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4Q 2010: Good value creation


February 16, 2011 - London

  • Group result of NOK 664 million for 4Q and NOK 1,608 million for the full year
  • Result effects from operational improvement programme exceeding targets
  • Buffer capital strengthened by NOK 2.9 billion in 4Q and NOK 5.5 billion for the full year
  • Good financial position: solvency margin of 164 per cent for life insurance activities
  • Dividend of NOK 1.10 per share

 

The Board of Director's Interim report for Q4 2010, Q4 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 1500 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:

 

4Q 2010: Good value creation

 

  • Group result of NOK 664 million for 4Q and NOK 1,608 million for the full year
  • Result effects from operational improvement programme exceeding targets
  • Buffer capital strengthened by NOK 2.9 billion in 4Q and NOK 5.5 billion for the full year
  • Good financial position: solvency margin of 164 per cent for life insurance activities
  • Dividend of NOK 1.10 per share

 

"The result for the quarter is characterised by good value creation for customers and owners. The operational improvement programme is exceeding targets and increases the quality of earnings. The balance sheet is strengthened through building of customer buffers, and there is a sound basis for resuming payment of dividends" says CEO Idar Kreutzer.

 

NOK 7.1 billion to pensions customers
Life and Pensions Norway allocated NOK 7.1 billion to its pension customers in 2010, of which NOK 1.5 billion in excess of the interest guarantee. The operational improvements programme continues and produced a positive administration result for the quarter and for the year. The customers' buffer capital was strengthened by NOK 1.4 billion during the quarter and with NOK 2.7 billion in 2010.

 

Net transfer balance to Storebrand Life Insurance amounted to NOK 298 million in 4Q and NOK 1,857 million for the full year. Premium income from unit linked insurance increased by 11 per cent in 2010 and now amounts to 22 per cent of total premium income.

 

Strong sales in SPP
The result in the Swedish life insurance business is influenced by positive administration and financial results. Increased interest rates will strengthen the basis for earnings in the business. The customers' buffer was strengthened by NOK 1.5 billion in the quarter, and with NOK 2.8 billion in 2010.

 

SPP's premium income from unit linked insurance continued growing in 2010 and the proportion from unit linked premiums exceeded premium income from guaranteed business for the first time. New sales within unit linked insurance increased compared to last year and account for 67 per cent of total new sales. Total new sales measured in APE for 2010 amounted to NOK 1,021 million for SPP.

 

Good growth in asset management
The asset management business developed well in the quarter with further improvements to the operating result. The volume of net new sales in asset management (external discretionary assets and mutual funds) was NOK 8 billion in 4Q: NOK 5.2 billion in the Norwegian business and NOK 2.9 billion in the Swedish business. Net new sales during the year amounted to NOK 13.5 billion.

 

Improvement for the bank
Storebrand Bank delivered a substantially improved result than last year. The primary reasons being increased net interest income and operational improvements.

 

P&C and Health insurance continues to grow
The result from insurance operations was positive for the year as a whole, but affected by extraordinarily high frost and water damages in the first quarter of the year.
At the close of the period the P&C Company had 51,400 customers and 154,100 insurance contracts. The proportion of sales via direct channels grew during the period and direct distribution now accounts for more than 82 per cent of the annual premium.

 

Capital situation
The Storebrand Group is in a sound financial position at the start of 2011. The solvency margin of the Storebrand Life Insurance Group (Life and Pensions Norway and Life and Pensions Sweden) was 164 per cent.

 

Based on the current dividend policy, satisfactory results and a good financial position, the Board recommends a dividend of NOK 1.10 per share for 2010.

 

 

Lysaker, 16 February 2011

 

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: Board's Interim Report for 4Q 2010

 

 

 

The Storebrand Group is a leading company 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, banking, and P&C and health insurance.

 

 

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

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