Storebrand ASA: New mortality tables
(Thomson Reuters ONE) -
Finanstilsynet[1] has decided new mortality tables for group pensions insurance,
to be applied by life insurance companies and pension funds with effect from
1.1.2014. The tables requires higher premiums and higher technical provisions to
cover for future obligations.
The new mortality tables increase longevity provisions considerably. A
reservation period for up to five years, starting 2014, is recommended by
Finanstilsynet. Finanstilsynet allows for surplus investment returns to cover
the increased provision requirements, provided that "at least 20 percent of the
total reservation need is covered by the pension providers."
Implications for Storebrand
The total reservation need for group pensions are estimated to be about 11.5
billion for Storebrand (approximately 8 percent of the premium reserves).
Owner's contribution is expected to be 20 percent. Loss of profit sharing from
paid-up policies will be part of owner's contribution. The total contribution
from the owner is expected to amount to about 2.3 billion including loss of
profit sharing.
Storebrand has, in the period from 2011 to 2012, set aside 4.3 billion to cover
for the new mortality tables. From 2013 onwards, all surplus return from group
pensions and paid-up policies portfolios will be used for longevity reservation.
Storebrand has other buffers that may be used to ensure sufficient returns to
cover the buildup of reserves.
Storebrand do not expect any immediate effect on reported IFRS accounts.
About the mortality tables from Finanstilsynet
Finanstilsynet has based the new mortality tables on the following:
· Finance Norway's proposal for mortality in 2013, plus 12 percent safety margin
· Drop in mortality corresponding to Statistics Norway "middle alternative",
plus 10 percent safety margin
· High safety margins for increased mortality related to widows and orphans
insurance
Finanstilsynet has based their proposal for reservation needs and reservation
periods on existing regulations. Accordingly, they have not taken into
consideration the Banking Law Commission's proposal for new rules for step-up
plans and more flexible use of buffers.
Storebrand's view
The mortality tables are more stringent than expected. It is added safety
margins both at current mortality rates and at expected changes in mortality. In
addition, the tables include high safety margins for widows and orphans
insurance. Widows and orphans insurance will in Storebrand's opinion have no
need for additional safety margins.
Further process
Finance Norway will on behalf of the industry present their input to
Finanstilsynet to clarify interpretation issues related to the received letter
as well as propose a practical implementation plan.
Lysaker, 11 March 2013
Contacts
Geir Holmgren
Managing Director Storebrand Life Insurance, mob +47 934 80 034
Elin Myrmel-Johansen
Director of Communications, mob +47 934 80 538
Trond Finn Eriksen
Head of Investor Relations, mob +47 991 64 135
--------------------------------------------------------------------------------
[1] Norwegian FSA (Financial Services Authority)
This information is subject of the disclosure requirements acc. to §5-12 vphl
(Norwegian Securities Trading Act)
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Storebrand ASA via Thomson Reuters ONE
[HUG#1684176]
Unternehmensinformation / Kurzprofil:
Datum: 11.03.2013 - 07:01 Uhr
Sprache: Deutsch
News-ID 237787
Anzahl Zeichen: 4228
contact information:
Town:
Oslo
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 195 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Storebrand ASA: New mortality tables"
steht unter der journalistisch-redaktionellen Verantwortung von
Storebrand ASA (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
