Länsförsäkringar Alliance: 2016 Annual review in summary
2016 in brief (Figures in parentheses pertain to the full-year 2015):
- Operating profit for the Länsförsäkringar Alliance’s non-life insurance operations strengthened to SEK 4,724 M (4,365). Premiums earned after ceded reinsurance rose to SEK 24,074 M (22,705).
- The technical result in the Länsförsäkringar Alliance’s non-life insurance operations amounted to SEK 1,808 M (2,700). The combined ratio amounted to 95% (91).
- Investment income in the Länsförsäkringar Alliance increased to SEK 5,030 M (3,794).
- Operating profit for the Bank Group increased to SEK 1,467 M (1,175). Net interest income strengthened to SEK 3,455 M (2,994).
- Operating profit for Länsförsäkringar Fondliv amounted to SEK 512 M (516). Premium income amounted to SEK 8,637 (8,645). Commission income was SEK 1,412 M (1,384).
- Operating profit for Länsförsäkringar Liv amounted to SEK 2,728 M (5,104).
Comments from Johan Agerman, President of Länsförsäkringar AB,
The Länsförsäkringar Alliance´s jointly owned company:
As the new President of Länsförsäkringar AB, I am looking forward to being involved in developing Länsförsäkringar. We will do this from a position of strength, backed by strong earnings and healthy growth. With satisfied customers and a strong brand.
The Länsförsäkringar Alliance is reporting strong earnings for 2016: operating profit for the non-life insurance operations strengthened to SEK 4.7 billion, and premium volumes increased 6% to SEK 24 billion. Both the private and commercial segment contributed to robust growth, primarily from home, motor and commercial insurance. Health care insurance and Agria also continued to contribute a healthy volume trend, with Agria opening yet another branch during the year, this time in Finland.
Strong investment income contributed to high operating profit, while increased claims costs primarily for fires and motor insurance claims impacted the technical result. The claims ratio was 75. Based on these healthy profits, the regional insurance companies will pay back at least SEK 800 M in bonuses. The bank’s profit increased by 25% year-on-year, driven by lower refinancing costs and continued strong growth, while retaining high credit quality and a well-diversified geographic spread in Sweden. Our unit-linked life assurance company is now Sweden’s leading pension insurance company for individual occupational pensions, managing assets of SEK 114 billion. We reduced our fund fees for equity funds in September to create even better value for our customers.
In addition to our healthy results and strong growth, we also saw proof this year that our customers appreciate our efforts – according to the Swedish Quality Index we have the most satisfied customers in banking, non-life insurance, pension insurance and real-estate brokerage. Another pleasing achievement is that the Swedish Sustainability Ranking revealed that the Swedish public rank Länsförsäkringar as number one for sustainability in banking, pension and insurance. Long-term sustainability is a central part of our operations and we work continuously on sustainability issues, such as responsible investments - we launched our new sustainability fund Länsförsäkringar Global Hållbar in October.
The Länsförsäkringar Alliance is not a Group in the legal or practical sense of the term, but an alliance between 23 independent regional insurance companies that jointly own Länsförsäkringar AB. Earnings from the Länsförsäkringar Alliance’s non-life insurance operations consist of the total earnings of the 23 regional insurance companies and the Länsförsäkringar AB Group, excluding life assurance and bank.
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.