Storebrand ASA : 3Q 2011: Turbulent markets - Stable operations
(Thomson Reuters ONE) -
* Group result of NOK 1,004 million year-to-date and minus NOK 52 million for
3Q
* Result affected by unstable financial markets and fall in assets under
management
* Solvency sustained in the quarter: solvency margin of 165 per cent for life
and pensions
The Board of Director's Interim report for 3Q 2011, 3Q 2011 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:
3Q 2011: Turbulent markets - Stable operations
* Group result of NOK 1,004 million year-to-date and minus NOK 52 million for
3Q
* Result affected by unstable financial markets and fall in assets under
management
* Solvency sustained in the quarter: solvency margin of 165 per cent for life
and pensions
"In a weak financial market, we have delivered competitive returns for the
pension customers in Norway and Sweden. The instability in the market weakened
earnings in the quarter, but the systematic building of buffer capital in
healthy markets, gives the Group a solid financial position," says Idar
Kreutzer.
5.2 billion to life customers
The return in Storebrand Life Insurance was sufficient to cover the average
interest guarantee in all customer portfolios during the quarter. In addition to
this, undistributed profits of NOK 0.9 billion have been earned for the
customers year-to-date, in addition to the interest rate guarantee.
The quarter's financial result was affected by the instability in the markets,
and the owner having to cover parts of the longevity reservation year-to-date.
So far this year, the result has been charged NOK 162 million due to the build
up of these reserves. The risk results have improved and are developing as
expected.
Reduced financial result and improved operations in SPP
The steep decline in the equity markets contributed to a weak financial result,
reduced profit sharing between customers and the owner, and lower customer funds
in SPP. The underlying operations are good and cost development is according to
plan. The risk results are stabilising on good levels.
Premium income was affected by the reduction in guaranteed business, while
premium income from unit linked insurance continues to increase in the Swedish
business. The market share for new sales in the competitive market for unit
linked insurance increased to 14.4 per cent in the quarter.
Market turmoil affecting asset management
Asset management's result improved by NOK 4 million in the quarter and by NOK
38 million year-to-date compared with the same period last year. Costs levelled
out and income experienced a positive trend in the quarter. The fall in the
equity market resulted in reduced assets under management and lower volume-based
fees going forward.
Result growth in Insurance
Insurance has experienced an improvement of NOK 99 million in its result year-
to-date, compared with last year. The unit contains the areas P&C and health
insurance, as well as personal risk and employee cover. The claims ratio is
lower than in the same period last year, and costs are developing well in the
business area.
Bank stable
Storebrand Bank's efforts in the retail market have resulted in a higher number
of active customers and better volume growth. The improvement in the result
compared with the same period last year was due to increase in other income and
low losses. At the same time, the market is still characterised by a high degree
of competition and low margins for mortgages.
Good solvency
The Storebrand Group's solvency at the close of the quarter was good. The
Storebrand Life Insurance Group's (Storebrand Life Insurance and SPP) solvency
margin was 165 per cent. The solvency margin was positively affected by 5
percentage points due to a change in the way real estate is treated in
calculations.
In solvency calculations in Sweden, insurance liabilities are discounted by a
market interest rate. Interest rates fell markedly in Sweden in 3Q and the
degree of volatility was unusually high. This resulted in the insurance
liabilities in the solvency accounts rising and the solvency ratio decreasing.
It was decided to strengthen the SPP Group's capital to ensure a robust solvency
ratio in this unstable market situation. During the quarter Storebrand ASA
provided SPP with a NOK 0.9 billion capital injection. At the close of the
quarter, SPP's solvency ratio was 128 per cent. This had increased to 147 per
cent as per 25 October.
Lysaker, 26 October 2011
Contacts:
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: Board's Interim Report for 3Q 2011
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 and pensions, asset management, bank, and insurance.
This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
STB Q3 2011 Analyst presentation:
http://hugin.info/169/R/1557899/481112.pdf
Storebrand Q3 2011 interim report:
http://hugin.info/169/R/1557899/481113.pdf
Storebrand Q3 2011 Supplementary information:
http://hugin.info/169/R/1557899/481114.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
[HUG#1557899]
Unternehmensinformation / Kurzprofil:
Datum: 26.10.2011 - 07:30 Uhr
Sprache: Deutsch
News-ID 80212
Anzahl Zeichen: 7060
contact information:
Town:
Oslo
Kategorie:
Business News
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