opportunity. This includes extending our corporate pension offering to public sector customers and to increase cross-sales into the retail market, as well as adding assets under management to Storebrand Asset Management. The public sector represents a total addressable market of NOK 1,000 billion. It is large, it is profitable, and it's a growing market, and it's currently dominated by a single provider. This is because tender processes are not yet perceived as mandatory, resulting in the transfer market far from its full potential. We believe in an opening of the market over time. This could be accelerated if the EFTA Surveillance Authority follow up their preliminary view that tender processes are mandatory. We have a strong track record in this market, having won the majority of tender offers to date.
This success reflects our competitive pricing across several components, as well as our robust solutions and services. In addition, transferring public pension schemes to Storebrand provides opportunities for municipalities to release tied-up capital to support their own budgets. Let me now move on to Sweden. The Guaranteed segment in Sweden has been growing since the launch of our new capital-light guarantee in 2023. This has driven positive developments in both premium income and transfer balances. The growth journey is still in its early stages, with significant potential to capture transfers from the large Unit Linked market. Customers are responding well to our offering, brand positioning, and value proposition, particularly those in our target segment, age 55 and above. Growth in this market is especially attractive for Storebrand due to the combination of relatively low capital requirements, higher margins, and low churn.
Our ambitions for the Guaranteed market for the strategy period are threefold and as follows. First, increase the total assets under management from current levels. Our ambition is to more than offset the decline from the runoff business with new capital-light Guaranteed business. Secondly, to increase the total results by 3%-5% per year, and thirdly, to increase return on equity for the Guaranteed portfolio to 8%-10% from 2028. Before I conclude, I want to add a particularly important effect on value creation. As the transition toward a more capital-light Guaranteed portfolio progresses, capital will be released from the business, enabling additional cash upstreaming to our parent company. As a result, the actual cash flow generated from the Guaranteed segment will significantly exceed its book results over the strategy period, strengthening the capital distribution capacity for the group.
And on that note, let me now hand over to our CFO, Kjetil, who will dive more into this and present our group's financial ambitions. Thank you for your attention.
Well, thank you, Vivi. We have heard the strategy, and we've heard the business side. I now look forward to present our financial ambitions. We're looking 10 years into the future this Capital Markets Day, but let me also take the opportunity to look 10 years back in time. Storebrand has outperformed its relevant comparison benchmarks and delivered more than 20% annual return. Looking back to when Odd Grefstad took over as Group CEO, Storebrand has in total delivered 872% total shareholder return. With the plan we present today, we believe that we are well positioned to create shareholder value also for the next decade. I'll spend most of my time today on two main messages.
First, I want to show how our increasing results, combined with a strong balance sheet and increasing remittance, give a solid foundation for increased capital allocation to dividends, buybacks, and growth. Secondly, I want to show that the structural change in the business is not a three-year horizon. Our ambition is that this will continue to play out over the next decade, meaning higher earnings per share growth than result growth, combined with a capital light business with higher total return on equity over time. I'll start with the results, then the balance sheet and remittance, before we look at how it all plays together to increase capital allocation to shareholders and profitable growth over the short and the long term. Let us start with result generation. We have delivered on the growth and the margins we needed to reach our result target from the 2023 capital markets day.
And we have delivered on guided costs and the financial results. With this backdrop, I'm very happy to reaffirm that we are well underway to deliver above our NOK 5 billion result target for 2025. We today announced a new target of delivering NOK 7 billion in results before amortization in 2028. This implies an 8%-10% annual result growth for the group. Let me just highlight that the numbers we present here today are based on our cash-based reporting, and factors outside our control, financial markets, regulatory environment, and other factors will affect actual result generation going forward. And we also realize that 2028 is a bit out, so we plan to host a strategic update in 2026 or 2027 to present the progress towards the target, and especially if some factors outside of our control shift significantly.
Let's now dive deeper into the top line costs and financial results we need to achieve to end up at the NOK 7 billion ambition. First, let me spend a couple of minutes on the volumes and margins that make up our top line. In Unit Linked Norway, we have around NOK 500 billion. We expect that to grow double-digit over the next three years and the top line margin to be in the area of 45-50 basis points. The reduced fee margins compared to current levels reflect a combination of fee pressure and, as Vivi said, the fact that some fixed per contract fee elements become a smaller part of the total as assets under management per contract grow.
