Group result of NOK 239 million for the first half of 2010 and minus NOK 39
million for 2Q
· Instability in the financial markets produced low level of financial income in
Life and Pensions
· Programme for improving operations ahead of schedule and making positive
contribution to the result
· Increased sales of unit-linked insurance in SPP: new sales increased by 61 per
cent
· Good solvency: solvency margin of 163 per cent for life insurance activities
The Board of Director’s Interim report for first half 2010, 1H 2010 result presentation
and Supplementary Information are attached on http://www.newsweb.no
Storebrand will today host a press and analyst conference in Storebrands head office at
Lysaker, Professor Kohts vei 9, at 1000 CET (in Norwegian). An international conference
call will be hosted at 1400 CET. To participate in the conference call please use link
on http://www.storebrand.no/ir, or call in and register 10 minutes before the
presentation starts. Dial: +47 80080119 (from Norway) or +47 23184501 (from Norway or
abroad).
Full press release:
1H 2010: Good operations – instability in the financial markets impacts quarter’s result
· Group result of NOK 239 million for the first half of 2010 and minus NOK 39
million for 2Q
· Instability in the financial markets produced low level of financial income in
Life and Pensions
· Programme for improving operations ahead of schedule and making positive
contribution to the result
· Increased sales of unit-linked insurance in SPP: new sales increased by 61 per
cent
· Good solvency: solvency margin of 163 per cent for life insurance activities
“In a quarter affected by falls in equity markets, the customers’ return was competitive
and the development of the business areas positive. Improving operations in the Group is
strengthening the quality of the underlying earnings and having a good effect on the
result. The work will continue at full strength,” says CEO Idar Kreutzer.
NOK 3.1 billion to pensions customers
Life and Pensions Norway has allocated NOK 3.1 billion to insurance customers for the
first half of 2010, NOK 336 million of which was profit in excess of the guaranteed
return. The returns in the customer portfolios are competitive, but were negatively
affected by market developments. This meant the result allocated to the owner during the
quarter was charged with the building up of reserves for long life for the first six
months of the year.
The new generation of products without an interest guarantee, defined contribution
pensions and unit-linked, contributed better positive results. In total this produced a
positive result for Life and Pensions Noway in 2Q, despite unstable financial markets
during the period.
The net booked inflow of customer assets to Life and Pensions Noway amounted to NOK 305
million in 2Q and NOK 1.9 billion for the year-to-date. Total new premiums (APE)
amounted to NOK 1.2 billion, NOK 332 million of which came in 2Q.
Strong growth in premiums in SPP
SPP’s sales of unit-linked insurance increased by 61 per cent during the quarter
compared to the same period last year. Total assets increased by NOK 1.5 billion in the
quarter and by NOK 6.1 billion in the first half of 2010. SPP’s result was affected by
negative returns in the equity markets. The market developments made it necessary to
make provisions for a deferred capital contribution, which is charged to the result
allocated to the owner during the quarter. The administration result developed
positively due to the implemented rationalisation measures and a good risk result for
the quarter.
Good new sales in asset management
The volume of net new sales in asset management (external discretionary assets and
mutual funds) was NOK 6.5 billion in 2Q: NOK 5.1 billion in the Norwegian business and
NOK 1.4 billion in the Swedish business. The result in Storebrand Investments developed
positively compared to the same period last year, and was driven by increases in
volume-based income.
Bank’s net interest income improves
Storebrand Bank experienced a positive development compared to the same period last year
due to better net interest income, reduced operating expenses, and lower losses. The
level of losses and defaults in banking is developing well.
Continued growth in P&C
P&C insurance’s result is developing well. The quarter’s result was strengthened by a
good risk result and continued good growth in the business. The combined ratio for the
quarter was 98 per cent. Insurance policy sales in the P&C insurance business remain
good and continued to grow in 2Q. At the close of the period the company had more than
47,500 customers.
Improvements to operations
The Group has established a programme to improve operations associated with the income
and cost sides in which measures and activities are closely monitored. The programme
aims to achieve improvements to operations amounting to NOK 550 million in 2010. The
development in the first half of 2010 was positive and the results from the programme to
improve operations are ahead of schedule. During the period, improvements to operations
of around NOK 270 million were achieved compared to the same period last year. The
improvement is due to cost reducing measures, growth in customer assets, and
income-related measures.
Capital situation
The Storebrand Group was in a sound financial position at the close of the quarter. The
solvency margin of the Storebrand Life Insurance Group (Life and Pensions Norway and
Life and Pensions Sweden) at the close of 2Q was 163 per cent.
The bank’s core (tier 1) capital ratio was 10.4 per cent at the close of the quarter.
.
Lysaker, 15 July 2010
Contact persons:
EVP Corporate Communications Egil Thompson: Mobile (+47) 93 48 00 12
Head of Investor Relations Trond Finn Eriksen: Mobile (+47) 99 16 41 35
Enclosure: The Board’s Interim report first half 2010
The Storebrand Group is a leading actor in the Nordic market for life insurance,
pensions and long-term savings. The Group consists of the following business areas: life
insurance, asset management, banking, and P&C and health insurance.
This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian
Securities Trading Act)
HUG#1431804
Q2 2010 STB Interim report http://hugin.info/169/R/1431804/378088.pdf
Q2 2010 STB presentation http://hugin.info/169/R/1431804/378089.pdf
Q2 2010 STB Supplementary information http://hugin.info/169/R/1431804/378090.pdf
