Strong growth in Embedded Value in 2009
(Thomson Reuters ONE) -
* Embedded value increased by NOK 5.4 billion to NOK 28.5 billion.
* Return of 30% on opening embedded value as a result of sound operations and
positive development in financial markets.
* Value of new business represented NOK 421 million in 2009.
* Trend towards increased proportional value of non-guaranteed business.
* Group embedded value of NOK 68.2 per share.
About embedded value
Embedded value (EV) is an actuarially determined estimate of the value of the
company excluding any value attributable to future new business. The calculation
of embedded value involves a number of assumptions with respect to the business,
operating, and economic conditions, and other factors, some of which are
determined by financial markets.
Storebrand publishes a EV report containing more detailed information. The EV
report is prepared using a market consistent methodology (MCEV).
Result development in 2009
Operations and new business has resulted in a positive contribution of NOK 2.2
billion to Storebrand's EV result in 2009.
Investment returns above expectations gave a good result for 2009. Increased
buffer capital and higher interest rates give higher expected future earnings.
In total, economic variances contribute positively in the order of NOK 4.3
billion.
Value of new business
The value of new business written in 2009 is NOK 421 million. Sales have been
positive in both the Norwegian and Swedish life business with new sales of NOK
1,026 million and NOK 670 million respectively measured as APE[1]. For the
Norwegian business the value of new business is NOK 348 million.
The Swedish business has seen a shift in the value of new business in 2009, and
it now has a positive effect on EV. This is mainly due to increased sales
volumes, changes in terms and an improved model for cost allocation.
Unit linked products represent an increasing share of new business, and
represented 65% of the value of new business in 2009. Unit linked products now
represent 34% of the total value of in-force at the close of 2009, up from 22%
last year.
Other
Storebrand will today hold a press and analyst conference at Storebrand's
headquarters at Lysaker, Professor Kohtsvei 9, at 10.00 CET.
An international conference call will be held at 15.00 CET. To participate in
the call, please register using the link atwww.storebrand.no/ir
register. Please call (+47) 80080119 (from Norway) or (+47) 23184501 (from
Norway or abroad).
The MCEV presentation and disclosure document is available at
http://www.newsweb.no
These documents will also be available atwww.storebrand.no
Lysaker, 3 March 2010
Contact people:
EVP Corporate Communications Egil Thompson: Mobile (+47) 93 48 00 12
Head of Investor Relations Trond Finn Eriksen: Mobile (+47) 99 16 41 35
--------------------------------------------------------------------------------
[1] APE - Annual Premium Equivalent
This information is subject of the disclosure requirements acc. to §5-12 vphl
(Norwegian Securities Trading Act)
[HUG#1390360]
STB_MCEV_Presentation: http://hugin.info/169/R/1390360/348379.pdf
STB_MCEV_Disclosure: http://hugin.info/169/R/1390360/348377.pdf
Unternehmensinformation / Kurzprofil:
Datum: 03.03.2010 - 07:31 Uhr
Sprache: Deutsch
News-ID 13081
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contact information:
Town:
Oslo
Kategorie:
Business News
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"Strong growth in Embedded Value in 2009"
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