For the asset management segment, we expect that today's NOK 1,500 billion will grow somewhere in the area of 7%-9% annually with a top line income margin of 18-21 basis points. In the bank, 5%-10% growth annually and 1.2 in net interest rate margin. For the insurance business, we're still expecting organic growth both from pricing and market shares. The annual growth is expected to be 10% or above with a combined ratio of 90% or below. Lastly, we expect the Guaranteed business to be flattish in the period. Let me move on to the operational cost development. When it comes to cost, the most important thing is to manage costs for scalable growth and to do selective investments in certain growth areas.
In the savings business, we will invest in a fully fledged retail savings platform and make Kron a full savings platform for the whole Norwegian market, while also working on measures to scale the business better in asset management. Taken together, we will have roughly 4% annual growth in cost in the savings segment and an improved cost- income over the period. In insurance, we will improve the cost ratio, but the strong growth means that we need to scale up the business and invest in more digital core systems and streamline price and claims handling. In total, we expect around 8%-10% annual cost growth from this area, depending on the growth of the top line. The Guaranteed is in runoff, and here we expect more inflation- minus cost development, and we need to work very hard to maintain the cost- income in this segment.
Altogether, this gives us a cost development of around 5%, and we do have levers to adjust the cost development if the top line growth is unsatisfactory, so if we take this all together and we get an operational result development that is expected to grow double-digit. A couple of observations on the development in operational results. First, we expect operational results to grow faster than the financial results. This increases the quality of earnings in the group. Second, a higher proportion of operational result is expected to be generated by the insurance segment compared to the current composition. The implication is that operational results will be less impacted by financial market volatility over time, and thirdly, the insurance business is developing into a more short-tailed business with lower exposure to biometric risk. This should also, on an expected basis, mean lower result volatility.
Let me move to the last result element, the financial result. We see a growing financial result driven by increased profit sharing from the Guaranteed business. Altogether, we increase the expected level for profit sharing to NOK 700 million. This is due to higher buffer capital in the Norwegian business and the persistent higher interest rate environment priced into today's market curve. When it comes to company portfolios, including insurance, we expect around NOK 1.5 billion in annual return. The cost of debt is around NOK 0.6 billion, meaning that net company capital is expected to give around NOK 0.9 billion in annual result contribution. So, to sum up the results part of the presentation, we announce a result ambition of NOK 7 billion, continued double-digit growth in savings and insurance, all the while we improve cost- income and combined ratios. So, let's move to the solvency and the balance sheet.
The headline here is that the long-term balance sheet transformation reduces capital intensity, leading to a more resilient group with higher return. This is illustrated by the transition from capital-consumptive Guaranteed business to a diversified Nordic savings and insurance group. The shift in premiums and total assets under management illustrates this in a good way. Most of the premiums and the assets under management came from the Guaranteed business back in 2012. Today, Guaranteed is 13% of premiums and 19% of assets under management. The rest is made up by savings without any guarantees and insurance. All the while, total assets under management has tripled in the same period. When we look at the resilience from a solvency perspective, we see that we're quite robust towards various shocks.
This is a reflection of closer matching of assets and liabilities, lower interest rate guarantees and higher buffers, and a more profitable group, also including the Guaranteed Back Book. The group has modest leverage. We have a little less than 20% leverage in the group today. We aim to be moderately leveraged compared to peers, and we think this strengthens the robustness of the balance sheet. If we look into the next decade, we can expect a continued and material change in the balance sheet from Guaranteed liabilities towards savings and insurance products, reducing capital intensity and improving the overall risk profile. 43% of the capital requirements today come from the Guaranteed Back Book. Whilst out in 2035, this is expected to be only 20% of the capital requirements of the group.
