1H 2010: Good operations - instability in the financial markets impacts quarter's result
(Thomson Reuters ONE) -
· 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
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
Unternehmensinformation / Kurzprofil:
Datum: 15.07.2010 - 07:31 Uhr
Sprache: Deutsch
News-ID 23926
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Town:
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Kategorie:
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