Länsförsäkringar AB: Interim Report January-March 2017
First quarter of 2017 compared with first quarter of 2016:
- The Group’s operating profit increased to SEK 826 M (537), including a positive non-recurring item of SEK 260 M. The return on equity amounted to 12% (9).
- Operating profit for the non-life insurance operations increased to SEK 428 M (172), positively impacted by SEK 260 M in remuneration from the regional insurance companies for the transferred accident and health insurance business. Premiums earned after ceded reinsurance rose to SEK 1,373 M (1,297). The combined ratio amounted to 90% (89).
- Operating profit for the Bank Group increased to SEK 353 M (341). Net interest income strengthened to SEK 940 M (791).
- Operating profit for Länsförsäkringar Fondliv increased to SEK 136 M (118). Premium income rose to SEK 2,462 M (2,297). Commission income increased to SEK 388 M (343).
- Net sales for the Parent Company increased to SEK 676 M (642).
Comments from Johan Agerman, President of Länsförsäkringar AB:
The Länsförsäkringar AB Group reports stable earnings for the first quarter of 2017. Operating profit increased to SEK 826 M and was positively impacted by remuneration for the accident and health insurance business that was transferred from Länsförsäkringar Sak to the regional insurance companies. The underlying operating profit totalled SEK 566 M. Business volumes continued to increase at a stable rate in all business areas. In the non-life insurance operations premiums earned increased by 6%. In the banking operations, deposits and lending rose 9% and 13%, respectively. Managed assets in the unit-linked insurance operations increased to SEK 120 billion, mainly driven by a favourable value growth trend but also a stable inflow of premiums. We work continuously on developing our fund range and launched some ten new funds during the quarter from various fund companies in a new, expanded fund offering.
We won the Web Service Award for “Best Mobile Site and App” for our digital services. We launched a new function in the bank app – a digital guide for better savings – and initiated a partnership with Wrapp.
During the quarter, we introduced a programme for ensuring a sustainable IT environment based on increased investments in digital development, in order to offer the best customer experience and eliminate greater threats from cyber risks.
Länsförsäkringar pursues long-term sustainability activities, for example, gradually increasing climate-smart investments and actively influencing the companies it invests in to reduce their climate risks. Länsförsäkringar continued to phase out non-sustainable investments in fossil-fuel companies during the first quarter by excluding companies that generate more than 20% of their sales from coal.
For further information, please contact:
Johan Agerman, President Länsförsäkringar AB
firstname.lastname@example.org, 08-588 418 02, 070-348 93 50
Malin Rylander Leijon, CFO Länsförsäkringar AB
email@example.com, 08-588 408 64, 073-964 08 64
Anna Glennmar, Investor Relations Länsförsäkringar AB
firstname.lastname@example.org, 08-588 417 42, 072-141 44 08
Fanny Wallér, Director of Corporate Communications Länsförsäkringar AB
email@example.com, 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.