In my view, this underscores the point that the change we have seen for the last 10 years is going to continue also for the next 10 years as a driver for value creation in the group. So, in summary, we show resilience with low solvency sensitivities. We have moderate leverage and a balance sheet transformation that will continue over the next decade. Moving over to the next part, liquidity and remittance. We want to put a little bit more emphasis on this topic as this is more and more important for the understanding of the cash buildup and the capital allocation in the group. As a starting point, the results we present are close to cash. So, the baseline is that results are upstreamed to the holding company.
And over the last years, we have done so with some extra upstreaming from the over-capitalized life insurance company, but also some capital to fund double-digit growth in insurance and banking and growth in the public sector. And this is how we expect it to look for the strategic period until 2028. The short story here is that we think roughly 100% of the results after tax will be streamed up to the holding company. Our expectation is that we will remit NOK 1 billion above the result in the life company on an annual basis until the end of the 2028 strategy period. But we will also keep some liquidity to grow the bank and insurance. As for the year 2026, based on the results we expect to create this year, we expect a stronger than normal year for remittance.
This is supported by capital release from the bank and also that this is the last year with tax losses carried forward. As for the holding company, we have a normal financial flexibility to do dividends and plan buybacks and small M&A with a liquidity level between NOK 2 billion and NOK 4 billion. If liquidity is in the NOK 4 billion-NOK 6 billion range on an ongoing basis, the board will consider to do extraordinary capital distribution to shareholders outside the ambitions we have given here today. So, to sum up liquidity and remittance, results are close to cash. Remittance ratio of 100% is expected, and we have provided some liquidity thresholds to help the market understand how the group thinks about whole core liquidity, not as a firm rule, but as a guidance.
That moves us into the last part, which is taking result generation, the balance sheet and remittance into capital allocation. If you look at the period since the last capital markets day, we have delivered strong shareholder returns through prudent capital allocation. If you look at the results and the total cash generation coming from results and capital release, we have used around 20% to fuel the much more than double-digit growth. We have also done some M&A, but as these are both businesses acquired and divested, the net number is not a very material number in this period. Around 95% is spent on dividends and share buyback, and the rest, a minor liquidity buildup. When we look at the expected capital allocation for the next three years, we believe that we are well positioned to continue delivering strong returns with a highly capital-efficient model.
With double-digit dividend growth and planned buybacks, and that the NOK 7 billion result ambition materializes, additional capital will likely be available for shareholder-friendly purposes. This can be allocated to dividends, share buybacks, organic growth, and structural initiatives with a hurdle rate well north of the group's cost of capital. We keep our dividend policy and uphold our threshold for over-capitalization. If we are above 175%, we will continue to do increasing dividends and share buybacks. But going into 2026, we raise our ambitions for capital distribution. Looking more specifically at the strategic period, the board has said that they expect dividend growth from 2024 to 2025 to be broadly consistent with previous years, which was 15%. Going forward, the board expects to have a dividend growth of 10% or higher for the rest of the strategic period.
When it comes to share buybacks, we have said that we do not plan to build a war chest, and if we see liquidity building up, we also have said many times that we plan to give more of that back to shareholders or invest in further growth. With the visibility we now have on remittance, we plan to do NOK 2 billion of share buybacks in 2026 and then back to NOK 1.5 billion in the years to come, ending up at more than NOK 12 billion total share buybacks by 2030. This means an increased ambition from our CMD in 2023, and it's also worth to note, given that we are in a 10-year timeframe, that we see no reason why we should not be able to continue with share buybacks or other capital distribution to shareholders after 2030. We have talked about the transformation of the balance sheet before.
This illustrates the same point with a snapshot of last 12 months' return on equity for the savings and insurance business we call Future Storebrand and the Guaranteed Back Book. Future Storebrand grows with a low need for new shareholder equity allocated to the growth and hence delivers high return on allocated IFRS equity. At the same time, the Guaranteed business is improving and set to approach 10% return on equity over time. And this means that the group ROE is also set to increase over time. So, let's take the more long-term glasses on. If we are able to deliver on the ambition of NOK 7 billion in 2028, that gives an annual result growth of 8%-10% and an earnings per share growth above 10% for the group. But we also have an ambition to improve results and capital efficiency well beyond the strategy period.
