Interim Report January-June 2017
January-June 2017 compared with January-June 2016:
- The Group’s operating profit increased to SEK 1,497 M (1,115), including a positive non-recurring item of SEK 260 M in the first quarter. The return on equity amounted to 12% (10).
- Operating profit for the non-life insurance operations increased to SEK 624 M (318), of which SEK 260 M comprised remuneration for the transferred accident and health insurance business to the regional insurance companies. Premiums earned after ceded reinsurance rose to SEK 2,787 M (2,630). The combined ratio amounted to 93% (92).
- Operating profit for the Bank Group increased to SEK 737 M (697). Net interest income strengthened to SEK 1,911 M (1,618).
- Operating profit for Länsförsäkringar Fondliv increased to SEK 290 M (249). Premium income rose to SEK 4,751 M (4,394). Commission income increased to SEK 805 M (698).
Comments from Johan Agerman, President and CEO of Länsförsäkringar AB:
We are pleased with the strong earnings for the Länsförsäkringar AB Group for the first six months of 2017. Operating profit increased to SEK 1.5 billion, partly due to remuneration for the accident and health insurance business that was transferred from Länsförsäkringar Sak to the regional insurance companies. Even excluding this remuneration, underlying operating profit increased by more than 10% compared with the first six months of 2016.
Healthy growth continued in all business areas. The banking operations’ growth share was larger than its market share in the mortgage market. The bank´s deposits and lending rose 11% and 14%, respectively. Premiums earned in the non-life insurance operations increased 6%. The conditions for maintaining healthy growth are positive since Agria will establish operations in France in 2018 in a partnership with the French Kennel Club. Agria also launched 423 customised dog insurance policies based on our expertise in various dog breeds. Premium income for the unit-linked insurance operations rose 8% and managed assets increased to SEK 122 billion. We expanded our fund range by about 30 new funds from several different fund companies during the first six months of 2017.
Länsförsäkringar attended the political week in Almedalen to promote social issues that are important to us and our customers. Climate issues were included in several of the seminars we held since sustainability is a central part of our operations. We are very pleased that our “Global Hållbar” sustainability fund was given the green light by Söderberg & Partners and placed in its Swedish top ten list.
We continue to receive confirmation that our customers appreciate what we do – Länsförsäkringar won ServiceScore for the best service in the insurance sector, Länsförsäkringar Fastighetsförmedling once again topped the Swedish Quality Index’s customer satisfaction survey and more and more customers are using the “savings navigator” function in our bank app. The Länsförsäkringar website was redesigned in June and we hope that it will create even better customer experiences.
For further information, please contact:
Johan Agerman, President and CEO Länsförsäkringar AB
email@example.com, 08-588 418 02, 070-348 93 50
Malin Rylander Leijon, CFO Länsförsäkringar AB
firstname.lastname@example.org, 08-588 408 64, 073-964 08 64
Anna Glennmar, Investor Relations Länsförsäkringar AB
email@example.com, 08-588 417 42, 072-141 44 08
Fanny Wallér, Director of Corporate Communications Länsförsäkringar AB
firstname.lastname@example.org, 08-588 414 69, 070-692 77 79
The Länsförsäkringar Alliance comprises 23 local and customer-owned regional insurance companies and the jointly owned Länsförsäkringar AB. Customers are provided with a complete offering of banking and insurance services through their local, regional insurance companies. We offer animal and crop insurance through Agria Djurförsäkring and total solutions for reliable mortgage transactions are offered through Länsförsäkringar Fastighetsförmedling.