Länsförsäkringar Alliance: Interim Review January–September 2016
(Figures in parentheses pertain to January-September 2015)
- Operating profit for the Länsförsäkringar Alliance’s non-life insurance operations strengthened to SEK 3,645 M (2,727). Premiums earned after ceded reinsurance rose to SEK 17,933 M (16,882).
- The technical result in the Länsförsäkringar Alliance’s non-life insurance operations amounted to SEK 1,177 M (1,897). The combined ratio amounted to 96% (92).
- Investment income in the Länsförsäkringar Alliance increased to SEK 3,405 M (1,605).
- Operating profit for the Bank Group improved to SEK 1,077 M (863). Net interest income strengthened to SEK 2,513 M (2,189).
- Operating profit for Länsförsäkringar Fondliv amounted to SEK 385 M (414). Premium income amounted to SEK 6,465 (6,620). Commission income was SEK 1,034 M (1,042).
- Operating profit for Länsförsäkringar Liv increased to SEK 2,156 M (1,590).
“The Länsförsäkringar Alliance is continuing its positive performance in terms of both earnings and business volumes. Premium volumes in non-life insurance increased 6% to SEK 18 billion. Both the private and commercial segment contributed to robust growth, primarily from home, motor and commercial insurance. Agria and health care insurance are also continuing to contribute a healthy volume trend. Increased investment income contributed to operating profit, whilst higher claims costs primarily from fires and motor insurance claims impacted the technical result.
Growth and the customer inflow for the bank is continuing, with sustained high credit quality and a well-diversified geographic spread. During the period, our share of market growth in household lending was greater than our market share. The stock market generally recovered relatively quickly following initial market unrest in the wake of the Brexit vote.
This contributed to a favourable trend in managed assets in unit-linked insurance in the quarter, even though the earnings trend was slightly weaker year-on-year.
Within Länsförsäkringar Alliance we continue our focus on risk management under Solvency II. In addition, Länsförsäkringar AB Group bases its business model and risk management on its partial internal model used for the calculation of Solvency II capital requirements, which was approved by the Swedish Financial Supervisory Authority in May.
Our digital ventures are continuing at full strength and we launched new “My pages” for customers in the quarter. Gratifyingly, we are continuing to top reputation and customer satisfaction surveys. We have Sweden’s most satisfied retail bank customers for the third consecutive year according to the Swedish Quality Index,” says Sten Dunér, President Länsförsäkringar AB.
For further information, please contact:
Sten Dunér, President Länsförsäkringar AB, +46 8-588 411 15,
+46 73-964 11 15, email@example.com
Malin Rylander Leijon, CFO Länsförsäkringar AB, +46 8-588 408 64,
+46 73-964 08 64, firstname.lastname@example.org
Fanny Wallér, Director of Communications Länsförsäkringar AB, +46 8-588 414 69,
+46 70-692 77 79, email@example.com
Anna Glennmar, Investor Relations, Länsförsäkringar AB,
+468-588 417 42, +4672-141 44 08, firstname.lastname@example.org
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.