This is, of course, not a formal guidance, but to underline that we believe that to truly understand Storebrand, there is a need to have an understanding of both the short-term and the long-term horizon, and longer-term, of course, there's a lot of uncertainty, but even with moderate assumption, we expect sustained high EPS growth for the group as long as we can combine result growth with share buybacks. Today, we increase our target return on equity from 14% to 17% in 2028, and we see out in time, as the balance sheet continues to shift and we continue to do share buybacks and we continue to have lower capital requirements in the new business, that the ROE should be sustainably above 20% over the longer-term horizon, and lastly, we believe that we have a robust value proposition to shareholders in various scenarios.
Even in a no-result growth scenario, the business will approach the 20% return on equity as the balance sheet naturally shifts. In this scenario, it will still be around NOK 50 billion in capital distribution potential. This is, of course, not the scenario we plan for or believe in, but it shows that even in a very demanding scenario, shareholder value will be created. If results go more in line with scenario one, based on the current strategic plan, it should lead to a markedly higher results to do multiples on in 2035. In this scenario, the group will have delivered attractive capital allocation along the way and end up with a structurally higher return on equity from growth in the front book and strong EPS growth from continued share buybacks.
Scenario one, continued growth over the next 10 years, is what we go to work every day to deliver. Let me end up with a summary of Storebrand's updated financial ambitions. We raise our result target to NOK 7 billion for 2028. We lift our return on equity target to 17%. We aim to achieve double-digit dividend growth, starting with a roughly 15% uplift for the current year. We today announce our intention of executing NOK 2 billion in buybacks in 2026. Lastly, we stick to our long-term commitment of NOK 1.5 billion of buybacks per annum towards the year end 2030, with a strong capital distribution capacity also beyond 2030. That concludes my presentation. Thank you for your attention, and I will now invite Odd Arild up on stage for some very brief concluding remarks before we open up for Q&A.
Thank you, Kjetil. Very clear.
To sum up this Capital Markets Day, I would like to leave you with one very important point, a point that really defines Storebrand's position and potential. Storebrand offers a unique and unmatched combination in our industry. We are delivering strong growth, and we are seeing increasing returns on capital, and we provide an attractive and reliable yield. This is how we are scaling our leading Nordic savings and insurance group, a business built for long-term value creation, and with that, I would like to invite Johannes, our head of investor relations, to the stage to lead the Q&A session.
All good with the sound?
Yeah.
We are now ready for the Q&A session. To ensure everything runs smoothly, please note the following practical guidelines. We will start by taking questions from analysts and institutional investors here in the room, followed by a question from those joining us online.
If you are attending in person, please raise your hand to indicate that you are here and would like to ask a question. For webinar participants, please use the raise hand function to join the queue. A microphone will be provided before you speak. When it's your turn, please begin by stating your name and the firm you represent. To ensure everyone has the opportunity to participate, we kindly ask you to limit yourself to a maximum of two questions at a time. With the practicalities covered, we will now begin the Q&A session. Let's take the first question from the audience here in the room, maybe starting with Hans in the front.
Hans Rettedal Christiansen, Danske Bank Markets. Thank you for taking my question, and thank you for a very thorough presentation.
Trying to limit it to two questions is difficult, but maybe if I start where you started on strategy, and I guess a word that keeps going again and again is scalability. Maybe perhaps especially within asset management. So my question is, in the improved cost-income ratio, how important is sort of the alternatives initiatives that you have, and how much of it is, if I can say, true scalability versus how much is just operational leverage from fundraising within those funds going forwards here? That's my first question. And then my second question is on capital. And thank you for providing the slides on remittance. So now you say you expect 100% remittance.
Just if I can do a calculation and see if it's correct. If you have NOK 7 billion in pre-tax profits in 2027, you take that net of tax, you're maybe at NOK 5 billion-NOK 5.5 billion in net income. If you're growing dividends, that's a 15% per year, you'd be at NOK 3 billion-NOK 3.5 billion in dividends in 2027, and you have NOK 1.5 billion in share buybacks. How much capital does the future business need to grow? That's my first question. And then the second question is, at which point would you consider sort of increased share buybacks if you don't see any other structural opportunities?
Should I start with asset management and you think about remittance, Kjetil? I think we see an underlying strong scalability in the more conventional part of our asset management business.
And we, as Jan Erik showed, have a lot of tools now to really consolidate on the platform. And that means also that we will have real cost efficiency over the next couple of years that will give the leverage you are seeing. Then, of course, alternatives will have impact in some years. But we are looking at these two ways to have a scalability in the more conventional part with effective cost elements giving that scalability. And on top of that, see that income from the alternatives comes through year by year by fundraising, as also shown in the slides.
All right, on remittance, I think top-down you're thinking correctly. And what we've said is that we will upstream NOK 1 billion extra from the life company, but consume more or less that for growth.
I think that roughly answers the question of how much the growth is projected to cost. And then, of course, we will see what the actual growth will be over the period. And I think you're also correct in saying, as I think I mentioned, that if we deliver the NOK 7 billion and we grow as planned, there should be a liquidity build-up along the way. And I think the guidance the board has given with solvency and also HoldCo liquidity should give a reasonable guidance on how they think. So if we have the solvency we expect to have and we see the HoldCo liquidity being in the NOK 4 billion-NOK 6 billion range, the board has said that they will consider to do additional share buybacks or other capital allocations to shareholders. So I think that is the best guidance to give.
And then, of course, it's a year-by-year discussion before the board communicates to the market their intention.
It's a forward-looking view every year, of course. But I think the slide 136 in combination with 142 gives you quite clear what the ambitions from the board is when it comes to distributing capital based on liquidity and also result generation.
Thank you.
Thank you, Hans. It seems like we have some questions there from Ulrik.
Yeah, thank you, Ulrik Zürcher from Nordea. Two questions. One is a follow-up, so I'll start with that one. I was just wondering, you have NOK 100 billion AIP. It's not making any money right now. Is it possible to give any sort of effect on that when they at some point start to make an operational profit?
And then secondly, just wondering, one IT investment you're making that was pointed out was the P&C rewiring the system, I think was used. Just curious, how much does that cost? And I also assume it's part, is the cost in the insurance segment or given the synergies between areas, how do you do that?
I can start by saying that all the costs are included in the projections we have shown here. So, of course, it will be a cost of acquiring, but then, of course, also a breakdown over time in such a situation. Should we start with AIP? Yes, AIP has, as you know, 60% owned by Storebrand. It's now in a process for fundraising, and we hope for a soft close this year that will have some impact. And we also will see then the full impact of the close in 2026.
And that is an important part of the expected topping of the result, as you saw Jan Erik showed in the graph in 2026. Then there is also expected a new fund coming in place in 2028. So it's typically a very good result coming through in the years when you have the fundraising, while it's more or less a zero, well, should be some positive result, but not a high positive result in the years where you don't have this fundraising income.
And to be clear on your question, it should not be a cash burn next year. It should make a significant profit. Okay. Was it more on the second question?
No, I think on the insurance side, we've said we will invest in a new core system and also do other digitalization investments. We haven't gone out with a specific number on the investment.
We're still working on it. But of course, you're right, it's not something that you find in the cheapest shelves in the digital storefront. So, of course, it's a substantial investment. But we see that with the growth we are having in insurance, these kinds of acquisitions and digitalizations, we still see a very healthy reduction in the cost ratio in the insurance company.
Thank you.
Thank you. Roy Tilley from Arctic Securities. Thank you for the presentation today. It was very interesting, very good. Clarified a lot of questions already, I think. But I have two, and one of them is a two-parter. I'm sorry. So just to start on Unit Linked. So you've improved the transfer balance in Sweden over the last few quarters, and it's near zero. But the Norwegian transfer balance has gone the other way. So we're losing a few billion each quarter in Unit Linked.
So where are those customers moving? And in your 12%-14% AUM CAGRs, is there an assumption that transfer balance will be zero, or it's kind of underlying that assumption?
Yeah, I can start on that. As you see, we have now also taken into account somewhat lower margins going forward in Unit Linked. We have had quite a healthy build-up of the margins in insurance also within this combined Unit Linked product. But it has come with a price when it comes to transfer balance. Now we will focus on both profitability, but also the volumes, and we have a very good competitive situation that we want to also utilize in the market in a good way going forward. That is reflected in these numbers. And based on that, we expect to have a positive, well, a neutral to positive transfer balance going forward.
That is one of our clear goals.
Okay, thank you. Then just a question on the bank. The margin outlook for 2028 is 1.2%, which is fairly in line with what you had in 2022, even though I'm assuming policy rates will be a lot higher in 2028 and 2022. So how much margin pressure are you baking into those assumptions?
Yeah, so right now we see some natural margin pressure coming from the rate outlook. Then I think we're going to work very hard to deliver higher than the 1.2%. But that is the kind of stated ambition we have today. So there's obviously some margin pressure in there, but that is one where we will report back and do a lot of measures to try to end up higher than the 1.2%.
I think we were a bit cautious based on the rate we saw when we made this. It was somewhat better today. But anyway, we take a bit cautious view into the banking margins when we did the overall plan.
Okay, thank you.
Thank you, Roy. Would you pass the microphone forward or backward to Simon? Thank you.
Thank you. Simon Bruun, ABG Sundal Collier. Just first question is circling a bit back to Hans and Ulrik on the remittance potential. You mentioned NOK 1 billion in excess of your group result. Is that amount sort of to smoothen it out over the strategy period, or is there a reason why it's limited to NOK 1 billion? Is that due to more difficulty to get it approved by the authorities? I guess that's the first question.
And the second question is about the securities brokerage platform or the trading platform within Kron, which I guess will complement your offering and be a driver of revenues there. Do you have any timeline for that rollout? Would that be within the strategy period, or should we expect that to be pushed out into the 2030s? Thank you.
I'll start with the first one. Just to be clear on remittance, the NOK 1 billion in excess from the life company, that is contracted by capital we need to grow. So this 100% in total, that is the guidance. So we're clear on that. And then the NOK 1 billion in the life company reflects that the life company is getting more and more capitalized over time. And then we take out this overcapitalization over time in a prudent manner. I think that is how we think about it.
When it comes to the broker platform, I look at the share members in the row here. They also expect that to come quite soon. So I expect we will absolutely start to work with that within the strategy period. Not sure it will be the real driver for results, but I think it will be a very necessary part for a complementary platform for savings altogether to get the growth we expect over the strategy period and beyond to really get the result and the growth from the Kron platform as a fully fledged savings platform.
Thank you, Simon. Would you please pass the microphone forward to Ola?
Okay. Ola Vebø, DNB Carnegie. I just have a few questions on demographics, actually. You mentioned the average age of the Guaranteed policy holder is 64 now. Could you just remind us what is that in Norway?
And also for the closed pension plans that you have sort of taken on these past few years, what is the average age of that pension holder? And since you have hybrid or public sector occupational pensions as well, should we expect the average age of the Guaranteed policy holder to flatten going forward, or should it continue to increase as these people increase? Thank you.
I may start, and you help me, Kjetil, but I think if we look at the chart, that is the paid-up policies in Norway. So that is the average age of 64 years. That's been in a closed book for quite a long time now. So it's an elderly population. And most of the closed book we take in has also quite an elderly population in it. So it's comparable to what we see in the Guaranteed book of business.
Yeah, I think, and to be clear, the illustration in the book is for the total. And what we have seen over the last years is actually that the average age has gone a little bit down. And the reason why it's gone a little bit down is, as you alluded to, that we have taken on some new business. So when you take on, for example, public sector business, the average age of those customers is lower. So they dilute the average age here, but it's business we want. The paid-up policies, I'm thinking it's 66 years, but I'm, yeah, it's nodding. So we're nodding. So 66 years, I think, is the average on the paid-ups.
And in the public sector, I think the age distribution is the same as we have in the population and the workforce altogether and more comparable to what you see in, well, Unit Linked and the Defined Benefit altogether. Yeah, and closed book is more like a paid-up policy type of demographics.
Perfect. So then Norwegian pensioners, they are in retirement on average then, I guess.
On average, they will be in retirement in paid-up policies, yes.
Thank you. Do we have any more questions here among the audience? I think we have Thomas in the back there before Herman in the front.
Yes, good afternoon. Thomas Svendsen from SEB. So first on this pre-tax profit guidance, you exceed your targets in 2025.
So do you think this Kron, do you think it will be front-end loaded or back-end loaded, or should you think a linear growth pattern towards NOK 7 billion? And the second question on non-life insurance, how do you think it will be that easy to grow when you are changing the distribution model towards less acquisition costs? And how comfortable are you with your disability or the reserves on the disability insurance you have already written? Thank you.
Perfect. I'll start on the profit guidance growth of 8%-10%. And the reason why it's 8%-10% is that we don't know what the full year results for this year is. And then you asked about when the growth will come. And here, I think we can go a little bit back to what you talked about just now, Odd Arild, that there is some fluctuation in the alternatives.
We would expect 2027 to be a good growth year. And then we'll be a little bit affected in - no, sorry, 2026. And then 2027 be a little bit affected by the fact that it's no kind of extraordinary coming from alternatives. And then 2028 to be somewhat better again. So I think that is, from what we know now, a reasonable guidance. The rest of the business is quite stable result growth in the period, I think.
On the distribution side in insurance, I can start on that. We don't plan to scale down markedly the distribution, but we plan to add on more internal distribution, partner distribution. And digital distribution. So it's more an add-on rather than a scale down.
And just on the reserving on the - on the disability side. Yeah, on the disability side, we have, of course, worked with that a lot.
You heard about our well practice today that we see good result from and hope to see even better result when we scale it for the whole portfolio. There are some trends now that are a bit positive when it comes to sick leave in the Norwegian market, so it seems like we have at least got to a level that has evened out and not is increasing with the scale we have seen before, and we are, of course, doing a year-by-year view on the different products and portfolios to have the right reservation all the time and feel that we are in the right place for reservations, but of course, you never know. There might be elements, sub-portfolios that need to be strengthened, but we don't have any view on that as we speak.
Thank you.
Thank you, Thomas. I think Herman had a question in the front.
Would you please pass Herman the microphone?
Yes, thank you. Herman Zahl from Pareto Securities. First, I have a question on the profit sharing in Norway, 400 guidance. Since you have built a lot of buffer already over the last year, does that assume sort of flat buffers in the profit sharing portfolios?
I think when you look at, we actually added a slide in the appendix on that. And I think if you look at the expected return and what is needed for profit sharing, it should be a marginal buildup of buffers here. And especially when you go out in time, it can be a substantial number. But then again, trying to predict financial markets out two, three, four years from now is not very wise of me. So I'll just say on an expected basis, there will be a buffer capital buildup.
Okay, thank you. Excellent.
And then just on the insurance or implied insurance financial result, it seems to be 300. And sort of given where you are so far year to date and the growth you target, is it merely interest rates explaining why that isn't higher?
Y eah, I think that's just based on it's invested in low-risk papers with a year credit duration or something like that. So I think that explains it, yes.
Okay, thank you.
Any additional questions? Hans in the front might have an additional question.
I was just wondering, just a follow-up question on Kron and the investments you're making there. In the retail market, I think you used the expression taking your unfair market share in terms of growth. What do you think is your sort of fair or unfair market share in the Own Pension Accounts if you succeed in Kron?
Are you happy at 21%, or do you think that's going to be higher in the period going forward?
I think the starting point with the 28%-30% market share in corporate pension and a stronger position in corporate pension than we used to have and have in the retail market with a bank with a 3% market share. Well, that made us quite happy to see that we were able, with the combination of Kron and our advisors in the bank, to reach the 20% plus market share in this individualized market. Of course, we will build more functionality into Kron. We will work with our agent force and so on to be a really big part of also the individualized pension account market going forward.
But at the level of 20% +, I will say that we are quite satisfied to see what is falling out in that market as we speak.
Thank you.
Thank you, Hans. Would you please pass the microphone backwards?
Yeah, it's funny because my follow-up was also on Kron. I was just wondering how you're in the own funds, you can maybe assume there's a little bit more price competition, actually, in the own pension funds when they select themselves. I was just wondering how you're thinking about Kron cannibalizing your Unit Linked, like the main segment in a way. Is that any concern or talk about like an example would be if you can get a fund or your management cheaper actually in Kron at a certain point in time, then you can, if you just have it, don't move it.
I think the starting point is that we feel that the very best solution for most people is what your corporate actually has bought with the full-fledged portfolios, including private equity, real estate, all the solution around the pension, is a very good solution for most people, but then we see there is absolutely a turn also into Own Pension Accounts, and we have the full solution there. You can have, of course, the risk-free, the better products as such that will be low cost, but they also have this now over time, other type of solutions built into the Kron app, so it's not necessarily a cheaper solution. It can be as good a solution over time as you also see from the corporate schemes.
And you also have to bear in mind that I think when you come into Kron and you have made that choice to withdraw your pension account from your provider, then you have made a choice that is quite sticky. The duration of the assets will be quite high compared to some of the corporates that do tender offerings every five, 10 years or something. So it's a mixed balance, I think, both when it comes to margins and especially when you look at also in combination with the duration.
Yeah, and if you look at the margins for the retail compared to the collective agreements, Ulrik, I think you will find that it's not too different, but it's a slightly higher level in the retail market compared to corporate.
Yeah, but the retail, are you including just Kron or?
Kron and the total pension margin from the individual contracts.
I got it.
Thank you. I'll try to be very brief. Just a clarifying question on the combined ratio target of below 90%. Is that for 2028 or for each year in the period?
Well, on the combined ratio target at or below 90% to be 100% precise, it is the ambition in 2028 that we need to have to deliver the NOK 7 billion. And then you should expect us, as we've said many times now, to approach our 90%-92% target. And there should be a clear trajectory to get to that also during the period. That's how we think about it.
Okay, thank you.
Thank you. Are there any additional questions here? Yes, please go on, Thomas. Just in front of you.
So Thomas Svendsen from SEB again. So back to the bank, it's a quite sharp reduction in margin compared to the run rate.
You posted the non-first month of this year. So is this a reflection of what you see in the market now? So you sort of expect a quite quick reduction in the net interest margin in the bank and then a more rebound to equilibrium level or yeah, when should we expect to see this margin pressure?
Yeah, no, we should expect to see it throughout next year as we see the funding cost right now. But again, as Odd Arild said, we would say it looks a little bit better now than it just looked a couple of weeks ago. So it's a dynamic picture, so we'll see. But we should see it during next year, yes.
Thank you.
Thank you, Thomas. Ola, please go ahead.
Yeah, just a final one from me. It was mentioned that I think 600,000 people have the lowest mandatory savings rate in Norway.
That's 2%. I think the largest labor union in Norway, LO, wants to raise that to 4%. Have you made any scenario analysis on that? Do you know the impact that would be for you?
I think the last time we saw, I think around 40% of our portfolio was still at the lowest level with the 2% savings rate. So around 40% of the, if you had uplift from 2 %- 4%, you can then do the math when it comes to the premiums because 40% of the portfolio will then be uplifted from 2 %- 4% savings rates. 40% of the reserves, you mean?
No, customers, I think 40% of the customers.
It's lower than that on premiums. We have the number, but I honestly don't remember it in my head what the actual uplift will be if we move from 2 %- 4%.
But obviously, a very good tailwind for us if that was to happen.
Yeah, perfect. Thanks.
Thank you, Ola. Just checking if there are any additional questions on Teams or in the room. It seems like it's not, which brings the Capital Markets Day in 2025 to an end. If any additional questions arise, please feel free to contact us by phone or email, and we will get back to you as soon as we can. For those attending here in person today, you are warmly welcome to join the executive management team for refreshments upstairs afterwards. Thank you for joining today. We look forward to seeing you again when we present the fourth quarter results in February. And finally, we would like to wish everyone a wonderful day and happy holidays. Thank you and goodbye.